Hyderabad fund case: UK court rules on legal battle between India, Pakistan

LONDON: The UK High Court gave its ruling on Wednesday in a decades-old legal battle between Pakistan and India, rejecting Islamabad's claims to an amount of £35 million in the case involving the Nizam of Hyderabad at the time of partition.

The Nizam's descendants, Prince Mukarram Jah, the eighth Nizam of Hyderabad and his younger brother Muffakham Jah, joined hands with the Indian government in the legal fight against the Pakistan government over the £35 million funds lying with NatWest Bank in London.

The original amount was about £1,007,940 - transferred in 1948 from the then Nizam of Hyderabad to the high commissioner in Britain after Pakistan came into being. The amount has since sat in the Natwest Bank and its value, accruing interest, has increased to around £35 million in around 70 years.

The judgment says £35 million - belonging to Nizam of Hyderabad at the time of partition in 1947 and given to Pakistan for safe-keeping in Natwest London bank account – belongs to India/heirs of Nizam.

Pakistan Foreign Office 

Commenting on the verdict, Pakistan Foreign Office said the judgement rejects the longstanding claims of the two major parties and upholds the claims of the heirs of Nizam of Hyderabad

Pakistan has taken note of the judgment by the High Courts of Justice of the UK in the Hyderabad Fund Case, today, after a two weeks trial in June 2019, said Foreign Office on Wednesday.

It said the judgment rejects the longstanding claims of the two major parties and upholds the claim of the heirs of Nizam of Hyderabad.

"The ruling does not take into account the historical context of the transfer when India illegally annexed Hyderabad in violation of International Law and all civilized norms, leading the Nizam of Hyderabad to make desperate efforts to defend his people and the state from Indian invasion," said the statement issued by the Foreign Office.

The Nizam also raised the matter with the UN Security Council where the issue remains on the agenda to date. The Nizam as a sovereign approached Pakistan for assistance which the Government of Pakistan provided.

Pakistan is closely examining all aspects of the detailed judgment and will take further action in light of legal advice received.