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Philippine Supreme Court Jurisprudence > Year 1990 > November 1990 Decisions > G.R. Nos. 49664-67
November 22, 1990 - PANTRANCO SOUTH EXPRESS, INC. v. BOARD OF TRANSPORTATION, ET AL.:

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FIRST DIVISION

[G.R. Nos. 49664-67. November 22, 1990.]

PANTRANCO SOUTH EXPRESS, INC., Petitioner, v. BOARD OF TRANSPORTATION and

BATANGAS LAGUNA TAYABAS BUS CO., INC., Respondents.

Parco, Sabillo, Regondola & Maronilla for Petitioner.

Pablito A. Gahol for BLTB Co.

SYLLABUS

1. CIVIL LAW; COMMON CARRIERS; CERTIFICATE OF PUBLIC CONVENIENCE; BOARD OF

DebtKollect Company, Inc.
TRANSPORTATION, GIVEN THE POWER AND DISCRETION TO DECREE OR REFUSE THE CANCELLATION
OF THE SAME IF SUPPORTED WITH EVIDENCE; OTHER BASES FOR BOT’S DECISIONS. — There can be
no dispute that the law (Section 16 (n) of the Public Service Act) gives to the BOT (successor of the
Public Service Commission) ample power and discretion to decree or refuse the cancellation of a
certificate of public convenience issued to an operator as long as there is evidence to support its action,
as held by this Court in a long line of cases, wherein it was even intimated that in matters of this nature
so long as the action is justified this Court will not substitute its discretion for that of the BOT (see Javier,
Et. Al. v. de Leon, Et Al., 109 Phil. 751; Santiago Ice Plant and Co. v. Lahoz, 87 Phil. 221; Raymundo
Transportation Co. v. Cedra, 99 Phil. 99; Manila Yellow Taxicab Co., Inc. v. Castelo, 108 Phil. 394;
Dagupan Ice Plant Co., Inc. v. de Lucero, Et. Al. citing Manila Yellow Taxicab Co.; Inc., Et Al., v. Araullo,
34 O.G. 241; Sambrano v. Northern Luzon Transportation Co., 35 O.G. 2271). The BOT, in refusing to
cancel the certificates of public convenience of BLTB, relied on these pieces of evidence; (1) the letter of
BLTB dated September 18, 1972; (2) reports/complaints from the general public; (3) reports of its
fieldmen; and (4) its own observations acquired thru inspection trips, all of which form part of its
records. As We have ruled before, the BOT is particularly a fact-finding body whose decisions on
questions regarding certificates of public convenience are influenced not only by the facts as disclosed by
the evidence in the case before it but also by the reports of its field agents and inspectors that are
periodically submitted to it (see La Mallorca and Pampanga Bus Co., Inc. v. Mercado, G.R. No. L-19120,
November 29, 1965, 15 SCRA 343). Likewise, the BOT has the power to take into consideration the result
of its own observation and investigation of the matter submitted to it for decision, in connection with
other evidence presented at the hearing of a case (Manila Yellow Taxicab Co., Inc., Et. Al. v. N. & B.
Stables Co., Inc., 60 Phil. 851 citing Manila Yellow Taxicab Co., Inc., Et. Al. v. Danon, 58 Phil. 75; Manila
Electric Co. v. Balagtas, 58 Phil. 429).

ChanRobles Intellectual Property
Division
2. ID.; ID.; ID.; MERE FAILURE TO TEMPORARILY OPERATE THE TRANSPORTATION LINES SHOULD NOT
BE A GROUND FOR THE CANCELLATION THEREOF. — Taking into consideration BLTB’s letter dated
September 18, 1972, it acted in good faith when it did not immediately operate on those lines and not
because of a design to prejudice public interest. Certificates of public convenience involve investment of
a big amount of capital, both in securing the certificate and in maintaining the operation of the lines
covered thereby, and mere failure to operate temporarily should not be a ground for cancellation,
especially as when, in the case at bar, the suspension of the service was directly caused by
circumstances beyond the operator’s control (Pangasinan Transportation Co. v. F.F. Halili, Et Al., 95 Phil.
694).
3. ID.; ID.; ID.; MAY NOT BE VALIDLY REVOKED IN THE ABSENCE OF WILLFUL AND CONTUMACIOUS

