Delhi High Court Issues Notice On Lawyer's Plea Seeking Digital Payments At India Post Counters

The Delhi High Court has issued notice on a petition seeking the addressal of issues such as absence of digital payment facilities and rounding-off of postal tariffs by India Post, the public sector postal body.

The Court was hearing a Writ Petition seeking a direction to government to address "systemic deficiencies and operational inefficiencies" within India Post. The Petition claims that despite the availability of Quick Response (QR) code technology, India Post continues to rely on cash transactions at its counters.

It also notices the rounding-off of postal tariffs —for instance, by reducing ₹5.2 to 5— and claims that it leads to significant financial losses when seen in the context of the magnitude of transactions undertaken.

A Single-Judge Bench of Justice Sanjeev Narula issued notice to the Union Government, the Director General of Posts and Supervisory Authorities of India Post, Delhi, which were impleaded as the Respondents, who, upon service, are directed to respond within four weeks.

The Petitioner, Advocate Ujjawal Gaur appeared in person and Advocate Ankur Mittal appeared for the Respondents.

The Petitioner claims that as a regular user of the services of India Post for sending legal documents and letters, he has observed "significant operational deficiencies" that cause financial losses to both the State and the users.

One of these 'deficiencies', the Petitioner claims, is the continuing reliance on cash transactions at its counters, despite digital payment options such as QR codes and bank transfers. "This reliance on cash transactions leads to inefficiencies, delays, and situations where customers, unable to provide exact change, often forfeit the leftover balance, further compounding financial losses."

The Petitioner also highlights the practice by India Post staff of rounding off consignment values that involve decimal points to the nearest whole number. If they round it off to the previous whole number, it causes financial loss to the postal body. Alternatively, if they round it off to the next whole number, "it would burden the customer with an unjustified excess charge".

"When multiplied across thousands of postal transactions happening daily across Delhi and lakhs & crores of transactions nationwide, these small discrepancies add up to substantial sums, leading to a large-scale financial shortfall," the Petitioner submitted.

The Petitioner contends that the absence of digital payment infrastructure at the Indian Post impinges on Article 14 of the Constitution's guarantee of equality. "[C]itizens in urban areas enjoy quick, efficient cashless transactions, while those in rural and semi-urban regions remain bound by slow, error-prone, and inefficient manual cash operations. This disparity directly contradicts the principle of equal service delivery, eroding public trust and raising serious constitutional concerns about equal opportunities and accessibility."

The lack of digital payment facilities violates Article 14 in another way, the Petitioner says, that is, by discriminating against people who are solely reliant on cashless transactions.

The two issues raised in the petition "highlight systemic inefficiencies and misuse of public funds. Public money is being lost through unnecessary operational lapses and inefficient cash handling at India Post offices." he contends.

The Supreme Court's Judgment in Kasturi Lal Lakshmi Reddy v. State of Jammu and Kashmir (1980) is cited by the Petitioner. In the said case, the Court held that public resources must be used efficiently and in accordance with constitutional and public policy goals, and any mismanagement or inefficiency amounts to a breach of public trust.

"This landmark Judgment highlights that government institutions should prioritize the optimal and transparent use of resources, a principle that India Post must uphold to meet its fiduciary duties." the Petition argues, relying on the Judgment in Kasturi Lal Lakshmi Reddy.

The Apex Court's Judgment in Centre for Public Interest Litigation v. Union of India (2012), which held that arbitrary or inefficient management of public resources results in loss to the public exchequer, which is unconstitutional and violates public trust, has also been cited.

Besides seeking a direction to the Respondents to immediately address the issues highlighted in the Petition, the Petitioner also prays for a direction that a "comprehensive audit of India Post's financial operations nationwide" be conducted.

Cause Title: Ujjawal Gaur v. Union of India [W.P.(C) 17864/2024]

Click here to read/download the Order.