IN THE NATIONAL COMPANY LAW TRIBUNAL NEW DELHI
PRINCIPAL BENCH

- . . CP No 1101110112013
INTHE MATTER OF: -

1 . Vikra m. Bakis?hi
1' 


.. Bakshl Holdings Private Limi1ed
a Company incorporated under the
-. pr?ViSions Of the Compames A61, 1956
1113111119 :it?sz registered of?ce at,
Mahan- 0311- Building
Floor, 13 Tolstoy Marg, 
"New Delhl 110 001 - PetitiOnerSI-
. Versus
31.; Connaught Plaza L1m11ed
a Campany' incarporated under the?
1956'
and 1131-11119 its registered of?ce "at.
Mohan D511 Budding.
15th F1601, 13,. Tolstoy Marg,
New Delhz 110 001

.1 And

 

- 85619016160669.3312 
1 
10:003.

McDonald?s India Private L1m1ted
- a? Company Incorporated under the
.of the Compames Ac1,1956
and havmg its 011168.81.
202- 206 Tolstoy House Tolstoy Marg
New Delh: 11.0. 00.1

Also at

E7420, Hauz Khas Main Market,
New 016

3 Mr; Robert Dale Larsm
Nommee Darector of Respondent No; 2
havmg its office at
202-206. Tolstoy House 15-, Tolstoy Marg.
NewDe 001

    

 

 

 

Ms AyeSel Melbye

Nominee Director of Respondent No.2

having its office at

House, .15, Tolstoy Marg,
New De_1hi- 1.10001

McDonald-1S: corporatiohi
one McDonald?s Plaza 
Oak. Brook, Thiamis 60152-1,


Also. at?

202?206, House 15 Tolstoy Marg,
New! Ielhi-1 1.10 _001 ..

Mr. Tony? Lerocm .

Vlce~PreSIdent 

McDonald 3 Asia Paci?c, Middle East 6 Africa Group
1 Kim Sang Promenade #06 61,

Great World City East Tower Singapore

Also 61-

202?206,. Tolstoy House Mexg,
New Delhi-1 10 06.1

Peter Rodweli

DIVISION Presadent Paozflc Middle East 6 South Africa;
111K121: Seng Pr?menade #1616. 
TGreat WOrld. City East Tower Singapore

Also; at

262-266 Tolstoy Haus'e,15,. Toistoy Merg,
New1De1lhiu116 661

Devmder Jain,

General Manager Legal 6 Company Secretary,
_Cennaught Plaza Restaurants Limited
-1Bak_s'hi Holdings Pavate Limited 1

134A, Jor 83911 Market,

New .1116. 0613.

Mr .Manieh- Yedav
1-V1ce-Presmient 6 General Counsel
McDonald 3 Asia Pecifi'c, Middle East 6 Africa 
'1 Kim 8969 Promenade #06161,-
iGrlt?at World City East Tower? Singapore

 

 

 

 

202?206, 15-, Talsfoy M'arg,
New Delhi-110001 I

10. Mrs. Madhurima :B-ak-shi,
. Whole Time Director,
Con-naught Plaza'Resta-urants Limited-
.Jor 8th Market?, 
New Delhi-110 003, Respend?nts

Judgment-delivered .?on 13.672017

.Coram:

CHIEF-JUSTICE 
H6113bl? President 

?Sh. 
Member (T)

- 
shrneja's Kana 
'Shri?Pritpal Singh Milan.
'Shri'Manaven-dra Mis?hraa- 
'sSh?rii- Karat: Meihra, Advacates

2,3814 {Shri Sudipto Sa'rkari. Sr. Advogate:
- .Sh'ri' Iqbal-NI. Chagla, SEA-Wheate-

?Shri Ra'jiv Mayan 381'; ?dvocafe?..
I
. Shri :Am'it- 
Shri Rahuii iNarayan;
.Shri ?Sumit'GhOpra;
13hr: Rabat: 

Ms; Naira Jejee'bhoy; A'dVoc'aites'

For-Respondent; Shimmy: Kampala-5.75% Advocate-
. Shri Satyaji't Sarn?a?,
Sh'r'i: Moh?it? .Neigii; Advocates-

 

 

 

 

 

 

 

 

 

 

 

 

 

- CHIEF JUSTICE (IR-ETD.) MM PRESIDENT
JUDGMENT

I.. INTRODUCTION grams;

The instantpetition has been preferred bx one. Mr, Vikram Baks'h'iwh0h35 fall's-'0-
been referred as. ?partner .(Petition'Er' No.31) and: .a gcorporat? entity-namely
Bakshi Ltd, (Petitioner no. 2). 397; .399, 402, 403
and 1956? .(fOr brevlty ?the_. Act) ThEy shall be
referred. as: Vikram; .Bak'shi" ahd; ?iB-akshi; .Hdding?. respectively; The;
impleaded-te? Re??pon'de'nts (and? Sit-would be mamas-aw to'give-
br?i?f" introducti?nf'cmf each. one-of the-{petitiOner- and the _.respondehts" to facilitate

understahd-ingl of?the. Gauge;-

M11- Vikram Bakshi? iand ?Bakshi lelld'i'ng.? are in. Respondent No.3.
1.4.C?mpany- namely Com-naught: Plaza 'R'eistaurah'ts - Pvt; ?brevity-
?aCom-aught Plaza); hold- 11,545,600 (Oi-Me. Lat;- "Forty Five
thousand af?d Hundred) equity shares-which; represent.- 50%; =de the. Iisshed
and Paid up'sh'are capitalifof? the Company. .Peti'tiaher has been. {he
Managing Director" of?the- since its incaptionz. in. is,
.?duly a'utiherized- Signatorypn.behalf-bf Petitioner N02 Vida its; 
The ShareCe?ifith?S-Mhaveibeen annexed (P-Q
Golly). The latest amual.? returns the Plaza. (a'nnexme 

. also bee-{3' "?led.

 

 

 

 

 

     

33:: was: 12-: Liv-1': a9. ere-:2 

 

 

 

 

 

 

  

 

I The ?C'on'naug'ht No. was inCOfporated-bn 
its 'reg-istered of?ce at-Tolstoy Marg, New Delhi (annexuire which was
preceedw by a -.J.0int. Venture Agreement-dated 31.03.1995. It was promoted by
Petitioner No. 1, Mr. vikram Baksm and McDonald?s. Ind-ia' Pvt. Ltd??
Respondent No.2 (fer-brevity Donald?s They have 50-50 partnership
as. per Joint Venture Agreement dated 31.3.1399-57601 brav'ity Agreement?).
JV Agreement wasienteredi into. between- Petitioner 0,1, McDonaIdf-s Indiaahd
MCDOnaildis" Corpjetation?Respendent No.5 (for b'reVity Mc Donald-?3' Corporation.
USA) of the JV Agreement-has been placed on record '(annexufe 
2) A;Supplementalagreement dated 1 11.121139198- was also entered [intoj between
Mr.. Vikram 'BakShi, Mc Donald?s COTPQi??tion USA and
Bakshi'.Holdingsf 1th been. placed. "on "record: .(anhexurie P43), It haisxa'lso
come on record that-JV Agreement. has been subjected to. amendments-from
'time- to" time. inserted, then Agreement
which; is "seco?d amendment; to 11.311501}; 51 1.2012
I effected, All the. amendments- have-alSogbiee'n 'On-

remrd' :a SgannexUIQS' P55 and 9?6. respectively"..-

IM?D?nail-d?s India Pvt. Ltd, (Respondent; N0.. "is a .Conn'aught
.shaye'which represems 50%riof ihe. iise'uedlahd
'paid up .seha're :eap'ital of ?the Germany- ?Respondent N33. 3 and 41- nafmely- Mr.
-.Re_ben{ Dale- Laramiand Mel-bye respectively are-.1115 nominee
Directors. __of MeDenald-?s "India: on the, Beard; of ?Directors- ?C-ennaught
Piazza". (Respondent: No; 5) is. a eerporati'on
101921111253 land exi'Stirtg _'unde-ri- lavas: ?of the. State. Of Delaware; United States .?of

America and is, .ednfifming. {party Eto?. JV. Agreement. Mr Ton-y Lawma-

 

 

 

 

 

 

 

 

 

- R?spondent is foi??r 0f- who was
:d?putedto' contact the Mr. Vikra'm Ba?ks?hi for the purpOses of attracting his
shareholding in? ?Connaught Plazai. Mr. Peter- 'RodWeIl-Respondent'NoJ is also
an Officer of McDonald?s Carporation Respondent No.8 Mt. 'Devinder
Jain is the Secretary Plazaf Who is alleged to have filed fOrm 
N1053'2-a'tthe behegt. of .hgh?'ih?e?e? dif??i?r of iMCDo?n?3Id?s lindiia?, 'REspOndent-NG,
.9. Mrs. ManiSthada?S One. of-the. India? and .islgalsa the.
I General 'Corpohati?nz?s Asia He-h?s his - I
arid has been attendi?g of the Board} M'eet'in'gs zo'f 

I?COnnaLIg'ht Plazai Mrs. Mi?adhu?m'a- Baksh?i is} a namine?

'Direijt'O?rl- cf Bakshl gH-didings of?1?Cpnnaug ht Plaza? and is Stated to

be ?performa- She is holder of a Master degree from the Semi.
Scho'oif .O?prCoanicsand is; a Co-?signatow to. thee. JV Agreement. She". was--
Director marketing; of-?GOnnaugiht Plaza? tilt-the" -i'yi'ear 2000 In September 201 
she has taken 1-49- reiquhsjibiliiy .613- a. _-Se_riib_r* Director '(_H11man
Plaza" ?and is Claimd h?irieid .?some- of. the}
?bastjta'lefjflin the. cruCial?departments-alike bu?iness development, real-estate,
facility management, equipment, construction and-operations. Shelials-o: heads

the [aromations tandiithe .im?gtig ati?n: the Company:

The .Pgeti?onters have and] 
7? the. Company 5-3533!61295442321 '?U?nd-re?d -'{Si5x- Cruz-es My Two-
LaCS-?a?d Twenty One-Thousand only). divided ,200-(quLa-cs Ninety
Due; thousand W0 share 501? (83. 0:16 themsand ion-1?)
each? and (Seventeen lacs "sweaty athree 'ihousand. .and. Meat?"

$3035") cumulative 195991118518preference ?sharesof each-whim have.-

 

 

 

 

 

I lbe?n held .by'MCD?onaid?s?ilh?diiajand Vik?ram Bakshiptus? in "the?

following manner:?

 

Shairehc?der Np. .of' Equity" E'qUi'ty' I I No. I I of' ?Preference

?shares 0f .sharehblding preference- share. holding
'shaf?s of 
"each . each

 

-M?D?onald?3i_ 1,4455%: 50% i 17,73,021. '1-00-9/0

 

 

"Vikram-fB-akshi?h 50%
Holdings -

.0 I 0%

 

 

 

 

 

1+ To m?naQQ; develop, license,- franchise Operate,

 

 

 

  

6.- The main objects of the :?COnin'ausght- Piazza? provided in the Memorandum. of-

r-Asfsociatim are .as- under;

maintai?n??nd. to: .tja'r'ry orixthe business?oftrunninfg? howls-,I. restaurants, fast .fdo?d
Outlets, 'refreShmehi ._expiorters' impair-tars and __ma'n'Ufact'Urelris of-

?aerated, mineral? and" ?p?rveyors, caterers -:f_or public

"to- enter into. contracts; i'agfe'ement. "and/or -.arrangements for

materials-,Lraw materials. and

'the?lfike: inCIuding- gscurc-ging, pfsbakery: pro-d Lists, milk; prod acts, vegetables}, fruits

andpoultry to 'and'imet'hodsfor.

running-.-mainafging the restaurants- eating:_ houses. under

?-s'trith Lia" .1in 'aSSUrancesand' rd 

To Carry on {he :bL'z'Sin'e'ssj- .01" :Cbr?iiS-ultafnts ,to the. hotels, restaurar?s', e?tcg, in

exisie jor gto: be?sta??ttad. fana- train ch efs? Cooks; bearers ?a nd other *S't-a'fflfoir-


.. T9 5te purchase of O'th?miseacqvita: pla?t, machinery,gq?uibment
and" re?tted:- for. the Manufacture; of :cheg-airjd; Joe Creams 

manage construct hire; re?t, ice cream pairlcxurs f0};r Sale 'in Lite Creams: and

:ot'he-r-frielaferd' facilities gamera'ily associat?d; :therieWith- ahjd [or are capable 
being-combined profitably IthieijrjeWithh

.. To;- carry onjthe business::as-kbepers Q'f-d-ray and chambers?
ii'nbe-Qpiants, Warehouses;- refrigerate-Ea freezing muses and room.

"coolers for 3?:inth sea 'Ifoibdis; matinee meat eggs, p-oil-?iry products,

 

 

 

 

 

 

 

 

 

protein foods; mud, cream, butter, cheese, bacon sausage-5,. fruits, herbs,-
Vegetables or other subs'Ia-hce made-from -al? or any of them and. _canned_,_
timed and processed "foods- .of every deScrip?on and to act as transporters- of

aforesaid foods, substance and products,?
A -.copy Of-t'he Memor?hdum and Adidas-.01? Association have been placed '01?
.reCOfd' (Annexme- isa?d- W33 at allm-ateri-ai times
engaged in-?the business .of managing -'quick'jsen'ii'cea-rezsta u-rantS;
The. P??titioners haveapproached this mama: With :vari'dus- allegations.- ofacts
of oppressmn' and mismanagemeht; has
{thus made 
Injunction irespc??de?t: N03. .2510 '9 fr?om with the
management-and. -affaf_irsbf the camp-fang - I
Iii} I?junCtion R?Spohde'nt. to 9 from prayenting the

No. 1 from ,ac'ftingjz'as h?J?d-i?g But Dr representing- himS'e-If be the.
Man-aging] Director. of the: comma 

gig;- {2'10 91' and each. one of't'her?n. -
from .3 my; ?ff?ci 30:17 fu Ether effec'f; 16- the .pi?l?fDOl?d-N :pasSed at -
?ma-"meeting . of: the "Shard- ofiD'irzerGrS- held DH 6 so far as ?it
remit-3830 'pf- "the: 'Petitioder No? ?as "Man-aging.
Director Of the :Comp??Y:

iv. Injunction re'stzai?n'ing ?the. -Res_pnndeiri1t' 216 9 and: sash: brie-of them
?fr'om' .gi'sii?ng any ej??bt'br fill-the: effect; it) Farm 32 ?l?d Withjregard.? tQ-?th?- 
session-? the managing;Directo_rship bf'th?iPetition?r- No. 
V, direction that a -'schtem;e~ .be-Iframed "for: the-management andgajfflairs- :of't'he -


vi. that: the Articles of" of. {the 'Ccm'pajny. be aysui?ta-biy
amended 'Iito provide. .fOr the" exclusive- imanaigement and centroivof the;

.. by the: Petitioner's andfor their nominees {in such terms and

 

 

 

 

 

 

 

  

- cbnditibnsj as this may deem. "fit' and proper;

restraining the Respondent Nos. and 4 from acting. as 'or'
holdihgih?emstelvaa put-as _?dire'ctors of'the- Company;

mu; Injunction restraining, Nos; 2 to .9 and 'ea-Ch one of them.
from: giving?any'effector further 'effeCtio the 16 Au_gust' "2013 and
the 5291 3 if} whatsoeven-

that a. at the. of {he company'held (in 
August 2013: :?ih so. "far as it relates to-xth'e ai'ppO?i'nimentfte?electim off the:
"Pexitioner NO. 1 as Managing.- DireCtOr bf comp-any andxithje-iF-Orm 32-fiil'edi'
(regard. 555155555 Qf' Petitioner '1 as Managing.? Director the.

Company be cancelled-and adjudged void;

xix: lnij-u'nctim res-55515359555 'Z-Respondent Nos. 2'10 9-3f?r5m altarinig .th'e.

Shareholdingricomposjtion of the Campany- if} any manner whatsoever;-

Xi, Injunction (res-training? the; Respondent Nos. 2 try-9 from dealing with,

..disipOSing and properties-of {he Company-in. any

manner Whats-05mg

injunction. restraining the Respo'n'dent ?2 to; the.
- icompoisitien 0f ?ihe Bbaridlof' Directors. car-management of- the: Companth any

manner- whaisoever;

Nos. 215 *9 "from issuing any
__circq_I-aricommfuiniicatiion which. are: similar or? toyth'e 555515515:

gcomniunica?oas 

ixiv; Appropriate. issued S'tjo' the .resp'dnd??t' Nos. .32 to 5 to-
reimburse. ?the Company- Jfbr; all Jesse's; ceased; to; i'th-e-i Gcimpany upon; Iisu'ch
enquiry-being made may deem mend proper;

rest-raining Respondent; N05. 2 to {to preventing?fhes'wmpa ny'

from} using 'i?e ma _rk/fbrand- "McDonald-?3" 'in any "ma ?ner 

 

 

 

 

 

 

 

.. entri-

 

er?i. Directions given for "the" "management and; adminiStra?on of the. Company I
.as subsisting On 16July 2013 andlor 36 August 2013 to be centrinued on. such;

terms as this Hon?ble Board may-deem fitfaind proper;

xvii. Pass such. order. or further ofrdeds) as_'this Hon'b?le Beard. may .deiem?fit

and proper in the facts and "circumstances?
Before dealing the: it Would be make a; brief"
Sur?ey Of'facts Whiph led to-the .ch jQir-?tt- ventufe and? 
Plaza": As? has already been revealed the 
Corporation US .ba?ed- Company and. the practice; adopted. by 'it'lijits. it)
.Str?cture .its- business by'forming {either-- a ?Wholly .GWhed orjajomt
Venture era develbpme'nt licensee!" ;a_n._.i_ndivjidualifranchise; 
the Indian Diaspora, McDonald Carperatibn. realized {that 'chr
development 'of- itsbu?stness- in this country it: 'by' initiating; ragjicin?t. 
ventUre Hand aSSociatihg a: partner has extengive. .Qf' 
market condition. Accerdiingly; :thre?ugh an :aduertisement
- 'M'cDonald -Corpti'rat.'iorj. indiVidual 
McDonald?s in New-Delhi and withistheg:objiect cfsetting-zup. find -_'r_Un_h_i_ngg
a; Chain of 'fb'od pints/quick service res'ta?uirant; -A key
requirement er swell venture was-to identify One 301?.? the. .Q'rt'lcial'
'elig?bility c??it?ria. for a" partner laid doWn 
advertisements-was. to have experienge in. the ?eld of real estate and.
cansttuctim. .Acchdingly, Mr; Vikr'a'm Ba?kshi' appli?d 0n tube}.-
Iconsid'ere'd as -a_'jo'int VentUrepartner Mr. 'Bia'kslrii i'i'n unequivocal: terms;
has; to his creditshis-business experience and 81.30; his-existing careebusiness-
'which- included "inter 31178, real estate" and Claims: to; be fang

BrigaQEd in diverse. are-as.- the; pEfiijd?fTSle-S?

 

310-

 

 

 

 

 

 

1.0

 

I 1994-. He has worked in} .vi'ario'us'secers fin-eluding The" fee} Estate s?cfor-??parf

from working in'. several ..-cQuntries.. lt- 1i's-claimed that, he was in. a 

undersf'and and-fellow International business "Standard- at the time Of association-

with MC- Donald?s. and Mc Donatd?s Corporation. It; has further been?

Claimed "he: returned to. India ?to start new

business- in the ?real:estateg-sector; jHef Was i?-Ssociated- and developed.
Tamera! commercial; and ?residential ?projects ~2fbr. 'm?ltihgtiOanj p'rbjec?its, for
Multinational 'borporafians- and has-'- b?egen "slowly with AT 

S?siefe Gar-aerate; Bank-Li'nias Qantas 

Claiborne; Queue- "to. hemejuistafew

par-Warm: was SChedule'd - 

beme?? the representative of .?inid Mr. ?Mam

.BakShi. After ihafmeietingi Mr: :reQuested- to undergo "a On :j'ob

evaluation" Restaurant. Thereafteirrh?rwas requested

"to meet, the"CEQiF?msideni gen-alde- Corporation. USA in,

Mumba'i?mr; 'Cia?rjit'allurjo; who busi?ass mode-1701? 

Corporation. BakShI him has bee-?foilloming

the pattern markeieer". That- .biuS'iness mums.-

'a?etihitia}periocifOf15years rather than bringing; prci?tsat the; 
A?coiding "1'0 the. zbiISSErieS-s. "med?! .it-?t?f prom e33. its?. :pr?odgxict ifs-
the market :in; which. Ithas p-Ians tOvEXPa?d its? business: It'wa's; :iin"

..thafi background vtha't "Mr, iV'i'kr-am B'akshif was expected 10- sig?- a ?25 "years

agreementrfor-t?he aforesaid. venture-In- India; According-to. the augments made-

the petitibners ware not is?; expect-any pref-ii prior tq15-yeag-sg-of Qperationi :of'

11

 

 

 

 

 

 

 

11 

  

like Australia and UK. It was thereafter" that. MC Donald?s Indie .8. MC Den-31d

.Corperation, Respondent No. 5. CO?dUCted a 'thoroLIgh due diligence eXercise 'to

Check on the credentials of Mr. Vikram being Satisfied about his
._suitebility to be a partner of MC Donald?s ?CorporatiOn for its business "in.
'l?hdia? a draft of an agreement was preposed. The agreement was ?eVentUally-
:si'gn?ed'on 321.03.19.95. It was however made clear. that the affairs of the
7061143119111 Plaza" were to be governed by its memorandum lands-articles of

association.

It, is: also: pertinent to notiCe that after satisfying; themselves with" its.

entrepreneur?s- skills and competence efWMr. ?B'aikshi' ?it decided to launch and:

establish. 'M?eonald branch. Accordingly, McDonald India: entered into: 

agreement with the petitioeers. on 31.03.1995 laying; the. foundation. of



'DOnaId?fs India entered into three Operating License a

I period 01?520 years-leach. permit_- ?Connaught Plaza? to. market-products. iu?deri?

the mend name-"MCDonald? ihi respect (of; restaurant" Situated at Vasgaet' Lok.
Green-Park- 8 GK 1131. jiNew Delhi. .LikeWise, similar agreement-s from time to-
time - We're 'e'xeCL-jteds between - 1997 :to 20113.. .in . r'eSpefct of Other irest-agurarjts": At
the time-of ?ling the ofthe afOrelslai'd ihfe.e has.

survive-d; Set-'Vaea'nt: Link. A speeimen- copy of the Operatihg 

has been." placed on record Accordle'g to the Mc Donald India

earneden initial fee; of ?royelty on grees (sales {3f

each resta?ra?t Which" jnduded Similar- other" restaurant. A: COPY Off each. -

?Sui?beefing operating. license agreement has been placed. or? race rd Pl 1 4).

12

 

 

 

 

 

 

 

 

13. The Petitioners have set outthe .JVI'agre'emer?'dated para-
7.12 of the petition. However, We feel? that only reflevanf cia'u'ses- need to he

noticed.- Accordingly extracts of- JVA are-set out bebwe

_0.wn'.ersh'ig. The JV Parties." the following" p-ereentages "of-shares
in Company:
Partner 50%
50%
Such shares up in full: when issued. The JV Parties.-
undertakes rota-use th_e'i'r'- Shares: 1'0- be vo?ted at cahy ?rms: so as It}:

com pig with ?the. p'rdvi'sions of this Agreement;

64 rd. The-.' Board. of of. Company- -?sh\alil? hiayei-
-.four' (4) mem berg. two (2..) Of-"Whic? shalt-be. nominated by Partner- and m;
of which 3 hall be. Parties agree to -
. Vote-?for- the: efeCtiQh or The Directors (so. .no'm-iina-tedrby- -.P;artnjeryand;
Each member of'the- Beard of Directors? shall; have we vote,
'lf'a Director" shall. dialer: if _a 332-303 ncy _s?haili o'themise :?occurgir': a 
nomiria'ted by gnaw-v Party, a new: be ?eminated "by Said. 

JV Part-V W'iihi? :fhi'?y Such death "amine?: was-339V.-

"On orum .Jand- Meetings of the: . Beard of 
:be- duty -i'co.nvened when at least-one of. the; '[Di'rectiors
Ir'I-Omin-ateidyby Fatherland one of the Bireetors nominated by

:McDo-nel'dfs- sh-?aH be personally present; All rre?stzlu'iions' passed

 

13

 

 

 

 

 

 

 

 



:at a Board of Directors meeting-Shall require the. affirmative vote

of a majority of the Directors. of JV Company whether personally

present or not. All resolutions passed by circular resolution shall

require the af?rmative-vow of all Directors. The Chairman of the

"Board, if any, shall not/have any "right- to. ?cast a deciding vote.

?Minutes of Bea-rd of?sDi'rjectors. - 

Mahaginq Di'rec.tor.- The JV Parties- shall cause the

:nomi'netiim and election 'of; Partner as the sole- Managing Director of JV-

Campany.



    



Acceg' tame;- it) accept-the office of Managing
DirSC-tor; to imai?tair} his :r?sSide?ce "in the National. Caoital

Region "of Delhi, -d_'evote- his- full bUSiness time and best

..-effo.rts to the. mommies?" and 'deVel'?pment' of the: 'MCDOnald?s

Resta-urants-operatedoyjt-hedv Company;

Partner ?must satisfactorily complete a training--
progfa'm' in the- a'ndlor. such other places as
McDonaldisnmay reasonably-- require" for .a period of? 'at- least 9

Months. but which in: any 0336] shall be Suffici_ent_;' in the.

judgment or magmas,- to: thoroughly familierize. Partner,-

Q?QUSistent ?with "his i?divi?Ll?l - EQ?ibilift-i?l?Sr With the 'deve=l_0pme_ntien_d

{Operation-of McDonald?srestema?nts', . 'includirzg-?without limitation",

the MCD'ona'ldf's; masagement Development Program ?(Which

itself includes the- -.B__a_src Operation-s can-use, the- sass-c
,gemsnt "Course; the intermediate- OperatiQns~ the:

14'-

 

 

 

 

 

 

 

Applied Equipment CGu?rsz- and the Advanced 
Course). The training program; may also include instruction

Concerning related areas" inctuding, by way of? example,

management accounting?, purchasihg, construction, marketing

and eqdipment. McDonaldfs. shall design and conduct the
training program. JV Company shall bear eXpens'ejs-
for transportation, lodging and related incidental? 32153613633
incurred by Partner during. his training program The; training

program muSt be prior to the? waning of

the ?rst McDOnald?S be operated. parsu'anti to this:

Agreement; In th?eV?nt "that partner shall -fail to diligentlyipumue-

his. training or shall fail to Sati$f8?torily complete, the: .trai?ing

program the Senior Vice President: and Relationship [Partner 'Of-

the Con?rming Party, having: the stile -dESCretiO'n to judge?

-Wh_efher. either failure may terminate'3gthis,

Agreeme?t; on wfitt'en- notice. In; the; ev?ntpf Such'itefrrziih'atilom

zPa'rtners-hall remit/e a prompt refund. of all .amoums invested! by

him in- JV .Ca'mpany; leSsz?fty perceriwt of expenses": related.

t0 trairiing'gmeram.

(As Managing Director, Partner shall.

manage the-- day-wales; Gperat'i'oh- of' the JV Company, In the-

exercise at hi-S- authority as Managing. Director, Partner" shall"

require the prior approval of theBea-?rd ofDirectorswfor zany; pf the

fallowi'ng attiens :oh-?behatf of-JV Company, .

is

 

 

 

 

 



(2)

23)

mi;

(5)







 

310 enter into any" cehtract (at-obligation? or Series ofs?sUch

obligate JV Company
_-or"a term in excess. of Naive months or a total

'ar?ounttin? =eXCess 'of the iihidiajn; Rupee equivalent of



its) .e?ter "into-any borrowing. oriother credit arrangements;
Which will' .obiigateq-JV Company- for: a period eXceeding
twe'lve (.112): months; :or for a: in excess .of the

Indian Rupee equivalent -

.to acq in, reai. estate;

to amnirei Hita'?'sfer. sell mb._rtgage, predge,
encumber or :othemisedispose: Of- ?capital assets-having Ia
vaiue" in Excess of the, Indian Rupee equivalent bf


to: off any 

10.5.:operate, establish Or awake other .bBSine'sses for JV

Cgmpany car-expand into other"lines-of sz?inesse-s-other

the 2222222 

to initiate, compromise 0r settle legal proceedings; Lon?.
behalf of. ?Camp-any ?for matter re'QUiring

?emergency act-fen:-

to elstabiis?h .br amend p'enSi?n or prg'a?t sharing ?plans-{Of

any kind:

161

 

 

 

 

 

 

 

. (9.)

(10)

(11).

(1-2)



 

_to make Changes in the menu "items or" menu pfices

offered at any McDonald's Restaurants opera-ted by JV

Company;

t6 cause the ?stabiishnwe? of new' McDOnald-?s?
Restaurants the c-lbsing of existing McDonaldfs-

Rastaurants;

:9 grant any license, service agreement, lease or any

other form 9f? coin'traCt to. any thirdpaityfto operate "a

?McDonald?s Rasmumnt. or use any part of lth'e

MCDonaid?s System.

t6 appoint- or" promote-any offiCer of .JV-Company arm
and ..remu.ne_rate any employee Who shalt eam
more. than. the Indian Rupee' quivalem of. 113$ 30.0001

per year, inclusive :Of'ail.l' bentijsiesgand' bene?ts;

to invest "funds; Qfliuv company if the. amount 'iMeSted'_ is

in. the-aggregate; than? the i'ln'dian' Rupee-equivalent.-

of 100,000,._ unlessusmh invastment 'is made. in

accordance with .inWSWent guidelines:- preview-[y

a?pfo?ed?'and? n'bt-subsequentl'y {repeated .b'y-t'he Board 11f."

Diire?t?r;

.tQ- execute, amend or terminate. any, li?en$e technical

  assistance -_agreemer?f 0n. behalf oflJV-Campany;

.17"

 

 

 

 

 

 



 

a)

(17)

(1-8)

 

(19)

(20)

 

to. .i-hii?iate any" trahseactions 'involVing the; issuance 0f

-\red_empii0n of Shares? in Comp-any, changes in ?the
capital: structure of. .JV Company or an increase or

decrease 'ofthe capital 0va Company-i

todecl'ar? asdividend;

to. enter- into any which. may _C_o__nstit?ute= a
described in 
7th> establish bank-.accdunts and? the signature authority

with. respect." to? SUCH account-s;

issue zcisf' third. party debt; including - licensee

idr-sfu ppliers;

"to [do-?any: other act" oir- a?cfS' required - by alaw, of the?

of A??ociation' 10.? ?have Board. Of "Dire'?t0'?3.

- 
The 808de "of. Directors may amiendj any jor all cf-The' above
{equirem?n't?fs at anytime;
The? Director Shall also regularly inform the
B?ard off DiFBC?torsr about: the business- activities- of" JV

. 

Re??taur?-n?ts; 

 

.ReSjt'anra'nts; 33d

118' 

 

 

 

 

mum-?4vwm-vrwkumumun? -

 

 



 

the: SeleCtibn,? removal =s?cjr '..-replacement of :ou-tsid'e
consultants for JV Company-including adVertising and
public relations" agencies, attorneys, outgide

accounting firms -and..audit0rs.

