( 1 ) THE respondent-company is a subscriber with regard to telephone connection No. 619880 which was installed at D-l, Lajpat Nagar, Part III, New Delhi, on 16th June, 1979. A consolidated bill for Rs. 1. 679/ 98 P. inclusive of rental, phonogram and trunk call charges for the period 16th June, 1979 to 20th November, 1979, was raised by the Telephone Department of the appellant against the respondent-company. However, for the subsequent period 21st November, 1979 to 20th February, 1980, the telephone bill escalated to Rs. 15,146/35p. , the meter reading showing as many as 37,504 local calls. The respondent-company made a representation to the Telephone Department with regard to the exorbitant number of calls registered on their aforesaid telephone, inter alia, urging that the steep rise in the number of calls was attributable to misuse of the telephone lines by the Line and other staff of the Telephone Department. However, this assertion of the respondent-company appears to have been refuted in categorical terms vide letter dated 16th May, 1980, of the Area Manager (South ). Thereupon, the respondent-company moved an application under Section 20 of the Arbitration A