PLEDGE AGREEMENT
This Pledge Agreement (this "Agreement") is made at Chandigarh on 2 April 2026.
BETWEEN
Rajinder Kumar Sethi, of House No. 1451, Sector 33-D, Chandigarh 160020, PAN AFRPS2211J (the "Lender", which expression includes the Lender's heirs and legal representatives);
AND
Vikram Sethi, of House No. 214, Phase 4, S.A.S. Nagar (Mohali) 160059, PAN AFRPB2212K (the "Borrower", which expression includes the Borrower's heirs and legal representatives).
The Lender and the Borrower are each a "Party" and together the "Parties".
RECITALS
A. At the Borrower's request, the Lender has agreed to lend the Borrower ₹1,50,000 (Rupees One Lakh Fifty Thousand only) (the "Loan Amount"). No interest is payable on the loan.
B. As security for the repayment of the loan, the Borrower pledges gold ornaments or gold articles described in the Schedule (the "Pledged Item") to the Lender, and hands it over to the Lender, who holds it until the loan is repaid.
C. The Lender confirms that this loan is a personal, one-off transaction and not made in the course of a business of money-lending.
NOW THIS AGREEMENT WITNESSES AND THE PARTIES AGREE as follows:
- 1. THE PLEDGE
1.1 The Borrower pledges the Pledged Item to the Lender as security for repayment of the Loan Amount, any interest, and the reasonable costs of keeping and, if needed, selling the Pledged Item (together, the "Secured Amount").
1.2 The Borrower hands over the Pledged Item to the Lender on the date of this Agreement. The Lender confirms receiving it, and the Parties have together checked it against the Schedule.
1.3 The Borrower confirms that the Pledged Item belongs to the Borrower, that it is free of any other pledge, charge, loan or claim, and that the Borrower is free to pledge it.
1.4 The Parties agree that the Pledged Item is worth ₹2,40,000 (Rupees Two Lakh Forty Thousand only) for the purposes of this Agreement.
- 2. REPAYMENT
2.1 The Borrower shall repay the Loan Amount, with interest if payable under Recital A, on or before 1 April 2026.
2.2 Every payment shall be acknowledged by the Lender in writing.
- 3. CUSTODY OF THE PLEDGED ITEM
3.1 The Lender shall keep the Pledged Item at House No. 1451, Sector 33-D, Chandigarh 160020 and shall not move it elsewhere without the Borrower's written consent.
3.2 The Lender shall not use, wear, drive, lend, pledge, sell or otherwise deal with the Pledged Item, except as clause 5 allows after a default.
3.3 The Lender shall keep the Pledged Item insured against theft and loss while it is in the Lender's custody, at the Borrower's cost.
3.4 The Lender shall tell the Borrower promptly in writing if the Pledged Item is lost, stolen or damaged.
- 4. GETTING THE PLEDGED ITEM BACK
4.1 When the Borrower has paid the Secured Amount in full, the Lender shall return the Pledged Item to the Borrower in the same condition as received, fair wear aside, together with everything handed over with it, promptly and within three days.