McDonalds, CPRL asked to settle dispute among themselves
After Connaught Plaza Restaurants Pvt. Ltd (CPRL) said that it would challenge McDonald's decision to terminate the franchise agreement, the National Company Law Appellate Tribunal (NCLAT) has asked both parties to consider settling their dispute among themselves.
The tribunal asked McDonald's to give an undertaking that the 169 outlets will be allowed to function till the negotiations are on and set the next date of hearing till August 30.
Earlier this week, the Connaught Plaza Restaurants Pvt. Ltd (CPRL), which runs 169 McDonalds' outlets in North and East India, had said that the fast-food giants' decision to terminate the franchise agreement is an 'oppressive act' and undermines an order by NCLT.
The international fast-food giant said on Monday that it was terminating its agreement with Connaught Plaza Restaurant (CPRL) due to alleged breach of franchise agreements.
Connaught Plaza Restaurant operates McDonalds' restaurants in North and East India while the outlets in South and the West are run by Hardcastle Restaurants.
Connaught Plaza Restaurants is a joint venture between Vikram Bakshi and McDonald's India. McDonald's India had ousted Bakshi as CPRL's MD, in 2013, over alleged misuse of funds. Bakshi then approached the National Company Law Tribunal and got himself reinstated.
According to reports, the McDonalds has been ever since looking to sever ties with CPRL.