12. 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 that 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.