NCLAT allows resolution between Mc Donald's and ex-partner Vikram Bakshi

NCLAT allows resolution between Mc Donald's and ex-partner Vikram Bakshi

Rejects Housing and Urban Development Corporation's opposition to the settlement

The National Company Law Appellate Tribunal (NCLAT) has allowed the settlement between fast food giant McDonald's India and its former partner Vikram Bakshi regarding their joint-venture Connaught Plaza Restaurants Limited (CPRL).

The bench comprising Justice Ashok Bhushan (chairperson) and Dr Alok Srivastava (technical member) rejected the application by the Housing and Urban Development Corporation (Hudco) opposing the settlement.

CRPL is now fully owned by McDonald's after Bakshi transferred his shares to it.

Earlier, Hudco had filed an intervention application claiming Rs.195 crore dues from Bakshi and demanded that any amount payable to Bakshi must be deposited by McDonald's with the Debts Recovery Tribunal (DRT).

The dispute between McDonald's, Bakshi and Hudco was related to the recovery of a loan amount of nearly Rs.63 crore. In 2006, Hudco had released the amount to Bakshi's Ascot Hotels and Resorts.

In the loan agreement, Bakshi and his wife Madhurima executed personal guarantees for the repayment of the loan, apart from various other securities.

However, the tribunal now held that even though Hudco was entitled to pursue its recovery certificate, the same could not be a ground to reject the settlement between McDonald's and Bakshi.

NCLAT ruled, "The fact that Hudco is entitled to pursue its Recovery Certificate No.330/2015, it cannot be a ground to reject I.A. No. 1540 of 2019, which has been filed by both the parties. We are satisfied that no grounds have been made in I.A. No. 1600 of 2019 (Hudco's application) to reject I.A. No. 1540 of 2019 filed by McDonald's India Pvt Ltd & Ors and Vikram Bakshi & Ors. As a result, I.A. No. 1540 of 2019 is allowed."