In a decision issued on Tuesday, the National Company Law Appellate Tribunal (NCLAT) allowed McDonald’s and its former estranged Indian partner Vikram Bakshi to withdraw their civil litigation against each other in connection with Connaught Plaza Restaurants Ltd.
HUDCO also lost its intervention application filed earlier opposing the deal, according to the appeals tribunal. HUDCO had objected to the settlement, claiming that Bakshi and his associated companies owed HUDCO Rs 195 crore in unpaid debts.
The joint venture Connaught Plaza Restaurants Ltd., owned by McDonald’s, has been wholly acquired by McDonald’s after its estranged partner Vikram Bakshi transferred his shares to the American company.
Earlier this month, both parties announced that they had reached an out-of-court settlement in which McDonald’s agreed to buy Bakshi’s share in the joint venture that operated McDonald’s outlets in north and east India.
Details of the settlement pact, including financial terms, have not been disclosed. Both Bakshi and McDonald’s subsequently approached NCLAT and requested that their respective cases be withdrawn.