PLIH: Consent terms

Citing clause 32 in the Bombay Parsi Punchayet (BPP) trust deed which states the decision of the majority of trustees is binding, senior counsel Iqbal Chagla argued the two dissenting trustees’ petition before the Bombay High Court was "a breach of trust for which action should be taken against them.” Four of the seven trustees had approved consent terms between the BPP and the Managing Committee (MC) of the Parsi Lying-In Hospital (PLIH) pertaining to the lease of the property to Krimson Health Ventures Private Limited for redevelopment. One had abstained. A super specialty orthopedic hospital is proposed to be constructed in place of the defunct maternity facility. BPP chairman Dinshaw Mehta and BPP trustee Armaity Tirandaz are opposing the compromise while trustee Muncherji Cama states he was not consulted on the final proposal and wanted a discussion on the terms. Mehta’s lawyer senior advocate Chirag Balsara alleged better offers were made and that one of the PLIH’s trustees was a business partner of one of developers (their wives were business partners — editors).

Parsi Lying-In Hospital Photo: Jasmine D. Driver

The matter is before Justices R. V. More and Anuja Prabhudessai. More noted that the Court was concerned with the trusts realizing the fair market value of the property. Chagla argued that the petitioners had been given four years to come up with a better offer but had failed to do so. Balsara claimed better offers were received from Breach Candy Hospital and Dr Keki Turel. Lawyer Navroz Seervai appearing for the respondents alleged no offers were received. At Balsara’s request the justices granted them a week to produce the other offers for the court to judge their merits. "The skies won’t fall if a week’s adjournment is given,” argued Balsara jocularly stating he was borrowing Seervai’s oft used expression. Seervai objected saying he had copyright!
Chagla noted the Krimson offer comprised a one crore rupees minimum lease income after 18 months, a two crore deposit, "50 beds to be made free of cost” to Parsis, and 2,500 square feet of space or more to be given to the BPP depending on the floor space index granted. The BPP has been served with an eviction notice by their landlords, the Sir Jamsetjee Jejeebhoy Parsee Benevolent Institution. That matter is being heard in the Small Causes Court.
Amongst those present for the hearing were Mehta, BPP trustees Khojeste Mistree and Yazdi Desai, PLIH MC members Yezdi Bhagwagar, Noshir Dadrawala and Kersee Randeria. The next hearing is before a new bench on March 24, 2015.On March 17, 2015, the BPP trustees and the PLIH MC are reportedly meeting to try and resolve differences.