ANKLESHWAR INDUSTRIAL ASSOCIATION Vs. UNION OF INDIA

JUDGEMENT

(1.) All the petitions raise common issue, viz., the legality of calling upon the petitioners who are the users of Telex amenities from the Telegraph Department to pay a sum of Rs. 10,000.00 by way of deposit as a security towards telex connection. The contention of the petitioners in all the petitions is that the respondents have no auhority to demand security deposit from the existing telex operators or to enhance the security deposit already with them. The increase in the deposit provisions, according to the petitioners, apply only to the new subscribers demanding such facility.

(2.) Having heard the learned Counsel for the petitioners and respondents, I am of the opinion that the contention of the petitioners is not well-founded. The security deposit is required for the purpose of ensuring regular payment by the subscribers and ward against the possible defaults and the authority providing telex connection has necessary authority to revise the same to achieve that purpose from time to time as the circumstances may demand so long as the increase does not fall in the category of arbitrariness violating Art. 14 of the Constitution of India. This principle was enunciated by their Lordships of the Supreme Court in the case of Ferro Alloys Corporation Ltd. v. A. P. State Electricity Board and Anr., AIR 1993 SC 2005. While dealing with the question of authority of State Electricity Board to vary the terms and conditions about the security deposit demanded by the Electricity Board, regarding security deposits concerning the telex subscribers, the same view has been taken by the Delhi High Court in the case of M/s. S. G. Steels (P) Ltd., Faridabad v. Union of India and Ors., AIR 1984 Del 272.

(3.) In view of the aforesaid, I find no force in these petitions and the same are hereby dismissed. There will be no order as to costs. Rule is discharged in each petition. Interim relief, if any, stands vacated in each petition. No order as to costs. Office is directed to place copy of this common judgment in each petition. The petitioners shall pay amount of deposit as demanded within six weeks from today after adjusting the amount already in deposit with the respondents. It will also be open to the respondents to raise its demand for security deposit in terms of prevailing Rules.