Supreme Court Urges Settlement Between Dinshaw Trust and Bastion Constructions for Malad Plots
The Supreme Court has directed the F.E. Dinshaw Trust, headed by Wadia Group Chairman Nusli N. Wadia, to explore a settlement with Bastion Constructions regarding the transfer of two plots in Malad, Maharashtra. The court has set the next hearing for September 19 to review the outcome of settlement attempts.
Supreme CourtFe Dinshaw TrustBastion ConstructionsMalad PlotsReal Estate DisputeReal Estate MaharashtraAug 29, 2025
A Bench led by Justice Aravind Kumar told senior counsel NK Kaul, representing Wadia, that “primafacie, all odds are against you. Sit across and try to settle it. Explore the possibility of arriving at a settlement and inform the court on the outcome of the attempts made on the next date of hearing on September 19.
Nusli N. Wadia, Maureen N. Wadia, and Rajesh Batra, in their capacity as trustees of the F. E. Dinshaw Trust Public Charitable Trust, have challenged a Bombay High Court judgment from June 27. The HC had ordered Wadia and others to convey the two plots to the construction company. The trustees argued that the HC order has “drastic, final, and binding consequences, causing irretrievable harm, loss, and prejudice to the petitioners, trustees of a public charitable trust of repute.”
The HC order mandates the transfer of an immovable property in a prime location in Mumbai, worth several hundred crores, to the real estate developer for a meager amount of a few crores. The HC recognized this as a “bonanza” and a “windfall” for the developer. The HC had criticized the Trust for engaging in “an elite form of extortion” and “a manifest abuse of the process of law” to stall the transfer of ownership of the two plots to the construction firm.
In March 2002, the Trust agreed to sell the two plots to Bastion Constructions for Rs 14 crore, subject to certain terms and conditions. One of these conditions was that the developer was responsible for obtaining clearance from the competent authority under the Urban Land (Ceiling and Regulation) Act, 1976 (ULA). Although the developer made the full payment in November 2003, the formal transfer of ownership was to be given only at the time of conveyance.
In October 2006, the Wadias sought exemption for surplus vacant land in the area from the competent authority. However, the ULA was repealed in November 2007. After the developer could not obtain the necessary clearance, the Trust terminated the agreement in 2008 and forfeited the entire consideration. This prompted Bastion Constructions to move the HC for the execution of the conveyance deed in its favor and for specific performance of the suit agreement with the F.E. Dinshaw Trust.
On March 4, 2015, a single judge bench of the HC allowed the suit filed by Bastion Constructions and directed the trust to execute conveyance in its favor. The HC held that “with the repeal of the ULC Act and the fact that the entire consideration was already paid, the contractual obligation was rendered redundant, thereby entitling the purchaser to specific performance (the land's conveyance to its name).” The Division Bench of the HC also refused to interfere with its single judge’s order, stating that the issues involved in the litigation were straightforward and should have been resolved without delay.
Frequently Asked Questions
What is the main issue in the dispute between F.E. Dinshaw Trust and Bastion Constructions?
The main issue is the transfer of two plots in Malad, Maharashtra. The Trust agreed to sell the plots to Bastion Constructions for Rs 14 crore, but the transfer was stalled due to a condition requiring clearance under the ULC Act, which was later repealed.
What did the Bombay High Court decide in this case?
The Bombay High Court ordered the F.E. Dinshaw Trust to convey the two plots to Bastion Constructions, citing that the full payment had been made and the ULC Act was repealed, making the condition redundant.
Why did the Supreme Court ask the parties to explore a settlement?
The Supreme Court, recognizing the complexities and the potential for a fair resolution, asked the parties to explore a settlement to avoid further legal delays and to reach an amicable solution.
What is the next step in the legal process?
The next step is for the parties to explore a settlement and inform the Supreme Court of the outcome by September 19. If no settlement is reached, the court will proceed to review the case further.
Who are the trustees of the F.E. Dinshaw Trust involved in this case?
The trustees involved in this case are Nusli N. Wadia, Maureen N. Wadia, and Rajesh Batra, who are also associated with the Wadia Group.
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