Ashok Kumar Ahirwar vs Post Office Savings Bank

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IN THE HIGH COURT OF MADHYA PRADESH
AT JABALPUR

BEFORE
HON'BLE SHRI JUSTICE MANINDER S. BHATTI
th
ON THE 15 OF OCTOBER, 2026
WRIT PETITION No. 23634 of 2023
CNR No.: MPHC010549672023
ANKIT TAMRAKAR
Versus
UNION OF INDIA AND OTHERS
Appearance:
Shri Ravindra Singh Ahriwar - Advocate for the petitioner.
Shri Manoj Kumar Singh - Advocate for the respondents.
WITH
WRIT PETITION No. 17052 of 2023
CNR No.: MPHC010408382023
JAGANNATH PAL AND OTHERS
Versus
POST OFFICE BANK AND OTHERS
Appearance:
Shri Ravindra Singh Ahriwar - Advocate for the petitioner.
Shri Manoj Kumar Singh - Advocate for the respondents.
WRIT PETITION No. 18502 of 2023
CNR No.: MPHC010435082023
ASHOK KUMAR AHIRWAR AND OTHERS
Versus
POST OFFICE SAVINGS BANK AND OTHERS
Appearance:
Signature Not Verified
Signed by: SAVITRI PATEL
Signing time: 16-10-2026
17:33:44

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Shri Ravindra Singh Ahriwar - Advocate for the petitioner.

Shri Manoj Kumar Singh - Advocate for the respondents.
ORDER
This order shall govern the disposal of all the aforesaid petitions
i.e.W.P.No.23634/2023, W.P.No.17052/2023 and W.P.No.18502/2023. For
the sake of convenience, the facts, as detailed in W.P.No.23634/2023 are
being taken note of.
2. W.P.No.23634/2023 has been filed by the petitioner under Article
226 of the Constitution of India while praying for following reliefs:

"(i) Issue a writ in the nature of mandamus to quash impugned
order of the respondent No.3 (Annexure P/7) upon holding that as
bad in law. Direct the bank to refund the Petitioner's entire amount
of Rs. 2,80,000, along with interest and additional costs, damages,
incurred by the Petitioner due to this fraudulent act.
(ii) Direct an immediate investigation and inquiry into the
fraudulent activities and embezzlement of Rs. 2,80,000 by the
bank employees of Post Office Bina Branch.
(iii) Summon the entire material record from the possession of the
respondents, for its kind perusal;
(iv) Pass any other appropriate order(s) or direction(s) as deemed
fit by this Hon'ble Court in the interest of justice and to prevent
any further harm to the Petitioner's rights and interests.
(v) Cost of the petition may also be kindly awarded."

3. W.P.No.17052/2023 has been filed by the petitioners under Article
226 of the Constitution of India while praying for following reliefs:
"(i) Issue a writ in the nature of mandamus to quash impugned
order of the respondent No.3 (Annexure P/10) upon holding that
Signature Not Verified
Signed by: SAVITRI PATEL
Signing time: 16-10-2026
17:33:44

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as bad in law. Direct the bank to refund the Petitioner's entire
amount of Rs. 27,50,000, along with interest and additional costs,
damages, incurred by the Petitioner due to this fraudulent act.
(ii) Direct an immediate investigation and inquiry into the
fraudulent activities and embezzlement of Rs. 27,50,000 by the
bank employees of Post Office Bina Branch.
(iii) Summon the entire material record from the possession of the
respondents, for its kind perusal;
(iv) Pass any other appropriate order(s) or direction(s) as deemed
fit by this Hon'ble Court in the interest of justice and to prevent
any further harm to the Petitioner's rights and interests.
(v) Cost of the petition may also be kindly awarded."

4. W.P.No.18502/2023 has been filed by the petitioners under Article
226 of the Constitution of India while praying for following reliefs:
"(i) Issue a writ in the nature of mandamus to quash impugned
order dated 01/06/2023 passed in CR/2023-
03/DPOSTE20230016550/SAGAR by the respondent no.3
(annexure P/8) upon holding that as bad in law. Direct the bank to
refund the Petitioner's entire amount of Rs. 5,00,000 with respect
to petitioner no.1 and 1,10,000 with respect to petitioner no.2 for
refusal of payment by respondent no.4 along with interest and
additional costs, damages, incurred by the Petitioner due to this
fraudulent act.
(ii) Direct an immediate investigation and inquiry into the
fraudulent activities and embezzlement of Rs. 5,00,000 and
1,10,000 by the bank employees of Post Office Bina Branch.
(iii) Summon the entire material record from the possession of the
respondents, for its kind perusal;
(iv) Pass any other appropriate order(s) or direction(s) as deemed
fit by this Hon'ble Court in the interest of justice and to prevent
any further harm to the petitioner's rights and interests.
(v) Cost of the petition may also be kindly awarded. "
Signature Not Verified
Signed by: SAVITRI PATEL
Signing time: 16-10-2026
17:33:44

