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UK court rules in favour of India

Posted in World

Published on October 06, 2019 with No Comments

Dismisses Pak’s claim over Nizam’s funds

Royals joined hands with govt

  • The Nizam’s descendants, Prince Mukarram Jah — the titular eighth Nizam of Hyderabad — and his younger brother Muffakham Jah, joined hands with the Government of India in the legal battle against Pakistan for possession of over around £35 million
  • NatWest Bank plc in London has held on to the funds deposited into the London bank account of then Pakistan High Commissioner Habib Ibrahim Rahimtoola in safekeeping until its rightful legal owner is established



The UK High Court has ruled in favour of India and dismissed Pakistan’s claim over funds belonging to the late 7th Nizam of Hyderabad at the time of Partition in 1947 and now worth around 35 million pounds.

The ruling marks an important conclusion to the over 70-year-long legal dispute which also witnessed the Indian government, the descendants of the 7th Nizam and the administrator of his estate burying their differences and entering into a confidential settlement agreement last year, which meant the case was effectively an India-Pakistan clash in the British courts.

In his judgment handed down at the Royal Courts of Justice in London, Justice Marcus Smith ruled that the “Nizam VII was beneficially entitled to the Fund and those claiming in right of Nizam VII — the Princes and India — are entitled to have the sum paid out to their order”.

“Pakistan’s contentions of non-justiciability by reason of the foreign act of state doctrine and non-enforceability on grounds of illegality both fail,” the verdict noted, in a setback to Pakistan.

The dispute revolves around 1,007,940 pounds and nine shillings transferred in 1948 from the then Nizam of Hyderabad to the high commissioner in Britain of the newly-formed state of Pakistan. That amount has since grown into 35 million pounds as the Nizam’s descendants, supported by India, claimed it belongs to them and Pakistan counter-claimed that it is rightfully theirs.

Nizam’s grandson Nawab Najaf Ali Khan said they welcome the court verdict. 

“The court has rightly rejected Pakistan’s claim in favour of India, and the descendants of Nizam VII. The family has long awaited this judgment,” he said According to him, there are 120 legal heirs of seventh Nizam, Mir Osman Ali Khan. He hopes that the funds lying in NatWest Bank plc will be distributed among the legal heirs without further legal wrangling.



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