Company has described the terms and conditions in SEF signed by you, and must have mentioned that it can initiate 7B proceedings.
Company can file a civil suit for recovery of the outstanding amount along with the interest.
If you have blocked payments due to deficiency in service, malpractices by the company, you may submit a complaint in writing under acknowledgment to company and establish your stand and protest. Companies are more than willing to settle the matter in case of vigilant customers. Those who are weak and ill informed are subjected to the drill of collection/recovery agents, coercion, pressure etc to extract/extort the amount + penalties. Company shall look into its success rate thru recovery mode and as on date it is good, thanks to poor awareness on rights and unwillingness on part of customers. Hence focus on recovery mode.
It shall be better to provide all details of your case to a consumer matters lawyer and proceed under expert advice.
If you had protested on deficiency in service, mis selling, overcharging etc you may log on to company website, access the email id’s and escalate the matter to MD, Company Secretary etc. It shall be good to involve local BM also and take crowd of well wishers/influential individuals. The moment the local staff realizes that they shall be taken to task and their business shall be hit they shall move the company, to settle the issue. However you must obtain in writing that company shall withdraw your name from bad customers list, from list visible to all companies and the settlement shall have no adverse bearing on your credibility.
There are consumer help groups which have done good job, you can approach them too e.g:
www.grahakseva.com/
pehredar@network18online.com
You can approach them too.
You may find the following threads useful.
https://www.lawyersclubindia.com/forum/Non-payment-of-mobile-bill-66962.asp#.UHgn4mcWrts
https://www.lawyersclubindia.com/forum/Airtel-people-harassing-66676.asp
https://www.lawyersclubindia.com/forum/Airtel-unpaid-bills-66769.asp