Wadia-Raheja land war back in trial court

The legal battle between business barons Nusli Wadia and Gopal Raheja over development of a 350-acre prime plot at Malad is back to square one.

The legal battle between business barons Nusli Wadia and Gopal Raheja over development of a 350-acre prime plot at Malad is back to square one. While declining to stay further construction on the plot, a division bench of the Bombay high court on Thursday set aside a July 2010 order restraining Ferrani Hotels Pvt Ltd, one of the Raheja Group companies, from selling any premises on the plot without Wadia’s approval.

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The division bench of justice DY Chandrachud and justice RD Dhanuka has now sent the matter back to the single judge to decide an interim relief plea filed by Wadia. The division bench has also directed the trial court to first decide the preliminary objection raised by Ferrani Hotels that the suit by Wadia was filed belatedly, and therefore barred by law of limitation.

Nusli Wadia, who has been appointed as administrator of the plot owned by late EF Dinshaw, had in January 1995 granted Ferrani Hotels development rights of the plot for a consideration of 12% sale price of all the constructed area. In May 2008, Wadia moved high court seeking orders restraining the Rahejas from proceeding with the township project and also sought Rs 1,370 cr in damages.

He alleged the Rahejas had committed fraud by selling several constructed premises to their sister concerns set up days ahead of the transactions and projecting a sale price less than the prevailing ready reckoner rate.

Acting on his plea, in July 2010, justice Roshan Dalvi passed the order restraining Ferrani Hotels from disposing of any newly constructed premises without the administrator’s consent.

Both parties had carried the matter in appeal before the division bench. While Wadia sought complete stay on any further construction, Raheja’s challenged the injunction.