Hyderabad's accession and a case India-Pak fought for 70 years in the UK

After 70 years of proceedings, the court upheld the Indian government's claims and ordered Pakistan to pay the money due to India and the descendants of the last Nizam of Hyderabad, Mir Osman Ali Khan

In 1948, the last Nizam of Hyderabad, Mir Osman Ali Khan, deposited 1 million pounds in a bank account at the National Westminster Bank. Then-Pakistan high commissioner Habib Ibrahim Rahimtoola held the account. Rahimtoola had agreed to keep the amount safe with him in "trust."

The deposit was made shortly before India launched "Operation Polo" to liberate Hyderabad. After the annexation, the Nizam signed the instrument of accession with India and became a part of the country, like several other princely states.

However, Pakistan refused to give back the money to Khan.

By 2019, the money had turned to 35 million pounds or Rs 324 crore, due to the interest accrued.

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Khan's descendants, Muffakhan Jah and Mukarram Jah, then approached the High Court of England and Wales to claim the money. The Indian government fought the case along with the descendants of Nizam against the Pakistan government. 

After 70 years of proceedings, the court upheld the Indian government's claims and ordered Pakistan to pay the money due. 

"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 because of the foreign act of state doctrine and non-enforceability on grounds of illegality both fail," the court order read.

Following the judgement, the ministry of external affairs said, "The Court has issued a wide-ranging judgment today after analysing documentation going back more than 70 years and embracing the law of constructive and resulting trusts, unjust enrichment, foreign act of state, illegality and limitation of actions."

In December 2019, the court ordered Pakistan to pay India and the princes 65 per cent of their legal costs in connection with the case.

Muffakham Jah was to be given 1.8 million pounds, Mukarram Jah was awarded 795,064 pounds, and the government of India was to get 2.8 million pounds from Pakistan.

In 1947, India was partitioned into two independent countries, India and Pakistan. Khan did not want to accede to India. However, after an armed rebellion by Razakars, the Indian Army entered the state and annexed it in 1948