Essa, who has the administrative powers of the building owned by the royal family of Kuwait, had alleged that a tenant Sanjay Punamiya had forcefully occupied the 6800 square feet flat he was residing, by forging agreement.
Essa (83) had approached the high court seeking either CID or CBI inquiry into the matter after the Marine Drive police and crime branch department refused to lodge FIR.
Punamiya had earlier lodged a complaint that Essa had threatened him at gunpoint.
Apart from seeking transfer of the investigation, Essa also sought quashing of the complaint filed against him claiming he has diplomatic immunity.
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A division bench of Justices S C Dharmadhikari and Gautam Patel today directed Essa to file a private complaint before a magistrate court against Punamiya.
"If the magistrate court finds merit in your complaint then you can seek transfer of the investigation there," the court said.
"Pending hearing of the petition, our order of July 31 granting interim relief of no coercive steps against the petitioner (Essa), will continue," the court said.