New Delhi, Oct 13 (PTI) McDonald's India today moved theDelhi High Court seeking setting aside of the National CompanyLaw Tribunal's (NCLT) show-cause notice to the fast food majorand its parent company on a contempt plea filed by theirestranged Indian partner Vikram Bakshi.
McDonald's has also challenged a subsequent order ofSeptember 26 of the NCLT directing it to file a reply to thecontempt plea within 10 days.
Justice R K Gauba heard the arguments on behalf ofMcDonald's, represented by senior advocates Harish Salve andRajiv Nayar, which has also sought stay of the proceedings inthe contempt plea.
The arguments will continue on October 16.
The company has contended that in the absence of rulesfor conduct of contempt action under section 425 of theCompanies Act read with the Contempt of Court Act, suchproceedings would deprive it and others of their fundamentalrights.
Bakshi had moved the contempt plea alleging thatMcDonald's decision to terminate his franchise license, withregard to 169 outlets run by their 50-50 joint ventureConnaught Plaza Restaurant Ltd (CPRL), has violated the NCLTorder dated July 13 reinstating him as the Managing Directorof CPRL and refraining the US-based food giant frominterfering in the functioning of CPRL.
In its plea in the high court, McDonald's has contendedthat the NCLT ought not to have entertained the contempt pleawhen they have already filed an appeal against its July 13decision in the National Company Law Appellate Tribunal(NCLAT).
The food giant also contended that the notice was notserved by the NCLT, but rather by the lawyers of Bakshi.
Bakshi has been at loggerheads with the fast food chainover the management of CPRL after he was ousted from the postof MD of the McDonald's franchisee in August 2013.
McDonald's India had asked CPRL not to use its brandsystem, trademark, designs and its associated intellectualproperty, among others, within 15 days of the terminationnotice which expired on September 6.
Bakshi had moved the NCLT following termination of thelicense by McDonald's India Pvt Ltd (MIPL).
In June, 43 outlets of the fast food chain were closed inthe capital following expiry of eating house licences. PTI HMPPPS SKVRT.
This is unedited, unformatted feed from the Press Trust of India wire.