McDonald's moves Delhi High Court for London court award
, ET Bureau|
Updated: Sep 25, 2017, 11.55 PM IST
NEW DELHI: Global snack-foods giant McDonald’s has approached the Delhi High Court to ensure the implementation of a global arbitration award that should help the US restaurant chain amicably buy out its estranged local partner’s stake in its Indian operations.
Earlier this month, the London Court of International Arbitration (LCIA) had directed the appointment of experts to determine a fair and mutually agreeable valuation of the shares held by Vikram Bakshi in an equal joint venture locally with McDonald’s.
McDonald’s India Private Ltd (MIPL) said it “has filed an application… to progress the enforcement of the partial award rendered in its favour by the LCIA”.
The London court had noted that all shares held by Bakshi are liable to be transferred and registered to McDonald’s India upon payment of the price determined in accordance with methodology set out by the joint venture agreement. Bakshi declined to comment on McDonald’s latest move.
McDonald’s sought arbitration in November 2013 after Bakshi dragged the chain to the Company Law Board, now National Company Law Appellate Tribunal (NCLAT), following his termination as MD of joint venture, Connaught Plaza Restaurants (CPRL).
McD’s subsequently scrapped the pact with CPRL effective September 6, after which Bakshi had appealed at NCLAT against the termination of the arrangement.
Earlier this month, the London Court of International Arbitration (LCIA) had directed the appointment of experts to determine a fair and mutually agreeable valuation of the shares held by Vikram Bakshi in an equal joint venture locally with McDonald’s.
McDonald’s India Private Ltd (MIPL) said it “has filed an application… to progress the enforcement of the partial award rendered in its favour by the LCIA”.
The London court had noted that all shares held by Bakshi are liable to be transferred and registered to McDonald’s India upon payment of the price determined in accordance with methodology set out by the joint venture agreement. Bakshi declined to comment on McDonald’s latest move.
McDonald’s sought arbitration in November 2013 after Bakshi dragged the chain to the Company Law Board, now National Company Law Appellate Tribunal (NCLAT), following his termination as MD of joint venture, Connaught Plaza Restaurants (CPRL).
McD’s subsequently scrapped the pact with CPRL effective September 6, after which Bakshi had appealed at NCLAT against the termination of the arrangement.