Directpr, JV'Company ghall pay Pa?ner 
grass. annual salary Managing Directb'r- of JV Company-in
an. amount. eqjija?l ta the Indian Rapee equivalent 'o'f'US$ 85,000
Spay-able in: arrears. The salary sha?ll commence as of 
the. feffeCtiVe. date .Qf- this Agre?merit and Shall be. revieWed

annually by the; Board- The -.Man'a'ging Director :shail

be ?n'titI?d toxaz :sbch other (perquisitesIn. --addi_tion, .Jv company
shall reimburse TDF reasonable. 'bUs-i'n-ess expenses

'ihcu'rre?d in .wn'nec'tion' with JV Com pany's business;

_3E3iret:tor._ The Managing. Director
shall be elected. everytwo (2) years; agrees to vcie;

:er the reel?dioa as Managing- for 50 long. as;

(.1). he resides in Capital Region of 

~$Pe?d8 all 'Gf- his. business time. in {the
p'erf?rmahce' "of. his. 'Obligatibns?. made-r- ihis Agreement and

1-ihe Operating Licens?Agreemenfs executed'hereunder:

(2) he: sand-Title: :Ihves?hg ?C'ompany (as def-ined- b'QIowL in:

combination, am. at 9f zine. equity shares :13va
Cc?mpiany;

.19 .

 

 

 

 

 

 

 

He discharges :the of management "of JV

Company'in Competent; and faithfm manner;

he ?is. not in breach termzof this. Agreement or any
ether agreement; between-the JV Parties or their affiliates

aorsubsidiariest
'D?t?tmin'aiian- Va-lue??- Price?"

Definitions:- For ithe pumms {of this Paragraph-,- the fo'llowih'g.

terms Itai-ih'em below;

?fAcqu'i?itiOn: Fraction? fractianal.somership interest i? JV

Mwoaai'ws 

?Book Yalu?" equals?. the book value of the" shares "of 
Company, as: of 'ithe we "(in which requesting a:
:d?te'tminatioa Of ?Fair" Maik?t vai?e: is sent" as";
determined wath -gg?n?raily .. a?cepted 'a?cmu?ting~
pirinLCiples?; f3bpiied 



.C-ompany- Gash of

Sixty percent: income (or
loss) for the. immediateiy ?receding M?lve 
FIGS
forty after-tax net? income (or 
108$) {Waive (12) months preceding thextw?lve month

perioqas?e'ci?ed in 

 

.29

 

 

 

 

 

 

 

 

 

provided", however-that 1va company ssh-an. have been existing for--

1633- th-an "twenty-four JV "Company CaSh Flaw. shall.

Veiqual Company?s after-tax inCome (or toss) for the actUal
number of months. Company shiail have-been existing, but shall
{nd?t exoe?ed ?the iota! 'after?ta'x Income? (of loss) for the 'twe'lv'e (12)

immediately preceding months-

an cases, JV Company?s :afteIJtaX'. net income (or 
be; \adjusted. by: (1) adding;deprecia?on and am'dr'tizat'ion: 
adding after??ax .inte?reS?t expense; (3.). subtracting aftemax-
.int?rest'in?come; items (net of 
as determined in accord-awe with us .GAAP: (5). 
changes- Iin non?recurrihQ: items and
titransla?on gains and. of :ex'cl'udgihg' gains
{arid- I'osses On sales .of- property; 5ng (7) .excludi'ng
I gains and Ids-316$- on the Sales; bf McDonald?s E?d;
upon 'opitienf-efxzerc'ises: :pu'rw?'rit: EtioB-u'sin'ess- Facility Leas 

infaixas)?,

Company -'C'aSh F?low m'UIi'ipH?d'



.C-?ompa?y- Net Debi"- JV Com pz-ainy?s- total Ilia-biflii?ti?s,
less. CaSh Qteas?h 'je'quivaien'ts; {pl-L535 the? test of fallf' reinvestment
?required in Order for a? of ?the. McDonald-ts Restaurants- .operaiedi by
JV :C'Ompany to; meet-- 'McDo'nald'is- '??emurrient: "sitanda'rd?s arid



21'

 

 

 

 

 

 

 

 

 

Fair market Vail-19.. The. Fair Market 

the greater 'Ofi

Net Book'VaIue; or JV Company'Ca'sh. Flew 

JV'COmpany Neti'De'bt.

Price. 'tf-lM?CDOD-aild?s (o'rrits or 
to 'e?XerCise. the o'ptiOn 'to. pu-rch as'e some. or all-bf the ?share's'of?th'e
Vot'h'e-r 'i'n zac-?cordainCe with the items?: Of this. the
purchase- price far ?uch? Shares: shall be: determined by
multiplying: the Acquis'iticn ?Fr-actiO-ri by the-Fair: Mamet ?Vii-hie- hf"
..-J.V -"'C'o'mpfany; pro?lided, that if ("at Its
?designee): purchases in the event of 

within years after the: date of: the. first 
Restaurant Opehed under this mes-purchase pjriibeifo-r-

such shares shalt not; be less than the amount of Father-{sf tbtar-

"cash:investment. Bompany, plus on such 
amountat the rate of ten percent per aim-mum. .Qompoun'ded .

annually-

Audited": Financial Statements, All figur?'s 5396333 r3? if}; 5.10 {der 11:0"-
?Di?'r?fbfm ?the required. 'pu'rl'suiam' this Paragraph--sham-l;
be; derived ?ow: the audited financial statements ofiJV Company

prepared. as of the Notice; Date.

. 32. 'Opti'gn to Purchase. McDanald?TS- any of its;

wholly?owned- subsidiaries. o; affiliates-was designated zbg-yf'MC-Donaldijg

. 22

 

 

 

 

 

 

 

Ora-191V persqn or entity designatedeby purchase- an. of
[the shares- 0f) JV Company owner or Partner at a.
purchase price determined: in. accordance With Paragraph-.26 above-?if

any of the-fol Iowiing_aevents {sh-all - occur:-

I04 main-tam. his- PTIDCIPCBII in {he-
?Naii?i?azl- 0:894:41 (RP-Slim gr Delhi 'Or fails Io Id?mta his fun-

busihess- ti?mze to JV Comp-a 

fF?a. drier terminates -- or" suffers the te. rminzjati'o'n of his :reIa-tiqnshii r15?
:33; (if JV "Qt-heir. "by. reason

.I-hjs? death- In the eve-ht. of" (If

 

{gm-ca p-ac-ity; .s hall. 'ngVemj or"
expiration or 'teirminatim of: this Agreement,?

.1. 4 In pursuance: of the! JVA the. *?Cdnhajught' ?F?Ija'za?- ?was incorporated or?
74..copy'..of at: the time: has
- .joh' whic'hfha's time" to time-as:

has alread'vafbee'n 33the;ipreic:ediirzg tiara. 

15 Far-we; purposesofshowmg that the petiticner is. 

 

treatment than the: party to a-..-.simil.ar_ jein'tf-Venture agreemvant f4)? wefsjjand stauth
India. region, averme'nts have-been made-In - para 715 71.63 the-3317118

mm.

162.: The Petitioners have-$130 :asserted that from ihe: JV agreement and the-

-. Adi??a? ?Co?naught; Pifazaf?, the company is;- and Was at .34}

 

23." - .

 

 

 

 

 

 

 

"171..

mete-rial? times ?in the nature of partnership behNeen the: Petitioner and Mc-
.DIOn-atd-?s' Corporation through the agenCy of Me Donald?s India: in the
guise of limited liability Company. The Petitioners and Respondents or their
nominees Were expected totact in'the :best interest of ?C-onnaught PlaZe' with
utmost 900d faith" tQWardsfeaCh Other. The petitioners have asserted that apart
from the rights-conferred byArtiCles 'ef Associet-ien end the .JV Agreement there

were folIOwi'ng elegitimate :expectatie'ns';-

?The Said Respondents Woutd act. in utmost good faith when

dealing With the Petition are;

23-.- The Joint venture between the Petitioners send. the-?Respondent.
Nogsithreugh the agency of the Respondent No. 2' andfor between
the- 'Petitieners and the- Respondent No.2 would be in force ferret

i'eeSt Meaty "title years; and

c. - The Petitioner'_3 would?have-control of 

  ram-2 affairs of thearcornpanyf?

The cte'irr?i- of the - Petitioher is. sought; to be supported by the fact? that wife of 

Viktafm'. Bakshishe'mgely Matihurima B'eKShi has been a wheleetijme direCthof the

'aCQmpahy'frem its 598??" inceptieha Who has participat?d if} "its

man'ag'em?htiend She-was d'ir'eCtor marketing of the. Company

{Iii-Ll"! the year-2000 and thereafter She toekf'ov'er "the-functiens of: C_<5rpo_rate:

'Communicatiens- in- tes?pect- of ?Connaeght, Pie-23' and; continuedto be 50; till

date She "t'o'ok ever edditienal -_jresp-osnsibility as a- Senior .Directhr. (Human I

I .: since 'S'eptembert'zm 1' and; has ?hired the best talent

 

24-

 

 

 

 

 

 

 

 

in the. crucial zdepartmentsC-?ke business deix?l'op'm?nt real :?Sta'te, "if-ability

management. equipment. construction and operations. She is 3130' head 701?,

I - promotion and :imestigation committee.

1.8.

1 9

The Petitioners have- maimed. gthat the foundatiOn' of JV'Agre-ement proceeded

On "the. Mr. was .to'?be the sole managing

director of' ?Comaughf PlaZa? which: has :?been -.sijnce;. 18071995 iihftef'r?ms. 

Article .35- of. the. A?-i?Cl?es. His- aprinMen-t "and, 'C'oirjtin'Liatifon: as? isi-ICH was
paramoum- .for- preservation Of .b??t'w'eefn': the ?and?
Mo Donald?s India. reference- has been invited to. dame 32 
Agreement which; pro?cies' ifi'P?titiOner N01 "t?rmiha?es (1r suffers- 
termination 201?. ?his; status. 338 ma?agi?g d-i'rejcffor then-MC-
Donald's India-was to have Option? to purchaSe [the s'ttareiS-iof'fhe' Petitioner. (Qn'
'ex'iStence .?COnnaugiht- . Plaza? - iis-_--tieid up:- With n?m?ly '"Cc?ti?uati?n.
of Mr. Vikrlam Baksihi? a-s because. some-Miser they? faire- 'Iik'ety? "to; loose.
everything "including" their Mr,. 'Vikr?r?. Saks-hi since its inception" 'is:
a'fM-apagfing_ Director. He has-{aid firmer foundatitj?n .91: Connaught Plaza: and?

has been sucCessfu'ily' carrying - out. its The pfioriapptoVal

by the: Boa-rd "of Directors. Vijs. required o-my mr- .sp?tzi?ed zin-

clause. 73:) of'th'e. JV Agreement.

From the ?rst meeting it was res-owed? that Mr. :vikriam Bakfshi would. be,
appofihted faS the Managing Director'for a of two years and he. has.

remained as? such- stall materiai time's. His as

. . Managing. ?DiirectGr Was 9150' 'appfOVed in an ext-nabrdi-hgary meeting of the

 

.25

 

 

 

 

 

 

 

201

- Body (if-the"shareholders Therefore, he Could have

been removed as of 'the__.ComDanv at a meeting of the

 

?Shareholders-imam of General body of the shareholders in

aCcordance with?. law. It is pertinent to mention that in a meeting of the general

bOdy' of'the Sha'reho'lders- Plaza? held on 16".092011Mr. Vikram-

?Baker-133 was. reappa'inted as Managing DireCtOri bf the Company fer a? farther

period of two years-(P11 

"The Petitioner-has enumerated: various-ante: performed by him" for the benefit-0'1"

"-G0m?31ughf Plaza" Which has: earned appreciation from respondent's 

HOBO-rdi?gf .to- i?he averments. made Mr; fto. 

personal properties and the of ?those Companies Under his

'10an central and; his family members" 601111017 to enable *C'onnaught Plaza? 10?

carry-01113 business. The "particulars Under:-

List ('1pr top?tti?'s: rov'ide'd. to; -JV

1. ?Registeredof?ce15th:?Fgleer, "Dev, Telet'oy 'M'arg', 
110001
-.s Free of"iriental.

2 O?f?ee- 12 111391 Jorb'agh. Market, New Delhi:?
110.6035 sqff) I
'DiscoLm-te'd rental

.3. warehouse?lApprox: 10:00.0 :s'qft), PS PF- 11v, Sector 17 
Delhi 

Dis-Counted- rental

25

 

 

 

 

 

 

.47 "Ba-Sam L'o'k, New -De?l?hi- acquire {the property by
purchasing the ,top ?two -f!oOrs of the to atl6?w the
15?Re-Staurant in- india open .at a prime- Iocation. We have provided
operi- Space Of 1000 "on roof I

Free of rental I

P414 11-0001- as the first idowniow?i-

"restauxant in. Con?EUgh?t- Place (2800 sqft)

Dis-counted renfal the renfal outflow out: of? the? 5'
.d ownioWn CP. re-staura n13. (11.4mm rates?)

"-Se'Ct'o'r .18 Market; ?Nbida First": IresftaUrant .in. 
{8320 8:110, 3016 {hi? price tofth? JV:

#0136th priiceiis over [1?0 times the Sold price;

Savoy Suites Noida An .attaChede'rive- 'Thru -
"restaurant in NCR Nbida ?With one. ?offh?- best 801 (Sta-?re- Operating -
i-izraco-m'erfor' the JV, I

Pure" rex?xenue? share, no .?xea'rentai'.

GT Road 'K-arnal 'Drive-?Thm
teSffa-L'Ir-ant with one Of the best ?so! (Stere- Operating Income)
:Rjes't'ajura nt= bra-the- JV

'i-rFiXe-d? 4-: - Revenue Share

ELDM: Man, "Kaushambijwm (r3675. "The first man in East Delhi
"with all aseperati'?g formats of:

8- fF-full Hausa. restaurant

13. F'oOdCou'rf 

. 'DeSS'iertKiosk

 

. 27

 

 

 

 

 

 

- "Pu re revenue share
'10. .-Jab"li .(HimaCha?I ?the" National. Highway (3000 Sqff), a
nique restaurant on a bridge

ixed+RevenU? share?

21 The? P?t'itioner' ass-o Claimed. _thaffof?ce.premises- -at} Mohandev Building, 153? floor,

 

13 provided freed-00.5110 "Cenn'aughitl
Plaza" it's: registeied of?Ce; He. has obtained 13?"te segi'n his. persona-I"
Name. for Operating.- the Ti thiri'ee, quick. z-Service .i 07106153- 31939
with "ii-he operating" JECense agreement?entered:- in'to beMeen the "CQnUaUth
Plaza? and Donald?s indie.- He has-therefme. taken. the entire -.burde;niyar.
running the-business of-rthe. Plaza? Sin the; territory of India.

The: "rates at which {he properties? were. made available PJaza'

were'lower'than'fthe market" rates; to bake taken Steps to en3t?1rjetha'it

the beef? tall-(1w orig-is," .Whibh tempt-ed iant-o a mafia; relating to

MCanaid' prizqupt did not; sprejuidicially business.- Company in? -

indie-i and that? Grimm-1.1685623 "instituted. "against: the Dire-0mm of" the. Company"

'd-ismis's'ed-x-in .relat'ibr': to- ihe? ioutlet'Qf? the {Compahy "In additioa 

ihe- {Fatima-er I'h'as given. detailed particulars. of an" the: afar?isaid acts- Which-"are.



a "after-Signing: ?of-the Agreement, No, :set.
up the Company df?te ?in zone of his? own! properties comaught
Platte-and did not Chargethe'Comp'any. any rent.

b. 11:15 June; 1995,.jthje Petitioner? No. 

in 'Indahesia :and UndejME'nt. .an: -_ihte?r1j_se. restaurant-

 

1218'

 

 

?fauna?1.12? .. J/Lurn -. -. 

 

-'_trairiin_g w'h'erei?? he work-ed at. a McDonald?s restaurant" for a period Of -

:approximatsiy 9.. months.

The Petitibner-No. 1-3130 completed three (3) courses which included;

fate!? alia,? ?Basic: Operations Course Basic Management-

Course and Advanced "Operations. Course which

in Oak Brook 

1995,1119 .th?eh ruling igoveramehtfhad declinedto: grant 

.IiiCBhsesftc open and operate reataurants in Delhi toI-t'he comp-?any and

was granted" only due to the putjinjby

.[Petitioner- of.- and the LiicenSe: was issued in the ihdi?idual name-"9f

iPetit?iDnenNoz; the restaurantWas

Opened-in on 153 "October -1 995-4-

The?PetijtiGner NO '1 With. "the; develo?m'ent team? from the US

harried. research 10? ?n'aliZe sites. for :s??tting up 'M'cDonald?s
- signed ap?thrzee' (3) ';propert'ias. in; V'asaht'Vih'ar,

Park and. Greater Kailash, respectively.-.

Iris-staUrant 8; India?s," 1'81 McDonald?s. was opened

leadership-and 1} Qn'13
'OICths; 1996 at}. 47,: Basant Lok', Vasanz: N'ew Delhi; Far

sawing; that the "CQmpany opened; India's fir-3t M'C'Doriald?s-

?Resmuraat at. a 1000? requiSite- utilities-and 

sewlces "Bet'iti'0ns'r No, 1' personally 'inlxte'sted'in part 'of the pro?e?y"

and: purchased the: tipper floors. Of Vasa'n't 'Vfiha'r 'oiuti'sf heated "at 47

-. . Bias?afritj-LOK New 'De'HnL-inahis- Companifs-?namea Jim-fax; 

 

.29.

 

 

 

 

 

 

 

 

 

"for 'txwoqh'ird' 10f ih'e- terrace of his -purc:hased- area fer- installation of
"Water tanks, generation .set, water-?ltration plant and electrical panels
Without charging any rentfor the same. Copiesof various n'ew?spaper
?Clippings evidencmg ?the opening of McDonald?s ?rst restaurant are
annexed herewith-and .20 .

:In? May 2001, 'ihere was._ inf?nse "me'fury and. Vandalism against
a ire'act'idnfto- the admittance of beef 
:?avoiurin-g being added to 'French. fries in, me "This 'i'r-Ifdrmatidn
.o'utraged Hindus- over? the. 
Petitiqn'er' No; a1.? fedrjlesS'ly promoted: the brand- and stood 
dgaihs-t:threai$ public: .p'tct?sts and vandalism.
faith, trust-23nd? interest 
"Corp'oratitpn in India remained ma?a-ted; .As- a matter-of fact, no
one from theU :operatiian sent-any} advance: warning: ageing 
{impending nor- gd-id anyone. from McDonald's 
yiis?itedjIndia-during. :fhis?peti?dd; A copy. ijWer' pair-1t presentation
detailing. the Cri-iSiS 13nd; crisis- (?ction. pian is; annexed
(A Mex-u 

No l- per-Sonia]: il-ia bz-ilities upon- him-self
*8 371d   -=inlitiatedidef?ndc?d- .332e-ve-ra.i-' legal gp'rdceedings- togiproiezcii the.-
.int?res-f' ?0?f company- and gensute'd that bra??d 
:xje main 2u?'bliemishedh :On: 12 Aug-gas:- racked: the
first; restaurant in: Kolkajta ?The :I'if'e of .aapedestri'ani
Sacra-SS. the street; Was unfo'rtunaiEIZ-y lost and: many peep-lawma-

"injured; A case; W335i ..fiil'ed] against the

fan.44. Haw-var#ch

 

 

 

 

Company and including the nominee d'irecitore
of MC Donald" Petitiener N0, 1. not only provided the best
medical care. available- to the injured people but also helped in
resolving including; the criminal case against the
Company am the nominate directors of MC Donald ln?dia. A copy
{pointf_p-res_ent_ation detailing the 'Kolkaia ifi're incident?
"is annexed (A ?an eixijre - 

Denald lhdliaffur'lher' caused. Mr. ?Vikram Bakshi. te .par?t?lwit'h, his.
own 'prnperW-?ib the 5 Com pgain?y in S'ect'er '18] Noid a, which; houses
McDo??e?ldla resell-ram, :33 a -_of..whic.h1_i_ My. "Milk-rem Ba kjs-hfi
Suffemd . a age". less 0 n= 83398-l'ati-o n" of? price of p'rope W5

Petitioner No. {provided hiS- real in prime locations Jin-
Central Delhi lathe? Company utilized? as off-ice space _;_bty the
Company. Fof the first Mr, Vzi'k'ra Bake-hi didnot charge. any
rentals for these- "Thereaften the rentals Charged were
mUCh 'l'??'wef'ihan the? market}. rate; A Copy Of "the: Of?ce'- Space
Cempareble-Repiort. {an-record. (Annemre P23)
Mr. Vikra'm- Io? VENOUS Personjal ?be-?e?tste the"
C'ompahy Including his personal .properties- at. the. cost price ?at"
:?difieceu'nteti or He props-W915-
premier rsmpiplng penile. et New Delhi; Till ?the I
date; it; .lja-s {he lowestj' per sq. ft rental. out of all} the-{5 "properties
Lin. ICC-nnaught'i Place; in: which. {restaurants operates,
of? the .C-BRE 'Riepert dated-7 June 2-2009 is 

243.?

. 3.1

 

 

 

 

 

22..

 

 

?been made:

 

1. Further, Mr- 'V'i'kram 'Bakshi persona-Ely- :prOvide'd With
many properties at prime.- :l:ofCati0n-s so that. 1 Mc-Dbnald?s.
restaurants: could be established. in India- With. the right quality-

benefi?ing- the Company,-
ThezPetitionersha-ve claimed thafion Vikiraz?n .Bakshi' concentration,
complete. devotion, and undivided attentiohithe-Gcmpargy has reached-The. prese?f

-'busin'ess Stahding and 1prc?zabilfity, It is. attentibn and"

. .disbh_a'rge of i hi? {datejthe ?C?onnaugh?t Plaza"-

has; :no?t authorized any" neriorzn?b?g?pfe'sfent??ve. to Carry "On its

'bUSi'neS-Sf for the ?COnnaught ?Plaza? iahd'ih? entire ?bysi'z?iess SUCCESS is ascribed to

-'the?funcfi0n'ing and ?nanCial'f "Vi-k'ra'm Bakshi; Readers- Digest

rated; McDO?ald?s India as.? the Traste'd "Brand'szIN "for "two-consecutive:

The W313 knOWn E'Bufsiihess'4WiJrld. Magazine?. alsd :aWarded
ReSpected Company Award 3533. the Services.

Sector fer few years; (20013-329027); 1t :-r'3nked at 13m pos'itibn. among?St *100 Top

Ret?il??ris fin-1nd ias? like: Pizza Hut .aridifKFC'wsre. at ranked

f343h-apd393131.11 ranked Nof 3.11:1 the: North-and. East?11w ia- the.

West reg'idnx rank 310333.111 2009 "it? 12101-1, N019 In 2010'a?d 13?1 3n



"The Mt ?Vikram Bakshi has further Claimed that While. discharging. his

16.8pbn3ibiliti.es as. Mahagi?g Ccmpany, She-has. single? handedly'

man-aged ith? -_nurNerouS functions- Which-are primarily responsible for the present

- Of't'he "In said. paras ofipara 7 have.

 

32

 

 

 

 

 

 

 

 

Z421



.. 744

M4: "Vikram Belts-hi and: ?the' other d-irectOr-Of the;

Petitioners-on theboard Qf the Campany- have marzaged. 
the- .recruitment of :all' employees of the Company. Presently, the

Company has- mare 

Mr; v-ikram Bakshi. has repreSented the cempany before.-. an
gwemmemaf and; nbnaggvemment?l authorities "in; particular, in all

contracts isjgnedm behatf'of-the company, including, 

.licuenseswith R?spondent'NQ; 5.

The Petitioner N0 11 i?s ?theita?'I'wdii?ectot Company Who has" been

. BXpendifUi'? f0? the conduct 'ofihe business of.

2145;

 

the Ccmpany- such as gapaym'eht' hf salaries to the Cbm?pahyfs-

.emp.loyeesi,- payment (if rent for 1119? premiSESi. Which have been taken {an

'r?n't .1 lease. by 'the- Company, arid-Other. eXpenditurie- 33 has been

?mt-1:11:91: Of'ithe daye'toeday business Operatiomsrof ine-

Company,

The Petitioner Nb; 1 negotiated all lease.- aigrieem'mts- .and'jieiher'
"datuments-in {elatibn to the premises in Whicn restaurants -
The. Petitioner No. 1 has. beenaibie'to. diScharge such
functions and? bemuse _$ave Izand. except. the Peiifi?n?r' 
No 1.1m other of?cer, wreath; .Qr employee cf the: 
extenswe in~depth {knawledgjej cf ithe? real estate -_busines$ "in It is

mteworthy that as: a. put in by the. Petitime=rsrand=in

paw-cum by Mr. Vikram Beak-Sh}; the Company: baseman :able toi-secuxe.

long term- '_Ie'aSe I revenue arran'gemems.. in .resmct =Of prime-1-

33'

 

 

 

 

 

 

 

7.46

7.47

 

properties out-Of Which the-"restaurants of the?. Company are Operated}
The term 'of leases and} or revenue Sha're'arrangements ang?BBments:
entered. into. by Mr. Vikram B-akshi,_ on behalf of'the. Companyis: in the
range 01" 1'5?40iyearsi which itself is extra?ordinary in much as -_i_n'the
"retail" seetOr in India, .the. Company is We}! known forha'virzg secured long
terr?sr?rra'ngements On. extremely (attractive: and {be?e?cia} terms-which
iS-Ipr?tic?ly impassib'le :for- other} campan-ies 'C?ndi or' entities- 

Th?i?- path?breaking lease held. arrangemehts in. -'_lndia Shows the. 10119".

't?erm vision of MT. "Vikra'm sustained JV

Company,

Mr;- Vik?ram- and his- Wife+ RGSande?t' 

directors off-he Company who are-residenf inilhdia .a lid atQ-the. Sanaei?me

have extensive knowledgeOf-jthe 

MG Dana'ld The nominee direC'torC Cf MC _Dpna?ld 

haye; at best, '0Ver-a. '18. -jsp_ent not more-?than in.
India and whatsoever" _of the business.
ih?dia.. AS Sash},- they are in no pcSit'i'onafo. discharge any}
fundibns or respOngibizities- 0n ibehaif- or-the ".Cbnnaug'ht PlaZa?; Mr
Vikram Baks' hi? _.af_ter. by me Mc Donald India? and.

MC Db?nald Carpo'ra'tibn as-i'thzeir' ?partner" in. India], "has und?gbaa-

extensive'tr'a'i?ing at various locations- in whiCh' Mr:- Donald .Co'rpsorati?n

carriesm business Operations-

Thei'Petitio'ners in, partimlar the Mr. Bakshifhave, at all material times},

-- their CXperience and. knowedge 1ft)? .thfe iad?vah'Cementi. and.

34

 

 

 

.. . . 

 

 

'impmVemeht {if ofthe 'Compa riy' in

. - India}.

24;. The Petitioners.- hav'e further made-allega?Ons. of mala?de attempts to ?oust him
from the. Company-at Ian Crucial time when the Struggle bf 15 years has sta?ed
showingiitas. a pro?table venture. The 'Petiticner's, have asserted 1th at at the-time of
joint venture" McDonald?s Corporatidn' USA thrOLIgh it's- Senior- mamd?m?m had 
shared the and .:stru?ture With Mr, 'Vikram} Baksh'i. He was 'ihiimated? 

=?th_at' ?thejoint. marketbu'sine'ss: miod'eli-was'io ?run

 

.3 "less --for ?rSt 1:5: 'YQ'a'rs prams- "It Was-at;

that stage? that Mt, Vik'ram Bakshfi'r?a?r. his}. {ab?ur' and investment would beg-duly

 

fewa'rded" as had happened. fin-Australia and UK, On {tha assuranw given- by MC -
?Donald?s Corporation USA Mr \Iikram. Bakshi' relentlessly, with his full
hard-work; and 'of- the Company?s;
.bm?es?s?; :it-.-ihas- new 154 good quality- resitaurants. in; the - chth- and- East-India.
Region-g "it is? in that. Mc Donald's" "India? and MC Dohald
Corporation USA :dev?jbpj?de sulteribr. motive to get; rid of the. Petiti'oners- from?
Comaught Plaza Isin?k?jei the, time. [Showg- the. signs of moving towards.

I-prc?tjability, in?the" years had-started to usurp the: success and

 

investmehtsjof the Petitioners;unfairly, ?illegally-and _cp_pressively by arm .twistitzg :to

Sell "their -entire-- {sharehddfing-:ifn' ihe fc?mpany, It" was an 119.508.2008! Mr". Peter .

 

EwaelliaRf?Spo?d?nt' No; .7 :made'atelephone-Cali. to Petitioner? No. expressway
the. desire: of Me- ?Donaid?es; carpor?tim to} buy out the Petitioners entire
isharehoidihg ?in thetamaught Plaza? far-a pitta?ce: The .?Peziti'cmer
efejeg't'ed the same on the telephone: itseif.? In their letter dated 22.08.2008
addressee-Ho the Petition-er--thea-same Offer and the--

35

 

 

 

 

 

 

 

25

 

P?t?itionefs Were asked to provide 'the expectations- of sale price- in lieu -of .the'ir I

:i?tere'st's in-th'e Comp-any. Acopy-?of' the letter has beenplaced 0n record (P127). In

his reply Slant by Mr. 'Bakshi on 06.09.2008 it was intimated that-?e was. stunned by
the-offerconsildering maths: had invested close to 5 million. way back in 1996

When ?Conn?aught Plaza? cammenc?ed its operations in India" (Pf20). Thereafter on

231101-2008 McDonald? Corporation U.-S.-A. extended the. offer to- buy the entire.
ihterestnf?the: Mr. Vikram B'akshii-till 30.1 1 that in. 

{disagree With 'fheif offer than they may provide their-expected? saie price in. respect

of their'interestziih eth'e- Company (P129).0n 23.10.2008 Mr. "Vik-ramBakshi- had met
Mr. 7 in Kuala-Lunjpur-an'd made .ajpmpOSQI of fair
a 'thir?-Epa?y and the-individuali'i'z'aterest of 

may alsoibe- asCertained, Which was rejected by letter 55555 wit'ha'ut

any; sabstantial 5623393. In the. same letter dated 11.11.2008 .Mc Donald?s

Cgorporatim U.S.-.-A-. ihCre'as'ed the amountcf the a?er to 7. million U83. (P130). Mr.

again 'expressedfhis anguished-(in his: letter; dated 30.11.2008 for not"

..a.cbepting< his. 555515: pfqposal- of valuation of the - entire Company'- and the;

iindigidual .ir'lterest. He informed. Mc- Corporation that the time

I frame 10 him-fer determining-his "interest in; the Company is wield-equate

ail-d ihexwould be ?in a better? poSition- to provide his expectatiens by 15.02.2009-

(sz31),_

"The their em (cast; Undertook a Valuati'e'n .exerciSe-bf the-"Gennaught

by engaging international!- Accounting Firm 1W3 Grant

"Thornton. which its Valuation report (032152000915 the report
submitted by Grant 'Thom't'o'nj the agility" Vaiue arfived :ati million- and

. 'w?'uldbe minim. Ailet'te'ri :to'xthis? effect? Was seh'tz'by ML.

