GR 45660; (July, 1938) (Digest)
G.R. Nos. 45660 and 45661; July 25, 1938
THE AUCAL AUTOCALESA CO., INC., petitioner-appellant, vs. ISABEL ABLAZA and NATIVIDAD Z. DE CASTRO, respondents-appellees.
FACTS
Two petitions were filed with the Public Service Commission (PSC) concerning the same certificate of public convenience for an autocalesa transportation service originally issued to Isabel Ablaza. First, Natividad Z. de Castro and Isabel Ablaza jointly applied on June 9, 1934, for approval of a sale and transfer of the certificate from Ablaza to de Castro executed on May 29, 1934. Second, the Aucal Autocalesa Co., Inc. applied on June 23, 1934, for approval of a sale of the same certificate to it, acquired through a public auction on August 9, 1934, after an attachment levied in July 1934. The PSC approved the transfer to de Castro and denied Aucal’s petition. Aucal appealed.
ISSUE
Whether the Public Service Commission erred in approving the transfer of the certificate of public convenience to Natividad Z. de Castro instead of to the Aucal Autocalesa Co., Inc.
RULING
No, the PSC did not err. The Supreme Court affirmed the PSC’s decision. The PSC has the power under the law to approve or disapprove transfers of certificates of public convenience, with the primary consideration being public interest and convenience, not merely priority of filing or a “better right” based on the sequence of sales. The PSC correctly found that the transfer to de Castro, who committed to invest a substantial sum (P20,000) to improve the service, would better ensure stable and satisfactory public service compared to Aucal’s more general proposal. The approval of a transfer can have retroactive effect, validating the earlier sale to de Castro. Thus, the PSC’s exercise of discretion, guided by the enhancement of public service, was proper.
AI Generated by Armztrong.