GR 45134; (September, 1936) (Digest)
G.R. No. 45134; September 10, 1936
GENANICHI ISHI, petitioner, vs. PUBLIC SERVICE COMMISSION, respondent.
FACTS
Petitioner Genanichi Ishi, a Japanese national, was granted a certificate of public convenience on December 18, 1929, to operate a Ford automobile for passenger transportation in Davao. The certificate contained a condition that he could not increase his equipment without prior authorization from the Public Service Commission. On October 23, 1935, Ishi applied for authority to add another Ford automobile, claiming insufficient public transportation in Davao. The Commission denied his application on February 14, 1936, citing Article XIII, Section 8 of the 1935 Constitution, which prohibits granting any franchise, certificate, or authorization to operate a public utility except to Filipino citizens or corporations at least 60% owned by Filipinos. Ishi filed a petition for certiorari against the Commission’s order.
ISSUE
Whether Ishi’s application for an increase in equipment falls under the constitutional prohibition, even though his original certificate was issued before the 1935 Constitution took effect.
RULING
Yes. The Supreme Court denied the petition. While the proper remedy was an appeal and not certiorari, the Court addressed the constitutional issue to settle the case conclusively. The Court held that the application for an increase in equipment required an “authorization,” which is expressly covered by the phrase “any other form of authorization” in Article XIII, Section 8 of the Constitution. The constitutional provision nationalizes public utilities and applies to new authorizations, regardless of pre-existing certificates. Ishi, as a non-citizen, had no vested right to expand his equipment after the Constitution’s effectivity. The Commission’s order was consistent with the Constitution’s letter and spirit.
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