New Delhi, Aug. 20 -- If jewellery pledged against a gold loan is stolen while it is in the lender's custody, can the borrower claim only the value of the gold, or can they also seek compensation for making charges and the value of stones? A recent ruling by the Karnataka State Consumer Disputes Redressal Commission has provided clarity on the issue, ruling in favour of a borrower whose jewellery was robbed from a Canara Bank branch.

The case involved a borrower from Karnataka's Tumkur who opened two gold loan accounts with a Canara Bank branch in August 2017. He pledged two gold items against each account and took a loan of Rs.1.5 lakh under each account. The jewellery pledged for the first loan weighed 120.80 grams, while the jewellery...