Case Summary (G.R. No. 151908)
Challenged Issuances
- Memorandum Circular No. 13-6-2000 (Billing Circular), June 16, 2000: rules on billing cycle statements; voice-mail charge prohibition; prepaid SIM card validity, identification, and replenishment periods; balance-announcement requirement; six-second billing pulse.
- Memorandum dated October 6, 2000: reminders and clarifications on prepaid card validity and six-second billing pulse effective October 7, 2000.
Trial Court Proceedings
– Islacom and Piltel filed for nullification of the Billing Circular and the October 6 memorandum, seeking TRO and preliminary injunction.
– RTC denied NTC’s motion to dismiss for lack of jurisdiction/exhaustion and granted injunctive relief.
Court of Appeals Proceedings
– NTC petitioned for certiorari and prohibition on grounds that the RTC should have dismissed for lack of exhaustion of administrative remedies and primary jurisdiction.
– CA annulled RTC orders and dismissed the complaint without prejudice to administrative remedies.
Issues on Review
- Whether the RTC had jurisdiction over the validity of NTC’s rule-making issuances.
- Whether petitioners were required to exhaust administrative remedies or defer to primary jurisdiction before seeking judicial review.
- Whether NTC exceeded its rule-making authority and violated due process, property, and contract rights.
Legal Principles on Agency Powers and Judicial Review
– Administrative agencies possess quasi-legislative (rule-making) and quasi-judicial powers; rules must conform to enabling statutes and the Constitution.
– Judicial review of rule-making acts does not require exhaustion of administrative remedies or application of the primary jurisdiction doctrine. Those doctrines apply only to quasi-judicial acts.
– The Constitution vests courts with power to test the validity or constitutionality of administrative regulations.
Application to NTC Circular
– The challenged memoranda were exercises of NTC’s quasi-legislative rule-making power.
– Petitioners properly invoked judicial power to challenge these issuances, as RTC has authority to decide constitutional and legal questions.
– Petitioners engaged in administrative protests and letters requesting reconsideration; the October 6 memorandum constituted constructive denial, justifying immediate judicial relief.
Conclusion
The Sup
Case Syllabus (G.R. No. 151908)
Facts and Regulatory Issuances
- On June 16, 2000, the NTC issued Memorandum Circular No. 13-6-2000 (“Billing Circular”) under its rule-making authority.
- Key provisions of MC 13-6-2000:
• Billing statements to be received by subscribers within 30 days from end of billing cycle, with grace period for late receipt during which service disconnection is prohibited.
• No charge for calls diverted to voicemail, prompts, recorded messages or similar facilities (excluding customer equipment).
• Verification of identification and address for each purchaser of prepaid SIM cards; minimum two-year validity from first use; 45-day replenishment window after full consumption, not to exceed two years and 45 days; reinstatement upon customer request at no extra charge.
• Mandatory on-call announcement of remaining prepaid value before each call.
• Reduction of billing unit from one-minute pulse to six-second pulse, with the authorized per-minute rate divided by ten. - The Circular took effect 15 days after publication (June 22, 2000) in The Philippine Star; provisions on prepaid cards and billing unit applied 90 days thereafter.
- On August 30, 2000, the NTC issued a memo to CMTS operators directing strict compliance with MC 13-6-2000 ID-verification rules, refusal of service to stolen-unit users, inter-operator information sharing on stolen units, and registration of existing prepaid customers.
- On October 6, 2000, the NTC reminded PTEs that prepaid cards and SIM packs sold on or after October 7, 2000, must have at least two-year validity and six-second pulse billing.
Petitioners’ Allegations and Relief Sought
- On October 20, 2000, Islacom and Piltel filed Civil Case No. Q-00-42221 in RTC Quezon City seeking nullification of MC 13-6-2000 and the October 6, 2000 memo, plus a writ of preliminary injunction and TRO.
- Alleged grounds:
• NTC lacks j