{"id":338675,"date":"2025-01-08T17:00:29","date_gmt":"2025-01-08T11:30:29","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=338675"},"modified":"2025-01-15T10:39:03","modified_gmt":"2025-01-15T05:09:03","slug":"karnataka-law-commission-stolen-gold-pledge-guidelines-karnataka-hc-legal-news","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/01\/08\/karnataka-law-commission-stolen-gold-pledge-guidelines-karnataka-hc-legal-news\/","title":{"rendered":"Karnataka HC urges State Law Commission to frame guidelines on issues surrounding pledging of stolen gold"},"content":{"rendered":"<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Karnataka High Court:<\/span> While considering the instant petition revolving around allegedly stolen gold articles that were pledged with the petitioner (Muthoot Finance); the bench of <span style=\"font-weight: bold;\">Suraj Govindraj, J*<\/span>., noted that innumerable matters are coming up before the Court where stolen gold had been pledged with a gold finance company. The Court opined that this aspect must be examined by the concerned authorities and proper guidelines must be formulated in relation to issues such as pledging of gold, ascertainment of ownership, identity of the person pledging the gold, implication of pledging stolen gold, manner of dealing with such gold when criminal proceedings are taken up etc.<\/p>\n<p style=\"margin-bottom: 3%;\">Therefore, the Court urged the Law Commission, Karnataka to investigate this matter and formulate necessary guidelines\/rules or the like as deemed fit.<\/p>\n<p style=\"margin-bottom: 3%;\">In the instant case, the petitioner knocked on the doors of the Court pleading that seizure of the gold pledged by its customers by the State Police, on the account that it was stolen, was arbitrary and violates fundamental rights guaranteed under Articles <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574870\" target=\"_blank\">14<\/a> and <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574926\" target=\"_blank\">19(1)(g)<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\">Constitution<\/a>. Counsel for the petitioner submitted that there is a right vested on account of the pledge of the said gold as a security and that security cannot be taken away on the ground that the gold was stolen; the ownership of the gold would have to be established by the person claiming it by way of an appropriately instituted civil suit.<\/p>\n<p style=\"margin-bottom: 3%;\">Considering the petitioner&#8217;s prayer and submissions, the Court opined that the petitioner being only a pledgee\/ pawnee would have only the right that the pledgee\/pawnee has in the said gold and the petitioner cannot claim any right more than that.<\/p>\n<p style=\"margin-bottom: 3%;\">The Court stated that the <span style=\"font-weight: bold;\">true owner of the gold cannot be deprived of the use of the gold, merely because the same is pledged with a gold finance company after being stolen<\/span> from such true owner. The Gold Finance Company is vested with a duty to carry out proper due diligence before accepting the gold as a pledge for a loan disbursed.<\/p>\n<p style=\"margin-bottom: 3%;\">Taking note of the innumerable matters of similar nature coming before the Court, the Bench opined that there is a requirement of proper guidelines to address the concerned issues; hence the Court urged the State Law Commission to do the needful in this regard.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\">Muthoot Finance Ltd. v. State of Karnataka, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/Gz04z2x8\" target=\"_blank\" rel=\"noopener\">2024 SCC OnLine Kar 2531<\/a>, decided on 31-12-2024<\/span>]<\/p>\n<p style=\"text-indent: 18pt;\"><strong><span style=\"color: #000080;\">*Order by Justice Suraj Govindraj<\/span><\/strong><\/p>\n<hr\/>\n<p>Advocates who appeared in this case:<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">Petitioner:<\/span> SRI. ANISH JOSE ANTONY., ADVOCATE<\/p>\n<p style=\"margin-left: 18pt;\"><span style=\"font-weight: bold;\">Respondent:<\/span> SRI. MOHAMMED JAFFAR SHAH., AGA<\/p>\n<h3 style=\"color: #000080;\">Buy Constitution of India &nbsp;<a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/s3.amazonaws.com\/ebcwebstore\/images\/the-constitution-of-india-coat-pocket-edition-Gopal-Sankaranarayanan-ebc-front-cover.JPG\" alt=\"Constitution of India\" width=\"300\" height=\"200\" class=\"aligncenter size-large wp-image-294438\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">Court noted that innumerable matters are coming up where stolen gold had been pledged with a gold finance company and this aspect must be examined by the concerned authorities and proper guidelines must be formulated in relation to issues such as implication of pledging stolen gold, manner of dealing with such gold when criminal proceedings are taken up etc.<\/p>\n","protected":false},"author":3,"featured_media":316069,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[77331,77335,28334,77336,8091,77333,46539,77334,77332],"class_list":["post-338675","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-gold-articles","tag-justice-suraj-govindraj","tag-karnataka-high-court","tag-karnataka-law-commission","tag-muthoot-finance","tag-pawn","tag-pledge","tag-pledged-gold","tag-stolen-gold"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.4 (Yoast SEO v26.4) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ 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Ltd. asked to reimburse of current value of gold pledged in Year 2003","author":"Sucheta","date":"July 15, 2016","format":false,"excerpt":"National Consumer Disputes Redressal Commission (NCDRC): While rendering relief to a woman who failed to procure back her gold ornaments from Muthoot Finance Pvt. Ltd., which were pledged while taking a loan, NCDRC directed the Finance Company to reimburse the woman with the current value of 52 grams gold pledged\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"National Consumer Disputes Redressal Commission","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/NCDRC_.