G.R. No. L-20740; June 30, 1964
BOLINAO ELECTRONICS CORPORATION, CHRONICLE BROADCASTING NETWORK, INC., and MONSERRAT BROADCASTING SYSTEM, INC., petitioners, vs. BRIGIDO VALENCIA, Secretary of the Department of Public Works and Communications and ROBERT SAN ANDRES of the Radio Control Division, respondents.

FACTS

Petitioners, owners and operators of radio and television stations, filed an original petition for prohibition and mandatory injunction against the Secretary of Public Works and Communications and the Acting Chief of the Radio Control Division. The respondents had initiated an investigation concerning the petitioners’ applications for renewal of their station licenses. The sole ground cited in the notices of hearing for potential disapproval was the alleged late filing of the renewal applications, purportedly in violation of Department Order No. 11. The Philippine Broadcasting Service (PBS), operator of a government television station, was allowed to intervene, claiming a right to operate on Channel 9, which was being used by petitioner Chronicle Broadcasting Network (CBN).
Petitioners contended the investigation lacked legal basis. They argued that any violation for late filing had been condoned by a circular dated July 24, 1962, issued by the Radio Control Office. This circular directed all station operators to correct violations, including late submission of applications, by August 10, 1962, implying amnesty for past infractions if corrected by that date. The petitioners complied, rendering the alleged violation moot.

ISSUE

The primary issue was whether the investigation being conducted by the respondents, based solely on the alleged late filing of license renewal applications, had any legal basis.

RULING

The Supreme Court ruled in favor of the petitioners and granted the writ of prohibition. The legal logic centered on the condonation of the alleged violation. The Court found that the circular of July 24, 1962, constituted an act of condonation by the government agency itself. By setting a deadline (August 10, 1962) for operators to correct past violations—explicitly including late submission of applications—the Radio Control Office effectively pardoned those prior infractions for compliant licensees. Since the petitioners had heeded the circular and rectified their records, the ground for the investigation (the late filing) ceased to exist. An administrative body cannot penalize an act it has previously condoned. Therefore, proceeding with an investigation based on a condoned violation was without legal foundation and constituted a grave abuse of discretion.
The Court also addressed the claim of the intervenor, PBS. It found that PBS’s operation of a television station in Manila violated a restrictive condition in its appropriation law, which prohibited using funds for TV operations in Luzon where commercial stations already existed. The President’s attempted veto of this restriction was unconstitutional, as the veto power does not extend to striking out conditions attached to appropriations. Consequently, PBS’s expenditures for its Manila station were illegal, and it had no right to damages or to claim Channel 9 from CBN. The preliminary injunction was made permanent.