Karnataka High Court Requests Law Commission To Frame Guidelines To Deal With Pledging Of Stolen Gold With Gold Finance Companies
1 day, 20 hours ago

Karnataka High Court Requests Law Commission To Frame Guidelines To Deal With Pledging Of Stolen Gold With Gold Finance Companies

Live Law  

The Karnataka High Court has requested the Law Commission, Karnataka to formulate necessary guidelines/rules in respect of stolen gold being pledged with gold finance companies, the implication of pledging such stolen gold and the procedure for dealing with it when criminal proceedings are initiated. Therefore, I request the Law Commission, Karnataka to look into this matter and formulate necessary guidelines/rules or the like as deemed fit.” The court said this while disposing of a petition filed by Muthoot Finance Limited which had moved the court questioning a notice issued by Begur Police Station to make available certain gold articles stated to be in the company's custody, which were claimed to have been stolen and pledged with the petitioner. On going through the record the bench said “The petitioner being only a pledgee/ pawnee would have a only right that the pledgers/pawner has in the said gold and the petitioner cannot claim any right more than that.” It said that during investigation, the Investigating Officer would be required to ascertain various aspects including the ownership of the gold in question and it is for the Court seized of the matter to decide as to in whose favour the gold has to be returned, if an application under Section 454 of the earlier Code of Criminal Procedure–now Section 500 of the BNSS, were to be filed. 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.” Accordingly it directed the petitioner to co-operate with the Investigating Officer and make available all the details relating to the pledge as also permit the inspection of the gold, which if required the Investigation Officer can take receipt of and deposit with the Court seized of the matter.

Finance Karnataka Court Gold Kar Matter Stolen Petitioner Stolen Gold  matter  karnataka  pledging  frame  stolen  high  finance  requests  gold  seized  law  court  officer  pledged  guidelines  petitioner

Discover Related