GR 36713; (December, 1932) (Digest)
G.R. No. 36713, December 7, 1932
ORLANES & BANAAG TRANSPORTATION COMPANY, INC., ET AL., petitioners, vs. PUBLIC SERVICE COMMISSION and LAGUNA-TAYABAS BUS COMPANY and PARSONS HARDWARE CO., INC., respondents.
FACTS
The Orlanes & Banaag Transportation Co., Inc. executed a chattel mortgage in favor of Parsons Hardware Co., Inc., covering five certificates of public convenience. Upon the mortgagor’s default, the mortgage was foreclosed, and the certificates were sold at a sheriff’s sale to Parsons Hardware, which then petitioned the Public Service Commission (PSC) for approval of the transfer. The mortgagor corporation and two of its stockholders (as intervenors) opposed, alleging a pending court case attacking the sale’s legality. The PSC initially postponed the case indefinitely but, upon a motion for reconsideration, issued an order allowing the Laguna-Tayabas Bus Company (which had acquired Parsons Hardware’s rights) to operate provisionally under the certificates, subject to later final approval of the transfer.
ISSUE
Whether the Public Service Commission acted without or in excess of its jurisdiction or with grave abuse of discretion in issuing the order of November 20, 1931, which allowed the provisional operation by the assignee.
RULING
No. The Supreme Court upheld the PSC’s order. The Court ruled that the PSC, in the exercise of its regulatory powers under the Public Service Act, has broad discretion to issue provisional or interlocutory orders to protect public interest and ensure continuous service. The order was a valid exercise of this discretion, as it aimed to prevent a disruption of public transportation service while the main petition for transfer approval was pending. The Court found no grave abuse of discretion, as the order was temporary, did not finally adjudicate the ownership or validity of the transfer, and preserved the rights of all parties for final determination. The dissenting opinion argued the order exceeded the relief sought in the motion and deprived the petitioners of due process, but the majority affirmed the PSC’s authority.
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