Telecom cases are now out of consumer fora jurisdiction

By Our Staff Reporter

THIRUVANANTHAPURAM, JAN. 2. In what could be a real blow to consumers, the State Consumer Disputes Redressal Commission has ruled that any consumer disputes with the Telecom Department would have to be settled through arbitration, under Sec. 7-B of the Indian Telegraph Act, and not through consumer forums.

This decision of the State Commission effectively terminates what was the only legal recourse available to Telecom subscribers in Kerala to settle disputes of excess billing or disconnection and seek compensation.

Any further Telecom disputes brought before consumer redressal forums, including the cases pending before various forums all over the State are now liable to be dismissed, leaving the consumers to seek redressal through arbitration with Telecom Department officials.

The decision was given by the State Commission, while considering together a bunch of cases involving Telecom disputes.

In all cases, the Telecom Department questioned the maintainability of Telecom disputes before consumer forums. Such complaints fall within the scope of Sec. 7-B of the Indian Telegraph Act and the only remedy available to consumers was arbitration, it was argued.

Section 7 (B) of the Indian Telegraph Act, says that " any disputes concerning any telegraph line between Telegraph Department and subscribers shall be determined by arbitration, by an arbitrator appointed by the Central Government... and their award shall be conclusive".

The situation now precipitated by the State Commission is peculiar, for in ruling that Telecom complaints are not maintainable before consumer forums, it has gone against the decision of its apex court, the National Consumer Disputes Redressal Commission. The National Commission had held that Telecom department cannot seek immunity under Sec. 7-B.

The State Commission itself had in K. A. Rama Iyer Vs Telecom, in July 1999, ruled that consumer forums had the jurisdiction to decide Telecom cases.

However, in a writ appeal filed by the Telecom department in April 2000, the division bench of the High Court had held that consumer forums had no authority to adjudicate Telecom disputes.

In giving its current ruling, the State Commission has considered the binding force of the High Court's decision on other courts. A 226 of the Constitution refers to the High Court's power of judicial superintendence over the decisions of all courts and tribunals within their respective jurisdiction.

The counsels for consumers argued that Consumer Protection Act was `in addition to' and not in derogation of any other law and that just because Sec. 7-B of the Telegraph Act provides for arbitration, the additional remedy provided by consumer forums cannot be dismissed.

However, the State Commission, presided over by Mr. Justice L. Mahonaran, ruled that the forum being under the supervisory jurisdiction of the High Court, could not sit in judgment as to the correctness of the law pronounced by the High Court.

It is also pointed out that the remedy offered by consumer forums in Telecom cases is being denied only to the consumers in Kerala. While all other State Commissions follow the decision of the National Commission, the verdict given by the Kerala High Court has rendered the former's favourable ruling useless.

Nearly 10 per cent of the cases filed in district consumer disputes redressal forums and about 20 per cent of the appeals filed in State Commission deal with Telecom disputes. The State Commission's decision has now totally removed the branch of litigation from the jurisdiction of consumer forums.

The only option available to consumers now would be to approach the Supreme Court. However, considering the cost of litigation, this might not be affordable to most people. It is up to consumer welfare organisations to present the issue before the Supreme Court.

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Section  : Southern States
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