The National Company Law Appellate Tribunal (NCLAT) approved a settlement between McDonald's India and its former partner Vikram Bakshi regarding their joint venture, Connaught Plaza Restaurants Limited (CPRL), on December 13. The Housing and Urban Development Corporation’s (HUDCO) application to oppose the settlement was denied by an NCLAT Bench comprised of Chairperson Justice Ashok Bhushan and Dr Alok Srivastava (Member Technical).

The dispute between HUDCO, Bakshi, and McDonald's concerned the repayment of a nearly 63 crore loan made by HUDCO to Bakshi's Ascot Hotels and Resorts in 2006.

Bakshi and his wife Madhurima signed personal guarantees for loan repayment, in addition to various other securities in the loan agreement.
However, the Tribunal today ruled that, while HUDCO is free to pursue its recovery certificate, this cannot be used to reject the settlement reached between Bakshi and McDonald's.

“The fact that HUDCO is entitled to pursue its Recovery Certificate No.330/2015 cannot be a ground to reject I.A. No. 1540 of 2019 which has been filed by both the parties...We, thus, are satisfied that no grounds have been made in I.A. No. 1600 of 2019 (HUDCO’s application) to reject I.A. No. 1540 of 2019 filed by the McDonald’s India Pvt. Ltd. & Ors. and Vikram Bakshi & Ors. In result, I.A. No. 1540 of 2019 is allowed,” the NCLAT ordered.

Case Title: McDonald's India Pvt Ltd & Ors v Vikram Bakshi & Ors
Citation: Company Appeal (AT) No. 275 of 2017
Link: https://nclat.nic.in/display-board/view_order