US food major McDonald's has moved the London Court of International Arbitration (LCIA) to resolve its dispute with with Indian venture partner Vikram Bakshi over his appointment as the Managing Director.
During the proceedings of the Company Law Board (CLB), the counsel appearing for McDonald's India informed that the company has approached the London Court of International Arbitration to resolve the dispute.
McDonald's India argued that as per the sections of their joint venture, any dispute between them has to be referred to London for arbitration and it has done so.
The step to move LCIA was opposed by the counsel appearing for Vikram Bakshi, contending that the dispute was pending before the CLB and it should not be referred to an international forum.
Moreover, McDonald's had filed an application under section 45 Arbitration and Conciliation Act 1996, seeking resolution of the dispute outside of courts.
The CLB member B S V Prakash Kumar has posted the matter for further hearing to December 16 on this issue.
The board 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 Ltd (CPRL) pursuant to expiration of Bakshi's term on July 17."
Subsequently, Bakshi reportedly moved CLB in September.
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.