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1990 Supreme(MP) 353

High Court Of Madhya Pradesh
K. L. ISSRANI
J.N.SETH - Appellant
Versus
UNION OF INDIA - Respondents
M. A. 83 Of 1990
Decided On : 09/08/1990

Advocates Appeared:
J.P.SANGHI, S.S.JHA

Headnote:(1) Telegraph Act, 1885-S. 7-B-correctness of telephone bills challenged on the ground of mal-functioning-provisions attracted-dispute should be referred to arbitrator. AIR 1970 All. 143, 1964 JLJ 566, and AIR 1982 Delhi III relied on. [ Para 9

       (2) Telegraph Act, 1885 - S.7-B-provisions under- do not oust jurisdiction of civil Court to appoint arbitrator. AIR 1988 J & K 17 relied on. [Para 10

       (3) Arbitration Act, 1940 - Ss.8, 22 and 33-Telegraph Act, 1885 S.7.B-provisions under S.7.B of Telegraph Act-do not bar filing application under Arbitration Act for seeking appointment of Arbitrator. AIR 1988 J & K 17 relied on. [Para 10

       (4) Civil P.C., 1908 - O.39, R. 2 (2) (as amended in M.P.)-Arbitration Act, 1940 - S.41 (b)-application for grant of interim injunction ill pending arbitration proceedings-may be disposed of under S. 41 (b) of the Act-no need of service upon defendants exists. [Para 11

       (5) Telegraph Act 1885 - S.7-B- dispute raised and appointment of arbitrator demanded-due amount of bills is the amount which is admitted by consumer-rest is disputed amount. AIR 1990 Orri. 51 relied on. [Para 11

       

K. L. ISSRANI, J.

( 1 ) THIS is an appeal against the order dated 17-2-1990 passed by the Fifth Additional Judge to the Court of District Judge, Jabalpur, in Civil Suit No. 2-A of 1990 refusing to grant temporary injunction against the recovery of the telephone bills of the appellant.

( 2 ) IN this case, the respondents have raised a preliminary objection that the application of the appellant for appointment of an arbitrator is not maintainable because the dispute is not covered under Section 7-B of the Indian Telegraph Act (hereinafter referred to as 'the Act' ).

( 3 ) FOR deciding the preliminary objection, it is necessary to mention some facts here. The appellant was nominated as a member of the M. P. Telecom Advisory Committee on 28-6-1985. His term was extended up to 30-6-1989. In his capacity as a member of the M. P. T. A. C. , a free telephone No. 28888 was provided to him and was installed at his residence. No rent was to be charged for the said telephone and 1200 local calls bimonthly were allowed free on the said telephone. The appellant is also a subscriber of the telephone No. 24382. He has also other two telephone bearing numbers 21432 and 27121 in the name of his sons Sanjay Seth and Dr. Ajay Seth. This position is not denied by the parties.

( 4 ) ACCORDING to the appellant, from the date of the installation of the telephone No. 28888, no bills of this telephone were ever issued to him. The bills issued on other telephones were duly paid. On 5-2-1990, the appellant received a bill of Rs. 1,16,298/- on his telephone No. 28888, which was allotted to him in his capacity as a member of the M. P. T. A. C. A covering letter signed by the respondent No. 2 was sent threatening that if this bill is not paid by 15-2-1990, all his telephones will be disconnected. The appellant further submitted that for the first time in August, 1988, a bill on this telephone was issued for Rs. 8,808 / -. The bill was absolutely wrong and, therefore, a protest was made and the respondents were called upon to appoint an arbitrator under Section 7-B of the Act for resolving the dispute. Instead of resolving the dispute by appointing an arbitrator, the respondent No. 2 has issued the impugned bill for Rs. 1, 16,298/- along with a threat of disconnection of all other telephones in the event of non-payment. Finding no response, and apprehending imminent threat of disconnection of all the telephones, the appellant filed a petition under Sections 8, 22 and 33 of the Indian Arbitration Act praying the lower Court for appointment of an arbitrator and quashing the recovery. The application under Section 41 of the Arbitration Act read with Order 39, Rules 1 and 2, C. P. C. was also moved by the appellant on 14-2-1990. Learned counsel for the respondents had disputed the submissions of the appellant and sup- ported the order of the trial Court.

( 5 ) THE trial Court has rejected the application on the ground that the respondent/ defendant No. 1 is not yet been served and in view of the M. P. Amendment Act No. 29 of 1984 under Order 39, Rule 2 (2) of the Code of Civil Procedure, the application is not maintainable.

( 6 ) NOW two points remain to be determined (i) whether the application of the appellant for appointment of an arbitrator is maintainable, and (ii) whether a temporary injunction can be granted by the trial Court under Section 41 of the Arbitration Act read with Order 39, Rules 1 and 2, C. P. C.

( 7 ) SO far as the maintainability of the application for appointment of an arbitrator is concerned, Section 7-B of the Indian Telegraph Act speaks as under:"7b. Arbitration of disputes;- (1) Except as otherwise expressly provided in this Act, if any dispute concerning any telegraph line, appliance or apparatus arises between the telegraph authority and the person for whose benefit the line, appliance or apparatus is, or has been, provided, the dispute shall be determined by arbitration and shall, for the purposes of such determination, be referred t










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