HC asks Wadia, Raheja to sort out land dispute

Looking to find an amicable solution to the bitter legal tussle between businessmen Nusli Wadia and GL Raheja, the Bombay high court on Friday suggested that the warring parties try to find a practical way to settle their dispute over the development of a 450-acre prime plot in Malad. HT reports.

Looking to find an amicable solution to the bitter legal tussle between businessmen Nusli Wadia and GL Raheja, the Bombay high court on Friday suggested that the warring parties try to find a practical way to settle their dispute over the development of a 450-acre prime plot in Malad.

HT Image

“It’s basically a business dispute,” said the division bench of justice DY Chandrachud and justice RD Dhanuka. “You can certainly find a person in whom both sides have faith and has the time to go into every detail and sort it (the dispute) out.”

The Rahejas and Wadia have been locked in a legal battle over a commercial-cum-residential project on the Malad plot, owned by the late FE Dinshaw. Wadia, who had been appointed administrator of the plot, had entered into an agreement with Ferrani Hotels Pvt Ltd — a GL Raheja group company — in January 1995 for the development of the plot. Under the agreement, Wadia is entitled to 12% sale price of all constructed area.

Wadia, however, moved court in 2008, alleging the Rahejas had fraudulently showed a sale price much lesser than the prevailing market rate. He sought orders restraining the firm from proceeding with the project and demanded Rs1,370.06 crore towards damages.

In July 2010, justice Roshan Dalvi passed an order restraining the Rahejas from handing over possession of any constructed premises without Wadia’s consent. Ferrani Hotels had then appealed the order before a division bench.

On Friday, the bench urged the parties to find a solution which would protect Wadia’s share in the plot and also allow development work to carry on unhindered.

Senior counsel Parag Tripathi, representing the Rahejas, said they were willing to find an amicable solution.

However, Fali Nariman, counsel for Wadia, showed reluctance towards reaching a solution. He said that almost 90% of the construction had been done and the only solution was to appoint a court receiver on the project.

The two sides also differed on the amount the plot had fetched so far. Tripathi claimed Ferrani hotels had paid Rs230 crore to Wadia towards his 12% share, and the company had sold property worth Rs1,600 to Rs1,700 crore so far. Nariman, however, disputed this saying that the Raheja group company had received Rs10,264 crore from sale of residential and commercial premises on the plot so far.

The court posted the matter for further hearing on Monday.