November-1990 Jurisprudence            in Cases Nos. 70-5749, 70-5750, and 70-5751. Rather, in a Motion dated July 26, 1978, BLTB, referring
G.R. No. 64398 November 6, 1990 - JOSE CHING
SUI YONG v. INTERMEDIATE APPELLATE COURT, ET
AL.
G.R. No. 74761 November 6, 1990 - NATIVIDAD V.
ANDAMO, ET AL. v. INTERMEDIATE APPELLATE
COURT, ET AL.
G.R. No. 86953 November 6, 1990 - MARINE RADIO
COMMUNICATIONS ASSOCIATION OF THE
PHILIPPINES, INC. v. RAINERIO O. REYES, ET AL.
G.R. No. 68282 November 8, 1990 - RAQUEL
CHAVEZ, ET AL. v. INTERMEDIATE APPELLATE COURT,
ET AL.
G.R. No. 75450 November 8, 1990 - OSMUNDO
MEDINA, ET AL. v. MACARIO A. ASISTIO, JR.
G.R. No. 88831 November 8, 1990 - MATEO CAASI
v. COURT OF APPEALS, ET AL.
G.R. No. 92103 November 8, 1990 - VIOLETA T.
TEOLOGO v. CIVIL SERVICE COMMISSION, ET AL.
G.R. Nos. 71163-65 November 9, 1990 - CARLITO
P. BONDOC v. SANDIGANBAYAN, ET AL.
G.R. No. 76487 November 9, 1990 - JOHN Z. SYCIP
v. COURT OF APPEALS, ET AL.
G.R. No. 80916 November 9, 1990 - C.T. TORRES
ENTERPRISES, INC. v. ROMEO J. HIBIONADA, ET AL.
G.R. No. 83897 November 9, 1990 - ESTEBAN B. UY,
JR., ET AL. v. COURT OF APPEALS, ET AL.
G.R. No. 85740 November 9, 1990 - MANUEL P.
PARCON v. COURT OF APPEALS, ET AL.
G.R. No. 92024 November 9, 1990 - ENRIQUE T.
GARCIA v. BOARD OF INVESTMENTS, ET AL.
G.R. No. 92349 November 9, 1990 - MARIA LUISA
ESTOESTA v. COURT OF APPEALS, ET AL.
G.R. No. 92481 November 9, 1990 - MANUEL G.
VIRAY, ET AL. v. COURT OF APPEALS, ET AL.
G.R. No. 94291 November 9, 1990 - DAGUPAN BUS
COMPANY, INC. v. NATIONAL LABOR RELATIONS
COMMISSION, ET AL.
G.R. No. 94339 November 9, 1990 - PEOPLE OF THE
PHIL. v. ROLANDO TALINGDAN, ET AL.
G.R. No. 59957 November 12, 1990 - CENTRAL
BANK OF THE PHIL, ET AL. v. RAFAEL DE LA CRUZ, ET
AL.
G.R. No. 72603 November 12, 1990 - GALICANO
CALAPATIA, JR. v. HACIENDA BENITO, INC., ET AL.
G.R. Nos. 87760-61 November 12, 1990 - PEOPLE
OF THE PHIL. v. JULIO TENEBRO
VIOLATION BY THE UTILITY OPERATOR; BOT GUIDED BY PUBLIC NECESSITY AND CONVENIENCE AS
PRIMARY CONSIDERATIONS. — In absence of showing that there is willful and contumacious violation on
the part of the utility operator, no certificate of public convenience may be validly revoked (Manzanal v.
Ausejo, Et Al., G.R. No. L-31056, August 4, 1988, 164 SCRA 36). More importantly, what cannot be
ignored is that the needs of the public are paramount, as elucidated by the BOT in its order. In the
exercise of its power to grant or cancel certificates of public convenience, the BOT is guided by public
necessity and convenience as primary considerations (see Dizon v. Public Service Commission, Et Al.,
G.R. No. L-34820, April 30, 1973, 50 SCRA 500).
DECISION
MEDIALDEA, J.:
This is a petition for certiorari and/or prohibition with prayer for the issuance of a restraining order
seeking to annul the order of public respondent Board of Transportation dated January 4, 1979.
The antecedent facts, as culled from the pleadings, are as follows: chanrob1es virtual 1aw library
On August 5, 1971, the then Public Service Commission granted certificates of public convenience to
private respondent Batangas Laguna Tayabas Bus Co., Inc. (BLTB) for the operation of twelve (12) bus
units on the Pasay City — Legaspi City line (Case No. 70-5749); six (6) bus units on the Pasay City —
Bulan, Sorsogon line (Case No. 70-5750), and ten (10) bus units on the Pasay City — Sorsogon line
(Case No. 70-5751) (pp. 59-64, Rollo). chanrobles law library : red
On April 4, 1975, petitioner Pantranco South Express, Inc. (PANTRANCO) filed a complaint against BLTB
