McDonald's sabotaging NCLT order: Connaught Plaza Restaurants
The Connaught Plaza Restaurants Pvt. Ltd (CPRL), which runs 169 McDonalds' outlets in North and East India, has said that the fast-food giants' decision to terminate the franchise agreement is an 'oppressive act' and undermines an order by National Company Law Tribunal (NCLT).
Connaught Plaza Restaurants, which is involved in a bitter legal battle with McDonald's India Pvt. Ltd (MIPL), said in a statement, "This is completely contemptuous, malafide and yet another oppressive act indulged in by McDonald's corporation to sabotage order of 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.
McDonald's global head of corporate relations, Ron Christianson, said that the termination was a result of a breach of certain essential obligations that were a part of the agreement.
Christianson said that the company is looking for a new developmental licensee partner, HT reported.
Meanwhile, the Hardcastle Restaurants has refused to comment on whether it would be interested to take up McDonald's franchise for north and east India.