VODAFONE IDEA CELLULAR LTD.versusAJAY KUMAR AGARWAL
- Citation
- 2022 INSC 189
- Decided
- 16 February 2022
- Disposal
- Disposed off
- Bench
- D Y CHANDRACHUD
Holding
Section 7B of the Telegraph Act, 1885 does not oust the jurisdiction of consumer forums under the Consumer Protection Acts; the consumer may still pursue remedies before the consumer forum despite the existence of a statutory arbitration scheme.
Summary
Vodafone Idea Cellular Ltd. filed a consumer complaint alleging over‑charging for mobile services, which the consumer, Ajay Kumar Agarwal, pursued before the District Consumer Disputes Redressal Forum. The appellant argued that Section 7B of the Telegraph Act, 1885, which mandates arbitration for disputes concerning telegraph lines, ousts the jurisdiction of the consumer forum. The Supreme Court examined the definitions of "service" under the Consumer Protection Acts of 1986 and 2019, noting that they encompass telecom services and are special statutes intended to protect consumers. It held that the statutory arbitration remedy under the Telegraph Act does not displace the consumer forum's jurisdiction, as the later consumer protection statutes are not to be overridden without express language. Consequently, the Court affirmed the lower tribunals' jurisdiction and dismissed the appeal, restoring the consumer's right to seek redress under the Consumer Protection Act.
Issues considered
- The applicability of Section 7B of the Telegraph Act, 1885, to disputes between a private telecom service provider and a consumer.
- Whether the arbitration provision in the Telegraph Act ousts the jurisdiction of consumer forums under the Consumer Protection Act, 1986 (and its 2019 successor).
- The interpretation of the term "service" in the Consumer Protection Acts with respect to telecom services.
Legislation cited
- Arbitration and Conciliation Act, 1996
- Consumer Protection Act, 1986s. 11(1), s. 14, s. 2(o), s. 3, s. 313
- Consumer Protection Act, 2019s. 2(42)
- Indian Telegraph Act, 1885s. 7B
Subjects
Judgment
748 SUPREME COURT
[2022]REPORTS
2 S.C.R. 748 [2022] 2 S.C.R.
A VODAFONE IDEA CELLULAR LTD.
v.
AJAY KUMAR AGARWAL
(Civil Appeal No. 923 of 2017)
B FEBRUARY 16, 2022
[DR. DHANANJAYA Y CHANDRACHUD, SURYA KANT
AND VIKRAM NATH, JJ.]
Telegraph Act, 1885: s.7B – Whether s.7B of the Act of 1885
providing for statutory remedy of arbitration ousts the jurisdiction
C of the consumer forum in deciding the dispute between a telecom
company and a consumer – Held: While the Act of 1885 can be
construed to be a special enactment for regulating telegraphs, the
Consumer Protection Act is a special (and later) enactment intended
to protect the interest and welfare of consumers – The fact that the
remedy of arbitration under the Act 1885 is of a statutory nature,
D would not oust the jurisdiction of the consumer forum – The Act of
1986 and its successor, the Act of 2019 are subsequent enactments
which have been enacted by Parliament to protect the interest of
consumers – Therefore, an ouster of jurisdiction cannot be lightly
assumed unless express words are used or such a consequence
E follows by necessary implication – The existence of an arbitral
remedy will not, therefore, oust the jurisdiction of the consumer
forum – It would be open to a consumer to opt for the remedy of
arbitration, but there is no compulsion in law to do so and it would
be open to a consumer to seek recourse to the remedies which are
provided under the Act of 1986, now replaced by the Act of 2019 –
F Consumer Protection Act 2019 – Consumer Protection Act 1986 –
Jurisdiction – Arbitration.
Consumer Protection Act 2019: s.2(42) – Telecom services –
The insertion of the expression ‘telecom services’ in the definition
which is contained in s.2(42) of the Act of 2019 cannot be construed
G to mean that telecom services were not included from the jurisdiction
of the consumer forum under the Act of 1986 – On the contrary, the
definition of the expression ‘service’ in s.2(o) of the Act of 1986
was wide enough to comprehend services of every description
including telecom services – Consumer Protection Act 1986 – s.2(o)
H – Interpretation of statutes.