before public respondent Board of Transportation (BOT), docketed as Case No. 75-31-C, charging it with
abandonment of services on said lines from August, 1971 to April, 1975 and praying for the cancellation
of BLTB’s certificates of public convenience (pp. 69-70, Rollo).
On March 24, 1976, in Cases Nos. 70-5749, 70-5750 and 70-5751, PANTRANCO filed an urgent petition
charging BLTB with abandoning said services from March, 1975 to March, 1976 and reiterating its prayer
for the cancellation of the certificates of public convenience (pp. 77-78, Rollo).
BLTB did not file any written answer either to the complaint in Case No. 75-31-C or to the urgent petition
to hearings before the BOT on March 24, 1977 and April 13, 1977, alleged (pp. 126-128, Rollo):
jgc:chanrobles.com.ph
"3. At said hearings, Respondent admitted non-operation of the bus services authorized in Cases Nos.
70-5749,70-5750 and 70-5751 and thus the need for Complainant to present evidence in both
proceedings may be dispensed with.
"4. At the said hearings, Respondent advanced affirmative defenses on Complainant’s Urgent Motion of
March 24, 1977 (sic) which Respondent, in its Rejoinder of May 5, 1977, adopted also as its affirmative
defenses with respect to Case No. 75-31-C.
"Briefly, these affirmative defenses are: chanrob1es virtual 1aw library
(a) Respondent actually registered under PUB denomination all the twenty eight (28) buses authorized
for operation under the certificates sought to be cancelled (Annex ‘A’);
(b) The following supervening factors which are beyond Respondent’s control however, arose and
prevented Respondent from operating the lines at issue: chanrob1es virtual 1aw library
(1) The gasoline crises starting 1971;
(2) The destructive big floods in 1972 and 1974;
(3) The general troubled conditions of peace and order in 1971 and 1972 leading to the declaration of
martial law;
(4) Starting 1973 and on to 1974,1975 and 1976 the nearly prohibitive cost of units and spare parts (if
available at all), the higher costs of operations and acute tire shortages particularly in 1974;
(5) All these, which are of general public knowledge and known to the Board, brought the whole land
transportation industry in what might be termed as in extremis condition causing the bankruptcy of many
operators, big and small; and
(6) Complainant Pantranco South Express, Inc. was not spared the ill effects of these adverse conditions
to the extent that up to the present it has not registered all the buses required for its regular bus
operations (Annex ‘B’, ‘B-1’).
"5. At the said hearings also, Respondent prayed that these incidents in these proceedings be considered
and decided in the light of present conditions which are: chanrob1es virtual 1aw library
(a) The certificates of public convenience of Respondent are still valid;
(b) Respondent is willing and desirous to operate (sic) the said certificates;
(c) Respondent has the capability to operate, in fact, has ready the full twenty-eight (28) buses needed
for full operation of the authorized services;
(d) Complainant is not operating all its authorized bus services for lack of sufficient rolling stock;
(e) The need for the services sought to be cancelled is patent, in fact, urgent at the present time; and
(f) That the public interest is paramount against other considerations such as the incidents in these
cases."cralaw virtua1aw library
On January 4, 1979, the BOT issued an order, the dispositive portion of which reads (p. 133, Rollo): jgc:chanrobles.com.ph
"In view of all the foregoing, this Board, in addition to its rulings mentioned above —
