Pakistan incurs £11 million in legal costs after losing £35 million case to India

LONDON: Pakistan has incurred an estimated £11 million (Rs 101 crore) in legal fees in a losing battle to get its hands on £35 million (Rs 324 crore) stashed away in a

London

bank account since

Partition

.

London high court judge Justice Marcus on Thursday ordered Pakistan to pay the government of India £2.8 million (Rs 25 crore) by February 3, 2020 as interim payment for legal costs that India incurred in fighting for its stake in the £35 million cash pot and the remainder to the other winning parties.

In total, Pakistan was ordered to pay an interim payment of £5.8 million (Rs 53 crore) as 65 per cent of legal costs of parties on the winning side, which include the two grandsons of the 7th Nizam, the titular 8th

Nizam of Hyderabad

and his younger brother Muffakham Jah. The rest will be paid following a detailed costs assessment, if an agreement cannot be reached.

The total legal costs the winning side is seeking is just under £9 million (Rs 83 crore). India is seeking a total of £4.6 million (Rs 42 crore), the titular 8th Nizam's sought costs are £1.2 million (Rs 11 crore) and Muffakham Jah's sought costs are £2.8 million (Rs 25 crore). Pakistan also has to pay

National Westminster Bank

's costs of £367,387 (Rs 3.4 crore) which the bank has taken out of the £35 million fund.

The order on costs followed a high court ruling in October which was in favour of India and the titular 8th Nizam of Hyderabad and his brother in a case they had been fighting against Pakistan for six years relating to who has the rights to £35m stashed away in a National Westminster bank account since Partition.

On Thursday Edward Crossley, representing Pakistan, argued Pakistan only ought to pay India £1.5 million - instead of the £2.8 million India was seeking - as interim payment, as he said India's costs were unreasonably high. He also argued Pakistan should pay less to the other parties and could not pay India until February 3, 2020, whilst India wanted the payment by January 3, 2020.

Marcus wondered whether Pakistan needed longer to make the payments because of the Christmas break.

But Hodge Malek QC, representing Jah, said: "This case was never about money. It's more about state pride. They don't have Christmas in Islamic countries like Pakistan."

Crossley criticised India for spending £34k on an application to cross examine the former high commissioner of Pakistan Wajid Shamsul Hasan saying it "should have been straightforward."

But Pakistan refused to disclose its own legal costs to the court.

Paul Hewitt, partner at Withers LLP in London, representing the 8th Nizam, said, "This hearing brings this litigation, which started in 2013 but where the underlying dispute dates back to in 1948, to an end at long last. We are pleased that Pakistan has decided not to contest Mr Justice Smith's judgment. Our client His Exalted Highness the VIII Nizam will now have access to the funds which his grandfather, HEH the VII Nizam, intended him to have."