Back In Driving Seat

The National Company Law Tribunal’s strongly worded judgement gives Vikram Bakshi the edge in his battle with McDonald’s, but the fight is far from over

- Sumant Banerji

For 62-year-old Vikram Bakshi, who owns half the stake in the US fast food restaurant chain McDonald’s North and East India operations, July 13 (2017) might have been one of his best Thursdays ever. On this day, the National Company Law Tribunal (NCLT) in Delhi ordered his reinstatement as the managing director of Connaught Plaza Restaurants Pvt. Ltd (CPRL), the 23-year-old 50:50 joint venture (JV) between Bakshi and McDonald’s India Pvt. Ltd (MIPL). CPRL is the master franchisee for MIPL in North and East India.

Bakshi and McDonald’s have been at loggerheads ever since he was unceremoniously ousted as the Managing Director of CPRL in August 2013.

“The proceedings of the meeting of the Board of Directors held on 06.08.2013 relating to re-election of Mr Vikram Bakshi as the Managing Director of the Company are set aside and declared illegal, unjust and mala fide,” the judgement says. “The status of Mr Vikram Bakshi as Managing Director is restored.”

What led to McDonald’s loss of trust in its partner who had once been the very face of the brand in India? Bakshi’s real estate business was part of the problem. McDonald’s alleged he had leased out his property to a rival company, hinting at a conflict-of-interest scenario.