Choose Your Forum Carefully

The recent order of the Delhi High Court in the matter of Vikram Bakshi versus McDonald's India Pvt Ltd marks a significant development in the field of arbitration. The court has granted an injunction restraining McDonald's from pursuing arbitration proceedings before the London Court of International Arbitration.

The court took into account the fact that in the present case, proceedings had already been initiated before the Company Law Board where a status quo order had been passed. It was observed that there was a possibility of conflict of decisions of the two forums and hence it was a fit case to injunct the arbitration proceedings and restrain McDonald's from pursuing arbitration. An anti-suit/arbitration injunction is an order issued by a court that prevents an opposing party from commencing or continuing a proceeding in another jurisdiction.