British court had given judgment against Pakistan’s age-old claim regarding a sum of 1 million pounds that was transferred in 1948 to Pakistan’s High Commissioner by the Hyderabad ruler for “safe-keeping”. Giving a judgment in favor of India, the British court said that the descendants of Hyderabad Nizam are the rightful owners of the money. The money, which has appreciated to 35 million pounds, is deposited in an account in the United Kingdom’s National Westminster Bank.
This legal battle was fought by Nizam Mir Osman Ali Khan’s descendants, Mukarram Jah – the titular eighth Nizam of Hyderabad and his younger brother Muffakham Jah, along with the government of India.
“Nizam VII (Mir Osman Ali Khan) 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,” Justice Marcus Smith’s order ruled. The order also stated, “Pakistan’s contentions of non-justiciability by reason of the foreign act of state doctrine and non-enforceability on grounds of illegality both fail”.
In 2013, Pakistan made a claim that Pakistan government is the owner of the money as the money was transferred a compensation for the weapons provided by then Pakistan government to the Nizam of Hyderabad before the annexation of Hyderabad princely state in 1948 but the judge stated that no evidence is present supporting this claim of Pakistan and as a result of this Pakistan lost 35 million pounds to India.