Nizam's London Fund case: No resolution in sight as of now

The 68-year-old issue of Nizam's London Fund is back in the news. This time because of a decision of the English High Court, which has stated that Pakistan too has a right over the 35 million pound sterling kept under lock at London's NatWest Bank. In fact, in its June 21 judgement, the court termed India's stand -- about Pakistan having no locus standi over the fund -- as not tenable.
This means that the case will now have to be sorted out between India, Pakistan and Prince Mukarram Jah, who succeeded the Seventh Nizam in 1967.
Let's look at this legal saga from the beginning.
It was a sombre September in Hyderabad in1948. The Stand Still Agreement between the independent government of India and the Hyderabad State had fallen apart. The Indian Army had launched its blitzkrieg.
Moin Nawaz Jung, foreign and finance minister of Hyderabad State, at the behest of his ruler Mir Osman Ali Khan, transferred 1 million pound sterling to Mir Nawaz Jung, agent general of Hyderabad State in Britain. Given the rapidly changing scenario at home and unaware of the potential use of that money Mir Nawaz Jung decided to seek Pakistan's help. He met the Pakistan high commissioner, Habib Ibrahim Rahimtoola, in London on September 16 and expressed his desire to hand over that money to him officially. The high commissioner was hesitant as the amount was huge and could further aggravate the already volatile Pakistan-India relations. It was only on the advice of foreign minister of Pakistan, Sir Mohammad Zafarullah Khan that Rahimtoola agreed. The money was, subsequently, deposited in his account in the NatWest Bank (then known as Westminister Bank).
According to Omer Khalidi, an internationally known expert on Hyderabad affairs, by September 20 the military of Hyderabad State had surrendered to the Indian forces and the rule of Mir Osman Ali Khan had come to an end. At this point, the Nizam issued a firman (royal decree) to withdraw the Hyderabad State petition against New Delhi from the UN Security Council and return home. While the Nizam also wrote to the bank to not allow any withdrawal from his account, by then 1 million pound sterling had already moved to Rahimtoola's account.
Over time the money swelled to 35 million pound sterling. It is believed that the bank is still investing that fund and making money out of it.
"Deeming it state funds, India, successor state claimed the fund and asked for its transfer in 1950, while Rahimtoola, now made his country's ambassador to France asked the money to be transferred to his London successor M A H Aspahani," Khalidi said, adding: "The bank refused citing the Nizam's instructions and Indian claim. It similarly rejected Indian claims too, as the Nizam had created a trust known as Nova Scotia Trust Company in Bahamas in the name of Mukarram Jah and Muffakham Jah, his grandsons. Rebuffed by the bank and the Nizam's move, India filed a suit in a London court. Judge Gerald Upjohn ruled in 1956 that the Nizam held the title to the money, not India, while Pakistan had no 'equitable title'. But, 'since he (the Nizam) could reach the debt only through Rahimtoola,' Pakistan had to be involved."
In November 1957 the House of Lords held Pakistan as the 'legal owner' of the fund without having 'the equitable title' or the 'beneficial interest,' which vested in the Nizam.
It all boiled to asking India, Pakistan and the Nizam to reach a settlement before the fund could be unlocked.
Realising the complexity of issue, Prime Ministers Pandit Jawaharlal Nehru in 1960, Morarji Desai in 1979, Atal Bihari Vajpayee in 2001 and Manmohan Singh in 2008 agreed to resolve the dispute through negotiations with Pakistan and the heir to the Nizam.
But somewhere down the line, India decided to edge out Pakistan from any settlement. That legal move resulted in the June 21 judgement.
Meanwhile, other members of the late Nizam's family have also laid claim to the fund. Their petition to implead in the case is pending with English High Court. They plan to move in, the moment India and Pakistan reach an understanding.
The latest twist in the narrative is the Telangana government's claim over the money as 'legitimate successor' of the Nizam's government!
But as things stand today, Pakistan will continue to fight India even as Prince Mukarram Jah and Prince Muffakham Jah remain in the fray. Against this background, when the fund case will be resolved is anybody's guess.