748
VODAFONE IDEA CELLULAR LTD. v. AJAY KUMAR AGARWAL 749
Consumer Protection Act, 1986: s.2(o) – ‘Service’ – A
Interpretation of – Parliament has used the expression “service of
any description which is made available to potential users” – The
definition employs the ‘means and includes formula’ – The means
part of the definition incorporates service of “any” description –
The inclusive part incorporates services by way of illustration, such
as facilities in connection with banking, finance, insurance, B
transport, processing, supply of electrical and other energy, board
or lodging and housing construction – The inclusive part is prefaced
by the clarification that the services which are specified are not
exhaustive – This is apparent from the expression “but not limited
to” – The last part of the definition excludes (i) the rendering of C
any service free of charge; and (ii) services under a contract of
personal service – Thus, Parliament has confined the exclusion only
to two specified categories – The initial part of the definition however
makes it abundantly clear that the expression ‘service’ is defined to
mean service of any description.
Disposing of the appeals, the Court D
HELD: 1. The definition of the expression ‘service’ is
couched in wide terms. The width of statutory language emerges
from the manner in which the definition is cast. Parliament has
used the expression “service of any description which is made
available to potential users”. The definition employs the ‘means E
and includes formula’. The means part of the definition
incorporates service of “any” description. The inclusive part
incorporates services by way of illustration, such as facilities in
connection with banking, finance, insurance, transport,
processing, supply of electrical and other energy, board or lodging
F
and housing construction. The inclusive part is prefaced by the
clarification that the services which are specified are not
exhaustive. This is apparent from the expression “but not limited
to”. The last part of the definition excludes (i) the rendering of
any service free of charge; and (ii) services under a contract of
personal service. Parliament has confined the exclusion only to G
two specified categories. The initial part of the definition however
makes it abundantly clear that the expression ‘service’ is defined
to mean service of any description. In other words, a service of
every description would fall within the ambit of the statutory
provision. [Para 9][756-A-D]
H
750 SUPREME COURT REPORTS [2022] 2 S.C.R.
A 2. The definition of the expression ‘service’ is embodied
in wide terms. The District Forum is entrusted with the
jurisdiction to entertain all complaints where the value of goods
or services and the compensation claimed do not exceed the
stipulated threshold. Under Section 14, where the District Forum
is satisfied that the allegations in the complaint about the services
B
are proved, it is empowered to pass remedial orders in terms of
the provisions of sub-section (1). While the Act of 1885 can be
construed to be a special enactment for regulating telegraphs,
the Act of 1986 is a special (and later) enactment intended to
protect the interest and welfare of consumers Though the present
C case relates to the period before the enactment of the Consumer
Protection Act 2019, an important aspect of the matter is that the
definition of the expression ‘service’ in Section 2(42) of the later
Act specifically incorporates telecom services. [Para 13][757-G;
758-A-C]
D 3. The specification of services in Section 2(s) of the
erstwhile Act was therefore not intended to be an exhaustive
enumeration of the services which are comprehended within the
definition. On the contrary, by adopting language which provides
that the expression ‘service’ would mean service of any
description which is made available to potential users, Parliament
E indicated in unambiguous terms that all services would fall within
the ambit of the definition. The only exception was in the case of
(i) services rendered free of charge; and (ii) services under a
contract of personal service. [Para 14][758-D-F]
4. The fact that the remedy of arbitration under the Act
F 1885 is of a statutory nature, would not oust the jurisdiction of
the consumer forum. The Act of 1986 and its successor, the Act
of 2019 are subsequent enactments which have been enacted by
Parliament to protect the interest of consumers. Hence, an ouster
of jurisdiction cannot be lightly assumed unless express words
G are used or such a consequence follows by necessary implication.
[Para 16][760-B-C]
5. The decision in M Krishnan is incorrect on two grounds.
First, it failed to recognize that the Act of 1986 is not a general
law but a special law that has been enacted by Parliament
H
VODAFONE IDEA CELLULAR LTD. v. AJAY KUMAR AGARWAL 751
specifically to protect the interest of consumers. Second, even if A
it is assumed that the Act of 1986 is a general law, it is a settled
position of law that if there is any inconsistency between two
legislations, the later law, even if general in nature would override
an earlier special law. The decision in M Krishnan also fails to
note that the Act of 1986 is a special law providing protection to
B
consumers. Crucially, M Krishnan fails to notice that Section 3 of
the Act of 1986 clearly provides that the remedies available under
the Act are in addition to the remedies available in other statutes
and the availability of additional remedies would not bar a
consumer from filing a complaint under the Act of 1986. [Paras
18 & 19][760-G-H; 761-G-H; 762-A] C
General Manager, Telecom v. M Krishnan and Another
(2009) 8 SCC 481 : [2009] 14 SCR 86 – Not correct
law.
