Tired of too many ads? Remove Ads
"We are not shutting down our outlets," Bakshi told TOI. "Let's say we run operations after the stipulated period. What can McDonald's do? They cannot use force and strip down the sign boards from the stores. They have to go to court and go through a proper process."
Earlier this week, McDonald's slapped its master franchise in the north and east Connaught Plaza Restaurants (CPRL) with a notice, cancelling its franchise agreement for alleged breach of contract. This meant an imminent shut down of 169 stores run by CPRL and job losses of over 10,000 employees.
According to the notice, CPRL, an equal joint venture of 169 stores run by CPRL and job losses of over 10,000 employees.
According to the notice, CPRL, an equal joint venture between McDonald's and Bakshi, will not be able to use the company's logo, trademark and recipe, among other things within 15 days of receiving it.
Tired of too many ads? Remove Ads
But Bakshi said McDonald's notice will not force him to stop operations as the legal battle will be on.
Popular in Cons. Products
When asked whether National Company Law Tribunal (NCLT), which Bakshi has approached, would be able to interfere in the outcome of the spat between CPRL and McDonald's, Bakshi said, "NCLT will see everything in the benefit of the business. If it is not in the benefit of the business, which this is not, it can definitely interfere."
Bakshi said CPRL showed net profit of Rs 4 crore in quarter one of 2017.
Bakshi, who was ousted by McDonald's as CPRL's MD in 2013, was reinstated by NCLT in July 2017. In its judgement, NCLT had said, "all steps taken in pursuance of non-election of Mr Vikram Bakshi as MD, are also declared illegal, unlawful, unjust and malicious" and McDonald's Corporation "is restrained from interfering with CPRL" and all its restau rants. It even elected a retired Supreme Court judge to act as a fifth 'board member' of CPRL with voting rights to break the deadlock between both the partners that had two members each on the board.
"This is an act of desperation by McDonald's," said Bakshi. "One of the agenda of the board meeting that McDonald's board members did not attend, was for my re-election as MD. And they did not want it to happen."
In June, McDonald's had to shut down around 40 stores of CPRL due non-compliance with regulatory agencies. It sent the licence cancellation notice to CRPL due to alleged breach of agreements that Bakshi was repaying CRPL's loans instead of paying royalty to McDonald's. But Bakshi contested this, saying the decision to repay loan had the approval of McDonald's board members.
