Families from the Chagos Islands exiled by the British government 30 years ago to make way for a US military base have won a High court battle paving the way for their return to "paradise".

The Chagos Islanders were forced to leave their island home in the mid-1960s and early 1970s because the Americans wanted to build a major airbase on one of the islands, Diego Garcia.

The High Court ruling today overturned measures introduced by the British Government under Royal Prerogative to prevent their return. It also ruled that the actions had been unlawful.

Lord Justice Hooper and Mr Justice Cresswell ruled that the order preventing the islanders from returning was concerned with the interests of the UK and US but failed to properly take into account the interests of the island territory.

While the ruling is subject to appeal, it could finally mean the islanders win the right to return to their homeland.

Lawyers had argued that they should be allowed to go back to other islands in the Chagos archipelago as they can no longer live on the main island of Diego Garcia, which has been leased to the US military.

Members of the Chagos community cheered and gave victory signs as they left the court.

Solicitor Richard Gifford said: "The British government has been defeated in its attempt to abolish the right of abode of the islanders after first deporting them in secret 30 years ago."

He added: "This is now the fourth time in the last five years that Her Majesty’s judges have deplored the treatment inflicted upon this fragile community of loyal British citizens."

The leader of the Chagos Refugee Group Olivier Bancoult declared: "It is a special day for us."

Asked if he would now go home, he said: "Yes, of course. We will go as soon as we can. We will all go. This is a very big historic moment."

Some 2,000 residents of the Chagos archipelago were removed when Britain leased the largest island, Diego Garcia, to the US to use as a military base at the height of the Cold War.

The islanders have estimated that more than 1,000 people were forced to go to Mauritius and the Seychelles. Many found it hard to settle and became impoverished. A number committed suicide.

In 2000 a court ruled the expulsions were illegal, but in 2004 their return was prevented by government order. In late 2005 the islanders went to the High Court to try to get that ruling overturned.

Sir Sydney Kentridge QC, said there was no known precedent "for the lawful use of prerogative powers to remove or exclude and entire population of British subjects from their homes and place of birth."

He went on to describe the treatment of the Chagos Islanders as "outrageous, unlawful and a breach of accepted moral standards."

But John Howell, QC, appearing for the Foreign Office argued the government had acted within its powers. It did not accept that any residents of the territory were unlawfully removed or excluded in the period 1965-1973, he told the court.

Last month a US federal appeals court ruled last month that it was powerless to grant compensation to the island’s former inhabitants.

It is currently estimated that, of the islanders who were originally moved out, up to 500 are still alive.

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