G.R. No. 33399 , December 13, 1930
RAYMUNDO TRANSPORTATION CO., LTD. vs. LAGUNA-TAYABAS BUS COMPANY and ORLANES and BANAAG TRANSPORTATION CO., INC.

FACTS

Raymundo Transportation Co. (petitioner) was granted a certificate of public convenience on January 20, 1928, to extend its bus service from Manila to Pililla, Rizal, and from Pililla to Santa Cruz, Laguna via Mabitac. However, the road connecting Pililla to Mabitac was not yet completed or open to traffic. Subsequently, respondents Laguna-Tayabas Bus Company and Orlanes and Banaag Transportation Co. filed various motions before the Public Service Commission, including a petition to compel Raymundo Transportation Co. to provide regular service and make connections at the provincial boundary, and alternatively, to allow respondents to extend their operations to Pililla. The Commission, in a decision dated February 17, 1930, cancelled Raymundo’s line from Mabitac to Santa Cruz (allegedly for abandonment), denied Raymundo’s motion to cancel respondents’ extension from Mabitac to the boundary, and ordered Raymundo to make connections at the boundary. Raymundo appealed, arguing that it could not operate the full extension due to the unfinished road and that respondents’ extension invaded its territory.

ISSUE

Whether the Public Service Commission erred in cancelling Raymundo Transportation Co.’s certificate for the MabitacSanta Cruz segment and in granting extensions to respondents over the same route, despite the road not being open to traffic and Raymundo not having had an opportunity to operate.

RULING

Yes, the Commission erred. The Supreme Court reversed the Commission’s decision. The Court held that Raymundo could not be deemed to have abandoned its certificate for the MabitacSanta Cruz segment because the road from Pililla to Mabitacessential for operating the full extensionwas not yet open to traffic. The certificate granted to Raymundo was conditional on the completion of that road. Citing precedents (Batangas Transportation Co. vs. Orlanes, Bohol Land Transportation Co. vs. Jureidini, and Javier vs. Orlanes), the Court emphasized that Raymundo must first be given a chance to operate its authorized line once the road becomes passable. Only if Raymundo fails to operate properly thereafter may the Commission consider granting certificates to other companies on the same line. The cases were remanded to the Commission for a new hearing after the PilillaMabitac road is opened to traffic. No costs were awarded.