In a significant development, the Indian Bank Main Branch in Rajkot has agreed to pay more than ₹1.32 crore as compensation to a couple after gold jewellery pledged with the bank went missing. The settlement brings an end to a long dispute between the bank and the couple.
Gold pledged for loan
According to the details of the case, Sangeeta Shah and her husband Shyam Shah had taken loans from the bank several years ago. As security for the loans, they pledged their gold jewellery with the bank.
However, while the jewellery was kept in the custody of the bank, two packets of jewellery linked to their loan accounts went missing. This led to a serious dispute between the couple and the bank.
How Gold Loan Works in Banks
Couple approaches High Court
After several attempts to resolve the issue directly with the bank failed, the couple decided to seek legal help. They approached the Gujarat High Court through their advocate Nimit Shukla.
During the proceedings, the bank later acknowledged that the jewellery had been lost. It also filed an FIR against unknown persons regarding the missing jewellery.
Dispute over loan classification
At one stage, the bank attempted to classify the loans as Non-Performing Assets (NPA) due to non-payment. However, the couple challenged this action in court because the pledged gold—meant to secure the loan—had gone missing while in the bank’s custody.
After the legal proceedings and discussions, both sides decided to settle the matter outside court.
Compensation details
As part of the settlement:
- Total compensation approved: ₹1,32,52,746
- Loan amount adjusted: Around ₹43.16 lakh (outstanding principal of two loans)
- Remaining amount to be paid: ₹89,36,746
After adjusting the loan amount, the bank also issued a No-Dues Certificate to the couple, officially clearing their loan liabilities.
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