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Returning a damaged stolen item

Returning a damaged stolen item Zev had received a new bike as a gift and rode it to school daily.
One of his classmates, Shlomo, was in a difficult situation. His family was suffering financially and he was dealing with personal issues.
A few days later, when Zev was preparing to ride home, he saw that his bike was gone! He waited to see if it would turn up, but it did not. Could it be someone stole the bike? he thought.
Two weeks later, Shlomo approached Zev. “I apologize; I stole your bike,” he said. “I’d like to return it to you.”
“Please do,” said Zev. “I wouldn’t have expected this of you.”
“It’s a long story,” said Shlomo, “but forget about that. The point is that I brought it back.”
Zev examined the bike. “The gear is damaged,” he pointed out. “The bike was brand new!”
“I know; it got a little broken when I rode it,” Shlomo said. “It’s still usable. I’ll pay you the difference; you can probably replace the gear.”
“I don’t want a broken bike, even if it’s only slightly broken,” answered Zev. “You stole a bike that was intact, and I expect you to return an intact one. You should pay me to replace the bike!”
“Why should I pay for a bike, when yours is still usable?” argued Shlomo. “This is your bike; I haven’t changed it.”
“Changed or not — it’s not what you stole!” declared Shlomo. “I want back what you stole: an intact bike!”
“This is what I stole!” retorted Zev. “If I pay to replace the bike, that’s definitely not what I stole.”
“I see we’re at an impasse,” said Shlomo. “Let’s take the issue to Rabbi Dayan.
“Most certainly,” replied Zev. “Let’s go!”
The two approached Rabbi Dayan in his beis medrash. “We have a question,” Zev said. “Shlomo stole my bike and broke the gear slightly. Can he just return it, or must he pay to replace the bike?”

(Based on Business Halacha Weekly)

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