Cesc Ltd vs Chief Post Master General & Ors

The Supreme Court upheld the decision of the Calcutta High Court regarding the applicability of Section 11(2) of the Indian Post Office Act, 1898, which restricts the Postal Authority's power to issue demand notices without proper authority. The Court ruled that the demand notice issued to CESC Limited was invalid as it contravened the statutory provisions, thereby affirming the High Court's order to quash the demand notice and direct the Postal Authority to consider the Company's representation. The outcome favored the Company, ensuring that the amount deposited was retained until a final decision was made regarding its liability.