"1. Orders respondent to operate within fifteen (15) days from date hereof the whole complement of
twenty-eight (28) units authorized under the said certificates, utilizing for the purpose such units
presently authorized as RESERVES and inform the Board within ten (10) days from commencement of
operation, the makes and motor numbers of the units to be operated for each line and the case numbers
under which they are authorized for appropriate entry in the records of the above-entitled cases, and
"2. Orders the fine of P10,000.00 imposed above to be paid to this Board within ten (10) days from
receipt by it of a copy of this Order and declares the consolidated complaints filed in the above-entitled
 G.R. No. 90653 November 12, 1990 - POLICARPIO
CAPULE, ET AL. v. NATIONAL LABOR RELATIONS
COMMISSION, ET AL.
G.R. No. 74048 November 14, 1990 - PEOPLE OF
THE PHIL. v. ROLANDO CRUZ
G.R. No. 79673 November 15, 1990 - PEOPLE OF
THE PHIL. v. WARLITO FABRO
G.R. No. 85976 November 15, 1990 - JOSE CESAR
D. SIMPAO v. CIVIL SERVICE COMMISSION, ET AL.
G.R. No. 48646 November 16, 1990 - STAR
FORWARDERS, INC. v. MIGUEL R. NAVARRO, ET AL.
G.R. No. 72110 November 16, 1990 - ROMAN
CATHOLIC BISHOP OF MALOLOS, INC. v.
INTERMEDIATE APPELLATE COURT, ET AL.
G.R. No. 76113 November 16, 1990 - D.P. LUB OIL
MARKETING CENTER, INC. v. RAUL NICOLAS, ET AL.
G.R. No. 84873 November 16, 1990 - ERLE PENDON
v. COURT OF APPEALS, ET AL.
G.R. No. 87636 November 19, 1990 - NEPTALI A.
GONZALES, ET AL. v. CATALINO MACARAIG, JR., ET
AL.
G.R. No. 66541 November 20, 1990 - GUARDEX
ENTERPRISES, ET AL. v. NATIONAL LABOR
RELATIONS COMMISSION, ET AL.
G.R. No. 80201 November 20, 1990 - ANTONIO
GARCIA, JR. v. COURT OF APPEALS, ET AL.
G.R. No. 80406 November 20, 1990 - PEOPLE OF
THE PHIL. v. BENITO I. ESPIRITU, ET AL.
G.R. No. 47210 November 21, 1990 - LECAROZ
TRANSIT, ET AL. v. SECRETARY OF LABOR, ET AL.
G.R. No. 78714 November 21, 1990 - F. DAVID
ENTERPRISES, ET AL. v. INSULAR BANK OF ASIA AND
AMERICA, ET AL.
G.R. No. 86500 November 21, 1990 - LEONARDO
SALAS v. COURT OF APPEALS, ET AL.
G.R. Nos. 89418-19 November 21, 1990 - PEOPLE
OF THE PHIL. v. RODOLFO ASPILI, ET AL.
G.R. No. 90591 November 21, 1990 - AMOR D.
DELOSO v. MANUEL C. DOMINGO, ET AL.
G.R. No. 90669 November 21, 1990 - PEOPLE OF
THE PHIL. v. GERRY V. MAÑAGO
G.R. No. 92358 November 21, 1990 - OSCAR M.
ORBOS, ET AL. v. LEOPOLDO F. BUNGUBUNG, ET AL.
G.R. No. 94173 November 21, 1990 - DANIEL L.
BOCOBO v. COMMISSION ON ELECTIONS, ET AL.
G.R. Nos. 49664-67 November 22, 1990 -
PANTRANCO SOUTH EXPRESS, INC. v. BOARD OF
TRANSPORTATION, ET AL.
G.R. No. 79119 November 22, 1990 - VICTORINO E.
DAY v. REGIONAL TRIAL COURT OF ZAMBOANGA
CITY, BRANCH XIII, ET AL.
G.R. No. 82978 November 22, 1990 - MANILA
REMNANT CO., INC. v. COURT OF APPEALS, ET AL.
G.R. No. 93212 November 22, 1990 - DIOSDADO DE
VERA, ET AL. v. NATIONAL LABOR RELATIONS
COMMISSION, ET AL.
G.R. No. 53967 November 26, 1990 - ALFREDO
VELASCO, ET AL. v. BLAS OPLE, ET AL.
G.R. No. 75369 November 26, 1990 - PEOPLE OF
THE PHIL. v. FERNANDO J. ILIGAN, ET AL.
G.R. No. 83385 November 26, 1990 - GOVERNMENT
SERVICE INSURANCE SYSTEM v. SANDIGANBAYAN, ET
AL.
G.R. No. 86791 November 26, 1990 - ZENAIDA
BOLOR CHANG v. CIVIL SERVICE COMMISSION, ET AL.
G.R. No. 58876 November 27, 1990 - ANICETO
RAMOS v. SANDIGANBAYAN, ET AL.
G.R. No. 74223 November 27, 1990 - JUNE PRILL
BRETT, ET AL. v. INTERMEDIATE APPELLATE COURT,
ET AL.
G.R. Nos. 84572-73 November 27, 1990 - ALFONSO
O. AJEJANDRO v. COURT OF APPEALS, ET AL.
G.R. No. 90314 November 27, 1990 - LOIDA Q.
SHAUF, ET AL. v. COURT OF APPEALS, ET AL.
A.C. No. 2115 November 27, 1990 - FELICIDAD