6. The existence of an arbitral remedy will not, therefore,
oust the jurisdiction of the consumer forum. It would be open to D
a consumer to opt for the remedy of arbitration, but there is no
compulsion in law to do so and it would be open to a consumer to
seek recourse to the remedies which are provided under the Act
of 1986, now replaced by the Act of 2019. The insertion of the
expression ‘telecom services’ in the definition which is contained E
in Section 2(42) of the Act of 2019 cannot be construed to mean
that telecom services were excluded from the jurisdiction of the
consumer forum under the Act of 1986. On the contrary, the
definition of the expression ‘service’ in Section 2(o) of the Act of
1986 was wide enough to comprehend services of every description
including telecom services. [Para 20][762-F-G; 763-A] F
Ajoy Kumar Banerjee v. Union of India (1984) 3 SCC
127 : [1984] 3 SCR 252; IREO Grace Realtech (P) Ltd.
v. Abhishek Khanna 2021 SCC OnLine SC 277 – relied
on.
G
Bharthi Hexacom Ltd. v. Komal Prakash Misc
Application No. 204/2014 in Revision Petition
Application No. 12; Emaar MGF Land Ltd. v. Aftab
H
752 SUPREME COURT REPORTS [2022] 2 S.C.R.
A Singh (2019) 12 SCC 751 : [2018] 14 SCR 791; Imperia
Structures Ltd. v Anil Patni (2020) 10 SCC 783 –
referred to.
Case Law Reference
[2009] 14 SCR 86 referred to Para 3
B
[2018] 14 SCR 791 referred to Para 15
[2009] 14 SCR 86 Not correct law Paras 18, 19
[1984] 3 SCR 252 relied on Para 18
(2020) 10 SCC 783 referred to Para 19
C
CIVIL APPELLATE JURISDICTION: Civil Appeal No. 923 of
2017.
From the Judgment and Order dated 26.05.2016 of the National
Consumer Disputes Redressal Commission, New Delhi in Revision
D Petition No. 1430 of 2016.
With
Civil Appeal Nos. 1389 of 2022 and 4274 of 2016.
Pankaj Sharma, Rajeev Kumar Dubey, Ashiwan Mishra,
E Kamlendra Mishra, Aditya Narain, Mrs. Sonali Jaitley Bakhshi, Jaiyesh
Bakshi, Ms. Manmilan Sidhu, P. V. Yogeswaran, Kusum Chaudhary,
Ms. Vimla Sinha, Gurmeet Singh Makker, Devashish Bharukha, Abhishek
Sarkar, B. Krishna Prasad, Puneet Taneja, Ms. Laxmi, Manmohan Singh,
Arnav Narain, Ms. Astha Tyagi, Advs. for the appearing parties.
F The Judgment of the Court was delivered by
DR. DHANANJAYA Y CHANDRACHUD, J.
1. This civil appeal1 arises from a judgment and order dated 26
May 2016 of the National Consumer Disputes Redressal Commission2
which was rendered in the exercise of its revisional jurisdiction. The
G issue is whether Section 7B of the Indian Telegraph Act 1885 ousts the
jurisdiction of the consumer forum in deciding a dispute between a telecom
company and a consumer.
1
Civil Appeal No 923 of 2017
2
H “NCDRC”
VODAFONE IDEA CELLULAR LTD. v. AJAY KUMAR AGARWAL 753
[DR. DHANANJAYA Y CHANDRACHUD, J.]
