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High Court Of Orissa
LINGARAJA RATH, ARIJIT PASAYAT
ORISSA VEGETABLE OIL COMPLEX LTD. - Appellant
Versus
UNION OF INDIA - Respondent
O. J. C. 2033 Of 1989
Decided On : 08/24/1989
TELEGRAPH ACT - SECTION 7B - DISPUTE RESOLUTION - ARBITRATION - DISCONNECTION OF TELEPHONE LINES - LEGALITY: 1. Disputes regarding false metering and excess billing in telephone services fall under Section 7B of the Telegraph Act, 1885, and must be resolved through arbitration. 2. Disconnection of telephone lines for non-payment of disputed bills is illegal until the dispute is adjudicated by an arbitrator. 3. The Telegraph Authority cannot disconnect telephone lines without first referring the dispute to arbitration, as per Section 7B. 4. Rule 443 of the Telegraph Rules, 1951, authorizing disconnection for non-payment of dues, does not apply to disputed bills. 5. Disconnection of telex lines is governed by Rule 511 of the Telegraph Rules, 1951, and cannot be done under Rule 443.
Fact of the Case:
The petitioner, a subscriber of four telephones and one telex, disputed bills alleging excess metering and faulty lines. The department investigated and maintained that the meters and lines were in order. The petitioner offered to pay the disputed amounts in installments but later disputed its liability. The department disconnected the petitioner's telephones and telex.
Finding of the Court:
1. The dispute regarding false metering and excess billing is covered under Section 7B of the Telegraph Act, 1885. 2. A dispute exists between the subscriber and the department regarding the demand, which cannot be resolved except by way of arbitration under Section 7B. 3. The demand raised against a subscriber under the bill, if protested, does not achieve finality and is not binding until adjudicated by an arbitrator. 4. Disconnection of telephone lines for non-payment of disputed bills is illegal until the dispute is adjudicated by an arbitrator. 5. Disconnection of the telex line was unauthorized as it was not done under Rule 511 of the Telegraph Rules, 1951, which governs the disconnection of telex lines.
Issues: 1. Whether disputes regarding false metering and excess billing in telephone services fall under Section 7B of the Telegraph Act, 1885? 2. Whether disconnection of telephone lines for non-payment of disputed bills is legal? 3. Whether the Telegraph Authority can disconnect telephone lines without first referring the dispute to arbitration? 4. Whether Rule 443 of the Telegraph Rules, 1951, authorizing disconnection for non-payment of dues, applies to disputed bills? 5. Whether disconnection of telex lines is governed by Rule 511 of the Telegraph Rules, 1951?
Ratio Decidendi: 1. Section 7B of the Telegraph Act, 1885, provides that disputes concerning telegraph lines, appliances, or apparatus shall be determined by arbitration and referred to an arbitrator appointed by the Central Government. 2. The provision is comprehensive of all disputes and does not admit of any exception. 3. An investigation made by the department on the dispute raised by a subscriber and the conclusions reached by it regarding the correctness of the dispute are only unilateral actions and do not have the effect of abating the dispute unless such determination by the department is accepted by the subscriber. 4. Rule 443 of the Telegraph Rules, 1951, authorizing disconnection for non-payment of dues, does not apply to disputed bills because a demand raised against a subscriber under the bill, if protested, does not achieve finality and is not binding until adjudicated by an arbitrator. 5. Disconnection of telex lines is governed by Rule 511 of the Telegraph Rules, 1951, and cannot be done under Rule 443.
Final Decision: The writ petitions were allowed. A writ of mandamus was issued directing the opposite parties to restore the telephone connections and the telex line within one week of the receipt of the writ from the Court.
L. RATH, J.
( 1 ) THESE two petitions at the instance of the same petitioner in essence raise the identical question for decision and hence are disposed of by this common judgment. The petitioner was the subscriber of four telephones and one telex, the telephone numbers being 51734, 53865 and 55061 in its office and 55482 at the residence of its Managing Director and the telex having the number 0675-267. The facts of O. J. C. No. 2310/89 which are not disputed and have also been supplemented by the learned counsel appearing for the opposite party, are that the petitioner came before this Court earlier in O. J. C. No. 2140/83 challenging the notice of disconnection issued on 30-6-88 by the Telecom. District Engineer, Department of Telecommunications, Bhubaneswar for outstanding dues as against telephone numbers 53865 and 51734. The telephones were disconnected and protest having been raised by the petitioner to the bills alleging excess metering, the department instituted an enquiry. The petition was disposed of by this Court by order dated 13-7-88 directing that until the enquiry was completed by the Telecom. District Engineer, the petitioner's telephone No. 55061 and telex No. 0675-267 would not be disconnected, subject to the petitioner depositing a sum of Rs. 5,000- within a week against the outstanding claims relating to telephone Nos. 53865 and 51734 which had already been disconnected and that the petitioner must also go on paying the current bills relating to telephone No. 55061 and telex No. 0675-267. It is the petitioner's case that it complied with the directions of this Court. After investigation by the department, the petitioner was communicated with two letters, both issued on 22-6-89, one relating to telephone No. 51734 and the other relating to telephone No. 53865. In both the letters annexed to OJC No. 2310/ 89 as Annexures-2 and 3 respectively, the department maintained that the cases had been examined in detail by the OGHT, Orissa on the basis of the reports received from the Field Units and other informations and that the meters and the line circuits of the telephones were found to be in order during the period in question. In r the first communication an arrear demand was raised for Rs. 33,489/- while in the second a demand was made for Rs. 1,1,327/and the petitioner was called upon to, pay the amounts so as to avoid disconnection of its other working connections. After receipt of such communications, the petitioner sent reply on 26-6-89 stating that it was not in position to pay the entire amount under demand immediately and offered to pay the total amount of Rs. 44,812/- covering the two bills in ten equal instalments. Subsequent however it disputed its liability to pay the amount and sent a letter in the nature of it notice through its advocate contending that during the period in question its volume of business was the lowest and its factory, at Kosinga had closed for more than two years and yet the meter readings showed do abnormal rise of STD calls leading to inflated bills. The petitioner also alleged perfunctoriness in the investigation made by the department and having not investigated into the manipulations of STD lines as alleged by it. In the notice, the petitioner urged the opposite party not to disconnect the telephones and not to take action for a fortnight so as to enable it to approach this Court for appropriate relief. The letter is Annexure-4 to the writ petition. The petitioner has thereafter approached this Court seeking the relief of quashing Annexures-2 and 3, the communications made raising demands in respect-9f telephone Nos. 51734 and 53865, and restoration of the communication system that has been rendered inactive by the department. So far as O. J. C. No. 2033/89 is concerned, the facts are that a bill was raised for Rs. 19,407/- on 11-3-89 as the outstanding dues in respect of telephone No. 55482. The petitioner protested against the bill on 21-3-89 alleging defective metering
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