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US food major McDonald's today told the Company Law Board that it has exercised its right by approaching the London Court of International Arbitration to settle its dispute with Indian JV partner Vikram Bakshi.
McDonald's counsel Sudipto Sarkar told the CLB that the Indian forum was a choice of Bakshi to resolve their dispute and the US food major cannot be barred from opting for an international arbitration.
"He (Bakshi) has chosen the forum (CLB) and we have not. Our choice (for settlement) cannot be barred," he said, adding that "I have no claim before the CLB."
Over Bakshi's plea that McDonald's should be restrained from proceeding for an international arbitration, he said: "It's legally impossible".
Meanwhile, Bakshi's counsel S N Mukherjee told the CLB that termination of the JV was a "sinister design" of McDonald's to buy the partner's shares by paying less than their actual value.
He further added that one of the grounds cited by McDonald's for termination of the JV pact was that Bakshi wanted an adjudication of the dispute before the CLB.
"This is an act of oppression nothing else," he said.
He further informed the CLB that he has been given time up to December 28 to appoint an arbitrator from their side at London Court of International Arbitration.
The CLB would now hear his arguments on December 20.
The board was hearing a petition filed by Vikram Bakshi challenging his removal as the Managing Director of the joint venture.
On November 28, McDonald's had terminated its joint venture agreement with Vikram Bakshi by sending a notice and had simultaneously moved to the London Court of International Arbitration to settle the ongoing legal dispute.
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."
Subsequently, Bakshi moved CLB in September.