36

 

 

 

 

 

 



Vikra'm 'BakShfi to Mr. Peter 'ROdWeII-RespondentNot 

Mc Donald?s Corporation USA. attended ?a presentation New Delhi on

03.07.2000 given by Grant Thorntoh explaining the methodology of the valuation.

After the presentation no. further step-s were taken by MC ?and :Mc'
Denald Corporation U.-S.A. either- by them's'elves or through" any of their

representative. which. led "to 3 {9830001019. ?inference. that they "had no intent-0n to.

[acouir??the Shares of the Petitioners in the joint jventuresatfa. 

The - attempts of Mc Donald India. "and Mc- Donald?s Corporation USA thereafter-

comrnencejd ?to forcibly. acquire'the shareholding-00f 010 'Pinti?OnerS wh?ioh; are
ma'la?de: and motivated; They haVe' partnerS ofWest --and
South India. ?Region "to 'furth?f their imata?de to take .opp'r?sswje rsteps;
against'the :isj- another -faCt..llnf230.1 1 the j'ointjvent'urev

partner for-West South?India. ?buy out the Shares

the Petitioners- and categorically? ihformjed Petitioner No.1 "that MC. [30% de -
Corporation USA him: a tacit: appraisalamt-the. 

"claim that McDonald?s Corporation Would that-.utet; .P?titiinerS-z 

effectively it-they refuse. [to sell. The same, Mr..Tony_ Latraoo.,_ Vice I'Ptes'id?em;
Franchismg of 'MoDonaldts repeated" wows. in a. meeting: in
Delhi {in early 2012. Mr, Vikrafm that-.ihej is

not. cort?em?d "about: ?the . purcha-S'er as; tong:- he? 901$ tair- market Valha.

?Therefore; MoDonald's facts qt'oppressiqns- have

been towards one. Sole object of forcing out 
-_Havi_ng fated in their evil designs. it, ?in it'l?giat acts like non?'-

reappoiatment: of Petitioner No. 13 as. Director-of. the Company- 3.30. thati?itz

may. exercise" its; option to. 'buy'iback'fshares as stated in 0130331532 (if the

 

.37

 

-- 

 

 

 

 

 

27

referred to in the preceding paras of "this judgment; The Pcti'ticner has als?

- cited the conduct of Mchnald Ccrporat-ion many precious joint-

vfenture across Asia. which include country like Thailandi and Pakistan.
Accordingly, it has started similar tactics since 2008j0f oppres?sing' its joint venture-
:partners- across the globe-and. force-them into- a Corner to My them out at piltanCe
Corporatien multiple arbitrary and

baseless- internal audits. on 'Connaught Plaza; harrowing" eera-rgos and has

--med. Petitioners to the Company-to-irhprove its. net :woah' 

theare'mliln?ration "o?he' Managing? "Director, lt has raised friyoloujs- issues which are.

"stale; iwcfa'ix?'edlacmies?ed to, iam?twist [the JV Partners, :to Sell their shareholding.
The'C'cmipany'has-Suffered due-to (laminatingiand I

-'l'n'dia and-Mt; "Donald?s Corporatibn LISA.



salleQEd fthatigMcr D'Oraa'ld- lz?ldiagalnind Donald-"s "Ciosporation -.-S-.A-.

have committed ?va?ous acts of.Oppression-Fahd" mismanagement; The. petitioners

have, Tare-asunder:

 

:COnceminjg appointment: of. Mr. Vikram. BakShi :as :?Managing
Director 16f ?Com?aughi Plazaf?. Mala?des in ?cessatian ,of MI: 'Vikram Baksm {as

Sale-Managing [31722th

ln JV?Agtce'mcnt. there .iS'a: 'p?d??itiv'e; obligaticnzon Mc. Donald

.chi-a. to Ire-elect? Mr. *Viktam: the Man-aging. Director of. the

"Compainyfmaf? 848', Company- P??tfon,? - 36).

 

 

 

 

 

 

28.:

"His 133?: appointment :as Managing Director Of the Company-was .0516
'Saptember3201'1 at the Company?s Annual- General Meeting fora pe?od of
MO years (Company Petition, Annexure p.296). This ?clearly
SHOWS that the Respondents had no grievance with regard to the}

management Ofthe. .COmpa-ny by Mr. Vik'ram Bakshi ?ll that date.

Pursuant "to' "above. mentioned Mama-1 General 'Me'eiing; an.
agreement betWee?- 3Mr. 'Vi?k-ram-Bakshi jar-id 
Agreemenf?) was-executed on 11 October 2011.- 81903. their; the.
Res?pondents- have. not} made. 'a single against Mr?- Vikra'm
Biaksh'ii' concern'ihg his duties Director cf the Company. ?lti
is "also pertin'enf to note that the efforts of Mr. :Viik'ram Bakshil
ath?ereaffei" "ha-ye --been_ reWarded Dbnald India and MC Donald?s
CQrporjaltion and grOWth.

90f Com his stewardship.

16*? September, .2011 {here are? numerws iastances. quc?ed.

"which that the R?'spondents'. were '53fi3?9d with 
of Mr. Vikrarn' B-ak?s?hi and it would [show that the.
- Respondents: e?visagwi "that he woma? mntin?ue. :to be at. ?the helm" .gf

. - affairs 

.F?eti?OnErs' .have. further painted out MD.- Agre'e'rn'ent dated 11 October-
3120-1 1 catego?c'a?y; [provided that the 'C'Omp'any "enviSaged a "sole" managing

Kat-all. points- of time. and. i-uni?ssvtemii?nated the. game was to be renewed;

(Sh??rReipily of R'esbondehmg, 2 12013, 

 

- 39?.

 

 

 

 

 

697). The MD: Agreement contemplated Mi". Viktam Bakshi- to be? the MD,

 

. "which. is evident. from perusal of? Article 35' of the ArtiCles- 13f 

'pfOVideS-as fellows;

 

 

 

"The Board {Sf-:Directors may?from time to. time subject t0$ection 197Aof=
the-Companies- Ad, 1956-3 appoint one of their numbers: (members?) 
ibeManaging?gDirectOr, number of thIG?timerdirector (S) for

such .periajd arid upcn Such 

the provisions :of the Act andioaraqraph Joint
I__Venturet Agreement thefManaaim Directorsha'il be entrusted with
:subsmn?al Emma." 01? management-subject 1'0 the S'up'etint?ndence,
Central and direction-Of the Boa rd of: Diregtb'rs. . 
Etc-day. operi?aiion of: the Companyf (CGmbahy 'Pe?tion, Annexme 
Paragraph 2* of the. MU Reply- on behalf 5f
to. Clause
:35 of the Midas-3 which: iprwides a meeting.- of the Board or
DiteC?tO?rs'" "of .th? 'Campan?hergina?er {eferred 10' as the. held-
onixseptember 15 20:11 Mr. Bakshi. zwas tame approval of
wide: the . rer'sorutian passed by ?the
(0931983)?" at: 155- meeting". 5f, the Com?any hfelfd-{0n-
-SePtember 16 es the M'??aging DirfeCtorl-Of the; 
-..Ctimpahy.?With effect. frb?m '1'81h'JuIy-i201'1 for a period'of'two 
fthe terms and conditions: as hereinafter-35953555 pursuantto?rtible: 35

Articles; 'of Association. company and the. Aqreefm?nt

 

:and? Mr. {Bakstii- -has:. acce ted {his tea-a ointment as 
such. terms. and: Clause of



 

 

 

 

 

29

L30.

 

the MD allows Mr. Bakshi- Ito sUb?deiegate any of his
powers, .?exCept the matters-enumerated. iherein; Clause Statesithat'if I
the Agreement. is not terminated, it ghg? be renewed; In such
circumstames; MC Donald India was. bound to exercise. its voting rights".
?through its naminees .at the Board Meeting. and by itself at General
Meefihg Ofthe Company to ensure of Mr.- 'Vaikra-m'

'B-akshzi 9391-3 MID mime-Company.

stated facts give _ri.s'er to a _juf3ti?able and legitimate expectation
that'fzthe; M11. Vlkram i-Bakshi, managed the" COmpahy-rfor 18f
years-"Nauru remain the M_anaging__ Director for the-entire .?term 9f the .N period,
and thereffb?re be re-eleCted .by? Me Dcn'ald .Zlndia' and its nominee

diiecftors 12.9. the Respbh'deni Nos. '2 to 4. The Pet_itiOn_ers have relied upon-

judicial 9299999919219- submit-"that denial "of -_su6h' expectation "is; in itself.- a grave

and 'oppresSiVe 

The ?g?ma fo?r'Board 7921999999299 6 August 2013 mandat?diihe tea-election of-
Vikrm BakShi :as Managing Director. This Agenda Was. prepared by Mr.-

thfzi'sCompany SacretaW-R?smhdent' no.8, and-in": Item 6. .of. the Agenda

fit" is *?ft'bi: recommend re9appointm'ent of. Man; Vikram' Baks'lhi. as the I'Man?aging.

- (Cbmpany. :P?titicm; .?Ahnexare P-33- p; 501?531, The-

Ag??da and. papers- had the-apprt'3val'0f the R'es?pondeht- No. 245

gsh'OWS' that .th?fy were . {satis?ed- With the 'pe'rfOImance' 'of7 Mr; Vikram'

:Ba'ksihi as will evident-fromvarious facts. namely: 02:; 22 July .1201;3,_

R29pondent N0 9.12 CompanyLSecretary sent an email Respondent: No, .9

91

 

 

 

 

 

 

 

(Mr; Manigh? Yadav) With- :a dr?? "notice 'alori'gj With the agenda far the I-Bbar-d.

- Meeting- to be held in the above email,- the Respondent No.8

proposed to .releyant?agendas, for approval from Respondent No. 9, as
Under-(Additional Documents Volume p.1)

ii To reappbint Mr;- B'akshi as Managing. Dire?ctbr of the.

I .6)

Ii annualx-revisiorifin the remuneratim'

ref. aMfad'hurim'a: Bakshi, -?Wh_oie Time 1Apri1'

 

2013(ltemN06)

diggjgufSS: .j'anjd: the. .remanera'iiOn of - V'ikram .- Ba ks'hi, irf?
'iight. ofthe mark-et- review ?conducted by AON. Hawk on the
:remme__rafion; of CEOS and M03, for the multinatio?al "Companies in

(Item: No.: '10)

2b; Additi??'ally; .Withrih? {aboiIez mentioned? email. dated 22 'thje
ERe?sandent No.- ?8 also 'ciircu'lated draft :Of? the. Agreement fer re??
.Iappoihtm?nt. 0"er Vikiam [Bakshi sis-Managing Director as An'nexuife:



_c The m??tibned --agenda for .reappaintment} of
Mr IB??kshi? a?g- -'Mia'_n'aging- Director of. the: Company were. my
approved-by: .Re'sijondent?No; 9 (representative of Respondent No.35) and

.Rje'spOndent .59.

 



 

 

 

 

 

 

 

:31.

:32.

33:.

 

- d. Th?reafter; On 25 July 20-13, after Obtaining approval ?from Respondent-
No. che- abbve menti?ned agenda, draft-MD Agreement was circulat?d
-'al;o'ng notice'of'Board Meeting to: be held 0:126 August201'3 tr} all

_-th_e directors. "of the Company (Company Petition, An?nexu?re- P-33, pp.

501-5311; Cenvenience File Vol. Ill. 

'-The--pet'itioher$ have. firm the abbve mentioned- agenda. it. is clear.

?than-as: late as 2-5 July 2013,. .it was contemipl?ted'ihat {be Vik-ram akis h?i'

Would-centime be. the} Connaught I-Plaza, the agenda-was approved
by the Respondems- without any; 'objecti?'n: as is evident Mm the above.



Amerdingito'the ochmha?ld false when it asserts.

of. Mr. ?Wk-ram BakSh'i' Steed" laminated ion- 17?

July this "is; with _th?x of Res-pendants after 

17*? July-12013 (whet? the-Managing Dire?torz?gre?ment allegedly expired).

Itisstated {hatafter emails lathe-
Mr: MIR-ram .iBJakshi; in~his capacu?y as the. Campany, which .:arei-
enlisted Email issued; by represehtativei of Mo D'o??alcl Cripofat?iorl
dated- July 2013 address-ed to all "Managi?g Directors Qf. APMEA
Regicfm: 'ofl'Respof-ldent 5- (Reminder to Short Reply ?led be-IRe'spOn'de'nt "Na.

3, ?nnexurespez (Golly). p.26); (5) Email issaed' by rep_reSenta?Ve of Mt; Donald.

Corpor?tion dated. =adder'1essejdttosall af-

APMEA Rte-'giora .o'f-Respondeat No. "'(CQ'lly) to R?jqi?der is Short

 

 

 

 

 

 

'35; I

 

Reply?led by Respondent No. p313); (cj 9) Email *i'sSued by representativ? of-

- Mc. Donald Corporation dated 19 July-22913.? addressed to all Managing

Directors R'egiOn of Respondent, No. 5 (Anaexure- P42 (Golly) to
Rejoinder ito ShortReply ?led by (d)"Email issued :by-
repreSentatiVe 'of- MC. Donald USA dated 22 July? 2013 addressed,

to Managing (Ahh?xure. P42.

- (Golly) to Rejoinderrto ShorteReply filed by? Respondent No.1 at: p.36); 

issued by representatiVe. 0f Md?onald .cprpoiration 

'all "Managing Raglan, of Respondent: Nil '25.

'(A?nexure to R?joi?dEr it) iShOrtI-Ref?ly ?led by Resm?den?t 
p251): 'Emailrissmd: by rep-regentalive dated.
130- July 2913 addressed- 'to- all Managing. Dire-Clots of APMEA Region: 5f

Respondent No. .5. ;'(Annexure (calls?) '10 Rejoin?de?r to: Short; Reply-?led-by

Email; ?repreSentative of Mcbonald-

:cbrporation dated 1 August .2013 addressed arm-rigging Direcit?rs' "of

APMEA Region OfRespmdem 5 (meme IP92 (Golly) to; Shari

"Reply/?led by ReSp'ondent No. p.39);

This: Clearly shawls. that the Mr. Mikram TBa'ks'hi': had de?fand ?ghtinued as 

eVe? after- 17: Ju'1y201535- 2553 {he

51? 5this! ?Company; by conduct;

"on 5 August 20313;. Respondent No; 31 and-4 (nominee director's. 5f Mc. Donald

'lndi'a 5n ?the. Board: of the C'Qmatighti Plazaglgq had drinks. and dinner with 

. Vikram No. 110', and ihere

 

 

 

 

 

 

 



"133}

 

was: n5 imitation thattranspired an 6.1559531 2013(06m'pany

Petiticn, An?exme P459, p.816).

.It-Ing-aSSerted'ithaf atfh?rEioatd Meeting of Me .DOnald August'2013,

Mo. idaci'siotas hadi .aifeady] been taken" by-?the nemexecutive. nominee directors;

that is not-tof-re-eleci?t Mr; Vi'krarn' 5B?k?h?i5_ as. ?the MD of C?pmp?ny; to;

exercise: :.option- "with respect 15 the Petitioners' shares in - the Company, A

resolutiGn-dated?t" side-Donald- -

lndla Shams thatz-the'r? we're-and :iiher'efcould' be ne'ieasms Tarsuch-decisions.-

In: {55; i?efBoardx R?soiu?on of. Mo. Dgnaid {I'ndi? ;d?ated 5 Myst-251,3? Was

may-yon :29 January 201-4 pursuant to the order. of the 

Company Law 28.555 to I?le'fth?. same Th? 35:5 Board ReS?Olutidh' ?hVis'ag'?s a:

cp'otehtial 'diSthte Wit'hMrl 'Vikram' 'Bak-?shi, "as. it authorizes Rasp'ondent Nos,- 3
Dale); grid 4 Melbye): initiate "16:93! gaproceeding?s? - for-for

Viki-am Bakshi; "male;

?d?fana in bad-faith [59933 55 *iambush; cp?ratim" Which; Was aadi
executea by .noine?xewtiye'nominee :dire'ctar? of Mc Donald. India With the

sale-purposeof grabb?i?gt?he. Sharehcldinfgoi the petitianers. for a pittance,
Thi?'aiso Clearlyashowsthat the .Re'sp??dent M53 Donald 1:16:52 a?dits nomi?ees;

we'r5'5W3r5 ft?a?f-their not to 'v.oi'e_ in? favour {of of Mr. Vikram

Baks?hi- was and-w?uld lead-to litigation.



 

 

 

 

 

 

39;

.46..

 

At the. Board Meeting of the ?Con?naught Plaza? held Zen 6' Aug?st 2013
Respondent .4 handed over a note dated August 201.3 

containing some purported grounds fer non-reelection of Mr. Vikram Bakshi as

the Managing DireCtor. It is pertinent to mention that-the Respondent's for thef?fs'st

time raised allegations against hifn by way of the Note after his .reappOintment as
Managing DiIeCtor' 30f the Company'fin 2611'. No. opportunity was aff??ded- id-

'Mr, Vikram" Bakshito reSpond to. any 0f the allegations raised at tine?

Board Meeting'h?id on G'August 20.15;?

[In ?the ndte Mo principal-aliegations- were made viz (1) Faiiure to :de'veldp. {and

maintain adeqtiate "internal controls; allegedly 'ariSin'g cut of McDOna'lds? iinterrial.

'auditeGen'eral- Controls Review and. statutdry audits: (2) Mr. "Baki'sh?id

engaged in ?nandal mismanagement in- relation: td- the. funds 50f the ?Con'n'aUth'
Plaza? by drawing. asum of. Rs. '70 million: from is 
the to his -__gro.up> company, thaws, Vikram Bak'shi 8; comp-any Pvt, Ltd;-

the Dre-ted-Of'an urgency in {efati'ento a new reStaurant Opening Mthdu?t

fdbta?ihing {of Beard of Directors '01" the. Compa?yi or any {What

dc?cumema?m (f0r brevity TranSaction?).

the Ealiega?ens has been rentered. Inere's'pect} inf-i 

'-allegati0n: Petitimer has stated that the. candusimaarrived at'in the: GCR

Report's. and-[Statutory Auditors? Reports ?is, false: "and "concocted; The baseless.
allegatio?s' have "been raised an. the bias-is Jof. seitfgservi?nig {audits by
Mc Donald Corporation USA in a bid to army-twist the? Petitioners 

shares-.. The audits had commenced. after the- ?C'Qma'ught' Plaza? became

 

 

 

 

 

 

4?2.

'43?

 

pro?table in the year "-2007 and no Such audit was 

The false-and baseless for various. reasons:?

In reSpect_ ofrallegagim it, has hem: stated: that it. Was a. stale. loan _-tran$acti0n

which hadtaken place in't'heyeaim?m'and? was p?rogured-as a ground. to SUSItain-

th?ir .ciaim Manse-3mg Mr Vik?rami?akshi as Managing Dire-cm Th?rea?er he.
has been: re?eele?ted: gas: Director several The 'triansactioh'was
W351 duly- rati?ed. gin; 2433.31383de .gMeeft-ing cf ftjhe Company held on :17
April 2008, The P?titi?n?r has ithej; belie the allegations; --

of the Re$ponde=nt$mth regard-to W?'at'istknownlas: *"Re'gal. 

There is further allegation Vikram :Bakshi' ?that" he is engaged. "in

Emir-mess: in- competi?tm with 4473 biasinessi "Connaugh't: Plaza" and therefore;

has-snot: been-able: his einiira'e; business ?me to the of?ce-of th? ma?agihg-

Difector-Of-the GOMpany.

- It? has, alsq been he is pramOfing his :own: business {by putting

:adVertisement in iMthi??al??jsI. Re?sii?ur?nts Mutant.- autn'grization, ?Even this

.all?gation has been? refuted-391m 3"Cfon?a?ghf "Piaza? had ranked" as one :of- the

tap performers 'ihv'the Greater. Asi?r Region rahd. has Iconsist?n'tly been perforniing
- be?er'than thie- WeSt (Para 418': :of'Reply dated. 3 .september
201,3": :Cdmpa'ny Petition, The- Petitioner has further explain?d that;

biomewc E"and eleqtroni? records at attendange: Would 3th that Petitioner

4.7

 

 

 

 

 

 

 

No. 1?s businesstime has been invested in-the development and?gro'wth' of the

- Company which is re?ected in the. performance of the Company (Para 50: of the

letter dated 03.092013; company Petition, Annexure 53-39 at .562). He has
been consistently ?ling; Form every year since the -incepti0n of Company

sand thus, discilosinq all'his interests .te the Beard .of Directers of; Respondent

no .stade; has. been -_raised-_-to__j_a-ny .ef the

disclosures. made if: Farm 24M where Mr. Bakshiis. interest in ether busirte'sses.? .

were fatty dis-clotted, (Para:.12- 0f :Rejoinder? to Company dated. 1' 3;

Anaemia t6 the-Reminder). The Petitioner is not engaged? in 

.com?pi'etiriig .buiSiness- with McDonald?s Restaurant in any manner-whatsoever

whi?h .he-?leri?ed' sums. replyitol-the-fnote No such al?le'ga'tiOni has
beans-rather: against the ersmhite joint venture partner ?of the West. and

'SOuthQ Regien. Mr, Amit Ja'tia, that: he is a director? 'of. .123

Companies, including. Fame :lndia ln'ox Leisure Limited, sterling Halide-y
ebb-a] Tteindz Ltdi, Westlife; eeyetepment Ltdi eta These

?are all listed Companies building formal beard meetings. Mr; ?Jet-ta" F's?also.

Exehutiire .Chairtmansnf "various- tcompanies the West 84- -._So..uthz india have

never-generated ahyi pro?tst-Desmte the-fact, Jati'a- is running basinesis: in:

-direct:Yeompetitidn. with: McDonald's; Which was Converted into; a deVelopmeh?t?.

license: by. writing off the equity and .

preference shares of MeDeh'a'ids, git-thee been painted taint that discriminatory and

pick and Choose "metho'd'ha's been gprefetreci ItO-xfawttr tine. entity-which Show/Us.
bias: against; the} :Petitionets-' _-with the. ebiiquei motive. of: purchaSin-g his
eh'areheiding. (in that-regatth deta'iied facts. have been .given- in para] 84 tot-99' {if

the centenieme; -_'ve'lu me) 1

. 43;.

 

 

 

 

 

45.

46:.

477..

49 

There are further allegatiOns..of expesing; the ?:Mchnalds senior Exaggitfivief?1nd

professional advisers to criminal litigation which. has been-stoutl-y d?jnied?: in the;
response which is evident from theperu'sal of the paras 100-10 196 of the

Conveniencie minim.

Anotherja'll?gation against-the Petititmer'is that they createdja pledge 0:313 51 ",360.

equity shares hei'd .by'them. in the. Company W?ich has- 1211395666151 replied?- in -

.detail'ed' _?(para 10719 117 ofthesconvenience mam),

The Petitioner- -_has 5211130 asserted that Respondents 1916.- 210.5 113% 'Waiv?d. their

"rights ?to raise- any. 01 th? allegatian. mentioned in the note 91111965616611.1633: off ihee

applications 6f principles;off-Waiveras theaaliegatiori;pertaihsiofthe year-21367 and

"that MI: Vikram Bakshi has fbe?h- appoint??d Managing Diremr? Mice.

thereafter,-

More'?ver, he; has. made .311 nerces'js'ary 6.3331056651211111 

interest in another including the .?nature; of 51181118395 trajri?act?idi by

ithose-companiES; The on reCOrd' (summed up i11- .._p3riasi 1-18-

- to 1 27 of the-.cdnvegnience 2111616616)

'P?tifioner' has '_ag?ir_f1} reiterat?d his allegation-z with? regard it) {illegal ?and

option- hyiiMc-Dohald' India "on 1638-2013 Inithis regard
dew-s 539.13 furnished ai'n-f paras: 12810] 138- the 6691161119669: volume..-

There are'further under paragraph 26 ?of the? 

Agreernebt is. contrary- '10- Indian 13w. mama. being void it is unenforbea-ble

- .in?rmities' haveLbeen painted-out 3:9 submit that the same?bannot be

 

. 49'

 

 

 

 

 

 

:50;



.abted up?n. l't-has -:also been-submitted that para .26 of'the- JV Agreement is

. Centrary regulations- an'd directions issUed .unde?he Fore-ign- Management 

1999.. 'The'Petitianer has requested this Forum notto permit such grossabuse of

the-process-andxkeep the norms intact investors.

The ?etitiomrs have. further alleged- that 'IMc?on'ald?s has .thWarte?d; growth to

. manipulatejthe valuation of the 26-.of the .JV Agreemehi-

in order-?to reduice'the price Of the Germany", _McDOnald?.31have manipulated the
valuation meChanism to furtherstheir 'needa. All this has. been done 'to'
30-3310 purchase. Shares "at a pittance;
The .Peiiticner has. repeated the-'inStaln'CeS; the year .2008 onwards (paras

.1542; 143, 

The: Petitiene'r has ifudhe'r. alleged-that there was: designed efforts to cast Mr;
Vikram' jBaKshi-as MD .-:ofrthe Company." :AccOrdingly, Respondents No. 3. 84? 4- in;
Resmnd?nt .8-Catssed' be?led Farm-132mb the Registrar-Cf?

to Show .cesS'aiicn [of Mtf?Vikram Baks'hif as Managing; Dire?Ctor of

"*CO?naught. PlaZa?.- There were" no signed? 'Eminujtes'loi' Board-of Directors-whiCh

was, arid: Continues to ofForm 32; In para

. {-1.47 the. sequence, of eye?t, has. ?been "rare?ed. to highlight ?the- maia?des- of

MC .Db?ald; india, fits?gm??'nee- directors:- of MC D?hald. Corporatian USA. in

{connivanceg with RESpo?'dent No. '8 ins?ling Form 32 Mr. Vikria'm 'Bakshi sent  

email to iRespendent'N'o; 8 condemning. his-act. {if?"?ling. Form 32 as: illegal which:

?was Clear (and: :intent'iona} violation; of the. 49351 Venture Agreement
(para-8.54 air-p. .50, Annexure- 798). Hawaiian No. 8 did.

andiinsitead Robert Dale Sentra'n'

 

 

 

 

 

 

 

 

 

 

?ma?il to Mr. Vikram 'Bak'shi Qn' 30.08.2013 justifying the acts of Respondent Ne.

- 18-. It. also iSsued a ?pubiic. notice in leading daily newspapers stating that-"Mr.

Vikr?am Bakshi was no lenger: the Managing DirectOr-of the-?ConnaUgh?t :FI?I'aza'.
'O'nihesame day, a- representative of Respondent No. 5 sent an email to the.
supplier's as well .as Other parties; but no intimatim was sent to the? Petitioner. The .
ad of sending email Was-with a oblique motive to. undemine [the authority of?ihe-

'Vikram Bakshi. and. to create. .circumStances to east him from the 

setting the stage. for MC. to :a?sjquire' the - Shares-hem by the

atga pittanceThe. act of public. notice and act-10f Sending effenfzail was .-

- defamatory-end[againSt the interest pfthe Company,

The? Petitioner has 5150. highlighted the; events subsequent to the ?ling cf the
C'Ompany .?Pe?tion bystati'n'g that "the oppressive acts of'McD'onald lndia and: "its
nominee have. been continuing; Alliwch acre-can fbe-taken hie-account
9f the-Hon'bie' supreme .rejiiance has:
Beer; placed an ithe judgment-1' rendered ?in Pasupwa? v?nkateswa?a v. Mater
General: Traders; {19.75) 2-1 .isec' Needle lhduS'trieS' (India) Ltd. 

Needle; Industries Newey . (India) Hofding' Ltd. (1981).- 3. See 333-. The 

also made allegatitms- concerning. non alletment- of $hates?. tewards
. i-S-hiaFE--applicati?n money {already -CO?tfibUted.. by xthezm and the refasa-Iito grant.
?zapptoval- to; Lek has: further-been: highlighted that-Mg 

pep-nata- India ?led: an application, under; 45- :of the Arbitration am 

S'Comilia'tien Act, 1996 :refer'the 'ci'aim of" the Connaughtf 'Pia'za'

.alb'ng; With themaim of Mc Donald India it) arbitratio?. HbWeVer, the af??resaid'

after- compieizon; of pb'adinge Was- permitted to be 'withdreWnby'the: -.

51

 

 

 

 

 

 

53 -

'Campany' Law" BOard on 30.012014 (AnneXure?G). In other-words, 'M'c

- Donald India-has submitted to of this TribUn'a] far the
33133333333 of all disputes raised in the Cempaay Proceedings initiated .by the
P33303333 Anotherzapplication CA No?. 7912016. under Section 45-3335. again

??led' Wh'ich'was dismissed "on-17.9.2016. Even the appeal has "been dismissed



(Di-28.11.2013 MC Donald India-purported rto' z-te'rrhinate- the. dVAby? 'i$s?uin?g a - 
(iflamination-sought-to call idpti?n. Such step .cculd. mt-

taken gin .the backdrop of Status..Quo. 3333:" passed by the: 

Company Law Board. In.? the. order dated "1659932013: the Company Law. Board?

33133-333 dyer share holding, Board pattern-

and 3130 over the: right -of .3311 Optign; The aforesaid: interim order has ?on'tinu'ed

04.150.20.13 'tiil further 'dr'den That there-3's wen-3p of the grounds

raised "Donald i__n_d_ia to purfp-o'rt itermiha?cn- of JVAsand ihoise 3113313335 in the

?note. dated' It was pursuance- :of 'zth3 30133333 . 333 that'-

Res'po'ndent'Nogz? 10-41533 .333 rte?elect Mr, Mikram' Bakshi; .33 Managing D3333:
Of-th'ei Company, Accordingto Mr.5Vikram-' B'akshifihea?ll?gatimS contained-in the
note-53 03.33.2013 53323333333 .compete'nCe this.

F335512-353-3355333333 which 03:

.03122013, Mr' Rebate-9'33 thenbm-ih'eeigiigector' 3:33.333. the: entire-33333.33-

Mwmalds Delhi that: Ms 'Dpnald gmdia has? temg?ated- the JV

Agreement and until .313- 1393! ".fomalities are completed;- Comm-9? .P'azai'

was it: canti?ue. to- be- (managed by Board? of; Dire?tbra, The: hiOtiCe 0f

eat-id the: -sub$eq-ujent jihe _.part .51? ReSpon'dents 'isz 

 

.52

 

 

 

 

 

 

 

 

 

:54.



55 

 

.. to 55555555555 TribUrzajI-and Cause reStraint in" 'the-adj?d-icationiof CP 110MB of

- 20133.; Thetem'zihatioh notice is part often ugly design and scheme 

lndia in ,collus'io-n .and conSpiracy With-Respondent Nos. 3 to 8 t0 usurp the

centre! 555505515555 The-second call .opti'on th'erefOre has been challenged"

on Sim-55591555555 which have-been takento Chailenge- the ?rst Call-option.

