Vikram Bakshi gets one last chance to settle Hudco dues

Hudco had in 2006 given a loan of Rs 62.38 crore to Bakshi’s private venture, Ascot Hotels and Resorts, for a commercial project in Noida. The loan, however, turned NPA in 2011.
An appellate tribunal had earlier said that they would not allow the Bakshi-McDonald's India deal unless Hudco’s dues were paid.

The National Company Law Appellate Tribunal (NCLAT) on Tuesday gave Vikram Bakshi time of four weeks as one last chance to settle his Rs 190 crore dues with state-owned Housing and Development Corporation (Hudco), failing which his out-of-court deal with McDonald's India Private Limited will stand cancelled, the appellate tribunal observed.

A two member bench led by Justice S J Mukhopadhaya on Tuesday observed that Bakshi should pay at least half of the Rs 190 crore dues being claimed by Hudco.

The two parties, the two member bench said, could negotiate on the rest of the amount to be paid.

Of the Rs 190 crore due to Hudco, Bakshi had already paid Rs 66 crore and was ready to pay another Rs 70 crore, his counsel senior advocate Amit Sibal informed the NCLAT.

Apart from these, 4.65 acres of unencumbered property worth nearly Rs 300 crore is also in the possession of Hudco, Sibal told the tribunal.

The case will be next heard on July 10.

The appellate tribunal had earlier on May 16 said that they would not allow the Bakshi-McDonald's India deal unless Hudco’s dues were paid.

“We cannot annul a tribunal's order. If the settlement is contrary to law, then we cannot allow it. You settle it with Hudco,” the two member Bench had then said.

Bakshi and McDonald's India had, on May 7, informed the NCLAT that the two parties were working on an out-of-court- settlement to settle their six-year-old dispute.

The NCLAT had then allowed both parties to go ahead with settlement talks and keep the appellate tribunal apprised of the developments in talks.

According to the terms of the settlement, McDonald’s India has bought over the 50 per cent stake held by Bakshi and his wife in CPRL for an undisclosed amount.

In 1995, Bakshi had inked a deal with McDonald’s to open outlets in India.

The partnership, a 50:50 joint venture between McDonald’s India and Bakshi’s CPRL, was inked in a way such that Bakshi’s CPRL would be responsible for opening and managing McDonald's outlets in north and east India.

Following the announcement of the deal, Hudco had moved an intervention application seeking to be heard before the out of court settlement was given a nod.

Hudco had moved the NCLAT with a plea that they had first right over the money that came to Bakshi as they had an order in their favour from the Delhi bench of the Debt Recovery Tribunal (DRT).

The DRT has asked Bakshi not to transfer nearly 3,100 shares of CPRL and share details of the rates of the shares.

Both Bakshi and McDonalds India had also been asked by the DRT to appear and deposit the proceeds of their proposed settlement.

Hudco had in 2006 given a loan of Rs 62.38 crore to Bakshi’s private venture, Ascot Hotels and Resorts, for a commercial project in Noida for which he had given a guarantee.

The loan however, turned non-performing asset (NPA) in 2011, following which Hudco moved the DRT.

In August 2015, the DRT ruled in favour of Hudco and asked it to recover the amount along with 14 per cent interest from Ascot Hotels, Vikram Bakshi, Madhurima Bakshi and Vikram Bakshi & Co.

Bakshi and other respondents were also asked to disclose the details of their movable and immovable assets.

Photograph: PTI Photo