The relationship of the parties is governed by the principles of agency, allowing the principal to revise commission terms without violating contractual obligations or fundamental rights.

1. This is an appeal against the judgment dated 19th of August, 1993, allowing the Writ application and directing the appellant to reconnect the telephone lines of the respondent which were disconnected for nonpayment of pay phone bills, and to accept the call charges on the basis of original agreement. The appellants were also restrained from reducing the rate of commission of the writ petitioner / opposite parties. Further, the appellants have been restrained from reducing the billing period from monthly to fortnightly and from charging any additional security deposit except in accordance with the terms and conditions of the agreement in question.

2. The writ petitioner / opposite parties entered into an agreement with the Calcutta Telephone authorities for the purpose of acting as Operating Agency in respect of pay phones in the city of Calcutta. The relevant provision of the said agreement is as follows:
"The Operating Agency will be permitted to charge Re. 1/- per unit from the public for the calls made from the pay phones. The Operating Agency will pay to the Department @ 80 paise per metered call unit in case - of pay - phone with STD facility and @ 60 paise per metered call unit in case of pay - phone with only local call facility (on the basis of the calls recorded in the exchange). The Operating Agency can retain 20 paise for each metered call unit for pay phone with STD facility and 40 paise for pay phone with only local facility. However, it is made clear that the aforesaid charges of Re. 1/- per unit are subject to variation from time to time by the Government and in case the Government changes the charges per unit. The share of Operating Agency will also be decided by the CID at the time of revision."

3. Several pay - phones have been allotted to the writ petitioner / opposite parties under the agreement. The licence was also granted for this purpose by the appellants allegedly in exercise of the powers conferred under sub-sec. (2) of S. 4 of the Indian Telegraph Act, 1885 . The terms and conditions of the licence are given in Annexure - 11A to this licence. The said licence, inter alia, provides as follows : -
"The Telegraph Authority reserves the right to modify at any time the terms and conditions of the licence by giving notice of three months to the licencee if the Telegraph Authority is satisfied that it is necessary or expedient to do so in the interest of the general public or for the proper operation of pay - phones."

4. By a notification / circular dated 2nd of May, 1991, the Government of India made a general revision in the rate of commission from 20% to 10% which was made effective from 1st of June, 1991, for the recorded call units beyond 10,000 per period. Under the said notification / circular, the Operating Agency of pay - phones like that of the writ petitioner / opposite parties would be entitled to get 20% up to 10,000 call units and beyond that at the rate of 10%. This change in commission was introduced by the notification / circular which was enforced on and from 1st of June, 1991 throughout India. It is not in dispute that the writ petitioner / opposite parties accepted the said revisio