A UK court on Tuesday rejected India's plea to dismiss Pakistan's claim to the nearly Rs 350 crore under the Hyderabad Fund case, pushing the matter for a full trial.
In a release Pakistan Foreign Office said, “The English High Court rejected Indian attempt to strike out Pakistan's claim to the Hyderabad Fund, on 21 June 2016...India failed to persuade the Court that Pakistans position was untenable and that it could show no legal entitlement to the 35 million GBP sitting in a bank account in the name of the High Commissioner of Pakistan, since 20th September 1948.
“The Judge accepted that there was good evidence in support of Pakistan's claim to the monies, which needed to be fully considered at a trial.” However, External Affairs Ministry in New Delhi said, “pending trial or settlement of the matter, it is premature to reach any conclusion regarding ownership of the monies, especially as the present judgement readily acknowledges that there is much force in many of India's arguments to strike out Pakistans claim of ownership.” The Indian side also cited previous judgement in the case when Pakistan's subsequent application for discontinuance of the case was rejected by the same court in 2015 and India was also awarded substantial costs against Pakistan at that stage.
Known as the "Hyderabad Funds Case", the matter relates to transfer of 1,007,940 pounds and 9 Shillings to a London bank account in the name of the High Commissioner in the UK for the then newly formed state of Pakistan, Habib Ibrahim Rahimtoola, at the Westminster Bank (now Natwest) in 1948.
