Title
Pantranco South Express, Inc. vs. Board of Transportation
Case
G.R. No. 49664-67
Decision Date
Nov 22, 1990
BLTB's bus service suspension due to crises justified; BOT upheld public need over cancellation, citing no willful abandonment, prioritizing regional transport shortage.

Case Digest (G.R. No. 154243)
Expanded Legal Reasoning Model

Facts:

  • Certificates of Public Convenience (CPC) Issuance
    • On August 5, 1971, the Public Service Commission granted Batangas Laguna Tayabas Bus Co., Inc. (BLTB) CPCs to operate:
      • Twelve (12) bus units on Pasay City - Legaspi City line (Case No. 70-5749)
      • Six (6) bus units on Pasay City - Bulan, Sorsogon line (Case No. 70-5750)
      • Ten (10) bus units on Pasay City - Sorsogon line (Case No. 70-5751)
  • Complaint Against BLTB and Subsequent Proceedings
    • On April 4, 1975, Pantranco South Express, Inc. (PANTRANCO) filed a complaint before the Board of Transportation (BOT) docketed as Case No. 75-31-C, accusing BLTB of abandoning services on the said lines from August 1971 to April 1975 and prayed for cancellation of BLTB's CPCs.
    • On March 24, 1976, PANTRANCO filed an urgent petition in Cases Nos. 70-5749, 70-5750, and 70-5751, charging abandonment from March 1975 to March 1976 and further praying for cancellation.
    • BLTB did not file formal written answers but in a July 26, 1978 motion, admitted non-operation during hearings held in 1977 and advanced defenses citing extraneous factors beyond their control.
  • BLTB’s Affirmative Defenses and Circumstances Cited
    • Registration of all twenty-eight buses under Public Utility Bus (PUB) denomination.
    • Industry-wide difficulties preventing operation:
      • Gasoline crisis starting 1971
      • Destructive floods in 1972 and 1974
      • Martial law and peace and order troubles in 1971-72
      • Prohibitive cost and scarcity of units, parts, and tires in 1973-76
      • Bankruptcy of many operators in the land transportation industry
      • PANTRANCO itself was affected and did not operate all authorized buses
    • BLTB asserted willingness and capability to operate all 28 units immediately.
  • January 4, 1979 BOT Order
    • BOT ordered BLTB to operate the full complement of 28 bus units within 15 days.
    • Imposed a fine of P10,000 payable within 10 days.
    • Declared the consolidated complaints closed and terminated.
    • Warned that failure to comply may lead to withdrawal of authority.
  • BOT’s Rationale against Cancellation
    • Cancellation is a severe penalty affecting both operator and the public.
    • Evidence to justify cancellation must be strong; mere non-operation without willful and contumacious refusal is insufficient.
    • BLTB was justified from September 2, 1972 by citing unfinished road construction, a fact uncontested and never overruled by BOT.
    • BOT considered public need paramount, especially due to insufficient operation of authorized units by PANTRANCO (less than 50% from 1974-1977).
    • There was a public clamor for transportation services along those lines, reinforced by government developmental projects benefiting the Bicol region.
  • PANTRANCO’s Petition for Certiorari
    • PANTRANCO filed a petition seeking annulment of the BOT order, citing:
      • Abuse of discretion and excess of jurisdiction for refusing to cancel BLTB’s CPCs despite abandonment.
      • Reliance on an allegedly excluded BLTB letter dated September 2, 1972.
      • Consideration of extraneous facts unsupported by evidence.
  • BLTB’s Counterposition
    • Cancellation or non-cancellation is within the sound discretion of the BOT.
    • The September 18, 1972 letter was part of the records.
    • BOT decided correctly prioritizing public need over penalizing BLTB.
  • Institutional Context
    • On September 23, 1972, the Public Service Commission was abolished; its functions transferred to the BOT.
    • On June 19, 1987, the Land Transportation Franchising and Regulatory Board (LTFRB) succeeded the BOT in exercising its functions.

Issues:

  • Whether the Board of Transportation committed grave abuse of discretion or acted without or in excess of jurisdiction when it refused to cancel BLTB's certificates of public convenience despite alleged abandonment of services.
  • Whether the BOT erred or acted improperly by considering BLTB’s letter dated September 18, 1972, allegedly not part of the case records.
  • Whether the BOT’s reliance on extraneous facts outside the record to prioritize public need over penalizing BLTB was improper.

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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