43. Power to maintain money order system and to make rules as to remittances
thereby.—(1) The Central Government may provide for the remitting of small sums of money through
the Post Office by means of money orders, and may make rules as to such money orders.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may
prescribe—
(a) the limit of amount for which money orders may be issued;
(b) the period during which money orders shall remain current; and
(c) the rates of commission or the fees to be charged on money orders or in respect thereof.
44. Power for remitter to recall money order or alter name of payee.—(1) Subject to such
conditions as the Central Government may, by rules made under section 43, prescribe in respect of the
levy of additional rates of commission or fees or any other matters, a person remitting money through the
Post Office by means of a money order may require that the amount of the order, if not paid to the payee,
be repaid to him, or be paid to such person other than the original payee as he may direct.
(2) If neither the payee nor the remitter of a money order can be found, and if within the period of one
year from the date of issue of the order no claim is made by such payee or remitter, the amount of such
order shall not be claimable from the Government.
45. Power to provide for the issue of postal orders.—2
[(1)] The Central Government may authorise
the issue, in such form as may be suitable, of money orders, to be called postal orders or by such other
1. Subs. by Act 25 of 1950, s. 11 and the Fourth Schedule, for “the States”.
2. Section 45 re-numbered as sub-section (1) thereof by Act 34 of 1970, s. 2.
17
designation as may be deemed appropriate, for certain fixed amounts, and may make rules as to the rates
of commission to be charged thereon and the manner in which, and conditions subject to which, they may
be issued, paid and cancelled.
1* * * * *
2
[(2) The Central Government may also make rules prescribing the maximum limit of amount up to
which postal orders may be issued from time to time].
46. Power to give effect to arrangements with other countries.—(1) Where arrangements 3
[made]
with the United Kingdom, or with any British possession 4
[
5*** or foreign country are in force], for the
issue and payment through the Post Office of money orders between 6
[India] and the United Kingdom or
such possession, 7
[
8*** or country], the Central Government may make rules to give effect to such
arrangements.
(2) In particular and without prejudice to the generality of the foregoing power, such rules may
prescribe—
(a) the manner in which, and the conditions subject to which, such orders may be issued and paid
in 6
[India]; and
(b) the rates of commission to be charged thereon.
47. Recovery of money order paid to the wrong person.—If any person, without reasonable
excuse, the burden of proving which shall lie on him, neglects or refuses to refund—
(a) any amount paid to him in respect of a money order by an officer of the Post Office in excess
of what ought to have been paid to him in respect thereof, or
(b) the amount of a money order paid by an officer of the Post Office to him instead of to some
other person to whom it ought to have been paid,
such amount shall be recoverable by an officer of the Post Office authorised by the Post Master General
in this behalf from the person so neglecting or refusing as if it were an arrear of land revenue due from
him.9
48. Exemption from liability in respect of money orders.—No suit or other legal proceeding shall
be instituted against 10[the Government] or any officer of the Post Office in respect of—
(a) anything done under any rules made by the Central Government under this Chapter; or
(b) the wrong payment of a money order caused by incorrect or incomplete information given by
the remitter as to the name and address of the payee, provided that, as regards incomplete
information, there was reasonable justification for accepting the information as a sufficient
description for the purpose of identifying the payee; or
(c) the payment of any money order being refused or delayed by, or on account of, any accidental
neglect, omission or mistake, by, or on the part of, an officer of the Post Office, or for any other cause
whatsoever, other than the fraud or willful act or default of such officer; or
(d) any wrong payment of a money order after the expiration of one year from the date of the
issue of the order; 11[or]
1. The proviso omitted by Act 34 of 1970, s. 2.
2. Ins. by s. 2, ibid.
3. Subs. by the A.O. 1950, for “are in force”.
4. Subs., ibid., “Indian State or foreign country”.
5. The words and letter “Indian State corresponding to a Part B State” omitted by Act 25 of 1950, s. 11 and the Fourth Schedule.
6. Subs. by s. 11 and the Fourth Schedule, ibid., for “the States”.
7. Subs. by the A.O. 1950, for “State or country”.
8. The words and letter “Part B State” omitted by Act 25 of 1950, s. 11 and the Fourth Schedule.
9. See the Revenue Recovery Act, 1890 (1 of 1890).
10. Subs. by the A.O. 1950, for “the Crown” which had been subs. titled by the A.O. 1937, for “the Secretary of State for India in
Council”.
11. Ins. by Act 3 of 1912, s. 8.
18
(e) any wrong payment or delay in payment of a money order beyond the limits of 1
[India] by an
officer of any Post Office, not being one established by the Central Government.)
[CHAPTER X.—PENLTIES AND PROCEDURE] Omitted by the Jan Vishwas (Amendment Of
Provisions) Act, 2023 (18 of 2023) s. 2 and Schedule (w.e.f. 29-12-2023).