Mrs. Sujata V. Manohar, J. - (1.) On 21st of March, 1953, the Nizam of Hyderabad, Sir Mir Osman Ali Khan, executed a deed of trust under which he settled certain jewellery and other properties on trust for the benefit of Sahebzadi Oalia Kulsum, his grand daughter for life and thereafter for her children and their children for life etc. and ultimately for the maintenance of a holy shrine. On the same date, he also executed a deed of trust in favour of his daughter-in-law, Sahebzadi Anwar Begum, the wife of second Prince Muazzam Jah. The terms of the two trust deeds are similar. For the sake of convenience, we are referring only to the trust deed executed in favour of Sahebzadi Oalia Kulsum.
(2.) Under the deed of trust, the settlor who was a Muslim, created a trust in respect of certain jewellery and ornaments and other properties for the benefit of his grand daughter Oalia Kulsum who was given a right to wear the jewellery after her marriage or on completing the age of 30 years whichever was earlier. She was allowed to wear the jewellery and ornaments during her lifetime and after her death the trustees were directed to sell the ornaments and invest the sale proceeds, thus turning them into an income yielding investment. A further direction was given to the trustees to pay the income to the children of Oalia Kulsum or remoter issue of Prince Muazzam Jah Bahadur from generation to generation in the ratio of two shares for male and one share (for) female heirs. In the absence of the contingencies mentiond above, the income was directed to be paid to remoter issues of Prince Muazzam Jah Bahadur from generation to generation in the ratio of two shares for male and one share for female. On the death of the last survivor of the persons entitled to the net income of the fund, the income was directed to be utilised for the benefit of the holy shrine at Khum in Iran. Thus the trust was in the nature of a Wakf-alal-aulad. In fact the recital in the trust deed is to the same effect: "AND WHEREAS out of natural love and affection which the settlor bears towards his relatives hereinafter mentioned and for diverse other good causes and considerations him (sic) thereunto moving he the settlor is desirous of making a settlement and wakf-ul-aulad in the name of the most merciful God in respect of the said articles specified in the First Schedule hereunder written . . . . . . for the purpose of the maintenance and support of the members of his family and his descendants and ultimately for the religious and charitable purposes hereinafter mentioned in the manner hereinafter appearing. . . . . ."
(3.) Pursuant to the deed of trust the jewellery and ornaments and certain other properties were transferred by the settlor as a wakf.;