G.R. No. 41205 - Aguilar vs. Pasay Transportation Co., Inc.

On November 29, 1922, the Public Service Commissioner granted Tomas Mata a certificate authorizing him to operate one passenger truck between the City of Manila and Salinas, Cavite Province.
On or about January 25, 1924, Tomas Mata sold his truck and certificate to Saturnino Aguilar, subject to the Commission’s approval, which was subsequently granted with a certificate containing specific restrictions.
The relevant restriction (paragraph 2 of the certificate) provided that the truck, while passing railway stations of the Manila Railroad Company, would not stop near those stations for the collection of passengers or cargo and would allow appointed agents or traffic inspectors to determine departure times.

While Aguilar retained ownership, the certificate was modified only in the specification of departure and arrival hours from Manila and Salinas.
On June 14, 1933, Aguilar sold the transportation business and his certificate to the Manila Railroad Company.
An application for approval of this sale was filed the same day, ordered for hearing, and published in a major paper as directed by the Commission.

The Toledo Transportation Company initially opposed the application but later withdrew its opposition.
An attorney appeared for the Pasay Transportation Company; however, no opposition was filed at that stage.
The application stated that the sale and transfer would not harm public interests because the business would continue to operate in the "same manner" and along the same route.

In the Commission’s decision approving the sale in favor of the Manila Railroad Company, paragraph 2 of Aguilar’s certificate (imposing restrictions) was eliminated.
The Pasay Transportation Company, concerned that the Manila Railroad Company was now operating contrary to the original restrictions (i.e., picking up and dropping off passengers at intermediate points), promptly filed a motion for reconsideration.
The motion sought a new hearing and a revision of the decision to reinsert the restriction that had been imposed on Aguilar’s certificate.

The motion for reconsideration by the Pasay Transportation Company was based on several allegations, including:

Its status as a regular public utility operator serving routes between Cavite, Manila, and intermediate points.
The claim that the original certificate contained explicit prohibitions (e.g., between Noveleta and Manila) that protected its operations.
The existence of ample service over the line, making additional or altered operations detrimental to public interests.

The Public Service Commission denied the motion on January 12, 1934, without affording the Pasay Transportation Company an opportunity to present evidence.
An exception and a petition for review were subsequently filed, leading to further review by this court.
The Manila Railroad Company moved for dismissal of the review petition on the grounds of untimely filing under Section 35 of Act No. 3108, noting that the motion was filed more than thirty days after the decision became effective.

Whether the elimination of paragraph 2 in Aguilar’s certificate by the Public Service Commission adversely affected the rights or interests of the Pasay Transportation Company, a public utility operator along the same route.
Whether the Pasay Transportation Company, upon learning that the certificate’s restrictive condition was removed and that the Manila Railroad Company was now operating in a manner inconsistent with the original restrictions, had the right to file a motion for reconsideration.
Whether the failure of the Public Service Commission to provide timely notice of the amended conditions violated due process and the right of the affected party to be heard.
Whether the invocation of Section 35 of Act No. 3108 by the Manila Railroad Company to bar the application for review was legally tenable, given that the affected party (Pasay Transportation Company) was not originally a party to the case before the commission.
Whether the actions and subsequent decisions of the Commission constituted an irregular exercise of judicial power beyond its lawful jurisdiction.