Hospital’s managing committee and Bombay Parsi Punchayet, which had been warring over the heritage building since 2011, have reached a settlement.A three-year tussle between the Bombay Parsi Punchayet (BPP) and the managing committee of south Mumbai’s Parsi Lying-In hospital (PLIH) has finally come to an end, making way for a new state-of-the-art orthopaedic hospital.The century-old Parsi Lying-In hospital, spread over an area of 17,000 sq ft in Fort, will now be restored and converted into a new super specialty hospital at an estimated cost of over Rs 100 crore.The BPP and PLIH managing committee have been sparring since 2011 after the latter entered into a lease agreement with a health service agency called Krimson Health Ventures for an exclusive orthopaedic super specialty hospital. BPP trustees were of the view that the managing committee did not have any right to lease the property, due to which the matter went into litigation.Last week, however, advocates of both parties told the High Court that they have reached a settlement and they are working on the terms of consent.Confirming the development, PLIH managing committee member Kersi Randeria said, “The court has asked both parties to submit the terms of consent on May 2. Consent term drafts are currently being exchanged between both sides.”According to the agreement, the health service company has agreed on a minimum guaranteed lease rental of Rs 1 crore per annum and an additional security deposit of Rs 2crore.The hospital, a grade 2B heritage structure, has been lying vacant for more than 25 years. Started as a maternity hospital in 1895, the prime property has been eyed by many, including the neighbouring Cathedral and John Connon School, which had made an offer of over Rs 35 crore a few years ago.Several real estate groups and medical service providers have also shown interest in the property. Sources from the community said the deals never worked out, mainly because of the fear that the Parsis will lose out on the benefits.The orthopaedic hospital plan was, however, considered feasible by the managing committee, given that 10 per cent out-patients and 10 per cent in-patients from the community were provided with free treatment.The hospital has seen the birth of many Parsis till the 1960s. Now a dilapidated structure, the hospital cannot be pulled down owing to its heritage tag. “It can only be restored. As far as they put the place to some good use, I will be happy,” said a community member who was born in the hospital.Originally envisioned to be a 120-bed facility, the hospital may now have up to 70 beds due to new height restrictions. Renowned doctors such as Dr Arun Mullaji, Dr Sonu Ahluwalia and Dr Alok Sharma will be on board.“It will be a destination hospital for orthopaedic, spine and sports medicine. The hospital will have the best of facilities as well as the doctors,” said Dr Prakash Khubchandani of Krimson Health Ventures.BPP chairman Dinshaw Mehta said the terms of consent were being discussed. “Nothing has been finalised as yet. For example, we have demanded 10,000 sq feet in the property for an office but they have agreed to give us only 2,500 sq ft. The discussions are still on,” he said.