Ruled in favour of Dr. Devidas R. Sheregar and others (Appellants)
In Short
A group of doctors invested hard-earned money in a property project, but the builders failed to deliver the promised premises and tried to sell the land to someone else while keeping the funds for over two decades. The Bombay High Court stepped in, setting aside an earlier dismissal and granting strong protection to the doctors to preserve the property until arbitration finishes.
The Parties
Party A: Dr. Devidas R. Sheregar, Dr. Alka Jain, Dr. Manoj S. Aithal, Dr. Suresh Shetty, and Dr. Shishir Shetty (Partners of M/s. Sanklan Hospital)
Party B: Zeenal Constructions Pvt. Ltd., Prakash Barot, Jayantilal Kewal Chand, Dhanesh Kantilal Tejawat, Babulal Devraj Jain, and Sadashiv Pranavshankar Dave
Advocates & Judges
For Party A: Learned Advocate Mr. Bahraiz Irani, Learned Advocate Mr. Amit Padwal, Learned Advocate Mr. Anosh Irani, and Learned Advocate Mr. Afrin Dalal
For Party B: Learned Advocate Mr. Gaurav Mehta, Learned Advocate Mr. Sahil Wagh, Learned Advocate Mr. Aseem Naphade, and Learned Advocate Mr. Y.S. Shukla
Judge(s): Hon'ble Justice A. S. Gadkari and Hon'ble Justice Kamal Khata
What the Case Was About
Back in June 2005, a group of doctors invested sixty lakh rupees with a construction firm for commercial premises that were supposed to be built within twenty-four months. The builders never got the required building permissions, failed to construct anything, and refused to return the money while trying to secretly sell the land to third parties behind the doctors' backs. When a lower court refused to freeze the property, the doctors appealed to the High Court to protect their rights.
Judgment Date
21 October, 2026
The Outcome
The court ruled in favour of the Appellants, allowing their appeal and granting the protective orders they requested to stop any third-party transfers of the property.
What the Court Looked At
- The court noted that the builders received sixty lakh rupees under a 2005 agreement and failed to return the money or deliver the commercial premises.
- The court observed that the builders failed to obtain necessary building permissions, meaning the legal time limit to file claims had not expired.
- The court found that the builders were actively trying to transfer the land to third parties, which would completely ruin the doctors' chances of getting their promised premises.
- The court pointed out that the builders used the doctors' money interest-free for over twenty-one years and tried to falsely claim the agreement had ended.
- The court stated that the builders attempted to play fraud and cheated the group of doctors from the very beginning.
"In our view, the Appellants, who are a group of doctors by profession, had together invested their hard-earned money with the Respondents, who continue to use the monies of the Appellants interest free for over 21 years..."
What This Means For You
This case shows the extreme danger of letting real estate developers sit on your money for years without delivering results or signing registered deeds. The doctors nearly lost their entire investment because the builders tried to sell the underlying land out from under them while offering tiny settlement amounts. If you are stuck in a stalled property deal where the builder refuses to refund your money or hands over possession, do not wait decades while empty promises are made. Take prompt legal action to secure court orders protecting the property before the developer sells it to someone else. Setback Solutions can help you understand your options and coordinate next steps in plain language.
You Still Have Options
If you are facing a stalled property deal, lost your hard-earned money to a builder who won't refund you, or feel trapped in a bitter civil dispute, please know that it is not the end of the road. You can still explore options such as seeking a second opinion, changing your legal strategy, or pursuing non-judicial guidance. Reach out to Setback Solutions for help understanding your options and coordinating the next step. Please note that Setback Solutions is not a law firm and does not provide legal advice or guarantee any outcome.