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169 Embattled Outlets To Continue Using McDonald's Brand: 10 Key Points

NCLAT refuses any interim relief to Mr Bakshi, who had sought a stay on the franchise termination.

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169 Embattled Outlets To Continue Using McDonald's Brand: 10 Key Points

McDonald's said that it would refrain Vikram Bakshi from using its intellectual property.


New Delhi: The row over the operation of 169 stores of McDonald's in north and east India worsened on Tuesday as the estranged partner of the restaurant chain Vikram Bakshi insisted that the outlets will continue to operate under the US brand name. McDonald's, which had last month terminated franchise pact that essentially meant the 169 outlets cannot use its trademark, said it would enforce its legal right to refrain Mr Bakshi from using its intellectual property.

Here are 10 things that you must know about McDonald's row with estranged partner Mr Bakshi:

1) Earlier on Thursday, the National Company Law Appellate Tribunal (NCLAT) refused any interim relief to Mr Bakshi, who had sought a stay on the franchise termination.

2) In a statement, Mr Bakshi said he asked Justice GS Singhvi, who has been appointed as administrator on the board of Connaught Plaza Restaurant Ltd (CPRL), to call for a board meeting to discuss the situation after Thursday's hearing.

3) "The administrator shall be requested to call for a board meeting at the earliest so as to discuss the above. Till a decision is taken by the board of CPRL, it is business as usual," said Mr Bakshi in a statement.

4) CPRL is an equal joint venture between McDonald's and Mr Bakshi but the US firm had on August 21 terminated the franchise agreement, saying it would enforce its legal right to refrain Mr Bakshi from using its name, system, trademark, designs and its associated intellectual property, among others.

5) McDonald's remains adamant that it will not let Mr Bakshi continue using its brand name. "We will continue to take steps to exercise our legal and contractual rights and enforce the termination. Following the NCLAT hearing today, the termination notice remains effective as of September 6, which requires CPRL to cease the use of the McDonald's system and its associated intellectual property," McDonald's India Private Limited (MIPL) said in a statement.

6) Earlier, on September 6, Justice Singhvi had advised both the sides - Mr Bakshi and McDonald's - to wait till the hearing of the NCLAT, which was on Thursday.

7) An NCLAT bench headed by Justice SJ Mukhopadhaya has issued a direction to list Mr Bakshi's licence termination petition along with the original one filed by McDonald's on September 21.
8) NCLAT will also hear the plea of McDonald's against the order of the NCLT reinstating him as the Managing Director of CPRL.

9) Mr Bakshi was ousted from the post at McDonald's franchisee in August 2013, following which he approached the NCLAT in September the same year. He has been at loggerheads with McDonald's over the management of CPRL.

10) He was reinstated as the MD of CPRL by NCLT on July 14 following which McDonald's approached the appellate tribunal.  (With PTI Inputs)


 


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