Nizam Of Hyderabad's Descendants Back In UK Court Over Historic Funds - News Tags

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Thursday, July 23, 2020

Nizam Of Hyderabad's Descendants Back In UK Court Over Historic Funds

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Descendants of the Nizam of Hyderabad returned to the London High Court on Wednesday to challenge a court order related to over £ 35m in a UK bank account.

In a ruling handed down in the London Courts last year, Judge Marcus Smith ruled in favor of India and eighth incumbent Nizam of Hyderabad and his brother, who had reached a confidential settlement in a decades-long legal dispute. antiquity with Pakistan on the funds belonging to the seventh Nizam of Hyderabad at the time of the Partition in 1947.

However, other descendants of the Nizam, Najaf Ali Khan, on behalf of 116 heirs to the seventh Nizam, attempted to challenge that decision this week by accusing the estate administrator of the seventh Nizam of "breach of trust".

Mr. Khan, who appeared remotely from India, told the court that the funds were improperly released to India and the two princes, Prince Mukarram Jah and his younger brother Muffakham Jah, and also alleged "chronic financial difficulties".

"I determined the actual ownership of that money at my trial in 2019 ... It is impossible to accept that it may have the right to reopen the process," said Judge Smith, dismissing Najaf Ali Khan's attempt to reopen the case.

However, the judge will continue to hear arguments on Wednesday and Thursday about allegations of wrongdoing by the administrator of the seventh Nizam estate.

Apparently, the administrator withholds around £ 400,000 of the surplus money after payments made to the state of India and the two princes based on their confidential agreement on the total funds.

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The arguments center on the legal costs accruing in the case, and Withers LLP, who has acted for VIII Nizam since Pakistan issued a trial in 2013, returned to court along with attorney James Brithwell who appeared on behalf of India.

"Nizam VII had the right to receive benefits from the Fund and those who claim the right of Nizam VII, the Princes and India, have the right to have the sum paid at their command," Judge Smith had declared in favor of the India and Princes Mukarram and Muffakham Jah in October 2019.

The dispute revolved around £ 1,007,940 and nine shillings transferred in 1948 from then Nizam of Hyderabad to the High Commissioner in Great Britain of the newly formed state of Pakistan. That amount had since grown in a London bank account to £ 35m, as Nizam's descendants, supported by India, claimed it belonged to them and Pakistan claimed it was rightfully theirs.

"Pakistan's claims of non-justiciability due to the foreign act of state doctrine and non-enforceability on the grounds of illegality fail," the High Court verdict concluded, dismissing Pakistan's claim.

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