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6.mandbusco Vs Francisco 32 SCRA 405
6.mandbusco Vs Francisco 32 SCRA 405
G.R. No. L-23688 April 30, 1970 MANDBUSCO, INC., MANDALUYONG BUS CO., INC., PRESCILO
CAMAGANACAN, BLAS REYES and ANASTACIO ESMAO, petitioners, vs. PABLO FRANSCISCO,
respondent.
FACTS: Pablo Francisco applied for a certificate of public convenience covering the operation of
five (5) PUJ jitneys from barrio Pinagbuhatan, Pasig, Rizal to the intersection of Highway 54 and
Shaw Boulevard, Mandaluyong, Rizal (otherwise known as the "Crossing") and vice-versa.
Hearing was conducted, after due notice and publication, enabling both the respondent
applicant and the oppositors Mandbusco, Inc., et al., to adduce their respective evidence. Public
Service Commission granted the application.
In the course of the hearing the petitioners presented a certificate of public convenience
allowing the Mandaluyong Bus Co., Inc. to utilize two of their buses, and a third as reserve, for
the line from Pinagbuhatan (Pasig, Rizal) to Plaza Miranda (Quiapo, Manila) via Mandaluyong,
Rizal. This, according to petitioners, should completely negate the finding of the Commission
that there exists no direct service from barrio Pinagbuhatan to the crossing of Highway 54 and
Shaw Boulevard. The Court disagrees. The certificate of public convenience adverted to merely
proves that authority has been given to the grantee to operate public utility vehicles in the
designated territory. It cannot serve as proof that the grantee has made actual use of such
authority. The petitioners invoke the "old operator rule,"
ISSUE: Whether or not the "old operator rule" invoked by the petitioners applies in this case
HELD: No. The old operator rule, which is to the effect that a public utility operator should be
shielded from ruinous competition by affording him the opportunity to improve his equipment
and service before allowing a new operator to serve in the same territory he covers, has no
application in this case because the certificate of public convenience granted to the respondent
is a maiden franchise covering the particular line connecting barrio Pinagbuhatan and the
crossing of Highway 54 and Shaw Boulevard.
The certificate of public convenience authorizing the Mandaluyong Bus Co., Inc. to operate two
buses, with one reserve, on the line extending from barrio Pinagbuhatan to Plaza Miranda in
Quiapo, Manila, while in a sense overlapping with the authority given to the respondent, was
essentially intended to cover the great distance run between barrio Pinagbuhatan and Quiapo.
the grant in favor of the Francisco covers only a brief shuttle run of 8 kilometers linking barrio
Pinagbuhatan directly with the Pasig poblacion and the crossing of Highway 54 and Shaw
Boulevard. The Commission favored Francisco with the certificate of public convenience in
question. The Court is not prepared to substitute our discretion with that of the Public Service
Commission in the determination of what can best meet the requirements of public
convenience. the decision appealed from is hereby affirmed.