Oct. 05--NEW DELHI -- Fast-food chain McDonald's India Pvt. Ltd said before the Company Law Board (CLB) on Friday that its ongoing legal dispute with joint venture partner Vikram Bakshi should be sent to arbitration.
Representing McDonald's India, senior advocate Sudipto Sarkar referred to Section 45 of the Arbitration and Conciliation Act, which facilitates quicker resolution of disputes between two parties outside of the formal judicial proceedings.
According to a PTI report, in a hearing on Thursday too, Sarkar maintained "the matter should be referred to arbitration in the London Court of International Arbitration".
Bakshi, ousted as managing director of Connaught Plaza Restaurants Pvt. Ltd that runs McDonald's outlets in north and east India, moved the CLB last month to clear allegations made against him by the Indian arm of American fast-food chain.
Bakshi is an equal partner along with McDonald's in Connaught Plaza Restaurants. McDonald's has claimed that Bakshi's other business interests were benefiting from his role at managing the fast food chain in India and that funds from Connaught Plaza Restaurants were being diverted to his hospitality business, which Bakshi has refuted.
Bakshi alleged that McDonald's actions were largely directed at buying him out at a lower valuation and asserted that he is committed to the business.
Bakshi's counsel on Friday sought status quo on equity infusion demanded by McDonald's India from its joint venture partner while the dispute is pending.
The next hearing on the case has been posted for 12 November.