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5. It is a case where the petitioner herein approached the concerned

post office with a request to open Term Deposit Account as well as a
National Savings Certificate. The petitioner, within the premises of the post
office, was met by the persons who were employees of the post office and
accordingly the account was opened and a passbook was also issued to the
petitioner. Later on, it was found that there was a scam and the passbooks
were forged and fabricated and no accounts were opened. Accordingly, the
aforesaid employees of the post office who were instrumental in commission
of the aforesaid offence were prosecuted and later on, convicted as well. The
grievance of the present petitioner in this cases is that since they have been
duped at the behest of the employees who were undisputedly on the roles of
the department, the department has vicarious liability to indemnify the
petitioner who had suffered pecuniary losses on account of the fraud played
at the behest of the employees of the post office. The claim of the petitioners
has been turned down by the Department of Post Office vide impugned order
on the ground that the petitioner, in order to open the account, had
approached the employee of the post office who was already transferred and
was not posted at the concerned branch, and instead of approaching him, the
petitioner was required to approach the authorized office employee at the
counter.
6. Learned counsel for the petitioner contends that, in such nature of
cases have been taken note of by the Department of Post Office in a Circular
th
dated 27 of May, 2021 contained in Annexure RJ-3. The said circular
contains provisions for standard operating procedures for handling of claim
Signature Not Verified
Signed by: SAVITRI PATEL
Signing time: 16-10-2026
17:33:44

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cases arising out of loss and fraud cases. It is contended by the counsel that

the said circular contains the specific provision that the complaint cases are
to be entertained in cases where the accounts are not opened or a fake
passbook was issued.
7. In the case in hand, the accounts were not opened, and the fake
passbook was issued. Undisputedly the issuance of passbook as well as the
opening of the account was at the behest of the persons who were employees
of the Department of Post Office and therefore the posting of said employee
in the concerned Post Office was not affected, which was within the
knowledge of the petitioner nor the petitioner have any means to know about
the said fact. Once the employee of the Department of Post Office was found
in the Post Office, there was no reason for any customer to disbelieve him.
Thus, in view of the aforesaid, counsel submits that the impugned order
deserves to be dismissed.
8. Learned counsel for the respondent contends that it's a case where
the Department of Post Office cannot be fastened with any liability to pay
claim to the present petitioner. The petitioner had not approached the
authorized employee at the counter and instead of approaching the counter,
the petitioner approached other persons though who were employee of the
Department of Post Office, but were not posted at the concerned branch at
the relevant time. Therefore, the claim of the petitioner has been rightly
turned down by the competent authority while passing the impugned order.
9. No other point is argued or pressed by the parties.
10. Heard the rival submissions of both the parties and perused the
Signature Not Verified
Signed by: SAVITRI PATEL
Signing time: 16-10-2026
17:33:44

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record.

11. A perusal of the record reflects that at the post office, the
petitioners were approached by the persons who were undisputedly
employees of the Department of Post Office. If the said employee was not
posted at that particular branch or Post Office, the said fact was not within
the knowledge of the present petitioners, nor were the petitioners supposed
to know the said fact. Therefore, once the petitioners acted bona fide and
innocently and opened their accounts with the concerned Post Office at the
behest of the said persons who were later found to be culprits, the petitioners
were entitled for amount as claimed by them after the fraud was committed.
12. The Circular issued by the Department of Post Office contained in
Annexure RJ-3 takes care of the eventuality in the cases where the accounts
themselves are not opened, and the fake passbook are issued. Both
eventualities are available in the case in hand. Therefore, the respondents
were duty bound to consider the claim of the petitioners in terms of the
th
aforesaid Circular dated 27 of May 2021.
13. In view of the aforesaid, all the petitions i.e. W.P.No.23634/2023,
W.P.No.17052/2023 and W.P.No.18502/2023, are hereby allowed and
disposed of with a direction that if the petitioners submit claim application
th
forms in terms of the format appended to Circular dated 27 of May 2021
within a period of 30 working days from today before the authority
competent, the authority competent shall process the claim of the petitioners
as regards the payment as claimed by them within a further period of 90
days. The petitioners shall be entitled for the applicable interest amount on
Signature Not Verified
Signed by: SAVITRI PATEL
Signing time: 16-10-2026
17:33:44

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the fixed deposit in accordance with law.

(MANINDER S. BHATTI)
JUDGE
sp

Signature Not Verified
Signed by: SAVITRI PATEL
Signing time: 16-10-2026
17:33:44