G.R. No. 46040 & 46041. November 29, 1938.

PAMPANGA BUS COMPANY, INC., oppositor-appellant, vs. FERNANDO ENRIQUEZ, applicant-appellee. ( G.R. No. 46040 )
PAMPANGA BUS COMPANY, INC., oppositor-appellant, vs. MARCELO DIAZ, applicant-appellee. (G.R. No. 46041)

FACTS

The Pampanga Bus Company, Inc. appealed two decisions of the Public Service Commission granting the applications of Fernando Enriquez and Marcelo Diaz to lift certain restrictions on their certificates of public convenience. The appellant opposed the applications, invoking a 1929 agreement wherein Enriquez agreed not to present any application to operate in the territory served by the appellant and not to seek the lifting of restrictions on his certificate. The appellant argued that this agreement was binding and that the matter was res judicata.

ISSUE

Whether the Public Service Commission erred in ignoring the 1929 agreement and in granting the applications to lift the restrictions on the appellees’ certificates of public convenience.

RULING

No. The Supreme Court affirmed the decisions of the Public Service Commission. The 1929 agreement, whereby an operator waives the right to apply for the lifting of restrictions on a certificate of public convenience, is illegal and void. Such a waiver is contrary to public interest because certificates of public convenience are imbued with public interest, aiming to serve the community’s social and economic welfare. The Public Service Commission retains its statutory power to modify certificates to adapt to new circumstances and better serve public convenience, and it is not bound by private agreements that contravene this public duty. The Court also found that the Commission’s factual findings were supported by evidence and would not be disturbed.

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