Art. 1765. The Public Service Commission may, on its
own motion or on petition of any interested party, after due hearing, cancel
the certificate of public convenience granted to any common carrier that
repeatedly fails to comply with his or its duty to observe extraordinary
diligence as prescribed in this Section.
N.B. The
Public Service Commission has been replaced by the Land Transportation
Franchising and Regulatory Board, Maritime Industry Authority and Civil
Aeronautics Board.
Facts:
PANTRANCO has been engaged for the past
twenty years in the business of transporting passengers in the province of
Pangasinan, Tarlac, Nueva Ecija, and Zambales. On August 26, 1939, PANTRANCO filed
with the PSC an application to operate ten (10 ) additional buses on grounds
that they were needed to comply with the terms and conditions of its existing
certificates of public convenience and as a result of the application of the
Eight Hour Labor Law.
On September 26, 1939, PSC granted PANTRANCO’s
application for increase in equipment but amended the existing certificates
issued to them to reflect two (2) additional conditions per Commonwealth Act.
No. 146, as amended by Law No. 454 in that: (1) the certificates of public
convenience and authorization will be valid and subsisting only for twenty-five
(25) years, counted from the date of the promulgation of the decision; and (2)
that the company of the applicant may be acquired by the Commonwealth of the
Philippines or by any dependence thereof at any time that he wishes it upon
payment of the price of the cost of his useful equipment, less a reasonable
depreciation that has been set by the Commission at the time of its
acquisition.
As PANTRANCO was not in favor of the two new
conditions, it filed a Motion for Reconsideration with PANTRANCO which was
denied by the latter. Hence, PANTRANCO filed this petition for a writ of
certiorari.
Issue:
Whether or not Commonwealth Act No. 454 is
constitutional and applicable
Ruling:
Yes, Commonwealth Act No. 454 is
constitutional and applicable.
The challenged provisions of Commonwealth Act
No. 454 are valid and constitutional because it is a proper delegation of
legislative power known as “subordinate legislation”. Accordingly, with the
growing complexity of modern life, the multiplication of the subjects of
governmental regulation, and the increased difficulty of administering the
laws, there is a constantly growing tendency toward the delegation of greater
powers by the legislature, and toward the approval of the practice by the
court.
All that has been delegated to the PSC is the
administrative function, involving the use of discretion to carry out the will
of the National Assembly having in view the promotion of public interests in a
proper and suitable manner.
