Rural Transit Company v. Cruz

G.R. No. 34822 · 1931-11-16 · J. MALCOLM, J.: · Primary: Commercial; Secondary: Remedial
REITERATION

Facts

The Antecedents: The Rural Transit Company filed an application for a certificate of public convenience. Pedro Sumaquiao, among others, filed written oppositions. A hearing was held on November 22, 1929, without Sumaquiao or his counsel present. On May 31, 1930, the associate commissioner granted the application, with a proviso that the decision would become final thirty days after notification. Procedural History: Notice of the decision was served on June 5, 1930. On July 11, 1930, after the thirty-day period for appeal had expired, Sumaquiao filed a motion for rehearing. The Rural Transit Company opposed this motion, but it was granted by the associate commissioner on October 9, 1930, suspending the effects of the previous decision. A motion for reconsideration by the Rural Transit Company was denied. The Petition: The Rural Transit Company initiated certiorari proceedings, questioning whether the order granting the rehearing was issued without jurisdiction and when a decision of the Public Service Commission becomes final.

Issue(s)

Whether the Public Service Commission has jurisdiction to grant a motion for rehearing and modify its orders after the thirty-day period for appeal to the Supreme Court has expired.

Ruling

The application for certiorari is denied. The Public Service Commissioner acted properly in the exercise of discretionary jurisdiction expressly conferred by law upon the Public Service Commission in granting the motion for rehearing.

Ratio Decidendi

On Issue 1: The Supreme Court clarifies that the 'finality' of a Public Service Commission (PSC) order is dual-natured. Under Section 35 of Act No. 3108, an order becomes final after thirty days only in the sense that it is no longer appealable to the Supreme Court via certiorari or petition for review. However, Section 28 of the same Act explicitly empowers the Commission to order a rehearing 'at any time' to extend, revoke, or modify any order it has made. The Court reasons that the Commission does not lose administrative control over its decisions simply because the window for judicial review has closed. The phrase 'at any time' in Section 28 is interpreted literally to mean that the Commission's power to revisit its orders for the purpose of serving the public interest is not constrained by the same time limits that govern the parties' right to appeal. In this case, although the motion for rehearing was filed six days after the thirty-day appeal period had expired, the Commission acted within its legal authority when it granted the motion. Therefore, the Associate Commissioner did not exceed his jurisdiction, as the law expressly confers discretionary power upon the PSC to manage and modify its own proceedings to ensure public convenience.

Main Doctrine

The Public Service Commission retains the power to grant a rehearing at any time, even after a decision has become final for purposes of appeal, as this does not divest the commission of its control over the order to extend, revoke, or modify it.

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