UNION OF INDIA vs MOHD. NIZAM

The Supreme Court held that under Section 34 of the Indian Post Office Act, 1898, the post office does not act as an agent of the sender when two sovereign powers enter into an agreement for the exchange of value payable articles. The Court found that the Pakistan Government, which suspended the money order service, could not be considered a sub-agent of the Union of India, as neither party was acting under the control of the other. Consequently, the appeal was allowed, affirming that the Central Government is absolved from liability for the sum until it has been received from the addressee.