IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION SUIT NO. 3051 OF 1996 The Mahanagar Telephone Nigam Limited Mumbai ....Plainitff Vs Irani Khorshed Nosir ...Defendant. Mr.R.J.Thakkar i,b Ms Jyoti Thakkar for Plaintiff. Mr.M.L.Thakkar i.b M/s Thakordas Madgavkar for Defendants CORAM : R. V. MORE, J. DATE : 16TH NOVEMBER, 2009. P.C. 1. Heard learned counsel for the respective parties. 2. The above suit is filed by the plaintiff MTNL for recovery of an amount of Rs.65,966/- along with interest at 18 % p.a. due and payable by the defendant under telephone bill issued by the plaintiff. The defendant failed to pay the said amount so demanded by the plaintiff as per the telephone bill. The plaintiff has filed the suit for recovery of the amount under the said bills. 3. Learned counsel for the plaintiff submits that in view of the provisions of section 7B and decision of the Apex court in the case of Telecom District Manager Goa vs V.S.Dempo reported in AIR 1996 SUPREME COURT 1545 The dispute is required to be referred to arbitration. Learned counsel for the defendant opposed this plea by relying upon the judgment of the Madras High Court in K.Ramgopal vs Bharat Sanchar Nigam Ltd reported in W.P No.20776 2000 decided on 5.4.2002. 4. I have considered the submissions of the respective counsel and also have gone through the judgment of the Apex court in V.S.Dempo ‘s case supra and the decision of the learned single Judge of Madras High Court. The above Supreme Court judgment was not pointed out to the learned single Judge of the Madras High court. 5. Considering the mandate of section 7B of Indian Telegraphs Act, 1885 as expounded by the Hon'ble Apex court in V.S.Demco 's case supra, in my opinion, matter is required to be referred to arbitration. 6. The Central Government shall notify the name of an Arrbitrator before whom the present dispute will be tried and decided in arbitration. The plaintiff to intimate the concerned Competent Authority of the Central Government to take immediate steps to issue Notification as per section 7B of the Telegraphs Act. Such Notification shall be issued within a period of 12 weeks from today. The Arbitrator shall conclude the arbitration proceedings as expeditiously as possible. It is made clear that all issues raised in the present dispute at the instance of either side shall be considered on merits in accordance with law in arbitration proceedings. Parties would be at liberty to file their rival pleadings if not already filed. The above suit is disposed of in above terms. Refund of court fees as per rules. The plaintiff MTNL either by itself or through his counsel will intimate the appointment of the arbitrator to the defendants. At this stage, learned counsel for the defendant points that the defendant has deposited an amount of Rs.32,982/- in this Court as condition precedent for setting aside the ex parte decree. This amount will remain in the Court and paid over to the parties subject to the final outcome of the arbitration proceedings, R. V. MORE, J.