Gold pledged for loan stolen in bank robbery: How borrower won case for full value
So, what happens if gold jewellery pledged against a gold loan is stolen from the bank? For a borrower, the loss can raise a bigger question than simply recovering the value of the gold. Should the bank pay only for the metal, or should the compensation also cover making charges and the value of stones?
A Tumkur man in Karnataka challenged his bank after his gold jewellery was stolen during a bank robbery. The borrower had taken out two gold loans in 2017, pledging two separate gold items for each account. When the jewellery was stolen from the Canara Bank branch in July 2018, the bank offered to pay the current market value of the gold.
However, the borrower demanded compensation for making charges and the value of the gemstones, claiming 20% for making charges and 3% for the stones. After losing the case in a District Commission, the borrower appealed to the Karnataka State Disputes Redressal Commission, which upheld the initial ruling, ordering the bank to pay an additional Rs 88,362 in compensation, plus interest and litigation expenses.
The State Commission concluded that the bank must fulfill its duty to settle the full value of the jewellery, including making charges and stone value, even if it was lost due to theft.
Written by urgent.news from Times of India's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