BARIÑAN TAN v. GALILEO J. TROCIO
G.R. Nos. 91592-93 November 28, 1990 - PEOPLE
OF THE PHIL. v. BENJAMIN JOLIPAS
cases closed and terminated.
"Failure of respondent/applicant to comply with any of the foregoing requirements shall be considered
sufficient cause for this Board to withdraw the authority herein granted.
"SO ORDERED." cralaw virtua1aw library
It rationalized the non-cancellation of BLTB’s certificates of public convenience, as follows (pp. 128 A-
133, Rollo):
chanrobles virtual lawlibrary
"Obviously, cancellation of a certificate of public convenience is a penalty of the severest degree. Its
consequences are suffered not exclusively by the operator; it extends to the travelling public whose
needs for transportation facilities would further be aggravated by a diminution of needed services.
Consequently, where such a penalty is prayed for, this Board requires the evidence to be strong. Less
than that this Board must apply the less severe penalties provided for by law, but equally disciplinary in
nature.
"Sec. 16 (n) of the Public Service Law empowers this Board ‘to suspend or revoke any certificate . . .
whenever the holder thereof has violated or wilfully (sic) and contumaciously refused to comply with any
order, rule or regulation of the Board or any provision of this Act.’. . .
"Sec. 21 of the same law provides that ‘every public service violating or failing to comply with the terms
and conditions of any certificate or any orders, decisions or regulations of the Commission shall be
subject to a fine not exceeding two hundred pesos per day for every day of service during which such
default or violation continues . . .’
"A reading of both provisions would show that failure to comply with the terms and conditions of any
certificate of public convenience is basically punished with a fine, unless the violation is willful or
contumacious, in which case the penalty of suspension, or cancellation may be imposed.
"Judged by the foregoing standards, this Board declares the evidence of the complainant to be sadly
lacking in elements that would qualify the respondent’s failure to operate as wilful and contumacious.
True the respondent did not operate on its certificate from the time it was granted on August 4, 1971 up
to the present. It had not justified its non-operation from said date up to September 2, 1972. But on
September 2, 1972, the respondent justified its non-operation by writing to the Board, that because of
unfinished portions of the road it could not render the service authorized by the Board to be rendered.
The Board never overruled the Respondent.
"x x x
"At this point, it must be borne in mind that whether in the case of application for new services, or for
the cancellation of lines already granted, this Board must determine what the public need is.
"This leads us into discussing what the public need is in the areas covered by the certificates of public
convenience in question.
"The Board, in its desire to be responsive to public need, has always kept itself informed of actual and
latest transportation conditions in the provinces, including the Bicol region. Thru reports/complaints from
the general public, from reports of its fieldmen, and from its own personal observations acquired thru
inspection trips, this Board is aware that buses which are operating are very much less than what has
been authorized. This was officially confirmed in a meeting of provincial and Metro-Manila bus operators
held in Malacañang Palace on June 21, 1976, presided over by His Excellency, President Ferdinand E.
Marcos himself.
