JV dispute with Bakshi: McDonald's India moves for arbitration in London

US food major McDonald's has movedthe London Court of International Arbitration (LCIA) toresolve its dispute with with Indian venture partner VikramBakshi 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 thecompany has approached the London Court of InternationalArbitration to resolve the dispute.

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McDonald's India argued that as per the sections of theirjoint venture, any dispute between them has to be referred toLondon for arbitration and it has done so. The step to move LCIA was opposed by the counselappearing for Vikram Bakshi, contending that the dispute waspending before the CLB and it should not be referred to aninternational forum.

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Moreover, McDonald's had filed an application undersection 45 Arbitration and Conciliation Act 1996, seekingresolution of the dispute outside of courts. The CLB member B S V Prakash Kumar has posted the matterfor further hearing to December 16 on this issue.The board was hearing a petition filed by Vikram Bakshichallenging his removal as the Managing Director of the jointventure.

In a public notice on August 30, McDonald's India said:"Vikram Bakshi has ceased to be the Managing Director ofConnaught Plaza Restaurants Ltd (CPRL) pursuant to expirationof Bakshi's term on July 17."Subsequently, Bakshi reportedly moved CLB in September.Incorporated in June 1995, CPRL is a 50:50 joint venturebetween McDonald's Corporation and Vikram Bakshi and it hasbeen running fast food outlets in North and East India.

PTI