New Delhi: The settlement between US fast-food chain McDonald’s and its estranged Indian partner Vikram Bakshi regarding control of Connaught Plaza Restaurants Ltd (CPRL) cleared the last hurdle with the Supreme Court on Friday rejecting state-owned House & Urban Development Corporation’s (Hudco) appeal against the settlement.

Hudco is claiming around Rs 140 crore loan dues from Bakshi and his related entities including Ascot Hotels and Resorts. While rejecting Hudco’s appeal, a bench led by Justice Ravindra Bhat said no question of law arises for its consideration.

However, the court clarified that it is open to Hudco to avail all the remedies available in law for recovery of amounts due to it. This means that Hudco can even look to attach Bakshi’s assets including proceeds from sale of shares.

Bakshi had stood as a guarantor to Hudco against a loan of Rs 62.38 crore to Ascot Hotels and Resorts for a commercial project in Noida in 2006. Due to a default in payment, the loan was declared as an NPA in August 2011.

In May 2019, McDonald’s and Bakshi reached an out-of-court settlement in their dispute over CPRL with the US firm agreeing to buy Bakshi’s share in the joint venture that operated outlets of McDonald’s in North and East India for an undisclosed amount.