Relying on the Consumer Protection Act

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Is a dispute regarding the disconnection of a mobile connection covered under the Consumer Protection Act, 1986, or under the arbitration provisions of the Indian Telegraph Act, 1885? This was the question before the State Consumer Disputes Redressal Commission in Kerala in Idea Cellular Ltd v PP Paulose.

Man_with_mobile_on_motorbikeIdea Cellular had appealed an order to pay the complainant, Paulose, ₹5,000 as compensation on account of the alleged disconnection of his mobile connection for eight days in December 2008. The phone had been reconnected only after Paulose filed a police complaint. Claiming the disconnection had caused him personal losses Paulose had claimed ₹100,000 as compensation.

Idea Cellular relied on the recent decision in General Manager, Telecom v M Krishnan and Another, where the Supreme Court held that the parties are bound to resort to arbitration in view of section 7-B of the Telegraph Act that provides for arbitration, to argue that consumer forum that the consumer forums have no jurisdiction in the dispute.

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The update of court judgments is compiled by Bhasin & Co, Advocates, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@bhasinco.in or lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

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