2. On 25 May 2014, the respondent instituted a consumer complaint A
before the District Consumer Disputes Redressal Forum3, Ahmedabad
alleging a deficiency of service on the part of the appellant. The complaint
states that the respondent had a post-paid mobile connection and was
paying an amount of Rs 249 as the monthly basic rent. The appellant
was providing mobile telecom services to the complainant on the basis
B
of which it was asserted that there exists a relationship of consumer and
service provider. The complainant subscribed to an ‘auto pay’ system
through a credit card issued by his bankers in terms of which, the appellant
would receive the payment before the due date to facilitate the timely
payment of bills. According to the complainant, the average monthly bill
was in the vicinity of Rs 555. Copies of the previous bills for five months, C
until 8 November 2013 were annexed. For the period between 8
November 2013 and 7 December 2013, the respondent was billed in
the amount of Rs 24,609.51. According to the respondent, this is an
over-charge. The credit limit for the post-paid mobile connection was
Rs 2,300 until the bill dated 8 November 2013, after which the credit D
limit was increased to Rs 2,800 for the bill which was generated on 8
December 2013. The respondent has denied undertaking excessive
use of the connection, including towards internet facilities. It was alleged
that as a prevalent practice, the mobile service provider must intimate
the customer when the bill reaches 80 percent of the credit limit. The
complaint contains a recital of the steps which were taken by the E
respondent by contacting the representatives of the appellant following
which he registered a complaint on 22 December 2013. The respondent
instituted the consumer complaint on 25 May 2014 seeking compensation
in the amount of Rs 22,000 together with interest, besides consequential
reliefs. F
3. The appellant raised an objection to the maintainability of the
complaint based on a judgment of a two-Judge Bench of this Court in
General Manager, Telecom v. M Krishnan and Another4. The
District Forum dismissed the application and directed that a written
statement must be submitted by the appellant on all issues including on G
the issue of jurisdiction. It was observed that the appellant, a private
service provider is not a ‘telegraph authority’ for the purposes of Section
3
“District Forum”
4
(2009) 8 SCC 481 H
754 SUPREME COURT REPORTS [2022] 2 S.C.R.
A 7B of the Indian Telegraphic Act 18855; however, the issue of jurisdiction
could not be determined without the filing of a written statement. In this
context, it was observed:
“17. […] In these circumstances also instead of taking decision
on preliminary issue i.e jurisdiction, it is reasonable and legal that
B whole complaint is heard on merits and decision regarding
jurisdiction is also taken in it.”
The order of the District Forum was questioned before the State
Consumer Disputes Redressal Commission6, Gujarat. The SCDRC held
by an order dated 30 November 2015 that the issue of jurisdiction could
C be raised as a preliminary issue. On merits, the SCDRC relied on the
letter of the Department of Telecommunication dated 24 January 2014
where it was stated that the judgment in M Krishnan (supra) on Section
7B of the Act of 1885 would not be applicable to a private service provider
since it is not a ‘Telegraph Authority”. For this purpose, reliance was
also placed on Bharthi Hexacom Ltd. v. Komal Prakash7. The State
D
Forum observed that:
“ […] under the above mentioned circumstances for a dispute
under Sect. 7(B) between Private Service Provider and Consumer
the authority cannot take decision because, for Private Service
provider any arrangement is not made in the above act regarding
E Telegraphic Authority are not given to the Service Provider, hence,
the Learned Consumer Forum has the jurisdiction to hear, decide
and dispose of the dispute between the Private service Provider
and consumer.”
The matter was thereafter carried in revision to the NCDRC.
F The NCDRC by its judgment dated 26 May 2016 affirmed the view of
the SCDRC.
4. Mr Aditya Narain, learned counsel appearing on behalf of the
appellant submits that Section 7B of the Act of 1885 provides a statutory
remedy of arbitration. Counsel submitted that in view of the statutory
G remedy, which is a remedy under a special statute, the jurisdiction of the
consumer forum is ousted. In this context, besides relying on the provisions
5
“Act of 1885”
6
“SCDRC” or “State Forum”
7
H Misc Application No. 204/2014 in Revision Petition Application No. 12
VODAFONE IDEA CELLULAR LTD. v. AJAY KUMAR AGARWAL 755
[DR. DHANANJAYA Y CHANDRACHUD, J.]
of Section 7B, counsel adverted to the definitions of the expression A
‘telecom officer’ in Section 3(2) and of ‘telegraph authority’ in Section
3(6).
5. The principal issue which arises for determination is whether
the existence of a remedy under Section 7B of the Act of 1885 ousts the
jurisdiction of the consumer forum under the Consumer Protection Act B
19868.
6. Section 11 of the Act of 1986 specified the jurisdiction of the
District Forum. Section 11(1) provided as follows:
“11. Jurisdiction of the District Forum.—(1) Subject to the
other provisions of this Act, the District Forum shall have jurisdiction C
to entertain complaints where the value of the goods or services
and the compensation, if any, claimed does not exceed rupees
twenty lakhs.”
