The Conservatives have lost an £8.3 million bequest after a court ruled that the donor was not of sound mind when he made his will.

Founder of pharmaceutical company Transtrade UK, Branislav Kostic, who died at the age of 80 in 2005, had left his entire estate to the Tories, after changing his will in the 1980s.

Mr Kostic, who was born in Belgrade in Serbia, had made the will after describing then Prime Minister Margaret Thatcher as the "greatest leader of the free world in history", who would save the world from "satanic monsters and freaks".

However, Mr Kostic's son Zoran, 50, had argued that his father was "deluded and insane" at the time of making the will. He said that he had become mentally ill in 1984, being diagnosed with paranoia, and had become convinced that his son and other members of his family were part of a conspiracy who were trying to kill him.

The Conservatives had argued that Mr Kostic had been estranged from his son and did not want him to inherit his estate.

However, Mr Justice Henderson ruled in favour of Zoran and said he would not have left the money to the Tories if he had been "of sound mind".

Mr Justice Henderson upheld a will made in 1974, which left the entire estate to Zoran.

(KMcA)