NCLAT gives no interim order on Bakshi's plea; fate of 169 McDonald's outlets still in limbo

NCLAT will hear Bakshi's plea on licence termination along with McDonald's petition against his reinstatement on September 21.

New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Thursday 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 CPRL.

With this, the fate of 169 stores in north and east India remains in limbo as Connaught Plaza Restaurant Ltd's (CPRL) licence to operate has lapsed this week. CPRL is a 50:50 JV between McDonald's and its estranged partner Bakshi.

An NCLAT bench headed by Justice S J Mukhopadhyaya has issued a direction to list on September 21 Bakshi's licence termination petition along with the original one filed by McDonald's.

McDonald's on August 21 terminated the franchise agreement for the 169 outlets operated by CPRL.

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.