Jurisdiction of Consumer Forum if there is statutory remedy

In    CIVIL APPEAL     NO. 7687        OF 2004 General Manager, Telecom   v.  M. Krishnan & Anr.   Decided on 1^st Sept, 2009,  the supreme court while setting aside a Full Bench   decision of Kerala  High Court , has  held jurisdiction of the consumer forum is barred by implication where remedy is provided under a special statute.

In this case dispute was relating to disconnection of telephone. The consumer forum   had directed to reconnect the telephone and to pay compensation of Re 5000/-. The Telecom department had filed writ petition before the High Court challenging the jurisdiction of the consumer forum in view of remedy of arbitration provided in    Section     7-B       of    the     Indian      Telegraph      Act regarding disputes             in respect of telephone bills. The writ petition was dismissed by the full bench of the High Court.

Section 7-B of the Telegraph Act reads as under:-

          "S. 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     or   whose benefit the line, appliance or apparatus is, or has     been      provided,                the     dispute        shall    be determined        by    arbitration               and    shall,     for   the purpose of such determination, be referred to an arbitrator        appointed            by    the       Central    Government either specifically for the determination of that dispute     or    generally            for       the    determination      of disputes under this Section.

(2)         The    award          of       the    arbitrator       appointed under sub-s. (1) shall be conclusive between the   parties      to        the        dispute         and     shall     not   be questioned in any Court."

Rule 413 of the Telegraph Rules provides that all services relating to telephone are subject to Telegraph Rules.  A telephone connection can be disconnected by the TelegraphAuthority      for   default          of    payment         under    Rule    443   of    the Rules.

         The apex court held that: “It is well settled that the special law overrides the general law.  Hence, in our opinion the High Court was not correct in its approach. In Chairman, Thiruvalluvar Transport Corporation Vs. Consumer Protection Council (1995) 2 SCC 479 it was held that   the     National     Commission     has   no   jurisdiction     to adjudicate upon claims for compensation arising out of motor vehicles accidents. We agree with the view taken in the aforesaid judgment.

This decision will have far reaching effect and now in many cases the consumers will be redirected to the authorities from whom the former will not be confident to get fair hearing and justice.