G.R. No. 45396 ; June 30, 1938
PASAY TRANSPORTATION CO., INC., petitioner-appellant, vs. TOLEDO TRANSPORTATION CO., INC., respondent-appellee.

FACTS

Pasay Transportation Co., Inc. filed a complaint before the Public Service Commission against Toledo Transportation Co., Inc., alleging that Toledo violated a condition in its certificate of public convenience. The condition, originally imposed in 1920 on Simon Toledo (predecessor of respondent), prohibited the transportation of passengers or freight between any points along the Noveleta-Manila line. This restriction was imposed due to opposition from the Manila Railroad Company, which operated along the same line. Toledo Transportation maintained a waiting station in Barrio Salcedo, Noveleta, where it picked up and discharged passengers and freight, allegedly in violation of this restriction. Pasay Transportation argued this operation was detrimental to its interests. The Public Service Commission absolved Toledo Transportation, prompting Pasay’s appeal.

ISSUE

Did the Public Service Commission err in absolving Toledo Transportation Co., Inc. from the complaint, despite its admitted operation at a station along the restricted Noveleta-Manila line?

RULING

No, the Public Service Commission did not err. The Supreme Court affirmed the Commission’s decision. First, the restriction was imposed for the sole benefit of the Manila Railroad Company, which had never complained about the violation in over sixteen years. Pasay Transportation, which was not operating in Cavite when the restriction was imposed, was not an intended beneficiary. Second, Toledo Transportation also held a separate certificate (originally granted to Aquilino Angkiko) that only restricted operations between Kawit and Manila, not Noveleta and Manila. Since Kawit is beyond Noveleta on the route to Manila, operating at the Salcedo station in Noveleta did not violate this certificate. The Commission’s decision, based on evidence and equity, was upheld.

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