The PetitionerAh'ajs-also raised minor-55555555: defamatary and .intemperate__

language: 5555th the. empltay?es; the . Company to. sign blank; "vendor-
registrationform. 55555551 50 forth. Some iilegal attempt to iatecfeir? with
functioningof the =C5mpi'any. "by Resmndent Now-.859. (Retdg) Chadha'

:?haver-aISO- 

- The} 'Ip?ti'tibnjers have 1'8150 -li5ted under ?the captian' ?Ot'hie'r oppressive. acts?;

Reference-{hasfbeen invited {to CA No.3177l20_125. and CA. "No; 14812015 ?led by

555.515.9555. -1 501321015 .5155 by the PetitiOners.

Stand t?kehzby theiResbondenS N0 250' 4

flied by MC Donald-jlndia-an'd its gamma-dimmers. it; has: been: urged

that. in View Of the; 37.09.2016" passed-bythis T555551 No.

7912016; 55 clari?ed by the 5555555555 made. by the 'fNationai? Company-THAN?

5555:1555. Tribunal in CA N5 13120155555

Vikram 2351555255559155 :Petitim-ff?r?ihi5 reinstatemehit 55

Managihgl- Di'rectOr (is-51155555 henbe- {not ?required-10

address arguments; with: regard: ?to: 1115- 285555-? which are .p_5_rely .contractual.

Ia-rbitrabI5 and; pending. consideration;- before- the .Arbitral Tribunal 5.5. London.

Court-5f;15555555555! Arbitra?cn-iwhich has:*555535555555 555 {955155 555-. (5)

'53}

 

 

 

 

 

 

 





'ih'e validity of the {summation o?f'the joint venture agreement dated' 
between, amongst-"others, "the. Petitioners, RespondentNos. 2 the
valua?en, and PWChaSie. of the Petitioners? shares in ReSpondentt No. 

company. by Respondent- No. .2.

In View-Ofthe af?fesaid have '?'ubn'iitted that'ft'hei Principal issue

Which falls: for Consideration . 6f- ?ihis ?Tribunal would be whether" ?there . is. any

obiigatitan cast on". MC, Danald india; and its nominee 'direCtorS; to 

Mr. Vik'rfam' Bak?hfiias' the Managing. Director of: the. Company zap-the. ..meeting-- 61"

31:73? {Ricard bf Dife?fOr?S- held an 06082013 as pet-me proxiisions- ;5f-Ar?de .35 'of-

Articles- oflAsngC?ia??n and .Con'neCted ?gravis'ionS." The Respondent's" have

. to axed htiri'actuail right:

in {proceedings Under :6f the. ?Companies. AOL 1956; --and. 'th'e
Agreemenfin ithiatr'egardibecause as.
par- the ZPBtitiGngerSK. _.th?el provisions. of the JV Agreement- have not
been :in'ccrporated; in jibe?eAftic'les- inf the 'I'r'nftha't' --re_gard :eferen-cejehas

beet: "made- to para. 8.65.61? th? Company" Petition (Vol: p. 53).

If 'is: 3'30" the. Stand :Qf' ?1?tR?spjohdents that the! agreement dated 11.10.2011

.erh'pbying Mt; Mara-?aging--D?ire?t0r or . 

Cornpaw 'hady-iexpif?d by efflux of time: on" (pg, 804-, Company.
Petition :glause. pg. 2'8051-i'a'nd' Clause pg "8093 "The" agreement

that-the Same Was =to_?be gene-wafer term of two:

.yearsain' .accord'ahice ofih'e JV Agreement as amended from time-

. - ?its time: Arnarneeting Board herd on; 069812.013, he was matte-appointed

 

:54.

 

 

 

 

 



:60.

    

- - 

Which reswted ?in ?lingof instant-company "Petition before the. Company
- Law Beard. 09.09.2013 It? has- furth'er been Submitted that series of

act's since 2007 have. been: pleaded-and even the was

media September, 2013 admitted by {he Petitioner (para 7,49. pg. 30,
Company Petition (Vol.1i, The. call option 'exerCised by Mia Donald India on
pursuant to para .3210f alga Tsuibje'Ct matter of
challenge. in the. Company? Petition Whit-:h' cense?quential. "tO' and dependent

.uponfthe-termiriation as Mat-339mg" Dirg?tbr of the Company;

:reiieffof reStoration can. be granted-935211:existed-on "-16.072013, .3635; prior to

of as?: Directojtuof ihe ?Co?nnaughf Plaza"

enable. him ta .ccmtin'ue as the-Managing .DireCto?r- of {he
Company. :of- fact Mr; 'Vik'ram B?ks?h?i. for. ail? intents arid .pUrp'Qses is

seekingspegi?c- of ihe JVAgree'me'nt a nd; ?is prayingto this Tribunal.

- to Creat?ta by {evsz?iing _it-for the-parties, Awarding. 
?to ?the Respondents: {he r?li?f?fi?f?ispeci?c 'perfomgncei of a. par-semi ?cc?ttact'

. {cannot 1216, 9'73 hted'byany ?Court.-

The 'ReSp_Gn_d?nts- have-placed felia?nte :Q'f?the. JV Agreement, whim
provides 'that} .ier; Vik'ram- iB?aks?h?i was 10' terminate. pr safferierminatiori of?hi's-

'relatidnship; as: managing- Director-{Qf-JV Cdmpanythan Moi _Danald- India;

(Reqund?nt N0. 'unld hm Ethe-fomibn 110'? pu'mhasessh?ares .pf?th?e Petitioners,?

.If is pleaded. that Contrary torrthe .P?itit'imer's' claim mt. he has". rightio bi'e- tithe -

Ofith'e: company by Virtue of the lP'etiti?ffiers? Shareholding iri

the: COmp_any;__ it was: Mr. 'Wk?ram 'B?kghi?5. duty it} serves- in such a =_ma_nner' Which-

dauawmemta sharehoiders in f?jezicbmpany,

55

 

 

 

 

 

 

+631.

61;



 

Respondents have also. (ii) (ix) and of the prayer -

. Conceming'frelief the claimedand- 113116 Submitted that the reii?frh'as' been

soughtfor virtUally continuation as the ManagingDire?c?cor of the Company. It has

further been highlighted. that as per the; iP?titiQners? may have

claimed prihcipal relief for reinstatement of Mn Vikram gB'ak'shi 33.: Managing
Director-of theifConnaHth Plaza". regard reference. has; been made to the:
reply ?led tethe- No; 941201.37wh'ich by MC Dgn'ald; ind?i? under

Sectim 4510f the Arbitration and ConciliatimAct,? .

The Respondents have also adVer-sely- commented'Iumhithez?tlier? Claimed?
like. ?ling of Form} No. "'32 and the": :call qptib?exercis?d-V?orz 1?6..0842013 
Mc Donald India. in 9111731181106: (if-clause. 32 (Sf the, JV._Ag_reem_ent.. inst-hat regard
rampant-8.113353% made. and (xii) of'the relief Clause of the

Therefore, it? has: been urged-that no 'ireliefwah regard r10 vasuation'cr 

.ppticn in 'res?pQCE-ef the PEtitioners"shares. byMc. Donaid'

India-swid eiiher- bar-claimed; nor it" can be =9 ranted-by- this Tribuna'L The. Petifimer
1133' Cited:- pr. 1-0. judgment case: of

Conan-carporation of'lhdia Limited Uhitejd ram-13mg: Bank Limited and

Ora. (.1983) 4 SCC 625 (Para for the -_pr._opos_fition that.
"interim relief-wean only be if} aid 01.31311131112111ng ?nal felief in a. suit or

The Plasma-dents have also: pieadfed: that the; claims ?under- cemmem'ial

.con'traCtSip'riVate arrangements.- are. .jou?t'side the. scope: of proceedings; under

section. 397 {01; the-Companies; 1956 'l-n..tha.t regardreliancah-as- been placed

an paras. 1434442101" a judgment oszc'n?ble- the: Sumeme' Court in {that case. of

Chatteaee P?tmchem' (India) Private Limited v. H?ldia Petr?chemicals;

56-

 

 

 

 

 

 

 

Limited-and ms.- (20-1-1) 10 sec 4'66; Likewise, reliance has .
- On the? judgment .of' Hon-?ble the Supreme.- Court in; the case of .lhcable Net
(Andhra) Limited and Ors, Ak'sh Broadband Limited and 0:29; (2010) 6
80.0 .The*Petiti0ner then made a, referenCe' to Adidas--'of-Association- and
have deeded that Articles. do not give {any right: to Mr. ?Vikrajm Baksh'i to be, or
.33: Managing Director-of" ?Connaughtf Plazai According to the
is -_pleadings whiCh d?iib?erate' om?i?sio? :01? this
:?as ithie; oint venture: Agreement signed 0:131 .103. 1-99 5- it-Iwas made: clear-in
Brigaquimeall team that as far asthma-affairs 'of the company are concerned, fit
be: gavemed by? Memorandum Articles". .of' "The"
Res-mania have .pi-aced reliance gm? para-856; of-the. company-Petition?
(Vol-1) where: it: that: mae- - (5f the. 'f'ai?ied- in? the present-
in any way Jre'latable to"- in? 33 much as the"
proviSioins: pfrilnelw Agreement have: not been 'incarporated'ijnto' ?the articles-of
?the? Camaany; nth-as reiterate-d in para 3981le the Pita-taggers. rejbinzjer -
(Voi11)ln theWntten .jsu'bmissi'ons;the: P?titionierg; have-iak'en {he-lsta'nd marine:
of Respondent NO. 1;;4Company has -'v_arious
mansions e?f'ihe dV-Agreement whichiahasib?en (amended-froth: time toytime. The
and. am." in terms
. oftheJV Agreement; there t9 electiMr;
Vikrat?' Bakshir as the; managing; Dimmer .Of- the Respondent "No. 
According .Etoith'ei Respondents despite amendment: of Artici'e's (incorporatin'g
:cejrtain the w- Agreement, The _obligation' On. Respmdent No". 2; to
'.fe?elect? M31 Vikrahj?a iB'akshi as the Ma?agi?gZ-??irector of -.the- Company emerges-

- -- only {tam JV hes-2a"beaming-amperage: in theArti'cle?.

 

. =57

 

 

 

 

 

 

 

 

TherefOre,? "the issue carved out by the Respohdents- is whether there is? any

I requirement in'the Articles that .obiiged Mc Donald India and its nominee directors

to reelect Mr; Vikram Bakshi as the Managing 
In that regard reliance pieced by the ?Petitioner on Articles 35 0f the Articles of'

Association has been controverted as wholly-miscenceived and 'errjoneous. The.

Respondents have pleaded fer M0 separate

. and? distinct part3; "The ?rst parts provide for the-power .o'f'the Board? 

Managing Director ahd a wholeetime directOr. The serioh?d para applies after"
Managing. fDire'ctOr is. apPOinted_j.and pogwef' he is; entitled to ?exerCi'SS; "The.
expression: ?mjay? use-in: Amide 35- implies "that. ahiYone can? beeppointedtas the
Managing Direcfmearad there is at)? Obligation CaSt-on'2McDenald India? tore-elect.
Mn Vikram? Baks?hi- elem. The reference _hasith'en3beer1-m'ade to? Article. .30 with

regard to the. removal i_of.t_he: Managing Director even-before .the expiry-Of the

--period ofhi's of?ce-and Midi?247 Board'tp. deiegatea'nyeof its; 

.to- Ipersp?ns other main managing Direc?tor. which .__clea__r!y that in we:
absence. of the :M?tgagin'ggxbirec?ior? the: Board can functi?n. by: .deiega'ting- the
-p'0wer,. been urged that-no. "part of the JV Agreement by deeming.
?dtion. be-idef?med-rto have "been incorporated in the Articles-of Associatitm.

The .questioh ofiepugrje?w wet-116?- not .ariSe- beca?U'Se- such jai- rule-"applies only

destroysme. earlierclauSe, as; has; bee?- heida'ih "the

case- at Central. -_Bahk- indie. v; Hartford Fire Insurance .09. Ltd; AIR 191653

'30? 1288;

The R?Sp?nden?ts have also pointed out that there [is no question. of: removal 9f 
Mr. Vik-ramBakshiias Menagir?jtg Direetar of. the. Company, bUt-theJiSSee 38"Qf'nom

ia'?'er h-iS term. Expired. He. has?; ?no rightto -cpni?nu*e as: Managing

:58-

 

 

 

 

 

 

 

- 65.-

6.6.

 

'Directer far "all times'to came and he has only and

- subject t9 the provisions of'the' JV Agreement.- There is. no possibil?ity'of grahting

the] .reiief of speci?c perfOrmance 9f. by the Petitioners.

It has also bate-n submitted. that the? petition. has been ?led purpose
and the: same- is liable to: be? dismissed at :thgj-?threshold. It. is founded on;
"even 0n is-Llia'ble-tp b?'d'ismisised. In]
any case the JV Agreement has been. terminatedyyhighcambt. be chailenged' :19
image preceeding ?therefore, the} name, 29f in .the? 'C'Qmp'any' Petition 
longer ?sum-Vest. Thiusi "the 'CompaWP?ti??n' iS-rrendeted - ir'wffucfuo?s. and the:

matter must-?End "there;

The "ReSpOnd?nts have reiterated made in? the notelike;

unauthorized Withdrawal by Mr. vikram- I?kshi amounting :0 ?Rs. crores .er
Regal Loan faiigres?gf?Mr. Vikram BaRShi substantially-alt Of.
his business the in the; perf?rmja nee bf'his}Obligatims under; JV AgreeMent?a rid
Operating Agreemem}. "failure-"itappUt-I inniplace adequate Ti'ntema?I Controts,._
breach: 0f. non-Cofnp?te Clause, ?eligi?mbtan'c?? Created on?: their Shares. in the
Company and-so on and so forth. Tin-aegis 'categforicalf denial to the" Augusttzall-

opticn gr: "16.03.2013; The grounds- an" oppression have: also

been .c?ntraverted on account b33591? faith :in' the. fPeiitiOners} for unauthorized:

Withdrawal and-me! Mc. Donaldj-Jndia 9:1nd Dom'ld USA have.

"attempted tOJ-ac'hieve aria amicable; parting qfiways bah/ween Mc- Denald India and.

Mr. :Vikram Bakshi .hy'.0ffering an amount. .-signi?ca 'the price which.
ih? Petitioners to. Mr. vikram?akshi P?tti??ipa?ted?in- arm-exchange cf

commuhicafions and .undectook. . a; valuation. exercise a highly-

- he was exit-me These attempts.

. 59

 

 

 

 

 

 

 

67:

687,.

"to-arrive 'at :an? =amECable exit of the Petitioners from. the Company cannot be

- regarded as an act ef'Oppreseion.

The Respondents have. also-controverted that imposing a freeze on bormwings?,
a moretOriu'mj on new re'etaurant-de'velopmeht and regulating nege'tiye'net werth'
:of the: Company are. not acts of Qppres'sion and haVe elaborated the same- in
varimssparas. 0f the Short reply. Likewise?, non. ?deCIaratiorTr of. idivtdendis, payment
of Mr. 'Vikram Bakelite. "and. payment of royalties . cart else: not be
regarded eete of: oppression; The- avermente made .in the p?etitie'n are
misleading, i?accureteend aed would notgmn'stitutetoppression: The:
"Reepoedents have. also entered apply to the. altegatiene concerning. Me Deneld
Set-11h ?and Wet-it. Aeia. 
taming- of Form 32' and iszuance. eff pub?lie notice are also-contravenedvby
asserting that these ere-not {acts- of oppres?sion, The essettien of the. ?Petitiener'
.tha't the-"iesue. Comte-thing .2007 seed thereafter have been 'waivedlaequie'sced by-

been stintrme'fted; Itiis reptied by Statieg'thats'lthez?e?is no.

question ?of Waiver and! in that" regard a. reiiance has also been._ placed on

paragraph 40 JV.Agreemertt..

With" regard to; the; events. :e'fter?ling of the Company. Petition the. Respondents.
'hja've-ceettovected an .theeallegatiens, 'lt'hae beenrstated that; the non a'lletment at

shares-?ageing: the Share-application money lying with the .Cbmpa my '53. net-enact

of- .opp?ressien "iff- the; same in the circumstances.
The?lleg?tien with regard of net selling. preperty

have, else been xeontrovette'd?being noti:_oppress_ive at- an. The ReSpondentsj {also

- . denied that the 't?n?iha??n inth?e JV 

 

at):

 

 

 

 

 

 

69 lhe "Respondents havealse highlighted the: condubt 'VikremiiBakehi and
- Mrs, eakshi No, 1.0) which .disentitled them for bbtaining any
equitable relief. The. examples. have been quoted where. their- acti'Ons. have
"caused detriment to'th'e interest- ?of the Company. Theyfhave gone?. t0 the. extent 01"
alleging that winding up notice. was. issued the Comatggh?t Plaza-lat? the.
instance of Mr. Vik'ram _-B?akshi and his. wife? ReSpondents. have-also- denied the
(allegation *that?the, JV Agreement between ?the parties" -was=- in: =the-i'lttatqre :off a:
partnership, "Various paragraphs- of the joint. '-ventere. Agreement have been
?6166166116 highlight? the "afOFeS?id' issue- and they have: urged-for [the-dismissel- of;

the :petitionf-by .st-ating thatPetitioner's 


A. On behalf ef the.Petitionersthe'fellewing arguments havefbe'enadxiancedi

?Th6-66666666 66611 'vikriam 
I of 61665.66- i?fe?i?m "Of- Mc' Donald-166176 it? Pit-3661163631116 tassel-out his
Shareholdihgi-at "a 1th price, _Lea'medgccijnsel ?has elaborated ithe-afgresaid
by highlighting the emails, .eerrespOnjdenee- and by- invalying; revert"

. outsider making} proposal to purehasea- The of?cers of. . Mc- ?Denald 
have: made- offers and then Mr; Bekshi' W661 fervaluetipnibva 3661661616 ?rm 101?
.It is submitted $51.?me '32 was ?lled] with the Registrar of
signed boatd;minutes-which is mandatory requiem-eat. in

.-thet regard, reliance 'hfasf bemplatied 6n: varioquaCte Whittle: have-beer: noticed. in

precedingpar66>-

 

 

61

 

 

 

 

 

 

(2) Ariicle .35 ref-the A?igi?s at AsSocia?On read; with _.para- 7 of the" joint venture

(.4):



 

agreement. and variaus of the. Agreement .conceming' appointment of;

Mr. Vikram Bakshi as Managing Dinactor. envisaged Mr. 'Bakshiz to. be a Sole

Managing Director at-alI-pointsrof His tam was to be 

Lr'e'riieWed. 'In that regard submission made? in the pleadings and noted in the

preceding para??have -

.Mr.'BakShi Thad legitimate expectation .ftoacontingg as the: Mariagir?ig Difecto; in ?view-

of-V'a'ri'cms facts, clauses-fin the MD and Artidef the Articles of'

Association; Awarding to- the learned Counselideniawf $1:ch legitimate .?xpectation'

'isgyi'ri graVe "and" Oppressiize:act.:as.:has ?been held by va'ricus Courtsir} the.



a. Gunnit' Singhv-. 1233 C?mjpcaS-486- 
J-agjit ..Si.n'gh'Ah'uj'a (2004) 1119 CompCas 
ac. wish-max? 'KishreKundanlaiSippy (2904) .1 ZOC?mpCas (80m)

made in the mate;- {33166060312013 are aft?rthOthL maia?de and

motivated, MoSt-of the:aneg-ations:pertains to? ine- period- @2007 :tc-g-201j1'1and' Mr,

VikramBakshihas-aiready Director and the principles of

. waiver-maid apply; Leat??d: ccurisei? has pil??ed {diaries an. var?ic'atis- .aale'gatibns:

which have already beennoited 1.333:- thetpriecedi'ng. 

.Ah?othier argument- :ad?aaced by .th'e' .lear?a? Counsel isfillega?l and? .m'alaj?de

'exerciSe of call op?oh? by me 'Do?aid. {indie 16.08.52013. and .th?ie, cali- up?an

exercisedsMeqn?n?m

 

 

 

 

 

 

(16).



.

 



?It has further been -.afgped that McDOnald Corpbratibn ?has fhWarted: growih- of

'Connaught Plaza tomanipulate the valuation of the Shares;

5M0 Dohafd India and McDonald Corporation, USA has resorted to unlawf?l
pUDlicatlion of- publibn?otice harming the repu'tatiori of and-further

sending? of emails to suppliers.

There are a number-(1f: events subSeqUent'fo the ?liag of th? Company Petitibn
whim-further elaborate the allegations of Impression and. ruhfa'i'r' 'freatmeht-'
unwashed km the that regard reliance has been mated: on the
judgment 0f ?the Honfble' .Supre'me Co?u rt in 'the .case (3f (India)
and. Pasupufati VehkateSWadU(supra)

The: Q'Peti?mers have been oppressed On account *refus'a'l to grant for
s?aieof 83:31am- Lok. 'DTOpert'y; The; termination .0f'jca?intvehture- is {of

when status-gun order" has beer: operatihgg

Learned. wunsel has: then- made: brief-taference- i0? other acts. of oppression like

 

 

 

R?smnae?t? N693: biased- aCts 'irt 'cohjuncticn With: ch- .Dbnatd.. India'- and
No.8: 3 ?0 "iliegal. attempt id-inierfere. with the fumtions. of the
by Ms. .Aysel- Melby- (Respande?t 4) During-the marge: of argpmergt-
on'b?haiflof placed on various. judgments-
vazq (.4) N??edl?: Industries (India). Ltd.- Ne?d'l?- mamas .N'ewey- (India) Haldi?g
(.3) 800 333 (paras 171173) Sangramsinh: :Gaemvadr v. .
Shant?devi 3Gaekwa'd: :11 sec 314 1281,4199}; 
.Radharamanan ChandrasekaaRam?242008) 6 SCC 750. 

Kristian :Lamhuja; iv :Suresh 

(e Chander .KrishanLeqma 'Pannatall Girdhari. La: (9) 7'L'td? (1984}. 55.5 Comp.

53--

 

 

 

 

 

 

and C'aparo India Ltd. v. 'SCapa'ro' Maruti Ltd. 4 (2007). 1403'Co'mp' Cas-

44:81 (paras 3740)-



On behalf 'of Respondents No. were advanced I

It has ?rst. been submitted thaton account of by: this Tribunal; in

'wh'ile dismissing the applicati'gn ?unfde'r Section; 45' of

.the' Arbitratian Aritgandain che-iight of'the'order "passed'by the Appellate-Tribunal on".

the; relief whiCh is ?required to: be. considered must be 'co'm?ned' to the"

prayers madef if: ithe-Ij "Camparjtya Emma; "TherefOre, 'ihe- re'spbn'd?'nts were not

required 16 'addr?s's arguments With; regard? is the. validity of ih?es?t'emination bf?the

JVAg'regment and valu?a?tiorizpurchase- ?fvpetitioneirs? shares in the Company by

AcCotdi?g to the?Submi-SISiO?S. made by-thefl?arned COUnse'l ihe .

a'fOre'Sfai'd- issues- are contractual arid ".arbitiable, "The arbitration- proceedings I04.-

issues already been" :co'ndmenmd by India. before the

- Londanj-Cpurtj tn" lnt?ma?ational Arb?t'ratic'in. Which me-

(2)

    

have purportedly-facusged' their attention; the alleged} acts

.Of' oppression, and miSmanagem?nt._ 0f not rte-electing Mr. Vik?ram- Bakshi {337 the

Managing-Director'O'ftthe Company Ins-that regard .referenCe has been made {0

--p.ara; 866 Of the Gamma-g- ?etitien' Wherein? the petitioners" have} inef?s'el'Ve?s

that theprwis?iotiS ofith'e: J'V'Agreemen't'have- mat; b?en' in.

the. Males; {if-asism'iatitm.

The Other mum-em raised ESE-that the grievance ?inch.
Na. 31. gas man-aging director is not mainta-ihablej because it-
is tamed 3999.21. :a'gmeme'm' date-d talks: 

Mfr- Vikram Baksh'i' cf"ComajughtP1323! and.

 

 

 

 

 



safnei having ofstime 0n tight womd survive in the

petitioner to claim reaelect'ion :ir?a? theXfa'ce 0f the provisions'mad-e in the agreement

itself that the. agreement? Was to be renewed for further term of Mo years in
accerdance with thefterms ofthedV Agreement as amended from time to time. Mr.
Vi'kram Bakshi havi?fg mt bean rte-appointed as the- managing. director .Of the

Gamma-y- ?led the; - :inSt?nt petition. .With- Bakshi Handings Priv?aze Limited" ?on

principal grievance-33mm Mr. Bakshi' was nbi-Te-velected as

managing, director- of. {the 'COmpaW-a?? the: series of altegatims pertains- to the

"year commencing 'rm'm. 2007 'bmwards; The call option exercised by McDonald

India- on ?160820153: purSu'ant "to para'f32 of the JV Agreement; has also-?been

challenged by-?thg petitign'er- but the-same; is. consequential to and. dependent umn

Mr.- Baks'h'i-suffering-1% as Managing director of'the:

campany; The ?petitioner has-lsough?t restoration of status quo on.

16.022013. "to-enabl'iethim to: .continue- -'director of the-company. The

Argument :Se?ms it): it: psocur?: {an order? speci?c-- -.-perf0rmanee. of. JV

Agreement to Continue {as the Salary- based post and

it weal-11d amount to aSk'Ting ta "create a. fresh employment agreement.

which is thily impen??i?ib'le' in law; In; "that. .?EQai?d - refere?ce- has been made: to

Pram? XVI. iwmr?by directions: have. been . soughter the management and
.adminisjtratim of? the: :?cbmpany?as 'Snbsistihg of} and '19 cohtinueiag;

such-as praises:

The petitioner has nut-chimed or buyout -of. the petitioners"

ushareginsthe ruesmndent Campany? by Mr: new; India: as '?otiice'd in the murder

dated. 1109,2056. been; Sought. by incommting the .gjre?ef

Cumming valuation- the bf the; company" petition has: t0" be"

 



 

 

 

 



 

determined on the- ib-a'sis Prayer-made iri?the" Original Company petiticnj'

Therefore, any prayer during-the ccurse; 0f argument from the- petitioner for

validation and itheCompany by McDonald. indie
wo'uld- be and withi. the-?nal "reliefs prayed for in the
-.C-ompany pet-Rim; According_'to the {learned swunselfthe int?erimirelieffcanonly be in

aid act-and. a?cillary to 'a If?nal- reliefcan?not be-

.grantad then intarirn I-Inrithat regard, relianCa- has. been

placed on ?the dbser?vatibn made:- in para 10 of the. jUdeent of the. Hon?ble

Supreme. 'Cfourt :zrender?d :ifh? the geese-1:31? Cotton Corporation 10f India Limited
(supra)

Leam'ed: then that ?lai?ms- under .cemme'rcial 

-_ar_ran'gergnenfs are. DutSide: {he Same; ?at-proceedings under Section 397 of the

Cbr?panies Ajct -r?liafj?? hai?be?h-pi?e?d 

made it; .efijth'e the Hon?bie- Supreme ngnurt;

rendered Haldi?-

3Pefi'ochemical?i Limited arid? ?10 sec 246-5 and 
Radharam'anan Rafa-(2003) 2630,50 750.,Ontthe basis-

aforesaid the submissiqn made is that once? "the. breach. of thie-

was between-Moimembers-cf the. Company then. no _-rel_ief can be-

:C'Ieiimed' under- ISectim. 397 ?or 402 Of; "the 1956,; Act Company; It: is:

:veheir?e'ntfy zargued'_ that the sought- "to mask: ?a :cOritfaCtugl
claim: .fOrfre?elec?on: as managing .directorwhichis- deaitwith, in (if: thew
Agreement? by? maskirezg' itas a mseofoppIQSSi?I-i and by: inveking Articles-35: fof the

Articles Tl'ti?iis falsely-claimed. "that paragraph 

Virtue: iAssOcia?cam; such. .an- argument;- iS-bcjugd; to. fail

.65.

 

 

 

 

 

 

 

.i?ni ithe face of the Clear __p.age- :53 ef-the- 'Cbmpany' patitiCr-z which
speci?cally says that he" 'the JV Agreement have not been
incorporated .into..-the amides. ofth'e Company. Even the? proper interpretation of
Article. 35 would-not oblige-the BQatd of' DirectOrs to appoint Mr. :BakShi as the -
managing direCtor becausei2-itr mai'n'tairis' in the ?rst paragraph of Article 35 the
'pdwer' to appoint One "of managing director; Thegaoard may
exercise its. powers- but it.? is not? Obliged ?Ito- eXerCisefthe?. ppwer' of
Mr.- The Paragraph deals- with the post-appointment stage
"and: hiisizipower as {he managingudireptgr. According toj "the. learned Co'u_in'se_l' if the
iimterpt'etatipn advanced: on ibehaif 'Ofiithepetitio'ners is .acpethd than it WONG
. tender the; second paragraph idestiwctive Ho'f "the. ?rst TherefOr?,
such a -situat'ion. and?. interment-inn approved by tide.
Supreme case-of Hamoi-drire l?S?urance- co, Ltd. (supra),
rifT-Wbuld '?b-ecome: Wholly destruistifve; -.Of ?the: ?rs: pa?ria'gnaph 38nd. the 
must. Mayan? aviar- the. s?cond. lit been: 'siibimiited- that-{the
.pe?ftioner? has": notfbeen r?m'eved dir?ctorbut :?is relation ship. as" 28 .
managing. director came} f0. amend upon the expiry- ?of his term: of two years ,on-
1110720153; If is. Well- settled ith'at whehev'er the; patties infen?d?d :to 'in-corpO'fat? a
particular-Eclause {he JV Agreement 'in' of ASSOCiation; they- have:
proVided' afar..thjisff Sy-?jreproduci?g? {such ptWESinnjs 
reg-and, '?f?c'lalis?? of JV Agreemem: --incosjp'dirated in: has'; been:
placed-m record: 'The-Arti'cies 'were- amerjded "in 
the amendment- Lin. JV Agreement: in 20.03, 2005,. and 2012., according: ?to 
{earned caunsel?the. principl? Would-apply as. has been ad :09th 

the Hartford ma imsuram Co. (Supra). The view taken by} Hon-Ewe. .meg'

367'

 

 

 

 

 

 

 

 

 





 

.?S?preme 'COur-t is that if in adeed?ta? earlier-Clause 'is?fellcjawede :3 "later? clause.

.-.Which altogether the bbl?iga?on'breaied by'the earlier clause, then the.

later ciause is to be rejected as repugnant and the earlier clause prevails.

It is-ImisconCeption oh the part of the. petitioner that he Was removed .as- 
managing director. The fact of the matter?is- that his/tam expired-and. he was not

re?ected. It is Maintained that. petitioner has no .ab'sottz'te: right .to- Continue; as:

His right is. and has 58le35?3- been '10- ?the

provisions of JV Ag'rEementg-Which is ih'th'el that
regard, reliance hast bean-placed of: para: :0f the JV Agre'ejme?r? w'hiChL-provides
for nor-1 'of-apartner

as'Ma-naging-Direcmr;

It has 6130 been submitted: that paragraph. the

i?Ma'naging: Director" of the. 'T?C'onnau'ght. Plaza": and. Mr S?kShi; the: eIatter being.

referred {wherein as ?Partner: Paragraph- 7(a) ?rs: providesith'?t the? 