"In Bicol region, for instance, in the past four years (1974, 1975, 1976 and 1977) PSEI (PANTRANCO)
registered and operated less than 50% of its authorized units: chanrob1es virtual 1aw library
Year Authorized Units Registered
1974 466 159 units
1975 (not available) 162 units
1976 453 227 units
1977 464 221 units
and among the lines not so operated or only partially operated, either through expiration of certificates,
petitioned suspension of operation or for sheer lack of units are long distance lines from Manila to the
provinces of Quezon, Camarines Norte, Camarines Sur, Albay and Sorsogon aside from lines serving
inter-provincial and local needs in Quezon province and the whole Bicol Region. Among them are the
following lines which are concurrert in whole or in portions of the lines Pasay City — Legaspi City, Pasay
— Sorsogon and Pasay — Bulan, all the said lines requiring the operation of some two hundred twenty
seven (227) buses: jgc:chanrobles.com.ph
"x x x
"The non-operation by PSEI (PANTRANCO) of these more than two hundred (200) buses clearly requires
the entry or operation of an equal number of buses. Any prohibition against an effort to fill up a public
need would be contrary to public interest.
"Public interest will better be served if respondent is allowed to operate the service authorized in its
certificate of public convenience. To cancel these certificates at a time when the clamor and demand for
such service have been increasing day to day, prodded by the people’s desire to avail of the excellent
road conditions, which in turn conduces to fast and convenient travel, would be to negate and turn back
the clock of progress which has been seeping steadily and constantly to the long neglected vast
communal area that is the Bicol Region. To authorize the operation of these services will complement the
government’s multi-purpose development effort to hasten the Socio-Economic growth of these areas,
notable among which are the Philippines-Japan Friendship Highway, of which the routes covered by
applicant/respondent’s certificates traverse and the Bicol River Basin Development Project, a program
designed to tap the rich natural resources of the region." cralaw virtua1aw library
Hence, the present petition.
On January 15, 1979, We issued a temporary restraining order enjoining the BOT from enforcing its
January 4, 1979 order (pp. 147-148, Rollo). chanrobles virtual lawlibrary
In this petition, PANTRANCO imputes grave abuse of discretion, acting without or in excess of jurisdiction
on the part of the BOT when it issued the questioned order, as indicated by several circumstance that it
enumerated. Among these, only the following deserve discussion: chanrob1es virtual 1aw library
1) refusal to cancel the certificates of public convenience of BLTB despite its abandonment and/or non-
operation on the subject lines since August 5, 1971 up to the present;
 G.R. No. 72781 November 29, 1990 - PEOPLE OF
THE PHIL. v. BERNARDO D. VILORIA, JR.
G.R. No. 64398 November 6, 1990 - JOSE CHING
SUI YONG v. INTERMEDIATE APPELLATE COURT, ET
AL.
G.R. No. 74761 November 6, 1990 - NATIVIDAD V.
ANDAMO, ET AL. v. INTERMEDIATE APPELLATE
2) using as basis for its questioned order BLTB’s letter dated September 2, 1972 (wherein it justified its
non-operation on account of unfinished portions of the road) which is not part of the records of the case;
and
3) resorting to extraneous facts not supported by competent evidence as basis for its conclusion that the
demand of public need would be more paramount than the need to penalize BLTB.
For its part, BLTB contends that: chanrob1es virtual 1aw library

