Lodha-Indiabulls row: High court sets aside appellate body’s order

MUMBAI: The Delhi high court on Thursday set aside an appellate authority’s order passed on December 16 that restrained Indiabulls Real Estate from creating any third-party rights on 8-acre plot of Bharat Mill at Worli in the city.

On Wednesday Indiabulls had filed a petition against the Appellate Authority for Industrial and Financial Reconstruction ( AAIFR) order that had asked the parties including National Textiles Corporation, which e-auctioned the property, to maintain a status-quo.

The Delhi high court also directed that the final hearing of the appeal filed by Lodha be conducted by the appellate authority and all issues raised by the parties be considered fully at the said hearing.

“After hearing the petition at length for over an hour, the honourable high court provided Lodha two options, either agree to set aside the AAIFR’s December 16 order, or the court will set it aside with reasons,” said Mukul Rohatgi, Indiabulls’ counsel.

Indiabulls further argued that the Lodhas had already withdrawn from the tendering process by seeking the refund of their earnest money deposit in September 2010 and hence they had no locus before the Appellate Authority for Industrial and Financial Reconstruction.

“Indiabulls made certain insinuations against the members of the AAIFR who were not a party before the Delhi high court and hence could not express their views. In the interest of justice and to ensure that that the orders in the matter are not allowed to be tarnished in the guise of such insinuations, both parties (Lodha and Indiabulls) consented to the interim order dated 16th December 2010 passed by the AAIFR being set aside and the entire matter being heard finally by the AAIFR,” Lodha Developers said in a statement.