Title
BF Homes, Inc. vs. National Water Resources Council
Case
G.R. No. 78529
Decision Date
Sep 17, 1987
BF Homes sought mandamus to compel NWRC to act on CPCN transfer and water rate increase applications, citing prolonged inaction and public prejudice.
A

Case Digest (G.R. No. 78529)

Facts:

  • Background of the Parties
    • Petitioner: BF Homes, Inc. – a residential subdivision owner-operator engaged in constructing water distribution systems to ensure an adequate supply of potable water for its residents.
    • Co-Petitioner: Philippine Waterworks and Construction Corporation (PWCC).
  • Certificates and Franchise Applications
    • BF Homes, Inc. obtained a Certificate of Public Convenience and Necessity (CPCN) for the water distribution system at its Las Piñas subdivision.
    • Similarly, it holds a CPCN to operate the water distribution system at BF Homes Paranaque.
  • Applications for Action by the National Water Resources Council (NWRC)
    • On March 12, 1982, BF Homes, Inc. sought permission from the NWRC to transfer the CPCN for the Las Piñas subdivision to its co-petitioner, PWCC.
    • On June 25, 1985, BF Homes, Inc. filed an application with the NWRC to increase water rates at BF Homes Paranaque.
      • The rate increase was sought with the justification that the residents favored it in order to meet operational costs, notably for powering the water distribution system via Manila Electric Company.
      • Both applications encountered inaction by the NWRC; as of the records, the NWRC had not acted upon either request.
  • Relief Sought and Procedural History
    • BF Homes, Inc. filed a petition for mandamus with the Court of Appeals aiming to compel the NWRC to take action on both pending applications (transfer of CPCN and increase in water rates).
    • The respondent appellate court dismissed the petition for mandamus in two resolutions (dated February 16, 1987, and May 28, 1987), reasoning that mandamus is not available to compel discretionary, non-ministerial acts.
  • Context of the Dispute
    • The petitioner’s grievance centered on the undue delay and failure of the NWRC to exercise its discretion, causing substantial prejudice and inconvenience to the affected families in the subdivisions.
    • BF Homes, Inc. emphasized that it did not seek an order dictating the exact outcome of the applications but merely requested that the NWRC properly deliberate and act upon the pending administrative matters.

Issues:

  • Whether the NWRC’s failure to act on BF Homes, Inc.’s pending applications (for the transfer of the CPCN and for the increase in water rates) constituted an abuse of its discretionary powers.
    • Can a writ of mandamus be issued to compel an administrative body to perform a discretionary function in instances where its prolonged inaction results in prejudice to the petitioner?
    • Does the principle barring mandamus from controlling the exercise of discretion in judicial functions apply similarly to the discretionary administrative acts of the NWRC?
  • The Proper Scope of Mandamus in Administrative Cases
    • Whether the petitioner’s demand falls within the ambit of compelling the NWRC to perform a non-ministerial duty, that is, to deliberate and decide on the pending applications.
    • The distinction between compelling a ministerial act versus a discretionary act, and whether the delay in acting on the applications justifies mandamus.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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