A ceremony transferring sovereignty of the British Indian Ocean Territory of the Chagos Islands to Mauritius was called off at the last moment after the High Court in London granted an injunction to islanders.

India on Thursday welcomed the UK's decision to hand over the sovereignty of Chagos Islands including tropical atoll of Diego Garcia to Mauritius under a historic deal.

Britain is set to conclude a multi-billion dollar deal over the Chagos Islands with Mauritius after a last-gasp injunction was overturned, allowing for the formal signing of the treaty that would secure the future of the U.