Title
Cabudil vs. Panganiban
Case
G.R. No. L-26132
Decision Date
Aug 27, 1973
Petitioners sought PSC approval for franchise transfer, but records showed no valid franchise existed; PSC denial upheld by Supreme Court due to lack of evidence.
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Case Summary (G.R. No. L-26132)

Case Background

This decision, dated August 27, 1973, addresses the appeal involving petitioners Agapito Cabudil and Juan Reyes, who are vendors of a purported franchise for five jitneys, and Arsenio Ramirez, the vendee. The core issue revolves around the denial of their petition for approval of the sale of this franchise by the Public Service Commission (PSC).

Official Records Prevail

The Court ruled that the official records of the Public Service Commission must take precedence over the petitioners’ undocumented claims. The petitioners’ assertions regarding the sale of a franchise for a non-existent line have no basis in the commission's records.

  • Legal Principle: The official records of a regulatory body, such as the Public Service Commission, are authoritative and must be honored over unsubstantiated claims.
  • Key Definitions:
    • Franchise: Authorization granted to operate public utility services.
    • Provisional Authority: Temporary permission granted to operate pending the final decision on a franchise application.

Lack of Valid Franchise

The PSC's records confirmed that petitioners Cabudil and Reyes did not hold a franchise for the Novaliches-Blumentritt line but instead had a franchise for different lines, granted on April 16, 1963.

  • Important Requirements:
    • Petitioners must demonstrate valid ownership of a franchise for the line they wish to sell.
    • Verification from the PSC's records is essential before proceeding with sales.

Sale and Transfer Issues

The petitioners claimed a sale to Ramirez occurred on August 25, 1959, but the commission found no record of this transaction.

  • Relevant Timeframes:
    • The alleged provisional authority for Ramirez was unverified and purportedly expired, as provisional authorities are only valid for six months.
    • The actual franchise held by Cabudil and Reyes was sold to a third party in 1961, prior to the alleged sale to Ramirez.

Due Process Claim Denied

The petitioners argued a violation of due process due to the dismissal order not allowing them to present evidence. The Court rejected this claim, emphasizing that they had ample opportunity.

  • Consequences of Claim:
    • The absence of documentation and failure to act on their application for approval for years negated their claims.

Court's Affirmation

The Court affirmed the PSC's order denying the petition for approval of the sale, placing treble costs on the petitioners.

  • Penalties: Treble costs imposed signify a financial penalty against the petitioners for the unsuccessful appeal....continue reading

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