COURT, ET AL.
G.R. No. 86953 November 6, 1990 - MARINE RADIO
COMMUNICATIONS ASSOCIATION OF THE
PHILIPPINES, INC. v. RAINERIO O. REYES, ET AL.
G.R. No. 68282 November 8, 1990 - RAQUEL
CHAVEZ, ET AL. v. INTERMEDIATE APPELLATE COURT,
ET AL.
G.R. No. 75450 November 8, 1990 - OSMUNDO
MEDINA, ET AL. v. MACARIO A. ASISTIO, JR.
G.R. No. 88831 November 8, 1990 - MATEO CAASI
v. COURT OF APPEALS, ET AL.
G.R. No. 92103 November 8, 1990 - VIOLETA T.
TEOLOGO v. CIVIL SERVICE COMMISSION, ET AL.
G.R. Nos. 71163-65 November 9, 1990 - CARLITO
P. BONDOC v. SANDIGANBAYAN, ET AL.
G.R. No. 76487 November 9, 1990 - JOHN Z. SYCIP
v. COURT OF APPEALS, ET AL.
G.R. No. 80916 November 9, 1990 - C.T. TORRES
ENTERPRISES, INC. v. ROMEO J. HIBIONADA, ET AL.
G.R. No. 83897 November 9, 1990 - ESTEBAN B. UY,
JR., ET AL. v. COURT OF APPEALS, ET AL.
G.R. No. 85740 November 9, 1990 - MANUEL P.
PARCON v. COURT OF APPEALS, ET AL.
G.R. No. 92024 November 9, 1990 - ENRIQUE T.
GARCIA v. BOARD OF INVESTMENTS, ET AL.
G.R. No. 92349 November 9, 1990 - MARIA LUISA
ESTOESTA v. COURT OF APPEALS, ET AL.
G.R. No. 92481 November 9, 1990 - MANUEL G.
VIRAY, ET AL. v. COURT OF APPEALS, ET AL.
G.R. No. 94291 November 9, 1990 - DAGUPAN BUS
COMPANY, INC. v. NATIONAL LABOR RELATIONS
COMMISSION, ET AL.
G.R. No. 94339 November 9, 1990 - PEOPLE OF THE
PHIL. v. ROLANDO TALINGDAN, ET AL.
1) the cancellation or non-cancellation of its certificates of public convenience is addressed to the sound
discretion of the BOT;
2) its letter dated September 18, 1972 (erroneously referred to as the letter dated September 2, 1972)
forms part of the BOT’s records; and
3) the BOT acted correctly in the exercise of its sound discretion and within its jurisdiction when it found
that the demand of public need would be paramount than the need to penalize it (BLTB).
There can be no dispute that the law (Section 16 (n) of the Public Service Act) gives to the BOT
(successor of the Public Service ommission) * ample power and discretion to decree or refuse the
cancellation of a certificate of public convenience issued to an operator as long as there is evidence to
support its action, as held by this Court in a long line of cases, wherein it was even intimated that in
matters of this nature so long as the action is justified this Court will not substitute its discretion for that
of the BOT (see Javier, Et. Al. v. de Leon, Et Al., 109 Phil. 751; Santiago Ice Plant and Co. v. Lahoz, 87
Phil. 221; Raymundo Transportation Co. v. Cedra, 99 Phil. 99; Manila Yellow Taxicab Co., Inc. v. Castelo,
108 Phil. 394; Dagupan Ice Plant Co., Inc. v. de Lucero, Et. Al. citing Manila Yellow Taxicab Co.; Inc., Et
Al., v. Araullo, 34 O.G. 241; Sambrano v. Northern Luzon Transportation Co., 35 O.G. 2271). The BOT, in
refusing to cancel the certificates of public convenience of BLTB, relied on these pieces of evidence; (1)
the letter of BLTB dated September 18, 1972; (2) reports/complaints from the general public; (3) reports
of its fieldmen; and (4) its own observations acquired thru inspection trips, all of which form part of its
records. As We have ruled before, the BOT is particularly a fact-finding body whose decisions on
questions regarding certificates of public convenience are influenced not only by the facts as disclosed by
the evidence in the case before it but also by the reports of its field agents and inspectors that are
periodically submitted to it (see La Mallorca and Pampanga Bus Co., Inc. v. Mercado, G.R. No. L-19120,
November 29, 1965, 15 SCRA 343). Likewise, the BOT has the power to take into consideration the result
of its own observation and investigation of the matter submitted to it for decision, in connection with
other evidence presented at the hearing of a case (Manila Yellow Taxicab Co., Inc., Et. Al. v. N. & B.
Stables Co., Inc., 60 Phil. 851 citing Manila Yellow Taxicab Co., Inc., Et. Al. v. Danon, 58 Phil. 75; Manila
Electric Co. v. Balagtas, 58 Phil. 429).
Taking into consideration BLTB’s letter dated September 18, 1972, it acted in good faith when it did not
immediately operate on those lines and not because of a design to prejudice public interest. Certificates
of public convenience involve investment of a big amount of capital, both in securing the certificate and
in maintaining the operation of the lines covered thereby, and mere failure to operate temporarily should
not be a ground for cancellation, especially as when, in the case at bar, the suspension of the service was
directly caused by circumstances beyond the operator’s control (Pangasinan Transportation Co. v. F.F.
Halili, Et Al., 95 Phil. 694). In the absence of showing that there is willful and contumacious violation on
the part of the utility operator, no certificate of public convenience may be validly revoked (Manzanal v.
Ausejo, Et Al., G.R. No. L-31056, August 4, 1988, 164 SCRA 36). More importantly, what cannot be
ignored is that the needs of the public are paramount, as elucidated by the BOT in its order. In the
exercise of its power to grant or cancel certificates of public convenience, the BOT is guided by public
necessity and convenience as primary considerations (see Dizon v. Public Service Commission, Et Al.,
G.R. No. L-34820, April 30, 1973, 50 SCRA 500).
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G.R. No. 59957 November 12, 1990 - CENTRAL
BANK OF THE PHIL, ET AL. v. RAFAEL DE LA CRUZ, ET
AL.
G.R. No. 72603 November 12, 1990 - GALICANO
CALAPATIA, JR. v. HACIENDA BENITO, INC., ET AL.
G.R. Nos. 87760-61 November 12, 1990 - PEOPLE
OF THE PHIL. v. JULIO TENEBRO
G.R. No. 90653 November 12, 1990 - POLICARPIO
CAPULE, ET AL. v. NATIONAL LABOR RELATIONS
COMMISSION, ET AL.
Apparently, PANTRANCO’s purpose in instituting the proceedings for cancellation of BLTB’s certificates of
public convenience is to remove it (BLTB) as a competitor in the business in which they are both engaged
(see Pangasinan Transportation Co. v. F.F. Halili, Et Al., supra), which is detestable. Experience has
demonstrated that healthy competition always redounds to the benefit of the commuters and the
development of transportation as a whole.
ACCORDINGLY, the petition is hereby DISMISSED. The order of the Board of Transportation dated
January 4, 1979 is AFFIRMED. The temporary restraining order issued on January 15, 1979 is LIFTED.
SO ORDERED.
Narvasa, Cruz, Gancayco and Griño-Aquino, JJ., concur.