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":275493,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/10\/13\/karnataka-high-court-issue-guidelines-prevention-fake-sureties-bail-solvency-certificate-aadhar-card-legal-news-and-updates\/","url_meta":{"origin":338675,"position":1},"title":"Karnataka HC issues guidelines for proper furnishing of surety for bail and prevention of fake sureties","author":"Editor","date":"October 13, 2022","format":false,"excerpt":"\u00a0 \u00a0 Karnataka High Court: While deciding the instant matter arising out of a fake surety for bail which had been created on the property of the petitioner, the Bench of Suraj Govindraj, J., keeping in mind the general importance of the issue laid down certain guidelines\/steps to be followed\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Karnataka High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":274819,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/10\/01\/karnataka-high-court-test-identification-parade-ordered-time-lapse-serves-purpose-high-court-answers-legal-news-and-updates-legal-research\/","url_meta":{"origin":338675,"position":2},"title":"Whether conducting a Test Identification Parade after a lapse of a long time, will serve any purpose or not? Karnataka HC answers in negative","author":"Editor","date":"October 1, 2022","format":false,"excerpt":"\u00a0 \u00a0 Karnataka High Court: While deciding the instant petition wherein an order of conducting a Test Identification Parade (TIP) after a gap of 11 years was challenged; the Bench of Suraj Govindraj, J., observed that after a period of 11 years, a person's memory becomes frail, therefore the identification\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Karnataka High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":208268,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/17\/bom-hc-conviction-under-section-380-ipc-upheld-on-basis-of-illustration-a-of-section-114-of-evidence-act\/","url_meta":{"origin":338675,"position":3},"title":"Bom HC | Conviction under S. 380 IPC upheld on basis of presumption under Illustration (a) of S. 114 of Evidence Act","author":"Bhumika Indulia","date":"January 17, 2019","format":false,"excerpt":"Bombay High Court:\u00a0The Bench of M.G. Giratkar, J. dismissed a revision petition against the judgment of Judicial Magistrate (First Class) whereby the petitioner was convicted for offences punishable under Sections 380 and 457 IPC. The petitioner was charge-sheeted for committing theft of gold ornaments and cash at night. As per\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":6523,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/01\/28\/complaint-alleging-anti-competitive-practices-by-12-banks-in-gold-loan-business-dismissed\/","url_meta":{"origin":338675,"position":4},"title":"Complaint alleging anti-competitive practices by 12 Banks in gold loan business, dismissed","author":"Sucheta","date":"January 28, 2015","format":false,"excerpt":"Competition Commission of India (CCI):\u00a0CCI has rejected an information filed by Muthoot Mercantile Ltd. alleging that 12 commercial banks including State Bank of India had entered into an anti-competitive arrangement to determine the price and control the gold loan business and formed a cartel for offering and marketing gold loan\u2026","rel":"","context":"In &quot;Tribunals\/Commissions\/Regulatory Bodies&quot;","block_context":{"text":"Tribunals\/Commissions\/Regulatory Bodies","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/tribunals_commissions_regulatorybodies\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":275104,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/10\/06\/karnataka-hc-fraud-no-case-client-advocate-unable-to-secure-favourable-order-litigation-legal-news-and-updates-legal-research\/","url_meta":{"origin":338675,"position":5},"title":"Karnataka HC | Clients cannot make out a case of fraud against their advocate just because advocate was unable secure them a favourable order","author":"Editor","date":"October 6, 2022","format":false,"excerpt":"Karnataka High Court: While deciding the instant petition seeking quashment of complaint against a Senior Advocate, wherein it was alleged that he was not able to obtain orders in favour of client (the complainant); the Bench of Suraj Govindraj, J., held that merely because a client did not succeed in\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Karnataka High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/09\/Karnataka-High-Court-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/338675","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=338675"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/338675\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/316069"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=338675"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=338675"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=338675"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}