Case Summary (G.R. No. 204142)
Background and Facts
The PSC had initially ruled against PLDT for operating a telephone service between CALTEX's refinery in Bauan, Batangas, and its management office in Manila without the necessary certification. The complaint, filed by RETELCO, alleged that PLDT's operation was illegal and sought to have it discontinued. In essence, PLDT had established communication facilities under a contract with CALTEX and commenced operations on January 28, 1953. Conversely, RETELCO was granted its certificate to operate a local service in Batangas in 1956 and 1959 and claimed that the earlier operations by PLDT undermined its rights.
Legal Proceedings and Arguments
Both PLDT and CALTEX argued before the PSC that their operations were compliant with the existing agreements and previously established connections. They claimed that the telephone service constituted a private line leased by CALTEX from PLDT and should not be classified as a public service. Furthermore, PLDT contended that its operations predated RETELCO's certification and thus could not violate the latter's standing.
After reviewing the operational structure of the telephone system shared between CALTEX and PLDT, the PSC found that PLDT's operations amounted to a public service as it facilitated calls not only between CALTEX offices but also made connections available to the general public during certain hours.
Public Service Law Context
The applicable law, specifically Section 20(b) of the Public Service Act (Commonwealth Act 146), stipulates that any public utility must secure approval from the Commission before establishing or extending services. The PSC's position affirmed that PLDT required this approval despite the claims that the service was limited to a single user.
Findings and Rulings
The PSC's ruling emphasized the public nature of the services provided by PLDT, noting that operations included connections that served not merely CALTEX but also outside calls through PLDT's system. It was ruled that PLDT had contravened the Public Service Law and therefore would incur a daily fine of P10.00 until compliance was achieved by securing the necessary certification.
Issues of Prescription
In addressing PLDT's argument regarding the prescription of its alleged violations, the court held that the violation remained regardless of whether it was discovered or not. As there was no representation from PLDT of the existing illegality when the issue was rais
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Case Citation
- Jurisprudence: 134 Phil. 52
- G.R. No.: L-21070, L-21074, L-21075
- Date: September 23, 1968
Parties Involved
- Petitioner: Republic Telephone Company, Inc. (RETELCO)
- Respondents: Philippine Long Distance Telephone Company, Inc. (PLDT), Caltex (Philippines), Inc. (CALTEX), Public Service Commission
Background of the Case
- The case arises from the Public Service Commission's decision in PSC Case No. 91179-C, which found PLDT guilty of violating Section 20(b) of the Public Service Law and its certificate of public convenience and necessity for operating a telephone service in Manila.
- PLDT was fined P10.00 per day from January 27, 1953, until it filed for the necessary certificate to operate a telephone system at the CALTEX refinery in Bauan, Batangas.
- All parties involved filed separate appeals to the Supreme Court due to the interrelation of their appeals against the Public Service Commission's decision.
Facts of the Case
- PLDT entered into a contract with CALTEX to establish communication facilities between CALTEX's refinery in Bauan, Batangas, and its head office in Manila.
- The communication system began operations on January 28, 1953.
- RETELCO was granted a certificate of public convenience to operate a local telephone service in Batangas on April 17, 1956, and later in Bauan on October 29, 1959.
- RETELCO filed a complaint against PLDT for the alleged illegal operation of telephone services connecting C