The order was delivered by a division bench of Justice D Y Chandrachud and Justice R D Dhanuka allowing the appeal filed by Ferrani Hotels against the order of Justice Roshan Dalvi delivered in July 2010 in Wadia's favour.
Rahejas and Wadia are embroiled in a legal battle over a commercial-cum-residential project on the Malad plot owned by late E F Dinshaw and valued at Rs 22,000 crore.
Wadia, who had been appointed administrator of the plot, had entered into an agreement with Ferrani Hotels in January 1995 for development of the plot. Under the agreement, Wadia was entitled to 12 per cent sale proceeds of all the constructed area.
Wadia, however, moved court in 2008, alleging that the Rahejas had fraudulently showed a sale price much lesser than the prevailing market rate, as a result of which he received less than 12 per cent share of the sale price. He sought orders restraining the firm from proceeding with the project and demanded Rs 1,370.06 crore towards damages.
Hearing the parties, the bench today appointed a commissioner to record evidence and also asked the Rahejas to deposit 12 per cent of the future sale proceeds in a designated bank to ensure that Wadia's interest was protected to the extent of agreement he had earlier entered with the other side.
The high court also directed the trial judge to first decide within three months the issue if Wadia's suit against Rahejas was barred by the law of limitation.
The court had last week asked both the parties to settle the dispute amicably, however, nothing transpired between the two sides. (More)
