Slight encroachment of plot of land - Unintentional 35 years ago

Hi Kanoon Team, I need clarification on a matter which may be potentially a dispute but then I am not sure, so asking you. We have a house in Hyderabad, Telangana which was constructed 35 years ago. While constructing we encroached slightly into our neighbors'' plot which was purely unintentional, it happened due to a mistake made by the main Mason (contractor). The encroached land amounts to a few square yards in the shape of a triangular pie. The compound wall constructed went a little crooked instead of perfectly straight. At that time, we had arguments with the next door neighbor about this. We bore the entire cost of construction of the wall but as per rules the neighbor had to share the cost. Secondly we did offer him the compensation for the small wedge of land at the land price prevalent during that time. Not only did he not accept our offer of compensation, he went against Municipality rules to construct his own house without leaving any space between his house and the compound wall which he shared with us. Now my queries against this background are as follows. 1) Does this matter have a legal standing after 35 years. Does it even qualify as a dispute that is admissible in court? 2) Both ours and his construction plans were sanctioned by the municipality at that time. Given this can our neighbor still go to court and challenge this and ask us to bring down the wall and reconstruct. This will actually mean he has to tear down a part of his house and we only need to bring down the compound wall. 3) If he does go to court with this, does he have anything in his favour which will lead to us compensate him or is it the other way around? Kindly let us know