IMPORTANT JUDGMENT ON CONSUMER PROTECTION ACT RELATING TO TELEPHONE DISPUTES.
If you are a telephone subscriber and have a dispute with the service provider over an inflated bill or disconnection, then you can no longer rush to the neighbourhood consumer court for quick and cheap redress of your grievance.
For, the Supreme Court on Tuesday ended the jurisdiction of consumer courts to entertain disputes relating to telecom services. It said from now on, these disputes would be resolved through arbitration provided under Section 7B of the Indian Telegraph Act, 1885.
Allowing an appeal filed by Bharat Sanchar Nigam Ltd (BSNL) and agreeing with counsel Haris Beeran's arguments, a Bench comprising Justices Markandey Katju and A K Ganguly said as the Telegraph Act was a special law, its provisions would prevail over a general law like Consumer Protection Act, 1986.
"It is a settled law that general law must yield to special law," said the Bench and noted that there was a remedy prescribed under Section 7B of the Telegraph Act for resolution of all disputes regarding telecom through arbitration.
The Bench said since there was a specific statutory remedy prescribed, it would oust the jurisdiction of consumer courts. This means any dispute even with regard to disconnection of telephone or amount mentioned in telephone bills would have to be resolved through arbitration under the Telegraph Act.
BSNL, Calicut, had in August 2001 disconnected the telephone of one M Krishnan due to non-payment of bills worth Rs 17,103. Krishnan approached a District Consumer Forum under the Consumer Protection Act. The consumer court on November 16, 2001 ordered restoration of connection and directed BSNL to pay compensation of Rs 5,000 to the subscriber.
BSNL then moved Kerala High Court challenging the consumer court order. A single Bench of the HC dismissed BSNL's plea saying it could file appeal against the District Consumer Forum's order in the state forum.
But the BSNL appealed before a division Bench of the HC, which finding merit in the PSU's plea, referred it to a full Bench. The full Bench on February 14, 2003 dismissed BSNL's petition. It moved the SC challenging the HC judgment.
Allowing the BSNL appeal, the apex court set aside the concurrent findings of the District Consumer Forum, single Bench as well as the division Bench of the HC to order that henceforth, all disputes relating to telephones -- bills and disconnection included -- would be decided through arbitration provided under the more than century-old Telegraph Act.
For, the Supreme Court on Tuesday ended the jurisdiction of consumer courts to entertain disputes relating to telecom services. It said from now on, these disputes would be resolved through arbitration provided under Section 7B of the Indian Telegraph Act, 1885.
Allowing an appeal filed by Bharat Sanchar Nigam Ltd (BSNL) and agreeing with counsel Haris Beeran's arguments, a Bench comprising Justices Markandey Katju and A K Ganguly said as the Telegraph Act was a special law, its provisions would prevail over a general law like Consumer Protection Act, 1986.
"It is a settled law that general law must yield to special law," said the Bench and noted that there was a remedy prescribed under Section 7B of the Telegraph Act for resolution of all disputes regarding telecom through arbitration.
The Bench said since there was a specific statutory remedy prescribed, it would oust the jurisdiction of consumer courts. This means any dispute even with regard to disconnection of telephone or amount mentioned in telephone bills would have to be resolved through arbitration under the Telegraph Act.
BSNL, Calicut, had in August 2001 disconnected the telephone of one M Krishnan due to non-payment of bills worth Rs 17,103. Krishnan approached a District Consumer Forum under the Consumer Protection Act. The consumer court on November 16, 2001 ordered restoration of connection and directed BSNL to pay compensation of Rs 5,000 to the subscriber.
BSNL then moved Kerala High Court challenging the consumer court order. A single Bench of the HC dismissed BSNL's plea saying it could file appeal against the District Consumer Forum's order in the state forum.
But the BSNL appealed before a division Bench of the HC, which finding merit in the PSU's plea, referred it to a full Bench. The full Bench on February 14, 2003 dismissed BSNL's petition. It moved the SC challenging the HC judgment.
Allowing the BSNL appeal, the apex court set aside the concurrent findings of the District Consumer Forum, single Bench as well as the division Bench of the HC to order that henceforth, all disputes relating to telephones -- bills and disconnection included -- would be decided through arbitration provided under the more than century-old Telegraph Act.
KRISH
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