I needed relieving letter from my previous organization to provide immediately for joining another company. The HR told me to check if all Co. asset is surrendered, which I have already submitted with my colleague (as no local office of that company is present in my city or nearby)

And out of all, he lost one gadget. Which was inoperative and in not working condition about which I had briefed to IT also while I was working there.
Kindly suggest what to talk about or negotiate for relieving letter now.

If you have a written acknowledgement from your colleague for receipt of the assets, it is enough.
From India, Salem
No receipts taken unfortunately.

Then, you are only responsible for the missing item whether it is obsolete or not. It is left to the discretion of the present employer to write it off. That's the only way to solve the problem quickly and move on as you desired.
From India, Salem

If your friend is ready to acknowledge that he had received the gadget from you but it is unfortunately lost, then your liability will come to an end. Otherwise you may have to offer the book value/market value as is the rule. You may also indicate to adjust the cost against the dues payable to you.
From India, Mumbai

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