The Delhi High Court allowed one representative of the firm to check 10 New Delhi outlets by Thursday evening so that he is able to collect samples.
McDonald’s India inspected Connaught Plaza Restaurants Pvt Ltd-run (CPRL) outlets on Thursday, making sure the packaging and the cartons in which food was being served was compliant with their standard, sources told Mint.
CPRL is a joint venture between McDonald’s India Pvt Ltd (MIPL) and Vikram Bakshi and operates 169 outlets under the McDonald's brand across north and east of India.
The inspection comes soon after the Delhi High Court refused to grant an injunction restraining CPRL from using McDonald’s trademark, even though the firm terminated its franchise agreement with CPRL last year.
The court said that since it is a running business, it is not possible for it to stay the judgement. It instead granted MIPL the permission to inspect the packaging and cartons in which food is being served.
The court allowed one representative of the firm to check 10 New Delhi outlets by Thursday evening so that he is able to collect samples.
On August 21, MIPL terminated its franchise agreement with CPRL, saying it is primarily due to non-payment of royalties. The franchising firm was supposed to give up McDonald's proprietary rights, trademarks, designs, among others, by September 6.
After the termination order, many CPRL vendors to McDonald's stopped supply to them. Recently, CPRL's logistics partner Radhakrishna Foodland stopped supplying material to the outlets, citing a fall in demand and non-payment of certain dues, among other reasons.This led to the closure of 84 outlets, which Bakshi claimed will be open by this weekend, after CPRL partnered with ColdEx for logistics services.