 "McDonald's breached CLB's interim order, says Vikram Bakshi lawyer")
The counsel of Vikram Bakshi, the joint venture (JV) partner of American fast-food chain McDonald’s in north and east India, on Tuesday told the Company Law Board (CLB) McDonald’s had breached CLB’s interim order by referring arbitration on the dispute between the company and Bakshi to the London Court of International Arbitration.
The lawyer argued the company had been trying to oust Bakshi from the venture in various ways since 2008, adding this was part of the company’s strategy to force Bakshi to sell equity at low valuation.
CLB will take up the matter again on Wednesday.
On Monday, lawyers of McDonald’s told CLB the company could seek reference for arbitration, as the law didn’t prohibit this, even if an appeal regarding the matter was pending in a different court. McDonald’s had sent a notice regarding a dispute with Bakshi to the London Court of International Arbitration, about three months before it published a public notice announcing the end of Bakshi’s term as managing director of Connaught Plaza Restaurants Pvt Ltd, the joint venture.
In his application before CLB, Bakshi’s counsel stated the termination notice was ex facie untenable. The application added the termination notice interfered with the course of CLB’s judicial proceedings and was liable to struck down by CLB.
In his application, Bakshi requested CLB to pass an order directing the initiation of proceedings against McDonald’s for willful and intentional contempt. Earlier, Bakshi had said the attempt by McDonald’s to terminate its agreement with him was illegal and not binding, adding it would have no bearing on the shareholding pattern (the partners hold 50 per cent each), board composition (both sides have two nominees) and the working of the company.
The lawyer argued the company had been trying to oust Bakshi from the venture in various ways since 2008, adding this was part of the company’s strategy to force Bakshi to sell equity at low valuation.
CLB will take up the matter again on Wednesday.
On Monday, lawyers of McDonald’s told CLB the company could seek reference for arbitration, as the law didn’t prohibit this, even if an appeal regarding the matter was pending in a different court. McDonald’s had sent a notice regarding a dispute with Bakshi to the London Court of International Arbitration, about three months before it published a public notice announcing the end of Bakshi’s term as managing director of Connaught Plaza Restaurants Pvt Ltd, the joint venture.
In his application before CLB, Bakshi’s counsel stated the termination notice was ex facie untenable. The application added the termination notice interfered with the course of CLB’s judicial proceedings and was liable to struck down by CLB.
In his application, Bakshi requested CLB to pass an order directing the initiation of proceedings against McDonald’s for willful and intentional contempt. Earlier, Bakshi had said the attempt by McDonald’s to terminate its agreement with him was illegal and not binding, adding it would have no bearing on the shareholding pattern (the partners hold 50 per cent each), board composition (both sides have two nominees) and the working of the company.