G.R. No. L-8845-46; January 7, 1958
BATANGAS TRANSPORTATION COMPANY and LAGUNA-TAYABAS COMPANY, petitioners, vs. MARTIN SOUZA, JOSE SILVA and PUBLIC SERVICE COMMISSION, respondents.

FACTS

Martin Souza held a certificate of public convenience to operate five passenger trucks on the Lucena-Manila, Batangas-Manila, and Binan-Manila lines. Due to recurrent failures to operate, petitioners filed complaints against him before the Public Service Commission. The Commission issued several orders imposing fines on Souza (June 9, 1951; February 21, 1952; November 28, 1952), a warning of cancellation (February 26, 1953), and another similar order (January 27, 1954). On June 8, 1953, Souza transferred his certificate and trucks to Jose Silva. The Commission initially provisionally approved the transfer (June 16, 1953) but reversed it (June 19, 1953), then provisionally approved it again on March 22, 1954, without notifying petitioners. Petitioners filed multiple petitions for cancellation of Souza’s certificate in 1954. After a hearing, the Commission, on November 22, 1954, ordered the cancellation of Souza’s certificate and set aside the provisional approval of the transfer to Silva, finding that Souza violated the Commission’s orders. Both Souza and Silva filed motions for reconsideration. The Commission denied Souza’s motion but granted Silva’s on February 22, 1955. The Commission’s order gave Silva an unextendible period of ten days to register five trucks for the lines, noting his investment of approximately P59,000 in new trucks, the public need for the service, and his good faith. Failure to register would result in automatic cancellation. Petitioners seek certiorari, alleging grave abuse of discretion in this order.

ISSUE

Did the Public Service Commission commit a grave abuse of discretion in granting Jose Silva’s motion for reconsideration and allowing him a final opportunity to operate the lines by registering the necessary trucks?

RULING

No. The Court found no grave abuse of discretion committed by the Public Service Commission. The Commission’s leniency toward Souza, the original certificate holder, did not extend to Silva, as the record showed Silva was not guilty of the same neglect. While Silva did not operate immediately, the Court recognized that operating a line requires time to purchase equipment and organize personnel. The Commission properly considered that Silva had invested a substantial sum (P59,000) in new trucks for the line, was competent, and had taken steps to provide equipment. Silva was not responsible for the negligent conduct of his predecessor, Souza. The Court held that the Commission’s decision to grant Silva a final opportunity, given the public need for the service and his good faith investment, was within its discretion. The petitions were denied.