Vikram Bakshi Rejoins As MD Of CRPL Post NCLT Ruling
In a major development, The National Company Law Tribunal reinstated Vikram Bakshi as the Managing Director of Connaught Plaza Restaurants
In a major development, The National Company Law Tribunal reinstated Vikram Bakshi as the Managing Director of Connaught Plaza Restaurants. It’s a joint venture between Vikram Bakshi and McDonald’s Corp which run fast food chain McDonald’s in India.
In its ruling passed yesterday, Thursday, July 13, Chief Justice MM Kumar held that all steps taken in pursuance of non-election of Vikram Bakshi as Manging Director are illegal, unlawful, unjust and malicious.
The order stated that he shall continue to act as Managing Director of Connaught Plaza Restaurants (CPRL) subject to the passing of any resolution under the chairmanship of the administer.
Reacting to the development, McDonalds India said that they respect the decision of the NCLT and they are examining the judgement and exploring legal options in the matter.
It can be recalled that earlier this month, McDonald's shuts down 43 of the total 55 outlets here due to failure to renew eating house licences. Bakshi, an equal joint venture partner of McDonald's India (MIPL) in Connaught Plaza Restaurants Ltd (CPRL), the licensee for North and East India regions, said licences had expired on March 31.
After this development, there are chances of reopening the restaurants anytime soon. This is the first priority for CPRL to get everything back on track. More than 43 McDonald’s restaurants are not operating for two weeks now. All the leading restaurants posted a circular outside their outlets which read, “Due to unavoidable circumstances the operations of this McDonald’s restaurant stands suspended until further notice.”