UK court orders Pakistan to pay millions of pounds in decades-old Hyderabad Fund Case

• Royal Courts of Justice in London, Justice Smith concluded that Pakistan must pay the other parties 65pc of their legal costs.
• Back in October, Pakistan lost the Hyderabad Fund Case after a UK High Court ruled in favour of India.

A UK High Court judge has ordered Pakistan to pay millions of pounds in legal costs, after it ruled in favour of the Nizam of Hyderabad in a decades-old Hyderabad Fund Case legal dispute with Pakistan over funds belonging to the Nizam of Hyderabad at the time of Partition in 1947.

As per media reports, the Royal Courts of Justice in London, Justice Smith concluded on Thursday that Pakistan must pay the other parties 65 percent of their legal costs on account, with detailed assessment to follow if agreement is not reached on the final amount.

Today's hearing brings this litigation, which started in 2013 but where the underlying dispute dates back to in 1948, to an end at long last, said Paul Hewitt, partner at Withers LLP, the law firm which acted for the eighth Nizam.

Pakistan has decided not to contest Mr Justice Smith's judgment, which will allow the VIII Nizam of Hyderabad to have access to the funds.

As part of the legal costs order, GBP 367,387.90 is related to the costs of NatWest Bank, which has held the funds over 70 years. While the bank's costs have already been paid from the Fund itself, Pakistan would be reconstituting the fund in respect of those costs.

Under the 65 per cent costs covered by the court order, India is entitled to around GBP 2,802,192.22, Prince Muffakham Jah to GBP 1,835,445.83 and the eighth Nizam of Hyderabad Prince Mukarram Jah GBP 795,064.63.

Back in October, Pakistan lost the Hyderabad Fund Case after a High Court in United Kingdom ruled in favour of India. The case had been under proceedings for the last couple of years.

The case pertains to $39 million that were transferred to Pakistan by the then Nizam of Hyderabad Osman Ali Khan before its forcible occupation by India. The hearing of the case commenced in 2012 when India laid claim to the money which was deposited in a bank account in the name of High Commissioner of Pakistan since September 20, 1948.

The case opened after the then High Commissioner of Pakistan Wajid Shamsul Hassan waived immunity in the matter.