The court established that the bank's sale of the gold necklace without proper authority was illegal and ordered compensation for the petitioner.

JUDGMENT :

1. The instant writ petition has been filed by the Petitioner seeking a direction upon the Respondent Nos. 3 and 4 to return back the Petitioner’s gold ornament (gold necklace) weighing 28 grams by debiting an amount that may be due towards the loan from the Petitioner’s Saving Bank Account or by accepting cash deposit of an amount of Rs.18,556/-as claimed by the Respondents through their letter dated 16.07.2020 and in the alternative if the gold ornament is transferred to anybody by way of sale or otherwise, pay compensation of an amount of Rs.2,00,000/-towards the cost of the gold ornament and Rs.1,00,000/-towards solatium totaling to Rs.3,00,000/-. Further to that, the Petitioner has also sought for a direction upon the Respondent Nos. 1 and 2 to make a proper enquiry into the matter.

2. The facts involved in the instant case as would be apparent from a perusal of the pleadings and the materials on record are that the Petitioner had a Savings Bank Account with the State Bank of India, Badarpur IE Branch bearing Account No.31480503313. Sometime in the month of June, 2017 the Chief Manager of the Badarpur Branch of the State Bank of India i.e. the Respondent No.5 informed the Petitioner on a query being made that an easy loan from the Bank can be availed under the existing gold loan scheme. The Petitioner at that point of time being in need of money agreed to take a loan by depositing a gold necklace. The Petitioner duly deposited a gold necklace weighing 28 grams. The Respondent No.5 got the said gold necklace weighed through an authorized agent and after having found that the said gold necklace weighed 28 grams and was of a value of Rs.61,600/-, offered the Petitioner an amount of Rs.25,000/-to be recovered @Rs.1,000/-per month from the Petitioner’s Savings Bank Account. The expenses incurred by the Bank towards weighing of the gold necklace and the value thereof assessed, was also charged from the Petitioner. Thereupon a Memorandum was prepared which was duly signed against the said gold loan bearing (MC-DL Gold Loan Agri) Account No.36952039358 on 15.06.2017.

3. This Court finds it very pertinent to take note of Annexure-A to the writ petition which shows that the Respondent No.5 under his signature has certified about the details of the necklace of 18 carat gold weighing 28 grams which was kept as a security against the loan of Rs.25,000/-. It was further mentioned by the Petitioner that periodically an amount of Rs.1,000/-was debited from the Petitioner’s Bank Account against the said gold loan and was credited to the Loan Account No.36952039358.

4. On 02.05.2020 during the period of national lockdown declared by the Government, a letter dated 05.03.2020 was received intimating that the interest along with the principal towards the gold loan of Rs.25,000/-were not paid to the account as per the terms and condition as promised and hence the amount of loan account was overdue. The Petitioner was informed to immediately arrange to deposit a sum of Rs.20,611/-in the loan account towards the overdue installments in order to regularize the loan account within 15 days from the date of the said letter. It is categorically mentioned in the writ petition that though the letter was dated 05.03.2020 yet from the postal envelope, it is seen that it was posted 28.04.2020 at 12:16 PM and there is also an endorsement dated 02.05.2020 of the postal department.

5. Another letter dated 28.06.2020 was received by the Petitioner wherein the Petitioner was asked to deposit a sum of Rs.32,031/-in the loan account towards overdue of installments in order regularize the loan account. The envelope as well as the postal receipt in respect to the said letter however showed that the said letter was posted on 03.07.2020 and there is also an endorsement of the postal department dated 20.07.2020. It is however relevant to take note of that at that relevant point of time when the Petitioner received these documents, the entire country was un