McDonald’s estranged partner Vikram Bakshi on Monday said the board of CPRL, the franchisee of the U.S. fast food chain for north and east India, has decided to continue full legal recourse against termination of licence.
The board of Connaught Plaza Restaurants Ltd (CPRL) had met yesterday to discuss the future course of action following the termination of the franchise agreement by McDonald’s India Pvt Ltd (MIPL) last month.
Justice G S Singhvi has been appointed by NCLT as administrator on the board of CPRL.
The decision of the CPRL board comes against the backdrop of an international arbitration panel order last week asking Bakshi to sell his stake in the JV to MIPL at a fair valuation to be determined by experts.
CPRL is a 50:50 joint venture between MIPL and Bakshi.
The company’s board has equal representation of two directors each from the two parties. However, in the previous board meetings of CPRL, the directors appointed by McDonald’s have stayed away.
Asked if all the directors attended yesterday’s meeting, Bakshi said: “The foreign directors on the CPRL board did not attend the meeting yesterday.” A query sent to McDonald’s did not elicit any response.
CPRL operated 169 outlets of McDonald’s in north and east India. The fate of these outlets has become uncertain following the spat between the two partners. Already, 43 outlets of the fast food chain in the capital have been closed since June due to expiry of eating house licence.
As carried in BQ in 20/9/2017