Some outlets of the US-based McDonald’s in India run by CPRL or Connaught Plaza Restaurants Ltd, remain open, according to Vikram Bakshi, the fast food chain’s estranged partner. Mr Bakshi has claimed that 126 outlets in north and east India continue to operate fully. “Apart from the 43 outlets that are shut for some time, the remaining are open and operating,” Mr Bakshi told news agency Press Trust of India. CPRL is franchisee of US fast food chain McDonald’s for north and east India.
The National Company Law Appellate Tribunal (NCLAT) had earlier this week refused any interim relief to Mr Bakshi, who had sought a stay on franchise termination by the US-based fast food chain major. CPRL’s licence to operate the outlets lapsed on September 5.
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The US-based fast food chain has said it is taking action to enforce cancellation of its franchise agreement with CRPL.
Outlets of the chain in places such as Gurugram, Kolkata, Durgapur and Lucknow operated by Connaught Plaza Restaurant Ltd (CPRL) – the equal joint venture between Bakshi and McDonald’s – are operating in full swing.
The Tribunal’s September 7 order refusing interim relief to Mr Bakshi means the fate of 169 McDonald’s stores in north and east India hangs by a thread. CPRL’s licence to operate the outlets lapsed on September 5.
McDonald’s India had given time till September 5 to CPRL to operate, post which it said the franchise was barred from using McDonald’s brand, trademark, and its associated intellectual property, among others.
When contacted, a McDonald’s India spokesperson said: “We will take action to enforce it (termination). However, we won’t be able to discuss specific plans or courses of action.”
CPRL runs a total of 169 outlets in north and east India, out of which 43 were shut down in June after expiry of eating house license.
Earlier, Mr Bakshi had denied closing down of the outlets saying he had asked the NCLT-appointed administrator on the board of CPRL to call for a board meeting and till a decision was taken by the board “it is business as usual”.
The tussle between McDonald’s and Mr Bakshi started in 2013, when he was ousted as the MD of CPRL over alleged management lapses, after which he approached National Company Law Tribunal (NCLT).
In July this year, the tribunal restored him to his position, which was challenged by McDonald’s in NCLAT where the appeal is pending.
Simultaneously, Mr Bakshi challenged the termination of franchise licence by McDonald’s at the National Company Law Appellate Tribunal (NCLAT), which was refused any interim relief. Both the appeals filed by the parties are listed for hearing on September 21.
The food giant has another franchise agreement with Hardcastle Restaurants Pvt Ltd, which operates 261 McDonald’s outlets in western and southern India.
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