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UMy father passed away in December 2024, and since then my family has been struggling to recover gold pledged in a bank gold loan.
The total loan amount was above ₹5 lakhs. After my father’s death, we approached the bank saying we wanted to repay the full amount and take back the gold. The bank told us there was “no nominee” registered. This was shocking because my father had always kept my mother as nominee in his accounts and policies.
The bank then said that since the loan amount exceeds ₹5 lakhs, we need a succession certificate from court before they can release the gold. We visited the bank multiple times asking if there was any alternative settlement process, indemnity bond, or any other way, but they refused.
We even cleared the full outstanding loan amount, so there was never any EMI default or pending dues from our side. Still, the gold was not released.
Finally, I had to file a court case and hire a lawyer. He initially told us the succession certificate process would take around 3–6 months. It has now been more than 6 months and we still haven’t received it.
At the last hearing, the judge said succession certificates are generally not meant for gold loans and asked my lawyer to show a similar Delhi High Court case where such relief was granted before making a final decision.
At this point I honestly feel lost. My family has already gone through enough after my father’s death, and this process has become mentally exhausting.
Has anyone faced something similar with banks or gold loans after a parent’s death? Any legal advice or suggestions on what can be done next would really help.
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WNAL, but I want to understand something. If any lawyers here can clarify it would be great.
If people pay off the loan amount, and the bank employees refuse to hand over the gold AFTER accepting the payment off amounts, then technically can’t cases be filed on the bank AND the employees individually? Im curious because if the amount is accepted within the banking system for closure, then the employees can potentially empty the lockers/ storage where the gold is kept and replace it with fake duplicates, no one can confirm what’s going on behind closed doors right?
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UThe loan was actually repaid because there was one default of emi in the recent days of my fathers death which lead to a notice of auction of gold. We consulted bank emediately and they said the best way to halt is to pay off the loan amount so that the gold will not go anywhere and once the succession cerificate is made we can take back the gold
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UBanker here.. Bank is right due to the valuation of gold involved. And court doesn’t issue succession/ legal heirship certificates, your village/ municipal office does. Also since multiple heirs are involved, you will need to authorise one of the heirs to recieve the gold and also sign an indemnity bond too.
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Ihe shoudnt have mentioned gold, if he had mentioned he should have added the Bank s response in written on the same.
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UYou mean I should have just filed the case for the bank asset claim instead of mentioning just gold?
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Iboth legal hier and succession certificate are different, succession cert is issued by court and Legal hier by tehsildar.
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SYes, banks do require a succession certificate to release any sum of money or property inside locker in absence of a nominee.
1.Write an email to the Bank Manager to confirm the reason behind withholding of Locker contents despite the deposit of required sum of money to release the Locker contents.
2.Ask the manager to respond to your email stating the absence of Succession Certificate.
3. File the copy of that email before the Hon’ble Court. There you go.
Hope that helps.
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UWe had faced a similar issue. I had kept my jewels in Canara bank in someone else’s name. Despite nominee name being there, they needed an affidavit and succession certificate and signatures from all the legal heirs. But everything was done in few days. We had approached a lawyer to get all the required documents in the checklist and in one day they released the gold.
My advice would be to get a checklist from manager. Get all the documents ready and all the stakeholders go to the bank one day. They should release it.
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