Estranged Partner Vikram Bakshi Back At McDonald’s Franchise
NCLT calls proceedings at board meeting which led to Bakshi’s ouster ‘’illegal, unjust and malafide’’.
The National Company Laws Tribunal (NCLT) on Thursday reinstated Vikram Bakshi as the managing director of Connaught Plaza Restaurants Ltd., the joint venture which owns the McDonald’s restaurant chain in India.
In its judgement, the NCLT set aside the August 2013 board meeting which led to Bakshi’s ouster, calling the proceedings ''illegal, unjust and malafide''. The bench headed by Justice MM Kumar and SK Mohapatara said it was an “acute act of oppression' which was also 'against the interest of Connaught Plaza and detrimental to public interest”.
Given the 50:50 partnership structure of the joint venture, the tribunal has appointed (retd.) Justice GS Singhvi to act as a neutral administrator in the company with power to vote. Bakshi will continue as managing director ''subject to the passing of any resolution under the chairmanship of the learned administrator,” the NCLT order said.
McDonald’s will also have to pay him Rs 10 lakh.
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The Connaught Plaza Restaurants Ltd. was a joint venture between Vikram Bakshi/Bakshi Holdings and McDonald’s. Bakshi was the managing director since its inception in 1995 until 2013 when he was removed from his post. It was against this removal that Bakshi had approached the tribunal.
In his petition to the NCLT, Bakshi said he had worked relentlessly to ensure growth and development of the business since 1995 but attempts to remove him began from 2007-2008.
McDonald’s India and McDonald Corporation USA developed ulterior motive to get rid of the petitioners from Connaught Plaza since the time it started showing signs of moving towards profitability.Bakshi’s Petition Before NCLT
McDonald’s had, in turn, alleged unauthorised withdrawal of money, breach of non-compete and his failure to spend his time for performance of obligations under the JV as among the reasons for his removal.