- elected-every two years; prbvidefthjat 

be"- .ele_Cted as ?Managing-- Director? every- Mo yeajrs,. "To accept s'u?hi can:
ihterpietation would raider the remaining prqvisicns icf 

meah'itheSS. and "redundant, one rates of

interpretation 0f game-eta 

Wig-Mi? re=el??tionaqf ?Mariam Directof: :?ffdr so 1ch as??

he Samplies- With: the presciibed therein. Accordingly; sum Obligation. to-

:?Slote' for therreaeleaion of Mg Bakshii-as- the managing: director-of? 

P?Iaza? "is. neither absolute nor Thus-,2 ?Paragraph; ?itself

contemplates: that Mr; Bambi - may not bathe: Managing direct?r' Of Tihe. Gamma?-

atall times; bur-ml}! as? he compiies- with the conditions.prescribed



 

 

 

 

 

?th?reih; The respondents placed "reliance; on the: .-aVerments: made. in

.721 alleging that the-appointment: of Mr; :Bakshi and his coz'ztinuatiOn as:

the managing director of the Company Was. paramount as it. is interlinked with the
:Lcon'tinuation of the: joint-venture. between the p??titioners'and McDOnald?s- India.
According to the. learned-counsellall these faCthSiare contractual in mania ?and? not
in the. realm Qf SeCfti'on 397' read With Sectian
402 ofE-th?eICOmpani?s; Mt 1956 It has; that the .res'nlutign'
dat9d 05092013 169,-: Company

Petition puri?e- basis: 0f whigh Ethegcompany Pe?ticjin. has been ?led on

-..beha_lf Qf' Pastime-?r Patfitioner No", .2: 

- theadcz?fnt. Venture..Agrejemienrtdaied March

7995384381- Subsethentamendment?t 

. Iris; next; canitende'd that "the 'P?titiohers-' make no ;_reference- tor-the .M'D..Agreement

in'th??bgdyaf The "Company P?titim. A Copy-'of'the-MD Agreement; wass?lecirasfaa

Form32 annexed ias- the Compfany- 991%:th (Pg;

gig; Ith'e W?ittehfSubmissions, the

Petitiohers- :m?wf-daim (Fare; :56; Pg; :W?tten Submi'S'sions [Vol5-

Agreement '?catego?cally provided? :that ?Mess. staminated the

-_same- would be": .r?n'ewed?i. it is also. alleged.- (Para, Pg Petitioners?
[1/5151]; in: relation The Agreement? _i that. ?Chase; 
firm-agreement is ?ame renewed: The Petitioners:
have- d?l?iberatety: .m'iSreprefSent?dL Ciaus?e- of the. MD Agreement; (Pg. 809,
Company iPetition'Ill/OLE335: which ihterxaflia- provided that ?Unless. terminated in:
sea-romance with?{he ten-as hart-mi wise-Agreement sha?? be renewed. fer further

{WM-Offlivo With the..ftems of The JV .Aqreemen't?as- amended

69 .

 

 

 

 



 

 

f?em time to sunplie'd'). Thus,- the renewal. dfthe MD Agreement

mas dependent on Mr. Bakshi's complia?e?e- with the .proviSions of the JV

Agreement, -.and- in particular, Paragraph. He) thereof.

Learned 'munsel then argued that Mr. Bakshi' committed varieus acts of emissions-

violating the conditions prescribed-"in paragraph He) (at-the JV

Agreement and therefore,- he was not entitled t0 continue. as. managing directer ef

.C'ennaught'Piaza, As a; _consequence, the petitionerswere not entitled- 

Any dispute regarding the non rerelectientofgpetitioner'Ne. 1; as

managing director ofthe Company eh 06108120133 or the. .e?erCEse of?call option on
16:0820'13' at? the" in?s?ta?ce '-oszeDeh'atd. India Would .be- regarded. assa bf??Ch of"

JV Agreement-and its ?enforcement cannot be sought by the precess of Sectieh

:397 read with Section; 402 emompanies' Act, 1956; A reference has been-made to-
reply?lted by MCDor-?Iald- India-0n22.09.2013 (page's 
-'Other- arguments raised by" the: respondents No. 2 .to- 4- is that -a's_suming Without.
edhiitting?thesame-that it Tribunal te eenSider-a- elem-tor.

speci?c perforrh'eh'ce efla cemmerciati:eentraWprivate arrangement, ih law narrate]?

can"; be; -g_rain_ted_-. since spiecmc- permanence of" JV Agreement as setht by the:

petitioners-is" notzgposeibie; Inthatregard', reliance 'on-ISjeetion '14

and. 4.1 Of the Specific Relief-Act. Learned 'ceuhsel also placed" reliance; on

paragraph- 12 cf :the'judgment? 'ef?t'h'ei Hoe-"bie' Supreme Court rendered thine-Case

v. Am?tSar Gas-Service. and. 01's., {13991)}1800

.5333. andithejudgment rendered in the case otRajasthan Breweries Theatre!) -

.2000" Reselutibn Jeurrzai 568; and paragraphs

rendered? inrt'heea?Se of?ClassicMo?tere Ltd. v. .Maruti'

. Rasmu?m Joamamsz'and 

 

7.0

 

 

 

 

 

 

JV Agreement involves the? perfOn-nance'of a. abritiniuous my ?(high "this Tribunal 33

:nOt equipped to -sUpe.rvise. In that regard, .0U'r'atfe'ntion has been invited: to the

observation made in _-_p_ara 58.0ff-the judgmem.ofxtheiHo?fble. Supre?me Court

"rendered in the case-- Her- ?Highness.? Manama; Shantfdevi" P. Gafkwad 

.-sanibhai Haribhai Patel, (2001) 5 SCC 1'01; Mbreover, the performance of JV

.-Agreement.-.is dependenton the 'volitio'rt iofithie parties, as has been; obseNedrin'

paragraph 38 Of th?. jtidgme'nt O'f'th'?sfH'dns?ble. :Supr?me 'C?urt'iendered: case-
Rajasihan Vt 331 makandBaima .4 86012993. Ahothe?r-reszon.

inybked against passing-any order with pe-rfOrm-ance .?is less: of-

:?triast- and .con?dence There- are '_iif_r??oncilable 'differeftGES; which._ exist





 

'as-to mmpel tepult atong together.-

Lgamed counsel has submitted. that: by. filing Application? No.-

138812015 the; petitioners: have themselves- stated that the; fair mark?t value may 

decided. petitions: 

Learhed :rsomset ha$ ?veherrte?ntty- Argued that?th? Company A?titi'drzi has: been ?led
for-ta 'cpllaterall'purpof's? and. theis??m'e 'iS?li?bl?-?gto- be dismis?'?id. Without heari?g. 'if'jon'

merit. Awarding. "to?th'e: teamed tounsei the; in. his pleading

.bef?re the 'Hon?b'l'e High) G'O'u?rt: pf: 'D?lhi? ind?'btt?dn?ssa aggregating tp'

approximatey- RS: 1.876 A itha rt setting but? the indebted n?sis. tant 

as. -.ava_ilabie- on "the website: ofthe Ministryof'Co'rpOr?te?Affatrs -_h.as been 

recgtd "as (Annexure. BY ?ling ..P61iti0n he 'istryin'g "to" avaid his

Obligation under para '26 and under Article 171. of the.

Article-3.. His :efftfirtsi -'_a_rex'only to extract. the; maximum amount.- in "lieu his

Shareholdi?g from 'M?-Dbnald India- 30 as to, meet-the staggering. indebtedness:

7ihcurredyby' him in relation-to} his-rather basiness. Ventures, Learned tcourriSeIiah'as-;

71.

 

 

 

 

 

pointed out that 'the. 'p'etitioners? investment in ihe Company is only Rs. - 14.56

crates, Whareas his investme?tin other business ventures is signi?cantly higher

Ithan the aforesaid amount. For a. petition. ?led with the oblique and collateral

 

purpose reliance has been placed on 'ajudgment ofthe English 00m in the pass:
?of. Re Bellador Silk Ltd, (1965) 667 which has been follow?d by the
Divisicn' Bench of-Hon?ble' K'er'cela High." Court- infthe case "of Palghat Exports
Private Limited? v. 11v. Chandran acrsq (1993) 3 JLR 706-. According .to- the."

_learne_d7couns_el? on that is liable in. be dismissed,

(11) Learnedqcotinselii then the petition is bungled 0n suppression a

- materializfacts' and false caseihasbeen-made ?out. Therefore, liable to

be? at sth'e As] a? matte-r of fact; ?inepetitibners have deliberately

s'uppreSSed the fad that on 13362013 .at a meeting in- Bangkok, Thailand;

'Mr-{Vikram' Baikshil Voluntafily' offere'ds-tdexit th??Connaught 'Pl?Za bylselling his

"entir?shareholding. Thegdffer-h'as ?been. recorded.- in-the' email dated 16981201 

- 'S-e'rit by ?MGD?nald- India the Petitionen In that "regard; our attehtidn 2-h'a's beet?

 

page.- 794.. of the; she'll repl?ll ?led byihe; McDonald India;- On. Ibis gromd

alone-ine- Company :Peti'ti?jn is; liable ?to. be dismisSed; -.According. to: the learned?
.COUnsel. "the Stuart examine .-the' .c'o'nduct of .a party "If if has.

fOr-equitabl? relief; Reliance on paragraph

"196497 of --'the judgment: ofthe Honbe-e supreme: cam ireade'red??in the case of

(Sangramsinh: P. Gaekwadv; ishantadev; Gaekwag. (2005) '11; sec 3.14;.



ltwas. th??'??bmit'ted'th?t no cause of action as ih?- JV'Agrjeemeht.

admittedly has been te'rmi'hated; The-termmation; "of the .Jv Agreementehas not

  

 

 

been Challenged and in: Manor- be challengE-?d; The -.cause- afrajc?on: in the:

'72-

 

 

 

 

 

 

 



 

Company Petition] ino l'Onger survives and the same has been rendered. I

infru'ctuous? 

Learned counsel have also argued that at the meeting: of the. Board "of Directors

held on 06.08.2013 Mr Bakshi could not be. elected-or reappointed. 23$. managing

director for the reasons. recorded note -table'd-_ by nominee-directors of

MCDOnald India. "The"- summary Of. the note. is. Wident from 1% follolruirig ?ve

allegations which Clearly violates the preded??tpo'StUIEith -

:in clause?e) "of the. same read as under:?

"PetitEOner'No; _1 did ofthe JV Agree'mentaia's he.
I'w'ithdrew Rs, 7 Crane? from. the-Company-(an. amount. almost-Ema {to his:
..cap_ital .contribution._ to {he camper-1y rat the time)? for- th'e bene?t {if of
.his? Companies, without-the 'priof'iapprov'al .Or kn'OWIedge' ochDonaldilndia
RespO'nden?c No.5,. This was Critical as. ales?s ef'fa'ith'and 
truer in Mr. 'Baksh'i, which continued even- in 2011-3, .sa'js asknowedgediby

him Seetionbill 10252 ofthe detailed submi?sio?S]?

b: Mr, Bafkshifdid.;not comply-With 
he failed ?5 in plane 3adequ8t?i internal Controls (a's eVidSHGed: in
internal audit :es-e-en'tial to. proteot Gen-naught- Plaza-,3 
bra?d andIhQ'MCDOnald?S'System. The rtof AMI-2303131
recorded 1'3 high items. Which could {result ?in. pfejudige- ih?:
{See- 'Sectian at: Page .53 "to :55 of the datail?d.

swbmissionsl
ac; Petition-er icii?d- not Comply: with. Paragraph -=fh'e JV:
_.Ag"reetpent ee he: failed. 1e): "devote substantially ell his b'ueinefssa. time

?1:73 -

 

 

 

 

 

towards the. performance- _of his duti?s: in the Company", a-Irequirement'in
the: JV Agreementand- his employment contract, His-?growing .-investments
in his other hashes-"sea 'and involvement in their troubles forced him to
divert his time- and- attention from the Connaught Plaza [6626 Section av

at. Page 55 to 58 of'the detailed submissions]

"Mr. Bakshi, .did not comply with Paragraph {Of the JV
Agreement as ?Petitioner had breached his. .nona-COmpetition
bbligatims (including under Paragraph .24. JV Agreement and
"Clause- 1: .Of his; ?empl'pyment: as he] "(directly or through his.
. companies} was? --en_9893d in .r'?staUra?t' businesses. other than
There?: is a seriQUS. Emilie-t. {if interest, ?in the
managing director of company-- operating McDonald?s. restaurants.
Although from being. a, landlord: {ox-other" restaurants,
:ba-cominues to be. a landlord. to. Domino-is :and- .Dmkin?s? (Quick
Service Layer} todayt.. In' 2013; it was. rdiscqv?red. that 
falsely stated .tha?t'jhe; was oh]? alt-landlord. to: a -_r'estaurant; he --was
actually. operating. threugh; one Seetian- at Page:

'53?10- 'B?-bftbexdera?ed ?masons!?

. Reading td'fgh?- learned (master N9. 3 acted, in the best-ihtere'sjt

6f.- the "Company-by refusing?. 10 Vetezainj f?mur of ptopb$ed radiation-and. therefbr?e;

Bak'shi 38-2391 am. and Witter Epersan "to- bie the ?managing. director of the

Companyli Was in the :aferesaid circumstances. that Mc-Dcmald l'n'dia? exercised.

the option ta; Database all the- shares. held petitionerslin the: Campany-a

.(ibntractualfemedy aVaiilable: with it under paragraph-.32- of the JV. Agreement-

 

74

 

 

 

 

 

 

 

Therefore, invoking the contractual right cannot be labeled as an. Op'pressive? act,

especially when Mr. Bakshi had himself expressed his desire to exit. the "Company.

(1.4). Learned counsel has then entered his response to other allegations labeled by the

petitiohergby making following submissions;?

?53},Cemmunications exchanged betWeen "the. patties. to. seek an amicable.

"parting bf'ways cannot be termed oppr?eSsiVe, espeClallyi when Petitioeer

1: Was Willing to: exit. but :at a'h'i'ghly exaggerate-d __p_r'ice [See Section

E47 -at-Page'66 of the, detailed-submission]

Restrictions .on borrowmgs; ?restaurant:development and attEmptS ?70 Cure.

. ?tte'h'eg'at'ive net Worth of theCompaw cannot be teamed 

"espeeially- "when even measures resulted. in achieving Pre?tabgility in the

{Company for-the ?rst time [See Section EJI at Page 66 to 68 of the

detailedsubmissions]

dividends; "and; payment: towards. royalty. .eanjnot. be.

termed. Oppreseive, .rier?z?edejelejration' of. ?dividends- affected-

eiigrli?cantly larger "ehereholder like Mcaonald indie ?7.07.6.7- it :is-
.fab?Serd to "label oppressive, payments. idWards: rOyalty- for. Use of. the
conveniently 
- Bake-:- the Petitioner's.-
.iw?stme?tln' the Empaw [398 S?c?on' EJII \at' Page 63 to -751 'Oif'fhe'?

zdetailed?s'ubmissiMSI .

Differential --treatm_ent by. a. private party McDe'nald lndia; be?ween; Me-

in relation to. whom-the. Jewels- ef'trust; Lead faith are 

75

 

 

 



 

 

 

 

 

different}. canmt be: ter?ned under- -.S?ction' "397 -
. do} not fall Within the ambit "Of writ 'CamOt $98k
rights (inclining. Amide. 1-4 Of the Con??tU?-O?)

at-Page -

Fili?giof Form 1322 by the. company- fSBC{etary Of the camp-any, if}
"with: Companies be- termed oppressive,
?specially is no diSpute--rega_rdin_g wettest-that: Mr.- Bakshi?s states-
as. mar-139mg direct-tar of'the [See Sectibrjz EV at

Page-72 to 73: afithe. detailed?submissms]_

- Therejhas: bear? no waive-riafspast breaches by Mr, Bakshii a3.
incorrewy .ppntend'ed by the Pieiitioners-I-[See SectiOh.-F.at Page 24- gfithe



I against Share implication. Would.
status. quanti?er of the OLE, am begtiemed aic?tbf
I [Sega Section"- :at Pag? 2175' to. <76 of the detailed

-. ?ef?rmfent: offsa'te-ad? tp'rc'perty awed: 'by'thef Company). at.
an in: "theiface- interest .?camot be
tamed to: he. oppressiveJS?ei :S?w?n 7-62-11 -.at -.Page 176 :51" the. detailed"!

submismm] 

The vaiidity- of. the: {termination of JV Agreement, which. is a. purely
?writra?tual dispate' ptmsideged. by? Afbitral. Tribunal. :in' the;

b?Meen the pa?i?s, .cah-not pea-subject: mart-emf-

36'

 

 

 

 

- proCeedings under Section "397-0?? the Act.- Without prejudice

to the aforesaid, the termination - of the. JV Agreement, which was

compelled by the acts of the Petitioners (including material defaults! the

express rejectien of-funda'mental terms cf the JV Agreement, and the

entire JV'Agreement itsel? raj-'n'd'the likelihQOd "of?fu'rther encumbrances on

'share'S) Cannot be termed ?Impressive- [See section am
at; page :77 to 779 --of the} detailed submissiQhS} I

.ng; .B'akehitand his "wife's No. _10) ?(tended before and - dering

the. pfendenjcy- pr the present preceedings. {unilateral termination of.

employees, and issuance *of e" Winding?up notice upon: the;

 

camper-1y); would: dieenti?e- the :Pet'itioners from obtaining any equitable,
srelief?in a petition under. 'aSejc'tion .atPa'gej 80 to 86' of



Thejoint ven?t?ure-behme?eth. Bakshi- and: India was 'not'in the
'rjiatur'e-ef ?a =partnerfs?hlp. jih?e Agreement {slates-1'0: the. contrary ?The
true: nature,- cempes'ition and '(iharaciter of the chm-pan); would reveal 'ihe
"urieq'u?za'l nature the. relatimsh-ip between par??s. (iddU?d-ing-the 

of investmeht); and Zlndie and Respondent No?. '52ex'ericised.

 

s-.upervisicn and co ntrolf Wei-?the powers 0er Bak?h'i and. the fu ri'tfitio'nine
of; the .Cemp'any {see "seetic? 587" 13? 91 of. the detailed

fsublniSsiorisT??
behalf 10f.- Res pendent Nit};? 8

PEhalfiijFeepo'nidenthei.8 

  

.77-

 

 

 

 

 

 

 

 

 







 

lt'is to ment'iclih' ;at- 1the 'o'utse?t "that respondent No; 8 is; 3a: Company

Secretary who; has. beengcharged' With the-allegation- that he" has unleaded Form

No. 32 on the website of: the, Registrar of Companies- whiCh .proxiides for"
discontinuation of petitiO?eTaS managing ..direC.t'oi7 (of-the Company. 'It has been

sabmitted thatjresporide'ht N35833: an. impartialentity and 'isnot'interestea. in the .

-Present33hareholdefs either of .he-?is
salaried employee, I?arnedf (toxinsel respondent {has Carried.-

?ou't and tumm- in phrS'uance. of the to

him Vide?Board restitution. dated 0536:2009; .A??ordihg to the: aforesaid.reSOlutiQ.n
he is- 'empbwered "to Secretary ?and: Genera! oi



?Lea'tned coiur?iseih-as: :ef'provis'iohs ofSe'ctEOh 303 (-2): of

'the- Companies- Act, under tag-at 
Obligation {0-Sehd the. pr?s?ifibed .fcirm within. 30 days by 
"interalia; am?hgsits director; nsel I
the taken place; oh .reqU-itedi tojflbe'
?led-Oh} OrIbe'ere 16082013 meeting of the: Board was to be.

held on 16082013 'reS'POndent' 08 prefer- it for the Board; meeting to take

mace-and eventually: uploaded; Form32 on the .sdel-ay- 'in-?lirig the; to rm

. has been Vis'iteid- 1,-0001? Whiter] has been. 1d paid,

After" theorder'was reserv?d respondent No. 3 ?ied GA, N9: and

has brought on record an: Order dated 08.04201? 'p'aSs'ed" by the"- DiSCipili'niary-

.;Bo:ard :of?The' .ms?tute- jot-Company i-S?ecretaries of India .exonerating him from-any
eajl'l'eQ-atioh ?cf prefessienal?misconduct "alleged. {hemp-1amN3. 93124-52014- ?led

by Mn :Vikrame'akshithere. It. hasthusbeen argued?th?ati-ne allegation I-againsiti?the;

'78.

 

 

 

 

 

 

 

 



(-1)

 

-'resp0nde_nt No. 58', would .?sutviVe? and he has. .lb'een. 'Uh?ebesSarily made a

. scapegoat in the leO barring-grows.

lSu bmi?ssibns made on {behalf of iRes-pondentho. 10

Orl'hejr? "behalf learned-Counselsabmi'tted- th'at-lsh? has been Working as a Senior

Director, j-Hujman *R?sdumes Plazal, She focused her time and:

hlirin-gx'echaCUtiVes at. :all' levels. in? 'Cl?t?JClal departments-- of The. Company

such as business development real estate; facility management;- .eqL-Jipme"ht, 
marketfi'hjgj and dper'ations in preparations. 0f? the" ?rapid growth. of:
Chm-naught. Plaza; 10? is wife._of- Mr. Vikra?m BakShi; [has-game
ihigh'lighTQ'd' her in. :Conna'u'ghtf Plaza in her-3. a. whole;
lime-direc?tbr since. 1.995. - She- was head :of Marketing lDepja Tlment and was
for- "the: ?rst TV :cgommerdal for moon-ands. 'iln. 'rl'ndia} she was

fo?rilau?nch of n?ew'restauirants'in the ?priess r?ilea'ses?anid

pub-licjrelatfidns. She state?f that-we never" Claimed{Eahy?Slalany ?rst?'5. {bur year's;-
'l-She {bang-.tmk- We: {as} aCorporate Cominju_nfcalia?s .Diepartmeni? Which-Ts-he'lhas-

been 'h?adirlg,_ 'ln hie; ?paciity .as- a 'l'n?hagge; =of- Corporate. CQ'T?muni'cations

Department-559, $peafrlheadedthei Corporate 'S'otiia'lfResp'onSibility programme of];

. Care-for Care:- a hid? aliQ'ne?TMCDonald'zi'sia?s partjof? and 

Shroffs cm HospitaL Like-Wise, she. has - high?lighted- many 

.Te'gardihg. the celebraft'iMOT'. '51? and 1015 waivers-arm cisr. 
Ltd:- ?She has-label?d serious: allegations {against respondent'- who; was

Cofmpa my .-'S'ecr'etary and. General Man'age?r (legal).

'79.

 

 

m. CONCLUSION
I 1. We? have beetOwed our thoughtful consideration. on i{he Sub'mESSipris made by
the learned counSels for the parties; We 'a large-number bf
volumes of paperbacks and "COnVenEence voiumes?. The whECh
arises-for determination in the .ie i?ri'
"favour of; Mr. Vikram Bakshi his fManagin'QsDire'Ct?Or at the
instance ioffnomineadireotiors of McDonald indie would. amoant 10" an 3m: of.

--oppression and. is. liabietb; be corrected bytexercisingjpower under" section 39??

 

. read With 4023' of7the' 1956Act The cognate iSsue' by.
maia??es- emanating; frem extraneate ceas'iderationg. Thas gues?tien: is}
signi?es ?t for two reasons; as per Ecie Use: 32 Of- JVAQreefrj?atiber day" M111
Vikram' 'Bakahi' is. voted Out as a .Managi?g DifectOt; Ith? indie-1'
No. 2) to, exerciee "an "optiori rte 'pUrChase-ihiel-
purshasecaf shares_ihas.-
tobe': ?at the rates to: be. determined- in accordance with clauseZS 0* thew
Agreement. In. ether Words, "-Cennaaght- Plaza! is} ?31. the; mercy 'of'?'shafe?dlde;

Mstnaid India (Respondent'- no.2)

 

2 {In 'srder examine-

vari'ou's previs-i'ons'bf theArtie?l? Of As$.dCiatien;

Article 20-). (9) de?nes: the Joint, Venture Agreement and: the same: reads as
;unden~


. .

 
 

530.

 

 

 

 

 

 

"?5?Jsirit- Agree-mat?" means Ems Jsiat Venture 

-.. datedjs1'si?Massn 199-5; entered. gists was ?McDonald?s, Bakfshi
I and McDonald?s Carport-atim with Of?ce Sat-
.MEDO?n'afld?S- Plaza; ?Oak- Btdok; ilIllih'?iS; 60523; USA 
.C?rmrati?n") a. con?rming With the {Suppiesmentalg
Agreement- dated 1111? December- beMe?n- iatar.
lB?kshi, "McDonaldfs Corporatiom I (as con?rm-hig-
psi-1V3} :th?e Company and Bfakshi H's'ldings- Private Limited and all?
. other ?Wrijfteni modi?catitans the Jaint Venture: Agree-meat: -
995 frOm Marts-11m the Jam-
a ventursAms-ndmsat.Agree-meat: sated 
batman McDGaald?s, 83mm, McDonald's Corporatisn (as. :8
- Con?rming Part3!) and i?ei (2) the Jaiht- "Vant?rej
dated. 27*? iintci biereein- 

ass-the. Company said the mad. Ame'ndmeaf "to the Joint.
I vantursz..Agreemeg.rit dated Navemb'er 20.12 .rse'ntere'd: into between

McDosaids Bakshi, (as a con?rrsing

- - - party) :Baksihii-Haidin.gs P?vataftimit?tf??n'd the Company

 

8'1 

 

 

 

 

 

 



 

(Amended by Special" Resolution] passed. at" the: Extraordinary

General Meeting held December .2012)?

I A perusal of the aforesaid Glease Would Show that joint venture agreement has

been de?ned in" the Articles of Aesoiciation to mean the -jeint. venture agreement

.-dated 31.03.1995 entered betWeen McDonaid-?s India "Pvt. Not 2

Vikram 'Bak-shiepetitioner- No, 1' 'and._.McDonaldts- Cor?po?ratien of USA. water's.

includes S?pplementary agreement dated. 11.121998 entered between 'afe'riesaid
- "three?parties and;additionally:between Bakshi Haldihg Pvt. f2"

and 1e]! other written :modi?cat'i'ons maderto- the Joint Venture Agreementidated

'31.033.'l'1'995 'I-from. time. to time-including the JOint'Venture Amendment Agreement:
'dated- 05:41 12012.: 14.422012- 'i'svevident that
Wham-W? supplementary- ?agreement-was made; or amendment was. effected in; the . 

Agreement itwas' iz?chrporated ih-the: Articles ?of ASSecia'tienf "Wha?t?isi

. the effect or=?mearzin?g of such incorporation is tobe- scene in t'hegs'ume'eding pares.
Referencejo- the: jei?t vet-1m? agreement has: been made-fin yari?us' Attitiles jet
Refsociatien .35 3'6.

Mathis.janctureit Would be: appropriate. to notice the: movie." . :7 Articles- 6-, .35 f8;

33. WH'ieh' read-iais-uutadert?

?1?365916' 6: The shares- shall the-centrel'. and of the Board) I
Who may, SubjeCtito the: proviSidns 'of the .Jjoi'nt'Ve-eture Agreement, jail-lost- gr-
oth?eMise of the-eame to su?h persons and; on sun'h terms as the Board
may thinkf?tr-?and Wrgive any" persons fan-y shares Whether-at par eri'at pr?m?i?m

?a'ndifor seahmnsideretion as the-Beard may think-?t; Baksh-i endior his. nominee.

_-Sha_ll bald-"59% of the 3%qu "an-d Subscribed equity. capital: 0f; the. .cort?pany 53nd

 

32

 

 

 

 

 

 

 

 

McDonald-"s .an'dfo'r its? nominee-Shall the Said equity: cap?it-ai. provided

however, such nomineegs) f'ui?l the i'n paraqranhzg. ofithe

. Joint Venture Agreement.

(Article amended 3by-Speeia'l ReSalutiQn passed-0n Smadiune, 2003-)

.35,

'36;

MANAGING BIRECTOR AND WHOLETIIME (S)
The Boardof Direcmrs may. from time. Section 197-9; of
the companies- Act; 1956 appoint one of "their numbers (member?) .to. beta:

Manzagirig .Dirthari, Sand? exuc'h' numbercs) I'of? Maia-time. ".Dif?ector for-

"such iperiodgand. .gponssuch termsfasparagraph- 7201? the Joint-Venture -
Agreement ?the Managing; Director? shail be.- with: subStarlltial
powers; .cf' ma?ageme'nt Isabject to? control and
directioh'of ?the :Bdard- cf} He- shall "Manage;- the jday?twday'

- op'eratien -.cf-the.company.;

Subject. to the pravisidns of the Act ga?d?? paragraph- 7 (id) the. Joint
"Venture Agreement._ Managing Dita?idiot- m" .Lbe. paid sash
as may be. detem'i?ed :by?th? company in :gen??ral' meeting__

"fromtjime-to time-3?

A peruse] :35 would showas-Ito how a Managing Whelg~

.time "be'appdinted. It-_-then= praceefds ?to: Iayi-down-thjat theBoardraf'

Erectors time "to-time appoint ?one-of their-membe?s a Managing;

Director, and such- numbers amiable-15mg?Dire-et?rs "for such peridd 6:16 149% snob 

mans, as ?t1hink8; ?t However, it. has been made. subject it): the pmViSions ofthe-

Companies: Act 313956 fish-d. Farag?apt-I-?Ti Agreem?nt.?

8.3

 

 

 

4, - 'Aceerdingj to the joint Venture"- agreement the Managing "Director has" to be entruSted-
With-substantial powers of management s-Ubje'ct to the supe'rintendence, centre!
and directions of the Board of Bit-?esters. He is also to manage day?today
management of the respondent N6. :1 Company.- The remuneration according to
Articte 36- read With new '7 the Jeint'Ven'ture Agreement is to 'bepaid as
determined by the Company in genera]: meeting mm time to time. signi?cant
te netice that --para_graph 7' OfE-the NA. has been expressly referred to. and. fit
to be. .incorperated ?in-the-Artieles if .provisiojns- of Articues 2(9) and GI-ar'e-

keptjiifn view. Article changes, amendments .and

 

"SUpple'mentary agreements wnce__rhingjc_>jint vanture agreements. in the de?nition

'Qf .JOintTVentu're ?andAt?tiGle. makes-5a raf?re?tzetb 163m ventu re ?agreement.

now. be .eecessaryhto- pertis?je: the -p_ro'visions ofjpara 7' of the, joint venture
agreemeht Which read-s a-sun'der
- 7 Menagieq_it3trecter. The. shalt- cause thesnominetien
?nd election-"of :P'artnerlasthe-sole Managing Director {hf-JV company-
a- Acceg tame.- [Parihergagr'ees'te .aeCept?the af?ne-of 'M?anagirtg Directer to

maintain. his resideflCe in devotehis} full

 

Business. time-rand" 1-best effohe; to _-the 'pirerhetion' and" develdpment (if the?
McDenaId?is 'Resta?u rams? 'operafted: by JV- Company.