7. In terms of Section 11(1), the District Forum was conferred
with the jurisdiction to entertain complaints where the value of the goods D
or services and the compensation, if any, claimed did not exceed a
stipulated amount. The amount was progressively revised from Rs 1
lakh to Rs 5 lakhs and eventually to Rs 20 lakhs. The expression ‘service’
is defined in Section 2(o) in the following terms:
“2 (o) “service” means service of any description which is made E
available to potential users and includes, but not limited to, the
provision of facilities in connection with banking, financing,
insurance, transport, processing, supply of electrical or other energy,
board or lodging or both, housing construction, entertainment,
amusement or the purveying of news or other information, but F
does not include the rendering of any service free of charge or
under a contract of personal service.”
8. The expression ‘deficiency’ is defined in Section 2(g):
“2(g) “deficiency” means any fault, imperfection, shortcoming or
inadequacy in the quality, nature and manner of performance which G
is required to be maintained by or under any law for the time
being in force or has been undertaken to be performed by a person
in pursuance of a contract or otherwise in relation to any service.”
8
“Act of 1986” H
756 SUPREME COURT REPORTS [2022] 2 S.C.R.
A 9. The definition of the expression ‘service’ is couched in wide
terms. The width of statutory language emerges from the manner in
which the definition is cast. Parliament has used the expression “service
of any description which is made available to potential users”. The
definition employs the ‘means and includes formula’. The means part of
the definition incorporates service of “any” description. The inclusive
B
part incorporates services by way of illustration, such as facilities in
connection with banking, finance, insurance, transport, processing, supply
of electrical and other energy, board or lodging and housing construction.
The inclusive part is prefaced by the clarification that the services which
are specified are not exhaustive. This is apparent from the expression
C “but not limited to”. The last part of the definition excludes (i) the rendering
of any service free of charge; and (ii) services under a contract of
personal service. Parliament has confined the exclusion only to two
specified categories. The initial part of the definition however makes it
abundantly clear that the expression ‘service’ is defined to mean service
of any description. In other words, a service of every description would
D fall within the ambit of the statutory provision.
10. The Act of 1986 was a milestone in legislative efforts designed
to protect the welfare and interest of consumers. The long title to the
Act specifies that it is an Act “to provide for better protection of the
interest of consumers”. Paragraph 2 of the Statement of Objects and
E Reasons accompanying the introduction of the Bill in Parliament specifies
the objects in the following terms:
“2. It seeks, inter alia, to promote and protect the rights of
consumers such as—
(a) the right to be protected against marketing of goods which are
F hazardous to life and property;
(b) the right to be informed about the quality, quantity, potency,
purity, standard and price of goods to protect the consumer against
unfair trade practices;
(c) the right to be assured, wherever possible, access to variety
G of goods at competitive prices;
(d) the right to be heard and to be assured that consumers’ interests
will receive due consideration at appropriate forums;
(e) the right to seek redressal against unfair trade practices or
unscrupulous exploitation of consumers; and
H (f) right to consumer education.”
VODAFONE IDEA CELLULAR LTD. v. AJAY KUMAR AGARWAL 757
[DR. DHANANJAYA Y CHANDRACHUD, J.]
11. Section 4 of the Act of 1885vests the Central government A
with the exclusive privilege of establishing, maintaining and working
telegraphs. The expression ‘telegraph’ finds its definition in Section
3(1AA). Under the proviso to Section 4(1) the Central Government is
empowered to grant a license to any person to establish, maintain or
work a telegraph within any part of India. Section 7B contains a provision
B
for the arbitration of disputes and is in the following terms:
“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 for whose benefit the line, appliance or apparatus is, or
has been, provided, the dispute shall be determined by arbitration C
and shall, for the purposes of such determination, be referred to
an arbitrator appointed by the Central Government either specially
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-section (1) D
shall be conclusive between the parties to the dispute and shall
not be questioned in any court.”
12. Under Section 7B, any dispute concerning a telegraph line,
appliance or apparatus, between the telegraph authority and the person
for whose benefit the line, appliance or apparatus is or has been provided E
has to be determined by arbitration. Such a dispute has to be referred to
an arbitrator appointed by the Central Government either especially for
the determination of that dispute or generally for the determination of
the disputes under the Section. The expression ‘telegraph authority’ is
defined in Section 3(6)9.
