G.R. No. L-9566; February 4, 1957
MARCOS MACLANG, petitioner, vs. THE PUBLIC SERVICE COMMISSION and JACINTO GENUINO, JR., respondents.

FACTS

Petitioner Marcos Maclang, owner and operator of an ice plant in Plaridel, Bulacan, applied with the Public Service Commission to transfer his plant to his own lot in Barrio Santisima Trinidad, Malolos, Bulacan, and to change his power source. After publication and hearing, the Commission granted the application on November 8, 1954, giving him six months to effect the transfer. Respondent Jacinto Genuino, Jr., owner of an ice plant in Malolos, later filed a motion to vacate that order, claiming he was not notified and would be adversely affected. On January 24, 1955, the Commission granted the motion, vacated its previous order, set the case for rehearing, and ordered Maclang to desist from transferring his plant. Maclang did not object to this order. After a rehearing where both parties presented evidence, the Commission denied Maclang’s application on May 24, 1955, finding no sufficient public convenience for the transfer, noting adequate ice service in Malolos by Genuino, and stating that the transfer would harm the public in Plaridel for whom the plant was originally authorized. Maclang moved for reconsideration, claiming he had already completed the installation of his plant at the new site using a loan from the Rehabilitation Finance Corporation, but reconsideration was denied. He then appealed to the Supreme Court.

ISSUE

1. Whether the Public Service Commission acted arbitrarily in vacating its November 8, 1954 order without notice to Maclang.
2. Whether the Commission erred in denying Maclang’s application to transfer his ice plant.

RULING

1. No. While the proper procedure would have been to give Maclang a chance to show cause before vacating the order, Maclang waived any defect by not objecting to the January 24, 1955 order and instead voluntarily participating in a full rehearing on the merits of his application.
2. No. The Commission’s denial of the transfer application was proper. The evidence showed that the transfer would bring Maclang’s plant significantly closer (from about 13 km to about 3.5 km) to Genuino’s plant in Malolos, leading to keener competition in a market that could not even consume Genuino’s full output, causing him losses. The transfer would also prejudice the people of Plaridel, for whose benefit the plant was originally authorized. Maclang’s claim of having spent large sums to install the plant at the new site was immaterial, as he proceeded with the transfer and installation after being ordered to desist on January 24, 1955, and without awaiting the final outcome of his application, thereby creating a fait accompli. The Commission’s refusal to conduct an ocular inspection was not an error, as the offer came only after the denial and the completion of the installation was irrelevant to the merits of the application. The orders appealed from were affirmed.