NEW DELHI: The National Company Law Appellate Tribunal (NCLAT) on Monday directed former McDonald’s partner for north and east India, Vikram Bakshi, to settle dues with state-owned Housing Development Finance Corporation Ltd (HUDCO) over the next four weeks. Bakshi owes HUDCO ₹195 crore in relation to a loan granted by the latter to Bakshi’s Ascot Hotels and Resorts back in 2006.
The hearing comes weeks after McDonald’s and Bakshi agreed to an out-of-court settlement resolving their six-year long legal dispute in the country.
However, an intervention by HUDCO has led to a delay in the two parties withdrawing cases against each other as part of the settlement.
The two-member bench headed by the appellate tribunal chairman Justice S.J.Mukhopadhaya on Tuesday, directed Bakshi to ensure the matter with HUDCO is settled before the next hearing on 10 July, staing it would be the last chance for Bakshi to do so. “We allow four weeks time to Vikram Bakshi to settle the matter with HUDCO," the bench directed.
The bench has also asked Bakshi to file a report on the settlement by filing an affidavit on the matter.
Representing Bakshi, counsel Amit Sibal, informed the bench that Bakshi had deposited ₹10 crore on Tuesday morning to the Debt Recovery Tribunal. He also added that an amount of ₹66 crore has also been paid by Bakshi to HUDCO, and offered to pay another ₹70 crore.
On 9 May, the American fast-food chain announced that it had bought out Vikram Bakshi’s 50% stake in their joint venture CPRL, making it a wholly-owned subsidiary McDonald’s India Private Limited (MIPL) and its affiliate McDonald’s Global Markets LLC. Bakshi, who was the burger chain’s local partner for north and east India starting in mid-90s, was ousted as its managing director in 2013 that led to the start of a legal dispute between the two.
The two, however, agreed to resolve their differences after reaching an out-of-court settlement earlier this month that saw the McDonald’s fully take control of operations at CPRL.
As part of the settlement they also agreed to withdraw all cases against each other.
However, on 16 May, HUDCO moved the NCLAT opposing the settlement between the two parties till its dues are recovered from Bakshi.
HUDCO had given a loan of ₹62.38 crore to Bakshi’s Ascot Hotels and Resorts in 2006. However, the latter defaulted on its loan payment prompting HUDCO to move the Debt Recovery Tribunal.
