Facts:

• The case involves a dispute between Imperial Textile Mills (ITM) and Manila Electric Company (Meralco) over payment of electric bills and alleged tampering with electric meters.
• ITM is a textile manufacturer that uses electricity supplied by Meralco.
• They entered into an agreement for the assignment of ITM's tax credits in payment of its electric bills.
• Meralco began sending conflicting statements of accounts to ITM and applied a portion of the tax credits for the payment of accumulated interest charges.
• ITM contested the payment of interest charges and denied tampering with the electric meters.
• Meralco issued differential billings for ITM's alleged unregistered energy consumption due to tampering with the meters.
• ITM filed a complaint against Meralco for injunction, specific performance, and damages.
• The trial court ruled in favor of ITM, declaring the interest charges imposed by Meralco as null and void and dismissing Meralco's claims for differential billing.
• The trial court also ordered Meralco to pay attorney's fees.
• The appellate court affirmed the trial court's decision.

Issue:

• (Unlock)

Ruling:

• The Supreme Court ruled in favor of Meralco on...(Unlock)

Ratio:

• The Deeds of Assignment and the letter-agreement between Meralco and ITM did not authorize Meralco to charge ITM interest for late payment of franchise taxes.
• However, ITM was still liable for damages for the delay in payment of electric bil...continue reading