Law Ministry Wants Fresh Moves Against Bank, Pak

India, Pakistan and heirs of the Nizam of Hyderabad are locked in a legal tangle over access to a huge amount of funds lying frozen in an account of NatWest Bank in England.

Now, the latest dispute is over Rs 310 crore of the Nizam’s money lying in a UK bank. The Indian government, after a failed out-of-court settlement attempt to resolve the dispute with Pakistan and a grandson of the Nizam in 2008, is likely to take up the matter next week as the legal tussle famously known as ‘Hyderabad Funds Case’ is being revived in the High Court Chancery in London after 57 years.

The Law Ministry in letters in December 2013 and January 2014 suggested instituting fresh proceedings against NatWest and Pakistan. The move came after the Pakistan High Commissioner on April 3, 2013 proposed to initiate a civil action against the bank for release of the money saying it has legal title over the Nizam’s money. But, on November 23, 2013 it again approached the court serving a notice of discontinuance of proceedings.

Notwithstanding Pakistan’s letter of discontinuance for withdrawing itself from the case, sources said India can directly get involved as a party because during the court proceeding initiated by Pakistan in November 2013. The heirs of Nizam also made claims over money and have sought to implead into the proceeding. The bank has also submitted an application demanding that India to be heard while deciding the issue.

“There are two options—first to persuade the bank to apply for setting aside Pakistan’s notice for discontinuance or institute a fresh proceeding against the bank as well as Pakistan and press for the matter to be heard on merits since Pakistan voluntarily moved court,” a source added.

Earlier, a proposal of the Union Cabinet to set up a trust to provide scholarships to students of both countries studying in UK was also shot down by heirs of Nizam arguing the money should be given to distressed members of the extended family. In fact, the Nizam’s grandson Nawab Najaf Ali Khan in 2012 had appealed to then Pakistan president Asif Ali Zardari to resolve the matter through out of court settlement but certain vexed issues related to distribution of money to private beneficiaries and two countries had stalled the process.

Source:www.newindianexpress