New Delhi: Ruling in favour of the Nizam of Hyderabad’s heirs and the Indian government, the High Court of United Kingdom has ruled that Pakistan has no claim to the funds of the Nizam of Hyderabad transferred to its then high commissioner – which amount to around £35 million.The Pakistan foreign office on Wednesday said that it was examining the judgment and would “take further action in light of legal advice received”. The statement continued to assert the “illegality” of Hyderabad being incorporated into the Indian union.“The ruling does not take into account the historical context of the transfer when India illegally annexed Hyderabad in violation of International Law and all civilised norms, leading the Nizam of Hyderabad to make desperate efforts to defend his people and the state from Indian invasion,” said the press note released by the Pakistani foreign ministry.It further claimed that the then Nizam had approached the UN Security Council, “where the issue remains on the agenda on date”.The foreign office asserted the “Nizam as sovereign approached Pakistan for assistance which the Government of Pakistan provided”.On September 17, 1948 the Hyderabad army surrendered to the Indian army after a military operation that lasted 108 hours. Three days later on September 20, Nizam’s finance minister Nawaz Moin Nawaz Jung transferred an amount of over £1 million from Hyderabad government’s account in National Westminster bank to Habib Ibrahim Rahimtoola, who was then the high commissioner of Pakistan in London.The seventh Nizam, once known as the richest man in the world, had first initiated the proceedings against Pakistan in 1954. The House of Lords stayed the proceedings, “on grounds of Pakistan’s successful assertion of sovereign immunity”.Also read: The Last Nizam of Hyderabad, From Untold Riches to Total ObscurityIn 1965, Nizam VII appointed the capital and income from his interest in the fund to his two grandsons – his successor as eighth Nizam and latter’s younger brother, Prince Muffakham Jah. That year, the erstwhile ruler of Hyderabad also assigned his claim to the funds to the President of India.After a gap of 48 years, Pakistan initiated fresh proceedings by waiving her sovereign immunity. Pakistan’s 2013 case was against the bank for payment of the amount and consequently Islamabad for the first time expressed interest in the fund as a beneficiary. Pakistan claimed the funds – whose worth has increased to over £35 million over the years – on the grounds that the money was transferred to procure and transport weapons. Another argument for Pakistan’s claim to be a beneficiary was that the money was transferred in order to keep the amount out of India’s hands. The hearing dates before the High Court were over two weeks in June this year. Over four months later, Justice Marcus Smith delivered the judgment on October 2.He ruled that the fund was held by Pakistan through the its high commissioner to UK “In trust for Nizam VII and his successors in title”. “The Fund was not held by Rahimtoola personally, nor did either Pakistan or Rahimtoola have any beneficial interest in the Fund,” said the order.Pakistan had also forwarded two other further points for disputing the claimants. One, Islamabad contended that case was “non-justiciable” as the transfer was akin to “transactions of a governmental nature engaged in by two sovereign states in a political context”.Secondly, Pakistan also asserted the incorporation of Hyderabad was an “unlawful act” as per UN charter, 1947 India Independence Act and 1947 Standstill agreement.The High Court judge found that both these contentions did not hold water and accepted India’s argument that these are “analytically irrelevant”. Further, Justice Smith observed that it is a “fact of state” that Hyderabad is a part of India. Referring to UK’s recognition of accession of Hyderabad to India, he said that any stay on proceedings would have been “inconsistent with United Kingdom’s position regarding the status within India of the former State of Hyderabad, which status began in 1950.”India had also made a claim of restitution against both Pakistan and the bank. But, Pakistan had advanced that this demand was barred by the statute of limitations under UK law. However, both the claimants pointed out that it was Pakistan’s invocation of sovereign immunity that had led to the expiry of the viable period under the statute of limitations.“I find that Pakistan’s assertion of a defence of limitation is an abuse of the process of the court and order that the paragraphs in Pakistan’s statements of case asserting this defence be struck out. The Bank never pleaded a defence of limitation, and I find that a claim in restitution is properly maintainable against the Bank,” said the judgment.The High Court ruled that “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”.In New Delhi, the Indian government said that the UK High Court had “upheld the claims of India in the 70 years old £35 million fund that is being held by the National Westminster Bank in London”.The ministry of external affairs pointed out that the “wide-ranging judgement” was delivered 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”. It noted that as per the ruling, “India and the two grandsons of (seventh) Nizam were now entitled to have the Fund”.