ACEBEDO OPTICAL COMPANY, INC. vs.

THE HONORABLE COURT OF APPEALS

G.R. No. 100152
March 31, 2000
FACTS:
Acebedo applied for a business permit to operate in Iligan City which was granted by
City Mayor Camilo P. Cabili, however it was equipped with various special conditions such as
that Acebedo be prohibited to practice optometry within the city, which was agreed upon by both
parties. Eventually, Samahan ng Optometrist Sa Pilipinas (SOPI), Iligan Chapter lodged a
complaint against the petitioner before the Office of the City Mayor, alleging that Acebedo had
violated conditions set forth in its business permit and requested the cancellation and/or
revocation of such permit. Mayor Cabili revoked Acebedos business permit for violating the
said conditions and Acebedo was subsequently suspended from operating within Iligan.
ISSUE:
Whether or not the conditions attached by the mayor is a valid exercise of police power.
RULING:
The conditions attached by the mayor is not a valid exercise of police power. Distinction
must be made between the grant of a license or permit to do business and the issuance of a
license to engage in the practice of a particular profession. The first is usually granted by the
local authorities and the second is issued by the Board or Commission tasked to regulate the
particular profession. In this case, what is sought by petitioner from respondent City Mayor is a
permit to engage in the business of running an optical shop. It does not seek a license to engage
in the practice of optometry as a corporate body or entity, although it does have in its employ,
persons who are duly licensed to practice optometry by the Board of Examiners in Optometry.
Likewise, estoppel cannot apply in this case. The fact that petitioner agreed in the special
conditions imposed by the City Mayor in subject business permit does not preclude it from
challenging the said imposition, which is ultra vires or beyond the ambit of authority of
respondent City Mayor. The doctrine of estoppel cannot operate to give effect to an act which is
otherwise null and void or ultra vires.
Though the mayor can definitely impose conditions in the granting of permits, he must
base such conditions on law or ordinances otherwise the conditions are ultra vires. Lastly, the
granting of the license is not a contract, it is a special privilege. Thus, estoppel does not apply.