G.R. No. 74048 November 14, 1990 - PEOPLE OF

THE PHIL. v. ROLANDO CRUZ Endnotes:

G.R. No. 79673 November 15, 1990 - PEOPLE OF

THE PHIL. v. WARLITO FABRO * On September 23, 1972, Presidential Decree No. 1 was promulgated reorganizing the
executive branch of the national government. The Public Service Commission was then
G.R. No. 85976 November 15, 1990 - JOSE CESAR
abolished. Its functions were transferred to three specialized regulatory boards, namely,
D. SIMPAO v. CIVIL SERVICE COMMISSION, ET AL.
the Board of Transportation, Board of Communications and Board of Power and
G.R. No. 48646 November 16, 1990 - STAR Waterworks. On June 19, 1987 Executive Order No. 202 was issued creating the Land
FORWARDERS, INC. v. MIGUEL R. NAVARRO, ET AL. Transportation Franchising and Regulatory Board (LTFRB) which now exercises the powers
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 G.R. No. 85976 November 15, 1990 - JOSE CESAR
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AL.

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AL.

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SHAUF, ET AL. v. COURT OF APPEALS, ET AL.

A.C. No. 2115 November 27, 1990 - FELICIDAD

BARIÑAN TAN v. GALILEO J. TROCIO

G.R. Nos. 91592-93 November 28, 1990 - PEOPLE

OF THE PHIL. v. BENJAMIN JOLIPAS

G.R. No. 72781 November 29, 1990 - PEOPLE OF

THE PHIL. v. BERNARDO D. VILORIA, JR.
 
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