In an important case both historically and legally, Pakistan sued India for losses resulting from the invasion and annexation of Hyderabad in September 1948.

After the invasion the Pakistani finance minister and other officials arranged for the transfer of approximately GBP1 million (at today’s value about GBP35 million) in the name of the High Commissioner for Pakistan in London.

The 8th Nizam of Hyderabad (whose was then said to be the richest man in the world) surrendered his authority to India but denied the transfer took place with his authority. A claim was brought in 1954 but was stayed by the House of Lords in England whilst negotiations took place to resolve the issue. These negotiations were unsuccessful and proceedings began again in 2013.

In March 2016 an Arbitration Tribunal in London found on the facts and the law in favour of Pakistan. There was good evidence in support of the claim which the court refused to enforce on a summary basis. The final decision is yet to be made.

(High Commissioner for Pakistan in the United Kingdom v National Westminster Bank (and various interveners))