We. Pa?n?fjmiiSt s?tefacte?ly complete (a trai?ihg program in the

united States places-.33: McDonaldfs may reasonably- require. for

a: period (Of least. 9. months-.g but which-"in any Case shall be suf?cient iri- the--

udgment of. McDonalds to thoroughly famllianze Partner, consistent with his:



 

. .34.

 

 

 

 

 

individual abilities, With the development and operatiOn of Mela-meters
Restaurants, including, without limitation, the McDonald?s Management
Devebpment pregram (which itsetf includes the Basic Operations Course,- the
Basic Management Course, the Interrnediate Operations Course, the Applied
Eq?iprnent Course and: the Advanced Operations Course); The training pngram
may also include? inStructiOns concerning, related areas inCluding, .by my bf
.eXa_mpie,- management accounting, purchasing; m?rke?ag "and
equipment. Shall -.design and conduct. the training- JV
Company ?shall bear. reascnable expenses i?fct transportation, lodging 
incidental expenses- incurred by Partner-during hi3- trairii?'g program. The i-t'rai'rltin-gi
program must be sampleted pri?r. to the waning ?f the 
McDonaldts- Restaurant. to hue-Operated pursuant to this. Agreement. 
that Partner shat! fast to diligently pursue his traitting; or "3113!! 
mmpiete the training "program, "the. sewer-Vice President: 'a nd Partner-
bf'the'jcon?rming Party; having-the :sole discretion toxiudgerwri'eth-er either 'f?ilur?.
may teammate. this-~Agreementt5n- Written notigie; id the-event-
of. such::term'i'n'aiiGnJ Partner Shall teoaiye prompt? refund digit-amounts. 'i?ve?sted' -
by him: in JV Company, lessf?ft'yjpetcent. offexpenses related. to: his.
ibditziduaIJ-ttaiining program," I

c; 'Scbpe- 9f AS Man-aging 'Di'r?ctor', ?Partner Shall. manag?. t'the.
day?today ap?ti?iatiogts: {3f JV demPa?Y: lathe exerciSle'fhina?thdrity as Managi?g
Partner'shalil' requirethe prim approizaiofthe-Bcard of for "any. of:

the JV. Company:

to ehter'into. any Contractor obligation or Series of Swift Contreras: or

Obi-igatigns- that wduidj-obligate for-afterm "in: excess [Of 

 

 

3.5

 

 

 

 

 

 

 

mam-s.- cr .3 :t?ot'al ash-cunt in of "the: Indian Rupee equivalent 0f?



(2) to enter into-any borrowing or other credit arrangements which-will
obligate JV. Company for period exceeding. twelve (12) months or for 'a total

amount in excess of the Indian Rupee eqUivalent .of 
(3-) ctr": acquire or tian'sferfany real estate;

?to acquire, transfer.- 'seih assign. pl?dg?', encumber or
of .a'S'Sets .having'a 'va'i'Ue of the in of'the. Indian

- Rupee equivalent- 0f 
(-5.) -t0 {w rchase; Satin ri?es-of any "other comp'anY;

to operate; establish acquire-father businesses-far .JV-Company :or
expend; into rath?r; mes-eff businesses. the .o'peratibn of 

'Re's'taMajnts';

(7) ?ip: initiate, ewmpromiSe; legal proceedings, on: behalf of 

"Cempany except for matters -emer'genpy- a?c?m:
=10 establish or amendibension orpro?t sharing {>18n8=30f73nykinfdi-

ate-51makgej changes if}? the; menu, items- ;or menu pri?esi: .affereq. ?at: any I

Mica-man?s R?'staarantsioper?ted ?2va 

10 cause :the- e?tabljishmm :of- new Mwonaldis 'R?StaU?ht?or the

bf- ?xisting Restatira'nts;

.86

 

 

 

 

 

   

 

(1131) "to grant any linemen, Service agreement, lease or any other farm of?
comma to any third party to aperate aMcDonald?s Restaurant-or use. any part

.. . =?0f the-McDonald?s System,

(12) to appoint or" promote any bf?cer of JV Company or to appoint and
.r?m?nefate any employee who shall earn __m0re than? the Indian. Rupee
{equivalent-of per year, "inelasive of an bonuses and bene?ts;

to of Compa?y'if {is more} in :the,
aggregate. than-the Rupee- equivalgant such-2
. ?investment is; made in With investment guidelines prayiousjy.
and not-subsequently. ith? Board Of .

(14) [to Jammie, amend 
agreemehton behalf 

(155) 1C) it'ransacftiahs} :imfgiving rthe issuance a: teaempfion 0f
-.Sih?r?s7 in C?impany, Changes-1h the .caipit-al. SifU'ctu'r? om Company or an.
i?h?reafsg tar decrease; 9f the-capita ofiJV On? pat-my;

to" de?ate six-dividend;-

(17) 'to enter? fir-110" any'tra n's'actibniwhich son stitufte- reSt
- {asdescjribedvinParagraph .25beigom;

("113) to ambush bank and-the.- Signature auth?OritY'With' SreSpect-Ltcr
such accounts; 

(1-9) .to' 1.33116. guarantees of third. party- :d?ebt, inclining ?licensee 

'Siibpiieff?i- 

'87

 

 

 

 

 

 

 

 

 

(20) to 'o'r'aCt's required bylaw, statute-or the ArtiCIe's. of

. .ASSGCifati.on. to 15828308151 ofDir-?ectors approval-.-

?TheBoard of Directors may amend any 0: all Of the aboVe. requirements 31 any



The Managing Director" shall -ais_o fre'gulariyizi?fom; the Board 'ongirejctors about

Cam-paw! including 

theihpe'rfation of existing 'R'esta wants-g;
(2) development and opening "bf?new' Restaurahts; and
removal re'pllacemenfrof' 01113363; consultants for 
.c-empa?y-includihgadve?ising andapubuc relations agar-Meg; attOmEys, 
?firms- and auditors,

salary: :of Director, JV 3. 3911938.
annuai Sal-aw as. Managing .Ditectcr of?Jv Cbm'pany ?in an gamtaunt. equal to the- -
Indian Rugge-equiVal'ent ofUS$ in arrears The salary

$11311: commenceas of the: effective date (if-thisAgreemeht?and Shall be r?yiew'ed.
annually by Tthe- Board -of Dimmers; The; Mahaging :D'iregtor shall be entitled [to a-
bbniti?: and EStic?i-other 'pejtqui'Sites as-may he bysilthe: Board (if .Dir?CtOrS. If?

I additim. JV C?f?pahy' shall -'reim'b't'1r$e- Partner fer ireasonabl? bus?ness expenses

I =in?urr?edin Conla?ctic? with -

ea, Managin'?: leeCtOI?The Managing shall" {be
elected. every two McDonald?s agrees: in vote-for the reelec?on-- of)

. Farther-'33. Managing. Dirac-tar far sO?l'o'ng. as:

he; free-sides in the-National Capital Region of Delhi and. spews-j

time in the. P-erf?mance- of his ,obligatibns

 

.88

 

 

 

 

 

 

 

Under- this Agre?ment' and the Operating License Agreements exeCuted'
hereunder;
(2) he (as; de?ned below), in Combination,
own at least 50%of theequitygharesof'dv Campany;
I he'disch'arges-the- 'reSponSibilities. of management of JV company
inta competent and faithful-manner;-
(4) hot-in- .br?'aCh' 'Qf-any- term of? this Agreement. Oraany other

agreementbetween the JV- Parties or'th?iraf?liates or subsidiaries.?

It: would. alsabe; to. kr?ow Ethiat .theg- word, 'pagtnef has; been
associated with; "Mt. Vikragz B'aksni- whjichsisjeyideht from the. opening-para;
ofJV AgreBh?'ent:
AGREEMENT (the ?TAgrg-geme of this. 315*- d-afy or
?March. .1995, b?tween Ihdias Private-Limited, an Indian
I =com=panyTWith an" affine; Sat .House_,_ 15., Tolstoy" M219 S'Ne'w.
'DE'lh11113011 India; Vi?kram Bakshi; .._re_sidirig at 15.7
fGolf-Linka. New Diem; "1510003, and" ..McDona.Id*s.
'CQrporation, 5a D?iaware-corporation ;anz-1foice at. one McDonald?s.
Piazza, 'Oak 'ZB'rQek', USA 
.Mcacn?idts.- and. {Partner are: referrad zo- herein as "fthe- Jv
Parties? and imaividuauy- as; vaarty Partner and the
Con?rming- Party .air? referred iodnec?vely- as?. and.

;n-dm many as 

. 7-. A --pe;rusa1. of the opening- of? spa-ga- 7 under the? sub. heading--

Diireiz'fzto'r? clearly- Shows that JV Parties. Were to 

 

89

 

 

 

 

 

 

 

 

'th'e nzo'minatio'n and eiiection' (sf-Partner'as- thes?ole Managing Director 
?.Jo'inf venture company; It. happens in practice. the Same fashicn. A
reference has" then been made. to the act. .of aCCeptance by Mr. Vikram
.iBak'shi who has been referred he had agreedio maintain-
h-is- residence: in the Regieni of Danni. .He' further agreed to
elevate- his full best-Efforts tome. promotion and cef?ci?nt
--ma_nagement cf the MpDonald'Ls. ERe'stagxrarits. Qperfated by .JV Campany. He.
was. it)" satisfactorily complete training. program [in the United States; He:
completed His scope of'raut'horityuaS;
Man-aging. Directoir was t6 the; 'dathoieday Operations --JV
Company. Ir": respect inipara-d-to 20' he was required .to' seek 
prior approval of-the. Board (if The. was {also
required t0 infarm' the-- Board of. about the business -'aCtiVit_ies of
?C?nnaught. Plaza? .thQ' .dpere?z?bn of e'XJStihg Restaurants;
._0p.enirig It; 3150 included the. 's?lecticn,
removal: gr- bf Coi?t'S?itants fur Plaza.
including. a.dV?.rti.sing relatiarjs jagen-?iies; attorneys, outside}
acboun?hg ?rmS'and'auditor's. The saiarybf Was alab-
?xed: With Ciause? 7 JV Agreement. -'Salary' has 813;).
been. ?xed as: pier" clause- 7(d)ofthe JV Agreement. 'leaus??. (emf the: JV
Agreement also: 3917031863.. that. he was to. continue as a Managing Director if"
he was. 861' "in breach: o'frany 'Co'ndition; (>va agreement or any other

-t_h_e_JV1_. p'arties,. Whataall 't?isthOWs?

8 However, -'the- .mOSt' igon'troVers'f?l is. According "clause 

 

-._MbDonald '-Ind_ia has in" essenc?- agre'e?ci id. vote, for the of

:90

 

 

 

 

Mr- Vikram Director. .-3u'bjeCt to the. four- 'Cthition's
f?amely:

- Petitioner NO. 1 --reside's in the Naticnal Capital-Region.ofDeIhi and 
spends Substantially .all of his buSinjess :time in the performance of.
his obligations "Under- this Agreement. and Qp'eraii'ng License
Agreement ex'ewtedr-hereunder; I

(2). He gar-71d emanation What-least 5.0% {if
the equity sharesgqf "r?sp'ondentho, . 1' Com pany;

(3) The further condition-was; that, he discharggs- tne re'spdh'sib'ilitiES 9'1
managemenmf' mmpeient and?faithful-Mariner;

Arid: is' not Eh br?a?h .Of?any rterm 

 

vagir'eementb?tween- thaw Parties or their 

The 1v Agreement "was? signed on. 31.33.1995- :arild- a Gummy?-
'Cb'n?aughtz Plaza was? einco-ppg.iated. unde; the prcix?i'sicns 201'
the Companies 10101,. 1956 From the; diate'gdf its ihcepticn Mt. Vikram .Bia'k'sfhi
"has. been. .the- Managing. .?Directdr. There-?is .afn Objective c-rit?ria 151:1de
.comprigsing four: =?CO?dition?sg'f?r? Mr 'Vik'ram? Bak?h?i- {To mast fulfil maritime as-

a Managi?g-fDitfe?tes?. It? is" --ex-petf:ted- from {a brand, of?l?'ternatiomai {Eput'e- {tog

 

i 3131; fairly. by Bibi-Raw, unfair .c'onduCt. waever;

- macemingecon-naught- Plaza held. on: 06.98.20131he'

 

MS. Ay?s?l Meibyfe r?f?ed .10- vbtejiz?} favour of Vikram B??kShi-bn? the:
9153313." pf" a. written- placed {311' record. Of the meeting: 'whi'cth centering-1
clause 7' of 1th 

it figs- alleged in terms of dag-se- 7 that Mr. Viksam Bait-$111 fa'iied: t0 dame:

 

9.:1

 

 

 

 

 

 

'Whole of his. busiheS's -:time to ?Cbnn'aught 'It is; thus ev?ideht' {that

parties h'aVe under-steed. the Articles-of Association in theseterma,

9.1? The note issetoutbelow verbatim:-

 

 

 

"?Dear' Beard Members,

We. falter the agenda item for. considering 'of- Mr,
Vikr'am Bakshi as the Cannaugh} Plaza _R?st_ggragtg
. Private Limited (?Company?); for affurther'term of-"Mc-years; Mr; Ba'kshiis-
:1errn- as the: Campahy has cbmasgt'c) 10'11

17th -,1I'uly 2.01. 

3A3 'Iyoufar? {he 'isn'cdrporafi-on. McDonald?s
India. Private-- Limited. :(?chDonaId?s :India??) has been 'repxeSente-d on the.
.._2B.oa_rd of? the Company by non-executive directors, Therefore, 
lndia?s- relationship with Mr. Vikram B'akshi; as joint v?httife' pertain-erg; .h'ad'

I to be mew-complete 

over the- last-few years this severely-?aw bacauw.
gef'ithe- manner in Which the the Company has,?beenimariaged
- by Mr;. .Bakshi, his? inability to give his-fun"focus-and; 'i??t'fejnt'ion. to the
:Chr?pa?y. him having sham noidesire to: remedyih? failate ca'n'd
"ShOrt?coming repeatedly broughitlvto his a?ehtim as. gcia n. be-see? from the
illustrative list of issue'sfhighlighted sh'ereinb?elbwi'
The Company has, under Vikram Bambi, .Cons'iSten?y failed it:
dimeiap and maintain ade?qaa?te 'i?hternal. Tim; is. based on"

-..-anr3u.al. reviews ?IDf-"the Company conductedby .MCDenaldz's .l?te'mai'l

 

'92

 

 

 

 

 

 

_.Audit'ieam'isinbe the yea} 2007.- ?The: lateSt' .reviewalzst" January
201 3- di'seIOSeid as many .c'ontrol'isSues Which could
havesignj?cant operatimal- and regujlat?ry repercussion's; Moreover,
'the inadequacies jdenti??d. in January 2013 have remainedxuna-
remedia'te'di in. particular. the-failure to. conduct due 'diligehce on third
parties, failure to '0..bt?in- comparable data" on :lease. transactions and.
{cond?c?ggdiue "diligence en title --_and failure. :tthave: applicable 
-?eru'ptidn, "anti?brib?ry' and .c?hflict offinteriest language in contracts-
3nd,;mostamportantly failure-to: Ih'aVQ-yalid .Wi'th'third: parties:
. pmdsag semces arid-{produhts ital-?the Comp-?any, th?er?by,_ creating

-=m?ateri?al} risk c?xposure "for the Company and. 

legislatiOn..

lire: the :Efoesaid-5MODQ?aId?s. .anfet?ali Autjits SinCe-ithe year
?2,0073. j'the Company has ba?n; c?o?n?ist?ntly receiving?: ?unsatisfacfory?
s'ra?ngs; irii: its? ih?te'rh?l can'tmis: and. .management-?ystema
'T-he?e. have been detailed .m?e'tings; and presentatigns
where: McDonald?s: representatiye? have advise-d. the- -'of?icer3',
ameni?ve?sf a?d management. 0f ?the: 'Qcmpany that the-5 'i?temal
sys'tms: of? the. saw-any" havei failed: to: - meet mama-jars
systems Standards var-ad. f?lemphasizedi on the necessity of immediate.
remediatian.-.. .H'oweven 35 can be; 'nzoiedf .Lfmm the :35th ?9f the;
.Companyis internal contra: assessment} in "the? [mint-years:under the

leadership of Mir; "Vikram __Ba:kshi "tabulated belcaw. the ?reQU'isjiw

- J'i'mprOVemen-tsihave 

 

 

93: .

 

 

 

 

 

 

 

".2008 Sahara! Control Review (limited Unsatisfactory

120101 Genera-I Control 'SNeeds;

7201-3,- leer-zeta:comm-Review (limited 

Y?ar' - ReviieW'Type ?Results-

 

 

 

20'07" "General Contror Remain: (full Unsatisfactory-

Nscope)

 

scope)

 

2009 I. Fall?w-up reVi?w from-20085..- No overail'

eValuat?iOn

 

seeps) . .'improvement

 

20311 General Contra: Revi?w. (limited Needs

scape) improvement

 

scope)-

 

 

 

 

 

"From. -a "McDanaId?s' system this: represents. an.

unacceptable. level of risk gio- the company?s-- Op'eratiws a

catitinuing' basis;





There- "have: been; various. instances where, the Istaitutary auditors- of
the company- have aim highlighted. glaring inadequacies with: reggae-ct"

to; me internal Controls as-disregard to: applicable law;

There; a?lsa has-been .an? instance in: the pasmhere Mr, Vikram Sakshi

has Engaged i-ngfirianciali 

 

94

 

 

 

 

.Io'f drawmg ga (Rupees
seventy Million) from the "Company?s" and: transferring
Private Limited underihe pretext Of an urgej?t necessity in
relation to. a ?new restaurant waning, without ithe approx/a} of the.
Board pf? directors ,of the; Company- .015- .Eany- fcsimaji 
Although the. funds 'ih?xfolved were; frecaifl'l?d I and repaid to ?the
Cpmp?any, it created a certain: Sextet -of- mistrust in. Mr. 
management: of? the Company {am his re?e- as a tr?St?e of the"
COmpany?s; p'ereriy sand; required to. put in:
place =lihiits on his-ability to. bankiacc?unts .of'the- Company-
which has: led? Ito certain. iOPI'e'ra?onal 'i'n?ath'e- system that
-cqu'ld Well have: been. aveidfed, but .Qa nnot- Wha? trust "in

Mr; Bakshifs managerial and finahciai credibility has. been

- 

(it) Mr, Baksh?i has; during his-tenure as Managing 

 

 

 

 

:Qve?r the last. ff?w years, been i??rea's'i'ngly- his;
in. developing; his- ath?r {angina-saga. ?i??mding- businesses.
'3Cb'nnected' directly. or; i'ndireCt-I'y with {he food restaurant: .?and
'3ho'spiial'ity seems. Whicfh460mpete Company;
Further, he. <51" indirectly Involved in; several? companies-
awning properties: from which g?ther restaurants "(?aming 
sform'a? ragtaurants} are fope'ratihgi HiSr- in. ?ber:
?ba?inesses'chasgrown t6 sag-2h art-extent that; af"'the- very least, "v

(Galina. be: ?said [that he. as aerating-his entire "business time "or

3?95

 

 

 

 

 

 



substantial; panic-n of ms business time to the of?ce of the
managing - director of the Company; Additionally, he has
3misu?ed- his position as the Managing Director of.? the Company
161* promoting his: other business "interests outside Of the

Company by such interests in the.

'Mcb?nal'd?fs restaurants- 0f the .Compa?y without any

autheiriiza'ti'on. 

For the past" few years, (the. Company; McDonalds- and weir
isehi?fie'xeciutivw and pwfessionai advisers. ha'Ve haen'

the; risk-_ of trimiaa'lf?litigaticm on (of funds Of the

Campany being us?d?'by and Resorts "Limited (acornpany

:directiy?ndfrectly :cOnt'm?ed by Mr; Bambi) injits. dealings with certain
ila?dgow'nersxahd ether associat?s- of Mr. Bakshi, again Withcut'the
rtaPPf-Wai 40'1"" the: -..B?ard - fat. directors of the CmePQBr-iys, In} this regard;
.:th'ere have .b-eienL-aillegatians Qf' Mr. forged certain
:sharg- 'transfar' ?rms and minutes- {if annual" general? meeting of. 

company (Montreayxl Limited)~ih? Which"; he had .iinvested..

it has; recently/"coma eta-our'noticei'th'a'tto secure 
..loian. fa'cnity - of (Rupees Two Hundred 'Millidn) for the.
91417905831 :0"f deveiwm??t of Savoy Outleti.MalfIE-cum :S-etvi'cjes Apartments 
inM?nesari-in' .t'efmgof 3153135317 I'Fa'Cilijty..Agreement dated Ostober

20:11 entered Ascot E'?ateS (ManeSar) Private Limited (a

-- :?direc?y?ndirec?y by Mr; 'Baksm) and Housm-

.96"

 

 

 

Development FinanCe- Combination timited? apparently Ma, Bakshi' and

Bakshi .HOIding's "Private. Limited fHoldCo?) created a placige on

 

 

 

 

51,300 equity "shares held by them in the Company, despite th?eCompa?ny-
being private limited company and there beinga prohibition on its shares
held by Mia. Bakshi-and Bak-shi H'oldCo, inter alia, being 

Without then-prim Written consent 

Sin-Ge the it?CO-?Wa?on the Cmpahy- i?n. the: year 1995. and:
its business. ;in 1996, McDOn-ald?s has. ihv?s-tedi R's.
Billion, Nine.- Hu_ndred -.sa.nd. EighteenMinion,
f0 
(??it-ed State-8.530118% Thirty in the share"; capital;

:of'the: company Without feta 

Whiler'on. the Me hand abSeI-?iC? of any {return on its: inxr'esitmeintxis?. proving
in. be. onerous- ?a?nd difficult .to-gexplja'i'n? tel-the Shareholders.achMi?abnalds;
Corporafic'n, (a pUblicly?hel? -.cOrpo:rfatiOh .in-lthe; United State-Sf of America,
"018 the Company" -is at .a'junct'u're where it Shauldibepoised-for
Q'f?wth rwbit?S-h' Will necessitate further Westments ihe ?lm-
this scenat?imt. is? .es?eniial: that 153 Company; be led by. 3a? managi?g
gdi'rfectoir whai-is? able. to.devote?hisgfull ..attfention= to? the Company, i'Moi-reoverf.
the managing 'dirieCtor ofia-gcom party-must the. implicit-faith and

audits shareholder's.

Fts?hecr, My? iB-akshi holds directorship. inf aboutiz'ssother {is
partner in 13:? '_3pati?8?fship ?rms;- This .. sitmifies. that! [de'sgit?e .. being

197

 

 

 

 

 

 

 

 

responsible the managem'eintiofthe' Campanv
iDiteCtor, Mn Bakshi has voluntarilv asSume'd'the-additional.
_'burden offatte'ndinq beard meetings each yeah -.effectivelv
\re?du?ing'the time-andiatte?tion he can devote to the COmDanv. In most of
such .Comvsahiesfa'hd?rms, he also has ownership 'interests;fThis.- by. itself
indicates that Bakshiis devote Thistfult business. time of ever}
Substantial: parting ?Of his. basiness time towards. dithargirig- his
responsibilities as-theiimanaging Director "of the. Company. At this stage the
Camp?ny requires a managing directdr'who Mu be: able: to facing all his
serjefqyji-n the; .p?rombticn and? development- so?" McDonaldfs
--t??taarants magi-ed 'bvsifthe: Campanyand who ddmmand's} the-"trust and
I. Weion?dienge- (if _-its_ Board-- of diremrs and to? the.

Com party: the. ful?llment Gian. it's- Valge.

'E'Very . made by all thege: [years to wark with
I - Mr; - Bza'ksh'i, but. recent events. Izhiaxze? their forbearance has: not--
restated- the relatiehship; ?Oh the ?ontr'ary?the- highlighted aboye;
(which?are manifest that, Mr, B'akshi ?spending
SUbSta?tiauy ofiihi?' buSine?ss? time in - the: performance ofhas Io'bitigatibns.
He has: faitedrtodEscharge- hisf ofimaha'ging. her-Ci?mpany-sin
competent. and; faithful m-amerand; .atsc: been in breach of? certain-
material'termS-Of his contra-dualagreemehts With MbDohald's India (his;
jointayenture-partner) and its af?liate; 'CQ?seiqu?n'tly, ?McDonald-?3: 
has lost: "all its trust; faith- My. 'Vikra'm- It :58:

therefore 0f ?the-sn'ominee Mgpma?jidfs :n'ot t0"

 

 

 

 

 

 

 

 

 

 

vote in favour- :Of. me resoiution? proposed in the Agenda "to re?elect 

Vikram Bakshi asfthe managing dime-tar of'the Company for :3 hi rtheir term.

the nohrzinee Directors. of
"M'CDonaId's ilndia Private Limited

AYs'eIHM?liby? I Reb??rt Lafgon?

9.2.313 may be .rsBC?lled that Mr, Vikr'am :Baks'hi was to "be re~elected as :3 managing

?Director? .if: canditionsnameiy-U) he resides N.3tio?nal

icapit'a'li?egion gof and Spends of hisbusiness- time in the
?perform?in?evef his: :0bligatiens :aSSumed. under the JV Agreement a?d'ihe

.alp'ngwith-his jointly .ownzat least of thee-quit}! Shares 0f

r?eSpOnd??t NO. C'Qmpany; he ?discharge his :re'Sponsibi_iiti_es' 33:3

Plaza? in "competent and'hi?faithfui manner.
Lai?tl'y he ?is not :in? breachef any term :cjiher agreement?

'betwe-ten-15the. .N- 93 rti?s or theim?ili?ates- ore-subsidiaries.-

- A pfejru's-at tif the 3033- Shows "that there allegatioas ?leveled against

1'1.

 

Vikra'm-Bakshi He has replied each allegation ?it! his :eplyiletfer
The: reply Wag-sent :10 Mr; '.R-Obert Dale. and
Ms. Avesel Mme. who are the" it :runsi'into 30 pages:
7thejref?rfei.- whqu 3extcabt' only few paras "in this 'JUdeenf whi?Ch are rele'Vant
and also directly ral'ate-s- to in CIa-use- (3) read Wifh'
Article 35 ofthe Articles 

There-J13 3.3 have maintained. 50% shareh?l'ding= .31

?the Connaught it has: riot been 333333: that?.th Vik'raam

9.9

 

 

 

 

 



 

I 'BakShi has --a ways. ;r'e3'ided 'Regicn' of "Delhi. He a?lbragwith

his Wife have been managing- theaffairs?of'IConnaughf P-Ia?zfa since 1995 is-also

a fact which has-remained undisputed-

The: a?eg'ations. pitched .agaihst. Mr}. Vikram Bakshi- pertains to spending-

$ubstar?tialiy {his-business time' in performancte 'Of- his ablig'a??ns. under- the-JV

sag-reeme?i; discharge. of his duties Iajs Managing 'D'irec'tor'ahd thereby violating

gon'ditjonsi in the agreement. A bare perusal-bf- the'.reply'sent by-

Mr. Viktam'B'akshi wculd $1h0wth-at he baa built up Cdn'naught Plaza and has

.e?tablii?shed- 3"MCDonald?. br?'?d'in?ithe assigned territory Of'..lndiar -?$ingle handedlY.

His 1331': appointment. as. Managing;- gDi?rze-ctgr was made on. a

. peficd of'iw?'yegts Gene'f?alaMeeting. No-gfi?VanCe bf any sari

?was, raised her. --af?inglfe- :cczm'plaint- has-ever" been fledged; On the "contrary

'fOIbW'i'ng. instances. {if appreciatioh of have bEe'nl {cited

'Wh'i?h ."r?ad thus

(I) Email dated. 2201.2; from. "G'ariahd rot 'Mchan'ald?S'v

Vikram that "we 3?15'3'1?3'3X051?9d?
aboutthe growth Opportunity 'forfhie. -J and-mom Sb that we are" in'Sed to
cathre the: app-{mm with strong unit economi?ssand a? restaurant
deveiepmenf -Pi??ifm that" 1?0wa Here. 'Ithe camp'any 'is .
being fdei?bribedl 8'3 Whibh ask-early- shows; {that it remained-a

Mr; Vikra?m .Bfaks'h'ifa-nd the" Me: Donald. 'Wia-

(company Petiticn, Annextzre; 9:33 71:3);

i'Er?ng?'ili dated '102Janxzary 201232 from Mr 

- Carperation Maj. Vikaram Bakshi (Company Petition; Mnexure.

100-

 

 

 

 

-

(iv)

. 



 

p.717), 'is- eVide?nt mm this "email that as recently-as

_-Janu.ary 2013s, the-Respondents- were looking forward- to stand 
With Mr. Vikram' Bakshi fro realiZe the dream of India'; This

Showed. full faith in the. Mr. Vikram. B'aksh'i and their

'peirtnership: 

Email dated 2.8 January-21013 from Mr. Dave Hoffman o-f-?Mc

Dona-1&3- "Cimporation- USA to. Mr, Vim-am Baks?hsi .s'ia?tes?tha'i ?as.

:a-I?waysi. appreciate. y?ur" candor and what

better; Working on meeting at your HQ in: the-near

fat-mire,? {e P37 (Cally) 1 J:

Emaaldated- 1:8? Mam 201-33. from Mr; Andrew Hipsleiy of Mc:

1er,; Vikram .Baks?h'ij (Germany 

p319) Wherem he congratulated.Petitioner-No.- 1'

:0 the: ass-fumes iof - National Bree k?fa st? 

. Email dated-{22' March- 2.013 from ?3 to;

Mr Vikram _Baks_h..i (Campany- PTej'fitibps, Anniemre 

. Wherein {he 'R??ppn?dent: Nth). 33?"Our' entiregroup: found 'our- visiitito-

he very .?i?t??e?tihg and :eMeryone rs-hOWS ithat' 

with hi anidh_g__3row?th_- of the: 

i-bf'the; Comp-a nyvlas ,a faint. mature;

Email dated- 26 June 2013'me Mr. 031? Mc Donald-

meme? fP-401 (Golly); i?whereiin: he .con.9-.f-a-tiuiated him. on

one ?fth '?firLSt Asian, grammes to. launch theWOS

191.

 

 

 

 

 

 

 







 

Email dated. July'- 210213 frbm? Res-pand'ent- No: 3; 
director of MC l'ndia'?) ~19-M'rg. V'ikram Bak-shii 
are available dwing the .week' or August '5th and could plan the meeting-
between the; 51-.7th- ofAugust. I know-the ?nanQEaIS- wOuldn't be" ready-'-
for Board approval by? this deterb'uf we could do "that in comedian
Phase II. aside from that were are; 89mm} ?ber subjects;

iHcINdihg - ffh?ndng forgroiwi?h that wilt-?be in -.th'e 3314(3) plan that wie-

- should dismss {Hf-the- Bb??rd 1Me??an-?Th is that; the 

Vik-r-ama' Saks-hi and the. non-tinned. to- iggether 

.striVed towards of the. 'Cbmpany (Company

Pefftim (Golly); 13.7242}.

