G.R. No. L-18889-90 April 30, 1964
Fortunato F. Halili, petitioner, vs. Antonio Heras, et al., respondents.

FACTS

Petitioner Fortunato F. Halili, operator of Halili Transit, was granted authority by the Public Service Commission (PSC) in January 1957 to register and operate 65 buses on specified routes in Quezon City, with the condition that the units be registered within 30 days. By October 1957, Halili had registered only 30 buses and failed to register the remaining 35. In July 1960, respondents and other operators filed petitions with the PSC seeking the cancellation of Halili’s authority over the 35 unregistered units and requesting authority to operate those units themselves. Halili moved to dismiss these petitions, arguing they were premature and that any alleged violation of his certificate was a prejudicial question requiring separate determination. The PSC denied the motion, consolidating the petitions for cancellation and appropriation into a single proceeding to avoid duplicity of action. Halili then sought an extension to register the 35 buses.

ISSUE

The primary issues were whether the PSC erred in conducting a joint hearing on the petitions for cancellation and appropriation, and whether it erred in canceling Halili’s authority over the 35 units and awarding them to other operators instead of granting him an extension to comply.

RULING

The Supreme Court affirmed the PSC’s decision. On the procedural issue, the Court held that the PSC acted within its broad discretionary powers in conducting a joint hearing. This procedure was deemed efficient, less circuitous, and avoided multiplicity of suits. The law vests the Commission with ample authority to consolidate such related petitions for the convenience of the proceedings. On the substantive issue, the Court found no error in the cancellation and re-award. Halili’s failure to register the 35 units for over three years, despite the clear 30-day condition, constituted abandonment of the service privilege. His excuses—shortage of trucks, difficulty securing foreign exchange, and his own illness—were rejected. The PSC correctly found that other operators managed to acquire buses during the same period, and personal illness did not preclude compliance through representatives. As a pioneer operator, Halili might typically receive preference for expansion, but this privilege is forfeited upon a clear showing of abandonment. The Commission’s action in awarding the units to established operators who had promptly applied was therefore justified.