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        Direct Taxes

        Rule 26 - Responsibility of the Post Office

        National Savings Certificates (IX-Issue) Rules, 2011

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        Post office non liability for fraudulent encashment shifts loss risk to certificate holders under NSC rules. Rule 26 provides that the post office shall not be responsible for any loss caused to a holder by any person obtaining possession of a certificate and fraudulently encashing it, allocating the risk of unauthorized possession and fraudulent encashment to the certificate holder rather than the postal authority.
                          Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
                            Provisions expressly mentioned in the judgment/order text.

                                Post office non liability for fraudulent encashment shifts loss risk to certificate holders under NSC rules.

                                Rule 26 provides that the post office shall not be responsible for any loss caused to a holder by any person obtaining possession of a certificate and fraudulently encashing it, allocating the risk of unauthorized possession and fraudulent encashment to the certificate holder rather than the postal authority.


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