Presidential Decree No. 55 declares it unlawful for any person, unless authorized by the telephone company or by court order, to install or connect or cause to be installed or connected any telephone or line, whether by connecting it by wire or cable or through any others means, with already existing telephone duly installed in private residences or public buildings. Likewise, the said decree declares it unlawful for any person, whether the participant or not in the act or acts penalized in the decree, to knowingly possesses any such illegally connected telephone. CATSI Company rules and regulations, duly approved by the former public Service Commission (Now National Telecommunication) authorized CATSI to disconnect permanently for fraud the main line telephone of any subscriber found to knowingly posses any authorized extension and/or installation and thereafter be denied telephone service.