Anantanarayanan, C.J.: -This appeal is instituted by the Union of India, represented by the Secretary, Ministry of Communications, New Delhi, and the General Manager, Telephones, Madras from the judgment of our learned brother Venkatadri, J., in W.P.N0. 2122 of 1966, striking down the recently enhanced Telephone tariff I might immediately state that the entire Judgment proceeds upon two bases, or comprehensive considerations, both of which have now become academic, or inapplicable. Firstly, in striking down this enhancement of the tariff the learned. Judge was largely influenced by the fact that the increased revenue, thereby secured, was sought to be utilised to cover the deficits in the Posts and Telegraph Department. The learned Judge thought that this was illegitimate and inadmissible. To quote:

“The Posts and Telegraphs Department consists of various units, such as postal, telegraph, radio and telephone units. Each department or wing is a separate unit by itself, with regard to personal or service conditions, or management or supervision. The units are not interconnected, intervined or interlaced with each other”.

For this reason, the learned Judge considered that there was no

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