Em'ai-i-l dated .29 July N0 3 _.(n.ommee.

.-dire.c.tor of Dona-lid ,1 "India to Vikr?am Baks-hi stating 
.5336; you? Locking forward. visit next 

I purpose-- 3f- 'm'??itin'g: maul-d1 be id?iswss- --thz? estr??tegi?

?diF'EE-Cfif? n5: how.- any approx";- capex required: far In 91w.?

stores- and retirWeist-?i?nt?, camp; 

etc?. The above; emaii Mr Vikiram' i-Bakzshi
and fo- cumin-net to} be. together in the;

vein-We and .fth?a-t' thew hi Wad-ldt?liay '3 key

role in gstrarfeigjc? .deGiS?i'ons: . to- {be taken "in" re'laticn' to the;
Chm-Paw 1:943 p.723);
Mr. V-i-kra-m Salish-ifs..- peer-rmahce' as iM-a'nagjng DirectO'r was

rated as by.? Donald itsgigf;

ahd ?he. Lori-g Term; 'i?t?eh?ii-V?s' in: February

 

 

 

 

 

1'13

522012 and 12.0.1.3. (Company Petition, Annexa?re 

. (calm, 

have-r101: ?beeh d?ispuitad either in the. pleading-3m during-

;ih?e course. cf arguments. that [has been argued by respondents is.

that JV Agreement- has; not been 'in'corpcragted in the A-rti?i?-s of

-,As:soqiatim. We to ?d ea}. with the; objectibn 

The agenda! and the. sup'pgfting papers for-the meeting of 63332013 had-the
McDonald'- India-audits Zto 4.),
Even respendent: Na; 5 had. approxked the" fwowmg agenda "issued. ?for the

meeting-cf 682013

On 22- 3 Res?cndent N0 8the Comp'any'SeCretary- 

 

IReSpond?nt-NQ. 9' (Mr. 'Manisthadax-() with 3.3" draft? hotice with the-agenda

for; {the Shard. Meeting] to. be ?eld can'- :61Augu'st 20-153,. in the i.abeve._ Email,? tit-he.

Resporigdenti- No 8 ,pmmsed; to send -'fhe= rel'eTVant- i-agge'ndias; ?fair approval- fram-

-Respond'eirdj2Noe;9mg inocuments?wlme Hi,- 36-31),

To -_reiaippioint ML: Vikram :BakShi .asj Managing-Dire?tof 01? The 'I'C?mpa?y
No- 6.) ?To. and approve: the annual reVi'sibnfin .th'je
iremu?herationzz?f is. fM'adhurir-Ba: Wei; ..
'11. Ap?ilQQOfifl 3 ?(Item Not?); To discusseeand 10f Mr.
Vikra?mBakshi, marketi- review-Com acted. HeW?i?t on
the remuneration-.ofi CEO-s. and M03: fora'thg :multin??ticnal: 

(.1th Na, .10)

 

103-

 

 

 

 

 

 

b. Additionally, emaitdatedeZ Ju?lyii2O1?3-3, 
Respondent N0: 8 also circiJlated- draft? .of the Agreement: for 
appointment of Mr. Vikram Bakshi- as Managing" Director as

An ne-xure: 01? the above email.

- .. The-.iabove mentioned agenda and draft agreement for reappointment
'Qf' Mr; "Vi-mam" as Managing: DireCtor'of'thEi'C-amp'ariy Were"-
:dfwy' appFOved by .Re'Spondent Na. 9 (representative.- of 

No.5) and ReSpendan't'N0-. 5

- .. Thereafter; 05-25;: July 2013, after-obtaihihg 
No. -9 the abeve .mehtioned agenda:,_ draft MD Ag?zteemergt was.
circulated along With _?the- amide" of: Board :Meetihjg 10' be- 0:196
A?gust 20-133 ?ta? all ?the directors (at .the Petition;

pp;- :50 1- 9531:; ConVehie?nce File VOL Ill; pp. 

914. _.It :is-aiso; evident {heat at the Baa-2rd Meeting-of. McDonaid Na 2

held. a day abefare on ifwas decided?. Inbt to: Mt; Wkram.

'B-ak-shi; as.) Managing Director and surprisingly it was-- also decided. to exercise-

calls-option with r'eSpect. to petitioners? ghare by invoking clause 32.. of WI

 

TMtDo'nfaldi 'l'n'di'a. by virtue "of arder'__paSsed by the then. "COmp?-nyi-L?w 310311;!

shows that 'f-here'were .nb alilegatiO??z-made? and there Not be any reas'en

fortsuch- a. decision. The note appears ?beia Supplemeht. act of 'two - nomih?e

It. is mt -'t1nderstood how-the- note-against. Mr. Baks'hji was} presented in

the._meeitin_ggof Board of D'i'reptars of 'C'dnnaught Plaza pr} 06.08.201313?51?itwas,

by McDonald India. Woutd 

 

 

104

 

 

 

.. 

 

15'. I Th?' allegations based on au'dif grepbrt also. not imp-ire .confi'denCe if we stake".-

 

 

 

in_to- .accoum various. fads; 2(a) Naithe'r the. GCR - report nor the statutory reports.
make any allegation ?against Mr Vikram Baksh?i; Not Once have the?: GCR
Reports been t-abie'd in, the. Board M?eting the No; company
(6) In fact, the reports" years ending 31 March 2009', 31'
march .2010, '31 March-2011 .and' 33 march 201-2 that. "the Company has an
internal: audit system commenszirate -'with the} size and. nature-"of its bLis'in?Ss?-
571 5:87, 604 and 623); The
Reports ?of StatUtory Ai?ditars set-the Company fer the ?nanCiai years ending '31
March 200:9, :31 March March 
adequate in place .54 thecmpany (Para -
231:3;being' re?Spons-e of M: vikrjam. B'akshi-ito- -'the. Note;
Company-Petition, Anne'xure P439 at N0. abjectiOn has-'ever'been raised
- bythe The GCR: 133m 31-20111
hag. itselfisiaied :that. the Cempany has 
control environment:- and tem?dyingi id?ri??ed-iih :p'reszigus: .audit -.
(para 4:1 _0f' the] denied. 3 Cempany Petition; Amexure Pi-
1-39,. ?35558): (9) the Year ?-200? .toa2'0'1?1 .dq Carry any I
in? jrel'atign: or breach ?of
3f: 'ihtere?t prOViSchzirf' (Para 43 :ofii-Lthea tetter dated .31-
Company Petition; 9.559): In) 
of .staiUIbry' 'auditbrs; nor the. 'mi'nutejsi ?the meetings: of the Board- of "the
(cmnaught. Plaza: .ref?r gar-1y such allegation, -_Ev.ien ?after the IaSt- GER Repert-
(there: 'was: anti-'Cemplaji'nt on the leadership of Mt; Vikram' Bakshi 44 of the.

I :3 Sepia-44532013 Cdmpeinypeiitidn, p550); 

 

 

3105.

 

 

 

 

 

 

16.

 

 

:O'nty issue regarding ?-dieregard. toapplieebte ia?ws ?nds mention in the audit ?report
. of '31 March'20-1'2'bec'a'use of Responde?t No; 4?s. nonedisclosure to the Company-

of. her appointment as a director of Vista Pr?oCessed Feeds Pvt. Ltd. (Para 45 Of'the

Letter dated 3 September 2013, company Petition Aenexure p.560) for
which Mr. .Vikram Bake-hi and his wife~Respondent No. 10 had to approach this
and pay. ?nes from their oweboeket compound-the.
offencei-offResmhdent No, 4. It to submit herein that the Refspondeht
Neg-5- Ches?e'te remain qui?t "and did not. ta'kejnbte car any-actio? against_' each-93'
regulatary- __b'rea'ch. painted out by the Stat?tory AuditOr by its: employee- despite

treating it :as agave-enough: Vikrem-.Bakshi. deuble

"standards! and inacrion en part 0f M'c? 'Dcea'ld Corporation are "else

- the. Petitieners,

In respect. "of: Joan transaction te'tyled as ?Regal. Loan. Transaction? ihveltking

?seven millje?n .=dellars no Material benefitmuldbendeI'ived by 

banking- 11190:"? the a'Ileg'atiOns.. FirSt the transaction: ?is stale. and? hastost?: it's-
signi?can?ee as: zit-happened in 2007-. Then-fit --was duly ratified: in. the meeting. at

.Ith'? iBoard~ofoir?ctO?of. 'Connatighf Plaza" held en "171.04.12008; The. petitioners

have placed areliance in a. tabulated form? drawn- date wise which 'ieafs-

.-unden~

 

DATE . I - 'eemlleULARs; 

 

 

14-N?Vembep2097- -. Mr sent a write: up to; Ms 
.Ayeset Melbye the nominee. director far the: reasons; and;

the needtof-the' imposed lean am'qgntiof million. 

 

 

?The. mail. Speci?cally stated' that MS. A'ye?sel' Melbye

 

106'

 

 

 



 

 

_:app_roval was required? same. could be placed--
"before" the Board ofDi'rectors of the. campanyt .(AdditiOna_l__ 

Documents Vol C):

 

19 Novemberizom

'Deejpak- Shanna: sat-o- a 'gpmposali -_to}_her.

. relating.teaptOpOSed - MGDonalds site- at: Regal C?nn'atight.

Plaza along Mzith: an article.- from Economic-- Times
describing; igrOwing

the? Wa?dv (Addittanat Documents,

Mott, 

 

 

19 Nbv?fmber 2007f

Ms" Aye-3M i-LM?ibveRespond-4M Mo 4 cot-M4444 the 

receipt of" the: .?bd?tiie- emails arid -'Sta'ted that She: would

. -__pr_0t:ess the aprapbsaf'l tight-away: (Additional Documents



 

.202November120d7?

Nara-from department of. "Connazught. Ha?z?

sent 'Tthe entire of se'c?nd .1?MMritejtra'cM Mfi Regal

{Banding to ?Ms; Ayes'el ,Melbyeiy Respondent: -

(Addiffon'aI 1:29)

 

 

21 November2007

'-Sanj?y' Sat-44:1; cit-tent att era-at to Ms. Melbye"
?inter. :alia; 'a'bOMt' McDo r18 Id?st response.-

. the Regal matter after Respondent- No. 4'

Mass scheduled to have a - dis?ussictri with Dave-- 

1-4 99:10,. 12B)

 

 

'i-2-1Move'mber-2'oct7 

 

7vitt<ramj Bak?hi? 28100; Ltd; 1&1. Co) 444444444444?

- "cbnnaught Plaza? tor; a 495 stores. (?rst

 

 

 

 

.10?

 

 

 

 

 

 

 

 

 

trahche of the 10m! loan" .a'mdunt iof-R's. 7 stores) for the I
purpose :of proViding -.space for" installation of critical
equipment of Air-conditioning, Generating set, Water tank-s,
Pumps- u: the? M'cDonalds Restaurant at_.Regal; ACcording
to thei?e'ms of the loan, it waste-be repaid on 2r before

3'13t March .2008: with? rate of 19%: per 'annum or

ihe average bOr'r'QWin'g' cost "of-the Company on. the. mommy;

rent basis, "which ever-was higher.

The". loan ajm?otmt was 'reqUested it: be issued throngh three
'pay' Order-.3 of'T-Rs'. 1.65; crores eaCh (equaling- Rs.. 4.95
mares.) in-?Ithfe ?ames.- Mr; Kama! Math Monga- b) Mr.

'RaVind'er?. Nath Menga and 7(3) Mr. Vimaii Nath 

stated thatfthe pay, ord'erS-WwId not .

be- h'a?ded: ever. ?to. the three ?individuals till" the?
917090331. I-?fCr: _.pravidi'ng'_ the/?service. area in - had 

Wen-apprav?ed by'i-the- Mt: 'Dma'lfc} COrpCfation I

Respondent Documents: Vol I, p.913.
1:33).

 

21. Name: 2007

 

 

Co. is?ught it: ?nd but math- icmugm
31333? that Company-would like-t2
7 ?33933 3 33"3t3?3? -'Sle?i1rii?'f?r the 1632. in the event that'it
3' by the Company, (Additibh'al 'D'ocuments

Vol 

 

 

108-

 

 

 

 

22-November 2007

Ms.- Melbye?Re?pondent N6. 4' 3h ah email Hit-O 

Sareen- informed that Dave .Garlahd has taken note of?the I:

. proposal, but that there was. no reply from him yet.

(Additional Documents Vol I, pp. 213)

 

 

 

-. 22-NoVember 2.007

The l-?Conna?ght' Plaza" signed-ha Of

Understanding With Vikram Baksh?i for.

.g?r?antin'g' a: lean 7 crates-f0 git. Clause-6 cf the: MOU-
stated: that in the-Event _ojf' ridn~rec?ipt 0f appf?wai frb?m_. Mg. .
f'Dtjhald' CorporatiOn (Respondent.- No; 55) for?
I 31799331,; the Joan-amount "would: be-

rammed with interest. within:- th weeks from the date 'of 

Dacum'ents .1, 

 

22 .Ncsg'emberzoo?

The issued three: pay orders cf? 1.35

crores each-towards.- ban-ems; 
the. total loan-am?un?t ofRs. r7 Crores) a?s requests-af?rm-by;

90;, 'ihg-i-its lette'rdateduzi November 2097. The. I?heh

also stated that-in .?the-?Venit of non-receipt cfapproiza}. ham?

_MCDonaid' .Corpqration?Respondem No, '5 far san??qhinig;

{he loan. amount; the?. Ican? amouhtwould beretmned wIih

inte'rQSt, Within: Ttwo .weeks. from the date request of the;

Company-r. (Additional "augments Vial p.43)?

 

 



 

fS?m "an "other reminder the Conn ?hght I

Pia-23? regarding-?e" Regal (Addi?bnal _Dncuments' 

Val. 113:9)

 

 

 

 

 

?1.09

 

 

.. .. .

 

 

?:28 November. 2007

 

 

5'82an "sateen in ?his my 15 Ms.fAyese1 Melbye

'Respondeet No. 4 _-0utlinjed the terms proposed by

__?Connaught' PIaza" to .Vikram BakShi Co for the "loan,

Which-ere as fellows:

.3. The Company c0u'ld extend. the-?Scan. to Co.

-- b. Rent free: agreement- from VB: :00. In -_re's'jpe'ct. of 
sewiees?to. be placed: If} their property for'fhe- entire-I
iease period in. Regal

Pro?riata .diIutiori are Mr; Vikram :Bakshi?ls.
shareholding-in: the. *C?onnaught Plaza? [33- 
far-Rs] stores: ite- Vikram 3Bakshi [82 Co. The
above emailt-alse.Statedigthat Mr. 'Vik_r'am- Bakshi did-
not' agree. on: the pr0~rata dilution {if shareho'lding.

(Additional - pp}, 22-123} I

 

7 29 member-.2997

 

 

 

IDeepak Shanna re-sent the email dated 2811,2007 [of

Sareen; to {the Company and asze stated that Mr

Vikram' ?Bakshi' had. ljihf?tm??dg Mr Peter 

pRespand-ent No. that ?le- wasi; not :cfomfortabie With":
539110? of his QS'hareh'QIding. in {he ?Comaugm- Pia-zan-
I 9.399% Shafm? urged 'Rfe'spond?nf Ne: 42 19' err'ive? at a 

.gdee?ISion' on: the: "Regal Ira?s?lac'tion: -atf-t?e- e?a'rlie'st. 

AyeseI Melb?ye .eReSpm'denjt No: {Beeipt of "this".
email: en :30 November .?(Addit?ieneli Dacumenjt's' Val-

I, p.22).

 

 

   

110'

 

 

 

 

 

3 N'OVer?ber 2007

I Albkj. Atom Sent ?the' draft" rent agre?mient for .the- Regal

property to Ms. Ayesel Melbye?Respondent N0. 4--

- (Additibnaa Documents val? I, p. 21)

 

 

.5 December-32007

VB requested the Company far a "loanof?Rs. 2 crores

(2.0 milliQn) (Sewnd? tranche of the total toan' amount of

. R's} mixes.) fartthe. Regal property; According .tothe'iterms

'or- the lean, it ?Was to repaid": on or before: 319?- Maf?h

3.2.00.8- .w'it'h' an 'ihtere'strate petamum :Or'the' awerage

._.borrowi_ng; the company era-the rent basis, I

Whicheverwa's higher. Ther'ban .amwnt was regues'tedi toi-

. ith'rbughz-a pay Rs; '2gcrores in the name-j
VB. Co.- The; letterrispezcii?cauy stated that the. pay-
not be hand-?ed over. :to the party till. the?
prqusar for providing?_ theservica area ?in Regal been__ 
.g-Eappr?aved by "MigDor-aaldf Corpoirati'ora-Respmdeht. No 5;

Vail 

 

sambm 

 

Pursuant 510: the ""ietker abee,- :the'. 
-. cheque of Rs, 12 was (second "trian?he "of zine sto'ta'l {oi-m
amount- of 7 cram) for by v31. 3. co. The;
[mater-salsa: event ofiapproval -

.1 from 'MCDaanal'd Respondent: for

?sancticaning- .at'h'e' :loan- amount. fth'e. loan amount would. be?
_:returned with: interesfwithin two Weeks'ifrom the date. :of'

of the-company: rmd'd-i'tionail' Documents- Vol: 

 

 

 

 

.111.

 

 

 

 

 

 



AlokAmra cen?rmed to Ms; Aye?el Melbye? ?Respendent

4. that: the Company had received the property
documents for the collateral secwity- for Regal loan. He

.-requested for a copy of the "Security agreement So that -it'

could be executed Alok Amra remind-ed; Respondent No. 4

about. the. {security- agreement. 051-139 December 2007. -

[.(Additionax Documents. 

 

&Core5eesteda 155;: Rs. 5 lekhs-i

-- (third- tranche. ef?the? "total: loan iam'qunt 5f Ra. 7' cror'es) for: .

gift-he-i-Regel property on "ihe same terms as preVious m:

I trenches; The steer: a?r?nou?ntwee requested id be issua'd

'ihrotfzg'h' 52' pay Order-20f? Rs.- the. ?ame-'of'yB Co,

stated ithjat'thepay erders would not,

beheaded over-Io the -threejinjdividuials_itin the propo'sal'fOr:

ereexin' by

"Respiohdent- No :53 13.27)

 

- 2. Februafy2098

 4104 more iinfcirri?ied. 4 that the-1.5.551 
I dOCLImeMajtien i'n' 0f the: [lean 9f" R317 mores;-
idis?burs'ed- 10 VB 85 Co.- had; been hef-
also from Respondenme. -
4 so. that; they could be. placed "before the Board of

Direetors-of R1. (Additioa?al' Decuments Vol: 

 

 

 

Regaliloah'

 

had Without -och_'Deneld' 

 

 

1-12

 

 

 

 

 

 

No;- t?e db??r?ieht??on had.
signed .withoUt their knowledge. She aIso- sought-ail-

_-docu_men_t$ and info'nn'ation on the Regal transaction.

(Additional DOCuments-?lol 

 

"through a le?et'by IAIok?Ar'ora to VB .00., "Sou'ghf the'

--repayment'--of'the_ [Dan amount-of NR 7 stores along With

- interest within'two weeks-from th?date rofthe letter. On" the". 

same. day, Mr; Vikram- Baks?hi note toDave-

"GarIand of Regponden't Qn'ithe "Regaliirafn'saction aha .
?'ass'e?edxthatih'e to granti'lc??i? Was. Taken 'in the";
interests- of? the COm'pany. (Addi?bn?al ?ecuments. I,

29.38)

 



VB &5 "Go. ?Sent a- Che-Clue bf RSV 5348-0 H'scrore's. 'to the- I
{Comp-aw; iri- eiddi?bri Stio the payments; made earl-ital; 
I ft?wardsifuller-and: ?nal} settlement Regal-loan amount-i. i

(Additional ?Docu'm?ntS'VOI: 

 

42mm zoos.-

{Alok Nbf? gamma-seated. to No.54 as the;
I??Ceipt- of repayment 0f . Iaa'nf amountifrom JV Coalo'ng

with Interest(Additibtnal ?Documents-am p.32).

 

 

 

 

 

 

Regal marriage-grim was. .

of 7'the Company where Peter {Rodwe-II iR-equ n?dentf No. 7? -

.3Ckn0wledged3that Mn Vikram Bak'shi had: initially s-oUth'
from the Board cf Bit?cters- of {he 

p?s?bi?ty 

 

113

 

 

 

 

 

 

 

 

Mt'Vikta?i: Bakshi Pexplain?ed to the-Board bil?if?ctobg

I that: the. .?Regal - .transatztion- was needed. to secure the 
:--opening'- of McDonald?s restaurant in a prime
vdowntOwnj property in: Regal. (GP) and. that he only
acted- in the best interests of-fhe- Company. 'ln-?faict, Mt; 
5 Dave-Garland; Regi?nsaf' R?'s?onden't Na. 
.5 fatl?d' ,acknoMedged t?at Hithe: "soundness. "of .the'i
ofMGDOnald?g restaurant? Was notuin 'd?ubt. 
*(C'Qmpany- Petitibm Ann-aura. Pas- (calm m. 3



 

 

18-Aggust-2'099 

 

Rem of exam; Thornton- on ith?-fR??Q?l "-z'csa-n- tr?nsa?tion -

Cc?qluded that: the? transacti?? Was! not any commerciiaity

Viable. i-buxt ?nancially favourable ?for the Cbmpany-

?(Amen-ire- P44: of the: Ri?jfainder dated 1 October- 2013-;

to: 333-

 

117?. A _pe?uSal oft-he- list 0f events establisihes ido.ju'bt.that.. the. proposal. for

lean amourjt of. Rs] ._Cro're's forthe.tbenefitipifz.immaught Pia-23's was

routed. Ms liit.

The-'pmposal digelq?edfaj site; tmpen; Memn?ld 

'C-Omaught "as it wag-second {fastest grewing destination: of the.

The; CE?Ozmg depart'rne?mf .CO?x-?iaugiht ?Piaza: sent :e'n?re lay out {of the

 

Sesonid ?oat? terrace-of. Regalibu?iidi?ng to . M's. Ayesel Melbya

1134

 

 

 

 

18-. Mr; 'Vikram-Ba?kshi. '81: Co Pvt. Ltd. reqUested.fComa'ughl Plaza" fora foam

more. (first tranche) for the same purpose.- The loan was taken an

Collateral gem), and it was paid back an 31103-12008 "With

 

 

 

19.? 

 

Iris imaginary to. say that .a serious lapse occurred. We. are of the

considered View that the" Petitioners have succeeded to set .sz Mei-plea: that

sought'priar approval of Me 'Dcnaldiicomfa?m 

disbursement .iof. the-loan, Lit-had the receipt-of the proposal. for the

regal Mr11'1Vikram BakShi provided '-detailed- background and.

feasting-fog?- made-?aking the. transaction-10 (Mr; Dave; Garland. fan gf?'cer 0f-

The report concluded 
not only :Commercially- ?nancially "raven table: fr)? {he 
the itra'n'fsactiah was; duly the Beard M?etin'g: held" on 1317-1042008 Mr;

iVikr-?arrzj :-B'akShi--Wals -as-'-Mianaging DirectOr of-?Cnmaught Flam"

2-the'reaft'er; In any ?c333,.- no ?nancial ilp$s has been} caesed to by
ih?e Lisa-1315' 

this spam practically free the. rate (if. 12616-net month) ?at prime

location: in.? New its: restaurant-?fora" pedod- Of 30' - Whatcould be.? 3'

'ggodmariagement and rdisplaysi-his-vision.
Iiti "maid? n?w: to; Sam up ?few paras. :afl the reply :Of' Mr Mikriam.
B?kshi. to. Maricu's .alleg'at'iOnsi made 111 {heamte'presented

in the-meeting- dated 066?2013 which: are as under:-

IMii-zn Vikraim Bakshir disagre?d 3'with the: -ct)?tenfs of; '-ther Nate-

to "him.? thesame 'wer?e- fellas; malicious; incorrecta?nd weremat-NH placed befOrethta- by two nominee director's, acting 
?duCE'ary duties towards the Connaught Plaza whilst furthering the malafide
intention and ulterior motEVe of McDonald?s, of implementing a" pre-
detemined scheme of attempting to take- over Connaught Plaza 
Coercive", oppreSsiVe' and. illegal manner contrary ?to: _law._ The :a'llegatims.
[raised in the, Note are basis; In any .evaht,?
the false and fabricated. allegations, if at ail, have aireadjy ib'?eh waNedI- 50r-

achiieSced in daring the varibus board meetings 01? .Cohnaught ?Plaza.

 

Mchnald's India". __pu_r$Uant to the Joi?t'venture. Agreement 
time ?to time and ihe?r?d?s ofAsso?ciatien (hf-Ema :Connagght. - 
Plaza had ~?89K89d'f0 the. nominati?n Partner I

. as the sole Managing Director .of the. JV .Ciompanyi?i The JV Agreement

refers to Mr, Bakshiias 

(C) ?Thegagcheme 'of Comaught Plaza is. .repughaht to the. concept cf" .a'ahoa'rd
ji?nana'gjed company, Iris-jibe me} Mr; Vskram
Saks-hi? Who is entrusted. with day4tceday' .Cohhau'ght Plaza.-
There. are 9m}? certain matters: whi?h- are speci?ed: in clause ofT-ther
Agreement, in relation to- whiChg-he- is required to seek-.gpriorapproval emai-

_..Bcat_c1 of All char matters: are Within his: per:-

the.JVZAgrjeemeht-and the Artistes of-ithe JV Company,

"Thgre, 33's n.0- revGrsion'ary- or residual powers to. assume [the authoh'ties, which}
are cdnferre'd by the". JV Agreement-sand the Articles The. power of-
appointment. .anjdior is an; 'leigaticn of. the? sharehgilgdas as is

evident-[Mm clause. 7 pf- the JV Agreement read With .Articizle. 3'5 pf ?the!

   

.115?

 

 

 

 

 

 

 

 







 

Articles; "which -'incofp??rates clause?? Agreement; uty testame-

'cmtinuing one sand-aiprempt obligation and is remit-ed to
be exe'rCissed ta ensure that there is no hiatus in the management of the JV

There; is '3.th on the shareholders to the

Managing-DirectorWary" two years, The eduiy is 310 vote-for the. re-eelec'tion

- Managing Dif?ct?r:

fit? is illegal .f'Qr the. nomihee directors-- to breach ?the -'p'rQViSions.' of Clause?- of
?ne-JV Agreement whitih fis- part of Articles; and irequi'rt?sqsharehcldei? parties
to S'B'akshi 351m 3019 Managing .Directcr..

Smce there-"is term of of?ce .omo. the-- of- eteciion .at

{the generalm??iingsis a'ecesSiiated grior?tc expiry 50f: term 

Cb?tihg??tm ?Of'the Itermbeymdiihe tennisiof-bwo' years if.) "the-abseme.rof'

woof-.orireason homo Wte-r?t th?eggeneraI meeting.

In additim and iWithoutgipir?ejudice, the. of-?M?a?onald?s-were

interested. directors 335th are emp'l?yee's- 'Qf- MbDon-aid?s and McDonald?s--

has pecuniary- in teasing mneappointment aof Vikram' Bak?hi' as

Managing Directbr attempt trains-um the .Sh'a?rehclding of?Vik?ram

- Baksh?; sand. 'Ba?kshi fHeldi?QS' (together "the ?Indian

;sharle:hailgdersv)f

_It? is. stated "that each thhe alle'gatim made it? the. Meta. is; rebuttable and Risk

our case}- mat-"albjgations_ have-been de?berat?ly raised to-sustainia famed.

purchase: of-iis'ha're's-dfih'e lndia?n .Shareholdersg 'MCDonz-zlds'

. arefciear act's. and mala?de behayior, 

.1117

 

 

 

 

 

 

 

The-'ho'llowness of any one of incorrect or waived

result in" the failure of .the entirety of the Note.

The-NoteWas -'te'n'dered with the sole and malicious purpose at ousting the

Indian Shareholders in a coercive; oppressive and illegal attempt to take over

jthe'Undertelting "of the Indian COmpany at a time when'the gestation "period.

"of the blufs'i'tte's'e has started reaping [pro?ts due to SeVeral years ?of'

"-inve's-tmeht, both" in meniey'ahd my hard :as the '_Manafg'ing Director as:
establishing a Viable and pro?table business-tn; ln?dia; somehow
me men-my? Sheree in ?the. JVCompan?MeDoneld-?e 
the interests"- of?ith'e: JV Company; "The Company's interest ts- ?paramount. lt
:cenfr-gie'tl be .cpmp?eh?iSejd,ieven if .en'e Shereh'elder' hass-any .perS'O'n'a'l motive to.

888% theex?it of QattOt'hfer {sh?areheldezr-or-grQUpi 'ofl'Sharehetders,

entered into" the Jeff-1t"- Ventu {March tees:
With: me bein'g- fully satis?ed that had? requi?site rbeekgreund?
competence, _.expertiee inflaunching and 'e'eteblishin'g; McDena'ldB' brand in;
(India, .MeDenald?e. also. "has been. fully- .awere- about my. other businesses
smce inception "and: has. been updated-Qt the same.- from time-to time. Despite.

that M?Dettald?s agreed td elect and tie-elect me as: the. sole Managing

Dire?tbriof the :Jv Company since 1995', is clearly evident: from-the -

base- :hature-ef the JV 'Agteemeht,

G): Mr Bakshi eat-ms that durihQ' ?is tenure-.515- managing: Director; [the
business. of has" seen both- in] "sales. 
'pre?t-ab-?ilityin the-North .8: 'Eastelndia- Regien, Which is evident from thefact.

regton Wee: rate Red. 3-5 in McOpCo margin ?20.09: and 52m .in-

 

1:8

 

 

 

 

 

 

 

 

 





 

2010'a'nd 5min "2012, and has consistenwoutperformed-1m West-8i ISbutha

india was ranked No; 1-0-in .2011. No; 2010'3n'd

No. 11 $112012. From 1995 and till date, Qpened 154

McDonald's restaurants in prime locatiOns- .in North 8- East'lndia 
inci?ding. the recently opened, largest ?agship restaurant in Haida,

1UP With-:a-seating capacity .of 

it is also claimed that McDonald's performance. in India has 

re-Cog'ni'zed by various organizatian's and? media an

account. of. Mr; Baksm relentless .efr?fts ?such as. Digest. raised.

MCB'Onald?s ?Mejst'Trusted. Brands in i?dia?? for Me; Confsecutiv'eyears 

The we'll known Magazine. awar??d

guns-Denald?s the. Most .Respeaed Award: in ?the? Food Services.?

sector- for if?ur (4.) cotisecume years 
"1-1 00' Top Reiailers "in 'Retiaiz?r' Magazine.

The. cibsestcampet'itcps, Pizza Hut and KFCciweregai; 34th" and?. 39?? pO'Si?tjhg

ireSpetgtiVGIy;

He- his full: and undivided attentim in. running the business- of the:

:Connaughtr- Plaza ma ?extentihat' 'hje the?

