VIKRAM BAKSHI Vs. MC DONALDS INDIA PVT LTD

JUDGEMENT

(1.) THIS order shall dispose of IA No.6207/2014 (u/Order 39 Rule 1 and 2 CPC) by virtue of which the plaintiffs have prayed for an ad interim injunction against the arbitration proceedings initiated by defendant No.1 before the London Court of International Arbitration.

(2.) BRIEFLY stated, the facts are that the plaintiff No.1 is an Indian citizen and resides and carries on business within the jurisdiction of this court. The plaintiff No.2 is a company incorporated by the plaintiff No.1. The plaintiff No.1 is the duly authorized signatory of plaintiff No.2 vide Board Resolution dated 05.09.2013 to file the suit for mandatory injunction and declaration.

(3.) THE defendant Nos.1 and 2 are also stated to be companies carrying on business within the jurisdiction of this court. It is alleged that the plaintiffs are the registered holders and absolute owners of 1,45,600 equity shares of the defendant No.2/Company. Defendant No.1 also holds the same number of equity shares. It is further alleged that the defendant No.1 holds 17,73,021 number of preferential shares of and in the defendant No.2/Company comprising 100% of the preferential capital of the Company but it is under an obligation to the plaintiffs to exercise 50% of the voting rights attached to such preferential shares as per the directions of the plaintiff No.1 and in terms of Article 6A( vi) of the Articles of Association of the Company. It is further alleged that pursuant to the Joint Venture Agreement ('JVA' for short) dated 31.03.1995 between the plaintiff No.1 and the defendant No.1 with McDonalds' corporation as confirming party, the defendant No.2 was incorporated on 29.06.1995. It has also been alleged that McDonalds Corporation is a Delware corporation and a company duly registered in the State of Delaware in the United States of America which is the holding company of defendant No.1. After the Joint Venture Company was incorporated i.e. the defendant No.2, the JVA was entered into between the plaintiffs and the defendant No.1. The relevant terms and conditions of the JVA are as under: