McDonald's has terminated franchise agreement for 169 outlets operated by Connaught Plaza Restaurant Ltd
The National Company Law Appellate Tribunal or NCLAT today denied any interim relief to Vikram Bakshi on his plea seeking a stay on termination of franchise agreement by McDonald's for 169 stores operated by Connaught Plaza Restaurant Ltd or CPRL.
With this, the fate of 169 stores in north and east India remains uncertain as Connaught Plaza Restaurant Ltd's (CPRL) licence to operate lapsed yesterday. CPRL is a 50:50 joint venture between McDonald's and its estranged partner Vikram Bakshi.
"If all papers are in order then it would be listed tomorrow," said the single-member bench of the National Company Law Appellate Tribunal.
Yesterday, the National Company Law Tribunal had dismissed Mr Bakshi's petition against cancellation of franchise licence agreement to Connaught Plaza Restaurant Ltd, following which Mr Bakshi moved an appeal before NCLAT.
McDonald's on August 21 terminated the franchise agreement for the 169 outlets operated by Connaught Plaza Restaurant Ltd.
As part of the termination, CPRL has ceased to use McDonalds's name, system, trademark, designs and its associated intellectual property, among others from September 5.