GR 33439; (March, 1931) (Digest)
G.R. No. 33439; March 2, 1931
ANDRES SUGUITAN, petitioner-appellee, vs. LAOAG ELECTRIC LIGHT & POWER CO., INC., respondent-appellant.
FACTS
The respondent, Laoag Electric Light & Power Co., Inc., obtained a franchise under Act No. 3078 to operate an electric system in Laoag, Ilocos Norte. After its certificate was initially cancelled by the Public Service Commission for lack of proper acceptance and deposit, it was reinstated by virtue of Act No. 3458. The Commission’s reinstatement order, dated April 22, 1929, required the respondent to construct and install a completely new electric plant and distribution system within the periods fixed by law. On July 30, 1929, the petitioner requested the cancellation of the franchise, alleging the respondent had not commenced the installation of the new plant as ordered. The Public Service Commission, in its decision of January 15, 1930, ordered the confiscation of the franchise and the forfeiture of the respondent’s P1,000 deposit for failure to commence work within the six-month period prescribed by section 8 of Act No. 3078. The respondent appealed.
ISSUE
Whether the respondent commenced the construction and installation of the electric plant within the six-month period prescribed by section 8 of Act No. 3078, thereby precluding the forfeiture of its franchise and deposit.
RULING
No. The Supreme Court affirmed the decision of the Public Service Commission. The respondent’s acts of preparing and submitting plans and purchasing lumber did not constitute “commencement of work” as required by section 8 of Act No. 3078. The law requires work to commence under supervision and according to approved plans within six months. The preparation and submission of plans are prerequisites to approval and commencement, not the commencement itself. The purchase of materials alone does not satisfy the statutory mandate. Since the respondent failed to commence work within the prescribed period without a lawful excuse, the forfeiture of the franchise and the P1,000 deposit under the relevant provisions of Act No. 3078 was proper.
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