 "Vikram Bakshi decides on arbitrator for dispute with McDonald's")
The estranged Indian partner of US food major McDonald's, Vikram Bakshi, has decided on his arbitrator for settling the dispute at the London Court of International Arbitration (LCIA).
According to sources, Bakshi has nominated former Delhi High Court judge, Justice J K Mehra to represent his side in the arbitral panel.
In an arbitration case, both the sides have to nominate a person and then third arbitrator is appointed to form a panel.
Bakshi had a deadline of December 28 to nominate a person before LCIA. He sought a stay over McDonald's move to approach the global forum, from the Company Law Board, where the dispute is pending.
The US food major had already moved an application under section 45 of the Arbitration and Conciliation Act before it seeking an arbitration, Bakshi had contended.
However, CLB held that "there is no prohibition" against McDonald's approaching LCIA while section 45 application is pending before it.
"I, hereby, hold that this bench could not grant stay over the proceedings initiated before the arbitral authorities," said CLB in its order dated December 30.
CLB added that since the petition has been pending before it "the issue covered under section 45 of the the Arbitration and Conciliation Act will be decided after hearing the submissions".
It said: "The only power conferred upon Indian judicial authority...Is to declare arbitration clauses as null and void before making a reference as claimed under that section, if it is so, but not to stay the arbitration proceeding already initiated before ICLA."
The next CLB hearing is on January 30.
On September 16, the CLB had directed to maintain status quo with respect to shareholding and board pattern and the right of the call option until its further order.
Incorporated in June 1995, CPRL is a 50:50 joint venture between McDonald's Corporation and Vikram Bakshi and it has been running fast food outlets in North and East India.
In a public notice on August 30, McDonald's India said: "Vikram Bakshi has ceased to be the Managing Director of Connaught Plaza Restaurants Ltd (CPRL) pursuant to expiration of Bakshi's term on July 17.
According to sources, Bakshi has nominated former Delhi High Court judge, Justice J K Mehra to represent his side in the arbitral panel.
In an arbitration case, both the sides have to nominate a person and then third arbitrator is appointed to form a panel.
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McDonald's had on November 28 terminated its joint venture agreement with Bakshi by sending a notice, and moved the LCIA to settle dispute.
Bakshi had a deadline of December 28 to nominate a person before LCIA. He sought a stay over McDonald's move to approach the global forum, from the Company Law Board, where the dispute is pending.
The US food major had already moved an application under section 45 of the Arbitration and Conciliation Act before it seeking an arbitration, Bakshi had contended.
However, CLB held that "there is no prohibition" against McDonald's approaching LCIA while section 45 application is pending before it.
"I, hereby, hold that this bench could not grant stay over the proceedings initiated before the arbitral authorities," said CLB in its order dated December 30.
CLB added that since the petition has been pending before it "the issue covered under section 45 of the the Arbitration and Conciliation Act will be decided after hearing the submissions".
It said: "The only power conferred upon Indian judicial authority...Is to declare arbitration clauses as null and void before making a reference as claimed under that section, if it is so, but not to stay the arbitration proceeding already initiated before ICLA."
The next CLB hearing is on January 30.
On September 16, the CLB had directed to maintain status quo with respect to shareholding and board pattern and the right of the call option until its further order.
Incorporated in June 1995, CPRL is a 50:50 joint venture between McDonald's Corporation and Vikram Bakshi and it has been running fast food outlets in North and East India.
In a public notice on August 30, McDonald's India said: "Vikram Bakshi has ceased to be the Managing Director of Connaught Plaza Restaurants Ltd (CPRL) pursuant to expiration of Bakshi's term on July 17.