:1: IN IN IN THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY THE HIGH COURT OF JUDICATURE AT BOMBAY O.O.C.J. O.O.C.J. O.O.C.J. SUIT SUIT SUIT NO. 1228 OF 1993 NO. 1228 OF 1993 NO. 1228 OF 1993 Inderjit Kapur. ... Plaintiff V/s. Mahanagar Telephone Nigam Limited. ... Defendants. Mr. Shailesh Shah with Ms. Mamta Sudh i/b. S.N. Shah for the Plaintiff. Mrs. S.I. Shah for the Defendant. ..... CORAM CORAM CORAM : DR. D.Y. CHANDRACHUD,J. : DR. D.Y. CHANDRACHUD,J. : DR. D.Y. CHANDRACHUD,J. 21ST 21ST 21ST SEPTEMBER, 2006. SEPTEMBER, 2006. SEPTEMBER, 2006. P.C. P.C. P.C. : : : 1. The papers of the present suit have been called for on the joint request of the Counsel appearing on behalf of the Plaintiff and for the Defendant since companion Suit No.829 of 1989 which is on the Board today has been disposed of by directing that a reference be made to an Arbitrator under Section 7-B of the Indian Telegraphs Act, 1885. Parties are agreed to similar directions in the present suit. In the circumstances, by consent, the suit is taken on Board and is called for hearing. 2. This Suit has been instituted in order to challenge the correctness of bills issued by Mahanagar Telephone Nigam Ltd. - the Defendant, the bills in dispute being Exhibits "B" to " Q". The dispute raised in the suit clearly falls within the purview of Section 7-B of the Indian Telegraphs Act, 1885 and can therefore, be :2: determined by arbitration. Counsel appearing for the Defendant has drawn the attention of the Court to orders passed by the Division Bench on 20th January 2000 in Writ Petitions 134 of 1990 and 145 of 1990 wherein having regard to the judgment of the Supreme Court in Telecom District Manager, Goa v. V.S. Dempo, a statement was made on behalf of MTNL that the dispute be referred to arbitration. A similar statement has been made on behalf of the Defendant in this case to the effect that a reference be made to arbitration under Section 7-B of the Indian Telegraph Act, 1885. In that view of the matter, this suit can be disposed of in terms of the statement which has been made on behalf of the Defendant. 3. During the pendency of the Suit, on 12th April 1993, an ad-interim order was passed by which the Plaintiff was to pay 50% of the amount in dispute upon which the telephone line was directed to be reconnected. The total amount in dispute was Rs.2,28,419/-. The Plaintiff was agreeable to pay 50% of the amount which came to Rs.1,14,209/-. Subsequently, on 5th August 1996, the Advocate for the Plaintiff stated before the Court that the amount of Rs.1,14,209 has been deposited. The ad-interim order was thereupon confirmed and the motion was disposed of. 4. Under Section 7-B, the Arbitrator has to be appointed by the Central Government. Counsel appearing on :3: behalf of the Defendant states that in compliance with the direction issued by this Court in the aforesaid terms, the Defendant will move the Central Government for the appointment of an Arbitrator under Section 7-B of the Indian Telegraphs Act, 1885 within a period of 6 weeks from today. The Arbitrator is requested to expedite the disposal of the reference and shall do so preferably within a period of 6 months from the date on which he enters upon the reference. The amount which has been deposited by the Plaintiff in pursuance of the interim order passed in this proceeding shall be subject to the final result of the Arbitration Proceedings. In the meantime, pending the disposal of the Arbitration proceeding and for a period of 90 days after the receipt of the award by the Plaintiff, the ad-interim order dated 13th April 1993 as confirmed on 5th August 1996 shall continue to remain on operation. 5. The Counsel appearing on behalf of the contesting parties are agreed that parties shall apply for similar orders seeking a reference under Section 7-B of the Indian Telegraphs Act, 1885 in Suit No.6588 of 1987 instituted in the City Civil Court in the event that the suit is still pending on the file. 6. The present Suit is disposed of by consent in terms noted above, no other issue having been pressed at this stage on either side.