(1) It shall be the duty of every pawnbroker to store in a proper manner in his licensed premises all pledges pawned with him until such time as each pledge is redeemed or disposed of in accordance with this Act.

(2) The District Court, if satisfied on the application of a person entitled and offering to redeem a pledge that, by reason of any wilful act or default of the pawnbroker with whom the pledge was pawned, the pledge is lost, destroyed or is of less value than it was at the time of pawning, may, if it thinks fit, award to the person reasonable compensation.

(3) Any amount of compensation awarded under subsection (2) of this section shall be deducted from the sum payable to the pawnbroker, or, as the case may require, shall be paid by the pawnbroker, in such manner as the Court may direct.