The Supreme Court urged the F.E. Dinshaw Trust, led by Wadia Group Chairman Nusli N. Wadia, to consider negotiating with Bastion Constructions over the transfer of two plots totaling 99,709 square meters in Malad, Maharashtra.
A Bench headed by Justice Aravind Kumar advised senior counsel NK Kaul, representing Wadia, to “sit down and try to settle it,” noting that “prima facie, all odds are against you.” The court requested that both parties report back on any developments during the next hearing scheduled for September 19.
In response to a June 27 judgment from the Bombay High Court, which mandated Wadia and others to convey the two plots to Bastion Constructions, the industrialist stated that he has raised a significant legal question deserving of the Supreme Court’s review.
Nusli N. Wadia, Maureen N. Wadia, and Rajesh Batra (Wadias), acting as trustees of the F. E. Dinshaw Trust Public Charitable Trust, contended in the apex court that the High Court’s ruling could lead to “drastic, final, and binding consequences,” resulting in irretrievable harm and prejudice to the petitioners, who manage a respected charitable trust.
The High Court’s order would transfer “an immovable property in a prime location in Mumbai, worth several hundred crores or more,” to the real estate developer for a mere sum of a few crores, thereby providing the developer a significant “windfall,” as noted in the appeal.
The High Court had criticized the Trust for allegedly engaging in “elite extortion” and “abusing legal processes” to halt the property transfer to the construction firm.
In March 2002, the Trust had agreed to sell the two plots to Bastion Constructions for Rs 14 crore under specific conditions, one being that the developer secured clearance from the competent authority according to the Urban Land (Ceiling and Regulation) Act, 1976 (ULA) for the transfer. Although payment was made in full by November 2003, the formal transfer was contingent upon such clearance.
In October 2006, the Wadias sought exemption for surplus land in the area, but the Act was repealed in November 2007.
When the developer failed to obtain the necessary clearance, the Trust terminated the agreement in 2008, forfeiting the entire payment. This led Bastion Constructions to approach the High Court for the execution of the conveyance deed and specific performance of the agreement with the F.E. Dinshaw Trust.
On March 4, 2015, a single judge of the High Court ruled in favor of Bastion Constructions, directing the Trust to execute the conveyance. The Court held that the repeal of the ULC Act and the full payment made rendered the contractual obligation void, thus entitling the purchaser to specific performance (transfer of the property).
The Division Bench of the High Court declined to interfere with the ruling, stating that the issues were straightforward and deserved prompt resolution.
