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Delhi HC refuses to pass order restricting CPRL from using McDonald’s
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Saturday, 13 January, 2018, 08 : 00 AM [IST]
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Ashwani Maindola, New Delhi
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The Delhi High Court has refused to pass an interim order to restrict Connaught Plaza Restaurants Pvt Ltd (CPRL), headed by Vikram Bakshi, from using the name McDonald’s for the restaurants run by it.
CPRL is a joint venture of the two estranged partners, Bakshi and McDonald’s India Pvt Ltd (MIPL), who hold 50 per cent stakes each. It operated the fast food chain’s outlets in northern and eastern India.
According to the sources, the High Court, in its order, stated that since the decision on the partnership was yet to be decided by the National Company Law Tribunal (NCLT), a decision in this matter could not be taken without giving the case proper consideration.
However, it has allowed MIPL to visit the restaurants run by CPRL to ascertain the quality of the food and packaging.
The matter was raised by MIPL after Bakshi stated that CPRL would restart McDonald’s outlets in Delhi and the National Capital Region (NCR).
He added that for that, he had roped in a different logistic partner to ensure the supplies.
Meanwhile, MIPL, who raised concerns about the safety of the food served at the restaurants, also asked the High Court to restrict Bakshi from using the McDonald’s name for the restaurants and advertising themselves as the chain’s franchisee.
The court directed the CPRL chief to file a reply, and scheduled the next hearing in the matter for January 24, 2018.
It is pertinent to mention here that the MIPL last year terminated the franchisee agreement with CPRL against which Bakshi went to the Company Law Tribunal, which not only stayed the termination, but also reinstated him as managing director of the joint venture in its July 13, 2017 order.
The reason for the termination of the franchisee by MIPL was CPRL had allegedly not paid royalties amounting to Rs 61 crore.
The matter related to the franchisee is currently with the National Company Law Appellate Tribunal.
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