Bombay HC Slams Wadia-Led FE Dinshaw Trust For ‘Elite Extortion’ In Malad Land Deal; Upholds Sale To Bastion Constructions

Mumbai: The Bombay High Court has come down heavily on the FE Dinshaw Trust, led by industrialist Nusli Wadia, for indulging in what it termed “an elite form of extortion” to block the lawful transfer of two land parcels in Malad to Bastion Constructions.

A bench of Justices Ajey Gadkari and Kamal Khata dismissed the Trust’s appeal against a 2015 order directing it to execute conveyance of the properties in favour of Bastion, calling the litigation “a manifest abuse of the process of law.”

The appeal pertained to a March 2002 agreement, under which Bastion purchased two plots measuring 68,359.1 sq m and 31,350 sq m respectively, for Rs 14 crore through an auction. Despite having paid the full amount, Bastion was denied possession, with the Trust refusing to execute the conveyance.

The Trust later sought exemption under the Urban Land (Ceiling and Regulation) Act in 2006. However, the Act was repealed in 2007 while the application was still pending. When Bastion followed up in 2008, the Trust abruptly terminated the sale agreement and forfeited the entire payment.

Calling the litigation a deliberate ploy to delay the inevitable, the court observed: “This appeal is a classic instance of luxury litigation initiated by the Wadias, aimed solely at frustrating and delaying the plaintiff’s legitimate rights.”

The bench noted that the trustees had, through “calculated and prolonged obstruction,” deprived Bastion of juridical possession of land they were lawfully entitled to.

The judges were particularly scathing in their criticism: “In our considered view, this proceeding amounts to an elite form of extortion and is a manifest abuse of the process of law. Such misuse of judicial machinery must be deterred in the strongest terms.”

The bench said the issues were in fact “straightforward and ought to have been resolved without delay” but the Trust “engaged in a strategy of manufactured complexity, raising illusory issues where none existed—all while having accepted the entire sale consideration.”

While the court upheld the single judge’s order for specific performance, it refrained from imposing exemplary costs to avoid further delay. However, it did impose a symbolic cost of Rs 1 lakh on the Trust, payable to Bastion within four weeks.

“This conduct in repudiating a fully performed and legally enforceable agreement is dishonest, opportunistic, and stands condemned,” the court added. The appeal was dismissed on June 27, and the detailed 190-page judgment was made available on Wednesday. The court has continued the stay on the 2015 order for seven more weeks.