McDonald's India (MIPL) on Thursday pleaded before the Company Law Board (CLB) that matter concerning reinstatement of Vikram Bakshi as the managing director of Connaught Plaza Restaurants (CPRL) should be referred to the Court of International Arbitration in London.
CPRL is a 50:50 joint venture between Bakshi and MIPL, which operates McDonald's stores in northern and eastern India. MIPL had announced on August 30 that Bakshi had ceased to operate as the managing director of CPRL by July 17.
Earlier, McDonald's India had moved an application under section 45 of the Arbitration and Conciliation Act pleading that as per the joint venture agreement entered into between MIPL and Bakshi, any unresolved dispute will have to be referred for arbitration. The forum for arbitration, as per the agreement, is the London Court of International Arbitration.
Appearing for MIPL, senior counsel Sudipto Sarkar argued before the CLB that the main grievance behind Bakshi's petition was his non-reappointment as the managing director of CPRL, adding that the very dispute is covered by the arbitration clause provided in the agreement.
Denying Bakshi's arguments, Sarkar said that Bakshi had violated conditions of the JV agreement by not "devoting substantial business time" for the development of CPRL's business.