Ctiarmaqght Plaza; immding; his which have: been; given

the purchaser price .Qrbn' .d'isc'odn'ted. "or adminal Dir "no. rema'lsm

He also incurred liabilities f'h'im and have

i?ii-i?t?idefende several"! legal. to. prbte'st "the ihtere?st of

Con?aught maze and" en'sur?dft?atftha; JVComp'anyram brand moor-midg-

remains. unblemisned. Some of? the mare} mpg-dam;- Iiiri$tanbes we haVe.

.119

 

 

 

 

21.

 

 

 

 

already-notiCed-th'ESe'facts in paras 20, 23 under Part I Introduction 

Facts List 01? properties provided 10' Join?t'Venture. .

20.: These instances can ?be multiplied further and the Safe conclusion which we 

have reached on the-bags. of material plated before us is that Mr. Vikram

Baks?hi alongwith? his Wifehas given their-fun business tithe to ?C?onnaught Plaza?
and on" account Of'th'eirls?ii'ngere. e??ds fC-on?naught Plaza? is: -running?-_ a large

number-of? 15.4 restaurants; We-a'ls'o ?nd thai n0n4votihg in favour of Mr. Vikram

Baksh'i' if? "the board. 0171064082013 is'preCeded by talks of" purchasing

50%: Sha'r?hdlding in'fheapetitEOnexs at a throw TaWay rpriCeg-We feel.? persuaded

in para '24 df'the lntrodUICtioni and Facts 'inspirei- 
:Ccn?dence; Itzwas folioww layutih'e. valuation report-'by'ihe auditbrs?; of 'Mls Grant.

ThOrnton. In that: regard detail-averments are also neticed inspara 25"which again

We are PerSUade- to take the 'viewth'at?the non-Voting in .faVOur' 91?

Mr; Vikram [Beak-sh? W38rb8??dg0?l extranecus consideration causing great prerdiQe

It is false 6946511116 .intereStsm -the"-Connaught Plaza:

Iii-s alSd required to. be borne in-?ri?ind that 'it is not Simple non?voting. 16 {re?elect Mr.-

"Vikram _Ba_kshi?as managing Dire?-ter; The. consequences are far reaching. as it]
Wodld' "triggw the action Cant?mbla'tediby clause. reiiadiwith stat-1936 32- bf? the-JV
-..-agreement dated (Annemre We; are arelying; upon: these: Mo

.cla?uses- to-?fshow?mai?a?deg-Acwrdingto th?; aforesaid if Mr; Vikram Baksh?ii

(deseribed-aas partner) . fans; to bahtinue- (63$ Managing th?? 50%

Shareholding of petitioners to. bemn?e .Saleable-fatthe fair a?ert? v?luelpumha 39.

price according t6 mag-formula- given in clause 26 ith?r?ef?? the note. presented; by

frieSp'ondent 3- 4 "the. .n'Qmiheez..directorst in "the. meeting. dated-66:08:320113

was malicicus- as none; fume-substance, 'In view of the

1.29

 

 

 

 

I 'afciresaid facts View that non-voting byrespond?ntNoS. 3-

4'in favour of Mr. Vikra?m' Bakshi is an acute act of oppression Within-themeaning

-0f Sections 397 and 398- read with Secticn 402 of the Companies Ad, 1956-. It is

 

 

 

- 22?.

With a View to grab hardrlabour of Mr. Bakshi which has been-invested in
Connaught Plaza that had triggered. the non-voting his favour Ora-the meeting
dated 06.08.2013. Sitis an act against the interests of Connaugh't "Plaza and is?

detrimentito public interest-Alarm. number -.of employees wQutd asuff?r?by 380.531.1311

approach. Therefore, the-same? is iliablejto beset-aside and anotherconsequential.
a'cuike uplaadin'g of. Farm. 32' with the Registrar-would also become. illegalg?rhisis;

further'bornout from theJJfa'cts.that its-the. meeting held 01105082013 by McDonald

:lndi'a-r'esborideni $516.2 theid?cision to Vote-"against Mr;- Vik?ram ?Bakshit'had-already 
been itak'en: and even" further desisioh cansequent 'upcion his non rte-election: 10
.exerCijse' the Call option was-?also taken, _It' shows the predetermined mind: of
:resp?hdent. Nos. 3 81- .4. The decision is not. basedwn any hate; which was 

presented-in =thesmee?ng. by respondent Nos 3 4, nominee directors "of.

McDonald-India on "Connjau'ght Plaza}; There is; of any

Such note- by' "MCDona?ld India in its resolutim. The dimmers- would. be; .;acting_*

Withwt any .ajuthoriz-atien bypreSen'ting. ?the 'n ot?.

Qata- "it is Clear- that ?m?mo?ng by "the-.nominet? direcfms 9f respmd?ht: N0: 2

extra n??b?usf rgonSiderations-ean an acts onsthe; pan "of

Mr- Vikra'm .Biak'Shi' were Strictly accordance-with the . pfoViSibns- of the" A?r?ti??s

.rof' A's-sedation "ahd'c'lau'se; 7 cf'the Jv?greement- which Stand in

the'2Artic1es-then there: is. no escape- frOm the comm-aim that McDonald !ndia as:

a. 3sharehc?der ihmu?g-h; its hernia-ave dir'ect'ors has-aCth f0 appress: Vik?ram

2 with 

 

.121

 

 

 

 132 of 't'hegdj?oint "Venture Agreement Which?: provides for option" to retail

 

zan'd' purchase the shariaholding ofp?titioners in" accordanCe' With the-formula

provided in the Jaint Venture Agreement.

23.5 The Companies Act; 1956 deals. With prevention of Oppression and
{MESmanagemenL Sectien 397 deals With. the. poWers Of the ?Tribunal and. the]
right of the oppressed party fo? apply'fbr ?redr?ssal of his grievances. "866130111
402- envisages: the powerof the Tri?unalto pass -order on Such application?oth

afb'rjesaidf out/beicjwiifw fa?ility of reference-:4.

 

?Bastian-.399. "73:97" and: .398?: (1) The:-
:fotlowin'g' members. (if a campanya 's'hallfhave :the right to. apply under "semi?n-
_'3.97 

in of a :c_0mpany havinga- Share 168.83 111%
?ne-hundred members of company or ?Qt18$$gthla?i??eg
tenth of the tgtal griumber. offits- members, whim-ever- is less or
anyrm'embe?s 01'. members- holdi?g not 
isszgaed .shar?. capital ofthe-gompam 
jc'r appi'icants have" paid? all calls. and Other sums: due on ?their

shares:-

 

ire-the case]. of.- a a. share: capital,- 
than zone-?fifth" of ihe- {ma} number of "its members; I
'SectiOn- 492. Pow?rs of Uribu?allon 1a ppii-Gatiph- 

o: prejudice to .the generality of: the powers- of- 

 

under section 397 9:398, :ahy'ord?rnnder either- section-may provide for

i 

the. regulation of the conduct ofithes affairs in: mare;

   

122-.

 

 

 

 

 

 

 



. 





.the pufr?has'? 9f the shares at interests of any members Off the
Company by othermember'sth'ereof or by the company;

in 'th'ecase of a purchase of its shares by the company as
aforesaid, the]. QGnisequen't reduction; :of its. share capital; 
{he terminatiOni, setting ?aside or modification ofeny Ia'greeme?t,
Shaw'soeve'r arrived between-the. Company on the one 
and any-10f on member,- names-y;-

fi)? the-managing director-,-

(ii) any ather- directot,

upon such terms and ?GonditiOhS' {as- may, "in: the Qpini'on pfthe; -

[Tribunal] ?be just. and equitable-in allithe circumstanties of the

case;

the- termination, {Setting aSide or madi?ca-tion' .of anywa?gre'ement
lbs-Ween- .th'fe. not 'r?ieirre'd't'o. in :ttlaU'Se'
jsuc?h. _-agreement_ shan- "be. set,

aside: or'mod'ified not-iota "to?the' p'arty- concerned

and Pprc?Nidred: farther that-n2: Such. agreement. .shiail be; named

?xgeipfi after icbt'ain'ing the-consent 

 

. the seating aside. d?live'rgy- ibf payment
:GXeQu?Onf at}: crib-fer act :fe'latinigf tic): property- :r'riades dame by or
against the gammy- wii?in three: mon't?s- before the date-of. the
-:??P?I?li?ati?nf underneadim .397- of .3938; whit-3h would. if made or
:dengaby or against-an i?diVid'uaL bet-deemed. in his ihSolve?ciy to

ba - a. 

123?

 

 

.. "mu-?van? w- 

?wk-hamyf-u-iwu urwnh?? 

 

 

 

247;

 

3(9) any Other 'ma'tte'r'for whicn in the asp-anion- rof'the [Tribunal] ?iris-mt

and equitable that provision should hammer

The '-fact's and circumstances ofiheg pr?'se?t Case Would leave no manner 0f.
doubt 'that13a Case :fowji'rizding up is made. out satisfying: the candition envisaged
by Section ?397 1(2) (6) ?Of However, we are of thervi?w that winding.- Up:
the unfairly" prejudice 'the- petitioners who have-50%- of
she-renaming.- Therefore, wf?e- do. not. :f'e?l that [it wom'd' and equitable to

?3

Order winding-up;

It is well :se?led:_ that if the. 'Cdnduct. {if ?le me. grow 'o'f 'sh'arehoiders- was:

oppressive; :grgup- jsha-reho'iders. then. it Would.- .rj?quire.

mnsi?ieration 6f t?i?lity? facts. The finding of Oppression cannot thus be;

.cohCIudejc?i On the =-ba'sis' of one: or two events; The conduct must be.

ihumanseme;harsh. and Thesevprih?inles have been laid. dawn by the

?Cam-?at- p'ag'es Prasad Jain:

6.331523%; Mes-:- ..Litd.f, (1115965) . 3516017: Cages-1351.; knowingly! 1we~ EhaVe

that. ?the; affairs [6f Gonnaught Plaza have been
panductedr in} a manner oppzr'e's'SiVe ato: the fp?titibnefs: as recorded in. preceding".

:pafas- The ?nding," "Which: We have} recorded. in the. ?preceding par'a's- dc;- nat-

?in'tereseedi?putezofiithe proprietary
tight-S- cgf. ?the. =?pe'titi?aneris: as shatehalderss. Accordi?g to dense - 3-2 cf. the. JV-

J..Agreement M?bhnaidj ?I?hdija. "hag;- ibg?n given the 'pptidri' .1t0purghase1he shares;

iofi'the mars-cat determinedgia :acceirdance- withpara. 26 if Vi?kram

Ba?ksm :"sztiffers theii?mination of his. relationship- 'asa Managing DirectOr- eithe-

JV Campatiy; Therefor?i it is not-a: Simple -d;is*pute. betWeeh-fthe'

 

r124

 

 

 

. ?Lfo-Z'w' ..- '61 -A- -

 

 

 

 

 

I 'D'ir?ctQIS'. The situatib? cre?ie?d by the .nowvo?ng; by respOndent Nos; 3-8; 4 

(M3: Robert Ms; Ayesel; resulted in grave; set back

. 'to. the interests "of Conn-au'ght-Plaza and ihat-?of-the petitiOnerrs as has already-

been noticed-fin the meeding paras, On'ceathe' afOresaid findings are: recorded

"then the j-u?risdictien ofithis Tribunal Ito invoke-section 397.398 and 402 would

- be unquestionable. A Division Bench of Hlan?ble Madras High CourtJ-m-the-case

- .ofRao. aRajeslwari Rainakri'shnan, (1398-7) :61: Com-c3395 '20 atpage

26',

 

- :66 has? analyzed numberrof'judgm'ents- of Indian Courts wh?iCh? 

?the ccimlusiom?ze havere?orded. 1i; alga well settled that th e-?l?gality

{91'7- illegality be Examined-1, but only 'its; fairness: towards-the

'Shat?hold?i-?s and its probity be k?'p?t 'iri Vie-w, as-han been held if} "the

$888.. bf TN Raghunath V- Lake Side- Medical - Centre Ltd? {2007) 737

Com C3393 7'41.

It is in the "-afdresaidf facts: and cirsumStanbesi-that 'Secfz?cjarx' "4'02 previde' for?

exgr?is?a.gf .juriSdiCtio? 'by-it'he .Tribuna'lfby-EpaSSing regulation "of;
..fhe camp-any? ..s affairs. in-ifuture; the tetminati?tbn. S'S'etting aside er
(modification. the company an. ih?e? "meg-hand .a?nd'ithel

Managing iDirectqr; "setting transfer, zdelixiery of-{quds- etc,

The Tribunal .;<;lothed' With ?the-?pmeirr to ptasr'idelifdrany 
WhiCh :in? the ?Of- leq'uif?bil??that provision??hbm'd'

be: made, Thus. the. powers-- given. tojthe Tribunal by :Se'cticis? 398:.read.

with; 402-01'15'3 1956; Act are very Wide-as:hasbeen- laid down if: the. case Of

venture- India Prep-mesa Ltd. vf.? cap-..Manmohan Singhi Kan-Ii. (2011.) .103-

CLA 

. 125'

 

 

 

 

 

 

 

 

27]

328,.

we may now notice the arguments- raised byf'respo'hdents. On behalf of

respondents 2 to o'bjeotion's have been raised against reading of paragraph 

of the Joint Venture Agreement as part of :the- Articles; of; Association an the

ground that in para of the petition there is-an admission made by the
petitioner that the provisions. of JV Agre'erhent' h'ja'iie' nOt been incorporated in

the Adidas "of. Associia?tiio?. Tho 36601736" ground: .ur'ged in support of the"

.jaforesaid sabmission is. :that'io? any-lease on proper intefpr?tatioh Of-Ar'ticles 35

and .36,_1it gamma-be -con-ciuded that: paragraph the Joint Venture.

Agreement as. a Art-ides. 

The aforesaid: objection by; 4- ?is not "sustainable, for: a

Variety ofLre-asoos. - the toi-whioh Iiefe?reooe. i?sm'adehas been

--read_- by respondents- in iSGI'atibng In _paraf8j-.L66., the petitiorieis- have submitted

that thesis-sues- raised" in the present, company-Pe??on were: mtrela?table 'to the

JV Agreement as itsprovisidns ham not beenginoom'orat?d firi't'he-AriioleS of the;

tornp'anyi rt; "it'is dimmed?fromVarious partsof pa fa Spec-Vic:
hasrbeen made:- toortiCIes-a-as- '36; for-reading it with paragraph .7 of?

the-JV Agreement; Aolosoexamin?tion ofayemeots-sm'ada-in paras 8.3, -8.5, 

8:6. 8;..7jand :81. 1 2' of the-petition: Would: patently: show {hat the petitioners.- have

7.0f-2th? JV Agreemeflt: in the Articlesi by
.?repeatedly- referring ?it-with Article: :35 2am2136; .tho?ld be profitable to. read para?

847,818; 81.11 and ?nder:

{here'- ism grammar)? poWers on the Board
of Directors assume the authorities; whibh are . conferred by the JV
Agreement ?and the: Argo-233:. on Petitioner" No, 1.. "The power of

 

 

 

appointment-maria reeiafl'edwh is: {an 31:59am of the is-

125..

 

 

 

 

 

 

 

 

 

evident 013839 0f the Jv .Agree??ent' and Amaze .35 of? the

- Artistes, -.whieh incorporates clause 7 .of'the JV Agreement. by. reference.

Thus, the duty to cause the nominatim and/or-etection is the continuing-
eed a prompt ebltgation' .of' Mcobna'ld?s. There is duty on the

Sharehetders to continuously re?e?Ieet- the Managing Director every two 
(2) years], The .duty.__is to vote forthe re?eleetiotz of the Petitioeer Not 1'
as the Managing Director:

2 88 There is. .a peeitfv?e.obligation} 58f. the Respondent Ne. .2":and no;
I 'mei?ee is to deny the fnemteatfen
yeteettbn of tee ma?agieg' Director at. the. meeting at the beard
- bed that too- in abseeceof'prbven rants thatthere Is, a breach 0f- the JV 
Agreement McDoneIds cannot be the. judge in It's own sense and then-
seek to derive to prof therefrom that too WIthUf cogent ewdence

I 8 7.1-1.3 l't'fS' Submitted teatime-Nominee - bf MeDonaId?s- have no
Ibe'u's es: nominees; not-to Cause the nominetfm and/or re?
bf Me as; :2th ta is- eaty- .ai'yeiiable at the
--;ge-neral meeting The eaten at Nominee Direcrors is I
ultra;- their euthonty as- directors and ;s in breach of their: Mastery -
duty and also in breach 0f- CIeuse 7 of the JV Agreement embedded in
. Article 35ef the 

. 3121:;- is mas- submitted that} it is. tagger?yersthe. Nomtnee DireetOtS {tor
br?abh the. provisims, 9181613839. Pei-{the} JV Agreement; which requires]
shareholder partiesta electtbeefPetitibnemb. 1 as; {the
--soIe--;MD; 738209 the-certs; term ot-ef?ce ef- two (2)1 ye'ars'; the-prompteess-
ef'electton at meeting 3389098818888;er 
reed/0r considered .contibeetion of the; tem beyond the" -_.teens- oftwo 2)
(Ye-tars" in" the; absence. ofproef'ef :prede meson- to net" ?to vote at the
genera! 'meetfng; Hence. it it"s- submitted that the-"Petitioner Not. 
- continues. I?D-be the-bate MDofthe' Compeny?i.

1127-;

 

 

 

 





A perusa'lof the aforesaid para-s would "not leave ahy manner (sf-doubting: the"

. case set Up by the petitioner is. that the pro?visibns of whole para-7 of the Jbint

Ventute Agreement-stand.-incOrpora-ted in the Afticles. The -S'0'-c'alled admission-

in' para: 866- is ehtirely in different context. Moreover, it is well s??le?dfhia't

admissien' on a -questi0n- of law would :not bind the par-ties?. -that regard,

- reliance may hex-placeddon the obServations made by a-Constitution Bench-bf

?le 'SupremetCOUrtiin the case .of-I'Banargl. Des Vs. KanShi"Ram? MR 196350

3-1165. There ?is a. categorical statement of. law that the admission w?uld bind. the

mak?rio?njl-y "so {far as "the feats a're- .cohic?med but "not o'n'Ia' questibn .of 

fin" any case, .if-f'adrhissibns are. "than the smegma? liable 102 be
:ign'Ored, lh the-presentatzase. in? Article- 35. 36 notionly referenw to. para- 751'

JV Agreement? has been made; it goes-further t5say that-fthe Managing. Di: {actor-

ism-be. iel?ctedxsubiect 10711179 aprOViLsions col?- Para 7 ofiithe?JM Agreement and: to:
be. entrusted with substantial. power 5f? management 11'0- the;
Superintendeht, central. ahjd- directio? 501? :the- Boardgzan'd hells to} manag?? the, 

'day?t?-?day operatiOn of the Con-naught Plaza.

35 part pffpiara? 77-of'1he' JV

settled; principles of constructim. A.
contract has. to be read: as a whale: keeping-Erie "mind it'he hat-uretand purpose: 0f

the The court must .see- the relationship. beMeen. :t-hes 

sentences; lclaus?es, .?Chathrs "and. the Whol? :documeht. No "contra-cf condition

Ora :clause should be, read The faith, tras'tigfidmiary relationship-

=.:andi- Understandi?g- behlveeh' ?the: parties: 'jUSt Canmt be "Overlooked before-

 

.128

 

 

 

 

 

 

 

 

I'intef'preting sUCh ."priVatje {comm?rc'ial datumerit. as the Articles of" ASsociation

.and- AgreEment, regard; wegdr'aw support from the. "observations
(made by Hon?b'le Bombay High. court. in the case of Unity Realty and
Developer's? Ltd; .vgl-B Highways Star- Pvt; Ltd.- 32010 (-3) RAJ .292 (Burn), It is-
?furthe'r we? settled that the-function and Article's ofA-s'sczciaticri and 
:tz'omract- i'sfto design how.- fo- actual-i339: its abje?tives. Vallies'randr pOIiCy;
l't Cam'prises the. ijtheaparti?s'. It "creates. reasonable, {egally
'_prb'tected- expe'ctatibnsbehmea? .tjhegparties-and reliance on. its reSuiltsk. It'is not:
single. party and It has cement {)fimutu'ality, ?It is jointii?ient-of
?bath-the 'partiQs-"Whibh can ?be gathered of the. circumstances .
surroundingits. formation (Beef ELF Juniyemal- Ltd._ 'wan' and 
Planning 'D?p'airt'men'f (2.0.101), "1.4 SCC 11;; if Amide. is seen. all
amendments. made in- w; Agreement were expressly- then the
- scape of this argument- is Accordi?gzto;Article af?nities
of JV agreement": :11:th "my .mgan'S- the. agreement dated-
31031995 5: also zinqmd?a; another matte-n rami?cations made to- the: 
"Venture Agreement- from time-teatime including that-Joint "v.?emure Agreement-
dated-- and: 
What-doeS?it In fact,? the: definition ?to shew the. 'intentiorj of
the: 'Artigles. [It is
aha-evident from?rti?le of?ih? Adidas Moreme-r,? -thegpajrties_ -
have understood pmvid'ed in para
'7 JIM Agreement; at lea?t-whd?- para 7 70f the ?Arti'cles- is.
:?ihcorp?cagated. From the .incep?anj, Vik'tam B?aksh?i' has been: the Managing

Director The me algo- mak?f?s "an ra??mpt' 

1.29 

 

 

 

 

 

 

 



 

?to 4'rWiti1?in the parameters of. para 7 of Agreement beC'ause- parties

regarded itaas a part-of Articles. Similarly, acceptance to act as Managing

Director in terrns of 7 by the ?Partner? referring 'to. Mt. Vikram 

undergt?hg training an terms of exercise of authOrity aIWays in accordance

with -'sa'lary-ipaid3 in accordance with 7 and reelection for 17 leng years

?would "not. leave any". manner of" doubt- that, parties understood {hat cla?u?se 7 of

.JM Agreement is ja--_part -?of Articles of As?sociatEOn; 'Therefcre, we .dO-h?otjfeel

persuaded ?to: accept thessubm'iSSEQHS made of: behalf 30f- respondents. 2 to 4..

no ?eeita_tion. to. reject the-same;

A'r?ci'e. 3.6 by speci?cally ih?orpcrating ?paragraph. 7(a) 'Of The JV Agreement.

proVid?-fer {he remuneration of the- managing Direetor. in pursuance of the

the parties have appointed: Mr, Vikra'm'Bakshi as the
Managing 'Dire?tor?from they-inception upto the year-.2013, In .oiher Words, the
provisiohe (if-?Amelie. 35& 536 read with: para 7 Of'the' Jo'int Venn-ire Ag reement . 

been" ?xated: ?upon. for." the? iast-m?er? lihanl 17 it'fis We]? 'S-ettl'ed that: if?

the. parties have understood: 'the; contents cf" 3 contrac?dbcument by acting

it in :parztie'tilar manneg then possible to: accept any .contrary'

interpretation 'Qr'pmposi?on.

On-gthe Siesee pf En'tezp'reta?oni git was-suggested thatperagraph 7" "in Article. 35

'shoeld?he .eqn?'ngee :5qu ?to- the sema? part of Artiele Which deal. With"
enitms?tment aft-substantial. power of? management, However, such an
not be-pc?aesible because in" the definitibnf clause, NA has
been. de?ned to; mean all clauses. ihciuding amendment 'frq_m'. time'- to time. ?4th
20112- Moireover; -ef'.intention's- .of' 'the-jriarties in practice.- from

1995;. :0 2011.3" cam-5t; be bmShedeSEde adopting an interpretatioh Which

13.0-

 

 

 

 



 

 

 

_Iwou'ld? be contrary it)? the ci'a'ffihe'whele co'?'tra?t t0

justify one. sole. deviation. Therefore, we are net fable to. Cohcur' with. the.

Objection raised by respondent nos. 2 to 4 and have-no: hesitation to reject the

same.

"Or; behalf of te-SP'ondents 2' to it has 3130 been: argued that Managing

?Direct?r-IS' a salaried employee. and. speci?c: such-a. Confiact-

Cannot be ordered"; Awarding Ito the {gamed 'Gou?sfe! the MD -_.agre.emient

provides for two Years term. Reliance has; been pla?ed? I

section; 14 and <41 of the :s'pem'?ci Relief" Agt; 1983 The argument; is:
"superfluogszibecausej it. is not a single :ca.$.ej of GOES-tract; In
the Pre'Sent Case Mr; Vikram Bak$hi aicimgwith which {his own
._c-ompan_y has ?fty- percent shzarehmdin?g. in com-augm, .Pla.zza-._ of"

Managing Director- is *Iink'ed with Mr; 832311? in such manner that-5f} he: Iones

- his-status as. "Managing Director he may xals'o-Ioose h'i's-s'harehblding by virtue 10f

clau?es' 216 and JV?gi?e?m??t Accord in pursuance-0f!

clauses 26- and the Agreement Respondents- Na; 2 may-ex?rcise: 
Optician- from :C'on'naught "Piaza; The largume?t

therefore, on? 'it is. absurd Earl?d' We reject the 

We are ial'st'); not impressed with the: edmmemia'l 5c?vitractsl are.

dutSSIde- the Escape; bf .Sedtfion 397', i398: far-1rd 402 . of Act.- -119561=

because sash; an argument; the facts-and circumsta'ngzes. is. ?ot fattra-Cted {and

appli?able, We have referred to. para- 7 Mme-JVAgreement:--readww1th Articles
33:5 and 36? of the Wales of Association- arid we it ?as? a part 'ef'

Artic-Ies .of Association --as had. aiready' b?en held; Wehave referred Clauses

- 26:31:16 3-2 91;:thst 0f sh'owinga obliqUE-imo?VeS-'

 

13.1

 

 

 

 

 

35

36.

.37..

3.8-.

arid mala?jde intentions rdf- Resmndents 23 i8;- .4.- Therefore, ZW'ho-Ie {gamut of
"Section '39? read.- With TS?thion 4621011.9i561A9tw0uld' some in play to. protect a

party from. oppression by 'emrci'sing .just- and. equitable ju'risdictiOn under

Section 402 "of the 1956 Act. Therefore, we. find the argument Without

substance and lithe. same. is rejected,

We are. also notiimpresseds'With' the subT?iss?icn "that-"there is mis+statement as

we do" not-find --a_ny 

Respondent. Noe. 8 filed an a'ppiicaticnfbeing. CA. on

03.65.2017 -'brihg'ing an regard: an molar passed- by The Institute. of Con?pany
Searetaxies. of zlndia 'exoneratiiagf' him frnr'rfz- the allegations made by Mr Mikrarh-

B'aksh'i,? he has-?bee?- fw?d prbfessionial Orany other

"miscondud?. lt-?is .apprOpriate: Vikram Bak?shi has l'abe?ed'

various fallefga?das against Mr ?Devinder' Jain-respendeint ?No. 58- aliegihgz that. 

?respondent Nb. 6 had?ledf Form-32 Mth?-uti any copy (if Signed
3150:3693, we?t'akectihe .zorid ?rfdat?d- _?083042017 on record;
as pa?'sie'd'- by The Instituie 3f.company-.s-ecretaries- {sf-1:161:51 without makingany
further abserva?on'. It. ?shall? 11:01}: however acts. t9 the. prejudiCe' off-army of 


LikeWise, :anscithet'appliCation-s has;been-1316626y6m Mr :D'efiepak 
,inteirmen?ti?n with a prayer to; precess against Mr .Vikra'm: JB?ik?hi? under 'S?ect'i'on;

?"340 offtheicgiminal Tarmac-1:321:33 for-pTOSecutioniof the-petitioner N6. 1

'We-IhaV?-heard Mr K110313311: a has. "urged that Mr.- 

.- . 'Vikram liable to begprose-ctgt'ed;

 

132' -

 

 

539". 'EHa-izing heard- the-learned counsel we ?nd that-the- allegations of perjury at-Ijthe
inStan'ce of third party cannot be gone into. There; is no fih?di'ngs of perjury a; 

. this-stage, Accordingly, we do. hot ?nd any'merit to aiiowthe applicatiOn of the
intervener to intervene inhthe matter. Acmrdingly, the prayer is rejected.
Howeven the "refuse-1'10 accept the request made; by the intervener'.shall not'be

- :COhStrujedvitb: prejudice. his {rights in any other The-application 

with. mi; Misc. No. 184/2013 stands disposed-10f;

.40 All other appliCatiQns stand disposed pf. 

 

4-1.. As "a seqqel in the. above discussion- this p?tifi?n succeeds; We Cansider itju?t.

and equitable: 19' prOVide-as Linden?.

lof- the-meeting of. _it'he' Beard of Directors held. on
relating to reelection of 'MrQVikram __Bakshi _a's-Managing

- Director bf'the Company are-set aside-and dedat?dfillegal, unjust and
the uploading. of _chtmaz with the Registrar of;
Companies- is :al??hulii'fi?d? "and is deciaredi;"illegal, The .Statiis'i "of? Mr.

 

.'3Vikra'm_ B-akshi? as Managing 'D'ire'ctar. of :Cbnnaug ht Plaza] is 'reStOIed; He.
Sm? mntihue to act asManagiQQ' of con-naught", Plaza 'sli?j?ct 19.
passing: of" any uresolutiOn' Under the Chairmanship- 0f learned.-
Administrator.- I I

 

fir-{1 pursuance. of .?nom?iec??n. of Wkram: Bakshi' as:-
iMahaging pire?tqr, are also declared illegal, ?niav?ul; Unjust. rand-1i
malicious.-

The Board Director's-of? Corinaught Plaza "is dEVided in; In - order 
impassewe..deem it'JHSt- and equitable-to appoint, Hon?le. Mr;
._Just'ide GS 81119th Fewer _Judge-Suprern85?Court; 7 

AWihd-Go. Marg IfNew. Delhi-11001.61 "to? act as AdminiStrafoi with all-"the

 

.133

 

 

 

 

 

 

 

 

 

 

powers including the power to "vote 'in' the Meetings Of Board of Directors;

(iv)

The Administrator Shall settle his owijfee,

TheAdministrator Shall ensure that all resolutions in respect of Cohnaught
Plaza are passed to advance; the _.intere_s_t- of the Connaught. Plaza and

nCme of the Mogroups {is oppreSSe'd. The agenda. for ray-election .ofMt.

.

(vi)

(vii)-

342*.

Vikram- Bakshi as a Managing Director shallbe taken up With the- prior?

approval of the Administrator; No agenda should .be placedbefore ?the 
Board of Directors without the prior approval of the learned Administrator.

"The Administrator may. consider the. possibility. of even altering the Articles

ofhssociation- so .as to avoid any ugly iio. met Mr?. mkram Bakshi

as Managihg Director unjustly and unfairly.

Respondent No 5 is restrained from interfering with the smooth/

functioning of Connaught Plaza and all its 154 restaurants open irl\ the

assigned territory of North/East India. - 



"The petitioners-are held entitled? to-cost?s-whiCh we qoanti?ed at ?Rs'io
"lace. The cost- shall - be. paid by? 'M'cDjonald' lndiaeg?eepondent No. 2 to? . he:

petition-era.

The petition .stands-diSpQSediof' in ?theg-above-aterm 

 

.. lax-Mom TRA) - 


13 07:. 20.17

Vineiet

4 .134.-