NEW DELHI: Restaurant chain McDonald’s estranged partner Vikram Bakshi said no supplies have been disrupted to McDonald’s stores in the north and east, operated by Connaught Plaza Restaurants Ltd (CPRL) and that all landlords are being paid rentals on time Bakshi, managing director of CPRL (a joint venture between him and McDonald’s India), added that presently, all salaries of employees even for the restaurants that are shut are being paid by CPRL on time. He added that some landlords have served notices to CPRL.
“Some landlords have sent notices based on the constant statements made by McDonald’s Corp. These shall be placed in front of board of CPRL,” he said. On September 7, the National Company Law Appellate Tribunal (NCLAT) declined to pass any interim relief order on Bakshi’s plea against termination of the franchise licence agreement by McDonald’s. This had led McDonald’s to state that it would take steps to “enforce the termination”.
McDonald’s had said: “The termination notice remains effective as of September 6, which requires CPRL to cease the use of the McDonald’s system and its associated intellectual property. We will continue to take steps to exercise our legal and contractual rights and enforce the termination.”
Bakshi, on his part, had said that McDonald’s outlets would remain open till the time a decision on the termination is reached at by the CPRL board and NCLAT hearing is done.
On August 21, McDonald’s had terminated its franchisee agreement for 169 stores in the north and east operated by CPRL, prohibiting CPRL from using the McDonald’s name, system, trademark, designs and its associated intellectual property, among others, starting September 5.
On July 13, the NCLT had restrained McDonald’s from “interfering with smooth functioning of the restaurant chain in the north and east” and reinstated Bakshi as MD of CPRL.
Bakshi said McDonald’s have earned royalty till Sept 2015. “McDonald’s has not discharged its part of their obligations as envisaged in the franchisee agreements which include a number of support functions to CPRL,” he further said. He said CPRL has paid 5 per cent of sales as royalty, even during the four year shareholder dispute (2013-2015), within full knowledge of the nominee directors of McDonald’s on the CPRL board.
On September 7, the NCLAT said it would hear Bakshi’s petition challenging the the termination of its franchise agreement, along with McDonald’s petition against his reinstatement.