Maybe not today, but McDonald’s is going to leave us in few days and we can’t be more heartbroken about this.
In the recent development in the McDonalds’ row, the National Company Law Appellate Tribunal on Thursday refused to pass any interim order to estranged partner Vikram Bakshi’s petition, who asked a stay on franchise termination by the US- based fast food chain.
With this, the fate of this major burger chain hangs on a loose thread as Connaught Plaza Restaurants Pvt. Ltd (CPRL’s) license to operate the outlets lapsed on September 5.
CPRL, an equal joint venture between McDonalds and Bakshi got its franchise agreement terminated by McDonalds India Pvt. Ltd on 21st August. The agreement was terminated for all the 169 outlets in northern and eastern India and Bakshi, M.D. of CPRL was supposed to shut the restaurants within 15 days of termination (by 6 September). Major reasons quoted for the failed agreement was the non-payment of royalties.
According to reports, the termination notice stated that Bakshi should stop using McDonald’s name, trademarks, designs, branding, policies, food recipes and specifications from 6 September.
.@McDonalds row: NCLAT refuses to pass interim order https://t.co/oP550ZGc9O via @TOIBusiness pic.twitter.com/Ot4Ll9ozrk
— Times of India (@timesofindia) September 7, 2017
According to media, McDonald’s clarified, “Following the NCLAT hearing today, the termination notice remains effective as of September 6, which requires CPRL to cease the use of the McDonald’s system and its associated intellectual property.”
Earlier, on Wednesday, Justice Sanghavi asked both the parties, Bakshi and McDonald’s to wait for the meeting of NCLAT, which was scheduled on 7th September.
The matter will now be heard on 21st September by NCLAT where the main appeal will be by McDonald’s India against the NCLAT’s order of reinstating Bakshi as managing director of CPRL.
Maybe tomorrow is not that day but a few days more and McDonald’s might bid us goodbye and we can’t be more heartbroken about it.