F
13. The submissions of the appellant proceed on the basis that as
a private telecom service provider, any dispute of a subscriber with it is
encompassed by the remedy of arbitration in terms of Section 7B of the
Act of 1885. Even if that be so, the issue in the present case is whether
this would oust the jurisdiction of the consumer forum. The definition of
the expression ‘service’, as already noticed, is embodied in wide terms. G
The District Forum is entrusted with the jurisdiction to entertain all
9
Section 3(6) of the Act of 1885 defines ‘telegraph authority’ thus:
“telegraph authority” means the Director General of 1 [Posts and Telegraphs], and
includes any officer empowered by him to perform all or any of the functions of the
telegraph authority under this Act”;
H
758 SUPREME COURT REPORTS [2022] 2 S.C.R.
A complaints where the value of goods or services and the compensation
claimed do not exceed the stipulated threshold. Under Section 14, where
the District Forum is satisfied that the allegations in the complaint about
the services are proved, it is empowered to pass remedial orders in
terms of the provisions of sub-section (1). While the Act of 1885 can be
construed to be a special enactment for regulating telegraphs, the Act of
B
1986 is a special (and later) enactment intended to protect the interest and
welfare of consumers. Though the present case relates to the period before
the enactment of the Consumer Protection Act 201910, an important aspect
of the matter is that the definition of the expression ‘service’ in Section
2(42) of the later Act specifically incorporates telecom services11.
C 14. The submission which was urged on behalf of the appellant
was that the specific incorporation of telegraph services in the Act of
2019 is an indicator that it was only as a result of the new legislation that
telecom services were brought within the jurisdiction of the consumer
fora. This submission cannot be accepted for the simple reason that the
D specification of services in Section 2(s) of the earlier Act of 1986 was
illustrative. This is apparent from the use of the expression ‘includes but
not limited to’. The specification of services in Section 2(s) of the
erstwhile Act was therefore not intended to be an exhaustive enumeration
of the services which are comprehended within the definition. On the
contrary, by adopting language which provides that the expression
E ‘service’ would mean service of any description which is made available
to potential users, Parliament indicated in unambiguous terms that all
services would fall within the ambit of the definition. The only exception
was in the case of (i) services rendered free of charge; and (ii) services
under a contract of personal service.
F 15. In Emaar MGF Land Ltd. v. Aftab Singh12, this Court has
held that an arbitration agreement governed by the Arbitration and
Conciliation Act 1996 will not oust the jurisdiction of the consumer forum
10
“Act of 2019”
11
Section 2(42) of the Consumer Protection Act, 2019 is as follows: -
G
“service” means service of any description which is made available to potential users
and includes, but not limited to, the provision of facilities in connection with banking,
financing, insurance, transport, processing, supply of electrical or other energy, telecom,
boarding or lodging or both, housing construction, entertainment, amusement or the
purveying of news or other information, but does not include the rendering of any
service free of charge or under a contract of personal service”;
12
H (2019) 12 SCC 751
VODAFONE IDEA CELLULAR LTD. v. AJAY KUMAR AGARWAL 759
[DR. DHANANJAYA Y CHANDRACHUD, J.]
to entertain a complaint of deficiency of goods or services. The Court A
relied on Section 313 of the Act of 1986, which provides that the provisions
of the Act are in addition to and not in derogation of the provisions of any
other enactment. The following observations of this Court are relevant:
“19. Section 3 of the Consumer Protection Act provided that the
provisions of this Act shall be in addition to and not in derogation B
of the provisions of any other law for the time being in force.
Noticing the object and purpose of the Act as well as Section 3,
this Court in Thirumurugan Coop. Agricultural Credit Society v.
M. Lalitha [Thirumurugan Coop. Agricultural Credit Society v.
M. Lalitha, (2004) 1 SCC 305] , laid down the following in paras
11 and 12 : (SCC p. 312) C
“11. From the Statement of Objects and Reasons and the
scheme of the 1986 Act, it is apparent that the main objective
of the Act is to provide for better protection of the interest
of the consumer and for that purpose to provide for better
redressal, mechanism through which cheaper, easier, D
expeditious and effective redressal is made available to
consumers. To serve the purpose of the Act, various quasi-
judicial forums are set up at the district, State and national
level with wide range of powers vested in them. These
quasi-judicial forums, observing the principles of natural E
justice, are empowered to give relief of a specific nature
and to award, wherever appropriate, compensation to the
consumers and to impose penalties for non-compliance with
their orders.
