Senior advocate Sudipto Sarkar appearing for the American food chain major McDonald's said "the matter should be referred to arbitration in the London Court of International Arbitration" as per the clauses of the agreement.
The issue of non-appointment of Bakshi as the Managing Director of Connaught Plaza Restaurants Pvt Ltd (CPRL), his joint venture with US fast food chain, should be referred for arbitration, he said.
The Articles of Association of CPRL has clauses which mention that disputes arising between JV partners has to be settled through arbitration at The London Court of International Arbitration.
On September 16, the CLB had directed the parties to maintain status quo on shareholding and board pattern of CPRL.
The CLB was hearing a petition filed by Vikram Bakshi challenging his removal as the Managing Director of the joint venture.
In a public notice on August 30, McDonald's India said: "Vikram Bakshi has ceased to be the Managing Director of Connaught Plaza Restaurants pursuant to expiration of Bakshi's term on July 17. "Incorporated in June 1995, CPRL is a 50:50 joint venture between McDonald's Corporation and Vikram Bakshi and it has been running fast food outlets in North and East India.