‘Act with fairness’: Karnataka High Court slams Postal Department over savings scheme

In a landmark decision, the Karnataka High Court has declared that the Postal Department must pay Rs 1,62,034 to the legal heirs of P N Krishna. The court dismissed the Postal Department's appeal against a national consumer court order, dismissing the department's allegations of collusion and lack of consumer status. The court emphasized the need for public institutions to act with diligence, fairness, and accountability, stating that any lapse erodes public trust in administration.

The dispute dates back to 1998 when Krishna sought a transfer of four National Saving Certificates (NSC) to his name, which was rejected by the postmaster and senior superintendent of Post Offices. He subsequently handed over the certificates to postal authorities, only to be told they had already been transferred to third parties.

Despite approaching various consumer courts, Krishna's complaint was repeatedly rejected until the State Consumer Commission ruled in his favor, alleging negligence on the part of the Postal Department. The National Consumer Disputes Redressal Commission also rejected the department's appeal, leading to the current high court judgment.