12. As per Section 3 of the Act, as already stated above, F
the provisions of the Act shall be in addition to and not in
derogation of any other provisions of any other law for the
time being in force. Having due regard to the scheme of
the Act and purpose sought to be achieved to protect the
interest of the consumers better, the provisions are to be
interpreted broadly, positively and purposefully in the context G
of the present case to give meaning to additional/extended
13
Section 3 – Act not in derogation of any other law-”The provisions of this Act shall
be in addition to and not in derogation of the provisions of any other law for the time
being in force.” H
760 SUPREME COURT REPORTS [2022] 2 S.C.R.
A jurisdiction, particularly when Section 3 seeks to provide
remedy under the Act in addition to other remedies provided
under other Acts unless there is a clear bar.”
16. The only distinction in the present case is that where Section
7B of the Act of 1885 applies, a statutory remedy of arbitration is
B provided. The fact that the remedy of an arbitration under the Act 1885
is of a statutory nature, would not oust the jurisdiction of the consumer
forum. The Act of 1986 and its successor, the Act of 2019 are subsequent
enactments which have been enacted by Parliament to protect the interest
of consumers. Hence, an ouster of jurisdiction cannot be lightly assumed
unless express words are used or such a consequence follows by
C necessary implication.
17. The judgment of a two-Judge Bench of this Court in M
Krishnan (supra) arose from a decision of the Kerala High Court. The
dispute, in that case, arose from the disconnection of a telephone
connection for the non-payment of the bill. The District Forum allowed
D the complaint. The writ petition was dismissed. The proceedings resulted
in a reference to a Full Bench of the Kerala High Court, which dismissed
the writ appeal against the judgment of the Single Judge. Before this
Court, the jurisdiction of the consumer forum was in issue. In that context,
a two-Judge Bench of this Court held thus:
E “5.In our opinion when there is a special remedy provided in Section
7-B of the Telegraph Act regarding disputes in respect of telephone
bills, then the remedy under the Consumer Protection Act is by
implication barred.”
The Court also relied on Rule 413 of the Telegraph Rules in terms
F of which all services relating to telephones are subject to the Telegraph
Rules. The Court held that the special law would override the general
law and concluded that the High Court was not correct in upholding the
jurisdiction of the consumer forum.
18. We are unable to subscribe to the view which has been adopted
G in the above decision in M Krishnan (supra). The decision is incorrect
on two grounds. First, it failed to recognize that the Act of 1986 is not a
general law but a special law that has been enacted by Parliament
specifically to protect the interest of consumers. Second, even if it is
assumed that the Act of 1986 is a general law, it is a settled position of
law that if there is any inconsistency between two legislations, the later
H
VODAFONE IDEA CELLULAR LTD. v. AJAY KUMAR AGARWAL 761
[DR. DHANANJAYA Y CHANDRACHUD, J.]
law, even if general in nature, would override an earlier special law. In A
Ajoy Kumar Banerjee v. Union of India14, a three-judge Bench of
this Court observed:
“38…As mentioned hereinbefore if the Scheme was held to be
valid, then the question what is the general law and what is the
special law and which law in case of conflict would prevail would B
have arisen and that would have necessitated the application of
the principle Generalia specialibus non derogant. The general
rule to be followed in case of conflict between two statutes is that
the later abrogates the earlier one. In other words, a prior special
law would yield to a later general law, if either of the two following
conditions is satisfied: C
“(i) The two are inconsistent with each other.
(ii) There is some express reference in the later to the earlier
enactment.”
If either of these two conditions is fulfilled, the later law, even D
though general, would prevail.
39. From the text and the decisions, four tests are deducible and
these are: (i) The legislature has the undoubted right to alter a law
already promulgated through subsequent legislation, (ii) A special
law may be altered, abrogated or repealed by a later general law E
by an express provisions, (iii) A later general law will override a
prior special law if the two are so repugnant to each other that
they cannot co-exist even though no express provision in that behalf
is found in the general law, and (iv) It is only in the absence of a
provision to the contrary and of a clear inconsistency that a special F
law will remain wholly unaffected by a later general law. See in
this connection, Maxwell on the Interpretation of Statutes, Twelfth
Edn., pp. 196-198.”
