G.R. No. L-31213-14 July 23, 1973
GERONIMO C. VENERACION, petitioner, vs. CONGSON ICE PLANT & COLD STORAGE, INC. and PUBLIC SERVICE COMMISSION, respondents.

FACTS

Petitioner Geronimo C. Veneracion was a long-time operator of ice plants and a cold storage facility in General Santos City and several municipalities in South Cotabato. Private respondent Congson Ice Plant & Cold Storage, Inc. filed applications with the Public Service Commission (PSC) in January 1969 for certificates to install and operate competing ice and cold storage plants in General Santos City. Veneracion filed oppositions, noting his pending application to expand his own capacity. After initial proceedings and a dismissal for Congson’s non-appearance, the PSC reinstated the case. Subsequently, Congson filed an ex-parte motion for a provisional permit. Without notice to Veneracion, the PSC received ex-parte evidence and, by a 2-1 vote, granted Congson a provisional permit on October 8, 1969. Commissioner Panganiban dissented, finding no urgent public need as Veneracion’s existing service was adequate.

ISSUE

Whether the Public Service Commission acted without jurisdiction and in violation of due process by issuing an ex-parte provisional permit to a competitor without a clear showing of urgent public need and without affording the existing operator a hearing.

RULING

Yes. The Supreme Court set aside the PSC’s order granting the provisional permit. The Court ruled that the PSC’s authority to issue ex-parte provisional permits is not absolute; it is contingent upon a superior and imperative necessity to meet an urgent public need. In this case, the record failed to demonstrate such a need. The PSC’s order merely recited an unverified petition from unnamed residents, with no witness presented to substantiate the claim. As noted in the dissent, the existing service provided by Veneracion was willing and able to meet demand. By acting ex-parte without a factual basis for urgency, the PSC deprived Veneracion of his fundamental right to notice and a hearing, violating due process. The Court emphasized that administrative bodies like the PSC cannot disregard constitutional safeguards. However, the Court recognized it could not invalidate a subsequent legislative franchise (Republic Act No. 6533) granted to Congson in 1972, as that falls within Congress’s exclusive power. The preliminary injunction against the PSC’s provisional permit was made permanent, but without prejudice to Congson’s rights under its legislative franchise, subject to regulation by the PSC’s successor agency.