McDonald's India Private Ltd. and its estranged partner Vikram Bakshi will make an out-of-court settlement in their six-year-old dispute, the two parties informed the National Company Law Appellate Tribunal (NCLAT) on Monday.

The terms and date of the settlement can be informed to the NCLAT by lawyers from any one side, the appellate tribunal said.

“Counsel for the parties’ submit that they are negotiating for settlement but the impugned order may come in their way of settlement. In the facts and circumstances, we allow the parties to reach settlement uninfluenced by any of the order passed by the Tribunal or this Appellate Tribunal,” the NCLAT order said. The appellate tribunal will now consider their request on May 13.

Bakshi had in 1995 inked a deal with McDonald's to open outlets of the US-based fast food chain in India. The partnership was a 50:50 venture between McDonalds India Private Limited and Bakshi’s Connaught Plaza Restaurant Ltd (CPRL), where in the latter would be responsible for opening and managing McDonalds’ outlets in northern and eastern India.

In 2017, MacDonald India terminated the franchise agreement of 169 outlets managed by CPRL citing non-payment of royalties and asked suppliers to stop dealing with the latter. The suppliers of CPRL then included Vista Processed Foods, Schreiber Dynamix Dairies, Cremica Foods Industries and Amrit Foods, among others.

Earlier in 2013, McDonalds India had ousted Bakshi from the post of managing director of CPRL. He was, however, restored to his position in July 2017. Subsequently, McDonalds India had also challenged the use of the McDonald's trademark by Bakshi’s CPRL

The two parties have also approached the Delhi High Court pleading that two earlier orders of the court be modified allowing Bakshi to sell his shares in CPRL to McDonalds India. They have also pleaded that the earlier order of the court passed in 2013 be so clarified or amended so that CRPL would be able to issue equity shares worth Rs 6.34 crores to Bakshi Holdings Private Limited. The high court will consider these matters on May 20. In the southern and western regions, McDonald's outlets are run by Amit Jatia-led Westlife Development.