19. In any event, the decision in M Krishnan (supra) also fails to
note that the Act of 1986 is a special law providing protection to
G
consumers. Crucially, M Krishnan (supra) fails to notice that Section 3
of the Act of 1986 clearly provides that the remedies available under the
Act are in addition to the remedies available in other statutes and the
availability of additional remedies would not bar a consumer from filing
14
(1984) 3 SCC 127 H
762 SUPREME COURT REPORTS [2022] 2 S.C.R.
A a complaint under the Act of 1986. Section 100 of the Act of 2019
corresponds to Section 3 of the Act of 1986. In Emaar MGF Land
Ltd. (supra), this Court held that the complaint under the Act of 1986 is
a special remedy provided to a consumer in addition to the remedies that
can be availed of by them, including arbitration. In Imperia Structures
Ltd. v Anil Patni15, this Court held that the remedies available under
B
the Act of 1986 are in addition to the remedies available under other
statutes, including special statutes like the Real Estate (Regulation and
Development) Act 201616. This Court reiterated the settled position of
law in the following terms:
“23. It has consistently been held by this Court that the remedies
C available under the provisions of the CP Act are additional remedies
over and above the other remedies including those made available
under any special statutes; and that the availability of an alternate
remedy is no bar in entertaining a complaint under the CP Act.”
20. The above position was reiterated in IREO Grace Realtech
D (P) Ltd. v. Abhishek Khanna17 by a three-judge Bench of this Court,
of which one of us (Justice DY Chandrachud) was a part. Justice Indu
Malhotra, speaking for the Bench invoked the doctrine of election, which
provides that when two remedies are available for the same relief, the
party at whose disposal such remedies are available, can make the choice
E to elect either of the remedies as long as the ambit and scope of the two
remedies is not essentially different. These observations were made in
the context of an allottee of an apartment having the choice of initiating
proceedings under the Act of 1986 or the RERA. In the present case,
the existence of an arbitral remedy will not, therefore, oust the jurisdiction
of the consumer forum. It would be open to a consumer to opt for the
F remedy of arbitration, but there is no compulsion in law to do so and it
would be open to a consumer to seek recourse to the remedies which
are provided under the Act of 1986, now replaced by the Act of 2019.
The insertion of the expression ‘telecom services’ in the definition which
is contained in Section 2(42) of the Act of 2019 cannot, for the reasons
G which we have indicated be construed to mean that telecom services
were excluded from the jurisdiction of the consumer forum under the
Act of 1986. On the contrary, the definition of the expression ‘service’
15
(2020) 10 SCC 783
16
“RERA”
17
H 2021 SCC OnLine SC 277
VODAFONE IDEA CELLULAR LTD. v. AJAY KUMAR AGARWAL 763
[DR. DHANANJAYA Y CHANDRACHUD, J.]
in Section 2(o) of the Act of 1986 was wide enough to comprehend A
services of every description including telecom services.
21. For the above reasons, we affirm the judgment of the NCDRC
which came to the conclusion that the District Forum has the jurisdiction
to entertain and try the complaint.
B
22. The appeal shall accordingly stand dismissed.
23. Pending applications, if any, stand disposed of.
Civil Appeal No 1389 of 2022 [Arising out of SLP(C) No
9071/2016] &Civil Appeal No 4274 of 2016
C
1. Leave granted.
2. In view of the judgment delivered today in Idea Cellular Ltd
vs Ajay Kumar Agarwal [Civil Appeal No 923 of 2017], the appeals
shall stand allowed and the impugned judgments and orders of the
NCDRC dated 30 April 2014 in Revision Petition No 531 of 2013 and 11 D
April 2013 in Revision Petition No 95 of 2013 shall stand set aside.
Consumer Complaint No 238 of 2010 and Complaint No 1457 of 2007
shall stand restored to the Consumer Disputes Redressal Forum,
Kasargod and Consumer Disputes Redressal Forum, Delhi respectively.
3. Pending applications, if any, stand disposed of. E
Devika Gujral Appeals disposed of.
F
G
H
Search Indian case law
Ask in plain English, not just keywords. 25,000 AI words free, no card.