BOLINAO ELECTRONICS CORP V VALENCIA
JUN 30 1964 | BARRERA, J RE: AUTHORITY TO CONDONE OR PARDON VIOLATIONS
FACTS: Appeal for prohibition, mandatory injunction with preliminary injunction filed
by owners and operators of radio and television stations (Bolinao Electronics Corp,
Chronicle Broadcasting Network, Monserrat Broadcasting System) against Secretary
of Public Works and Communications and Acting Chief of Radio Control Division
Republic of PH (as operator of PH BROADCASTING SERVICE (PBS) allowed to
intervene granted construction permit to install and operate TV station in Manila
Respondents are conducting an investigation in connection with petitions for renewal
of petitioners and their violations of Sec 12 & 14 DO 11 (application was submitted
some time after expiry); they sent petitioners the notices of hearing.
Sec 12 no radio transmitter may operate without radio station license obtained
from Secretary of Public Works & Communications
Sec 14 application for renewal should be submitted 2 months before expiration
date of license to be renewed.
ISSUES
1. WON the investigation being conducted by respondents, in connection with
petitioners applications for renewal of their station licenses, has any legal
basis? YES BUT INVESTIGATION NOT NEEDED BECAUSE OF CIRCULAR
BASI: SEC 3 Act 3846 powers and duties of Secretary of Public Works and
Communications ((1) He may approve or disapprove any application for renewal of
station or operator license; Provided, however, That no application for renewal shall
be disapproved without giving the licensee a hearing")
Hearing is required by Sec 3(1) of Act 3846 - It is an indispensable step in the
processing of application of licenses, when and if summary approval, for one
reason or another, real or fancied, could not be given as in the instant case.
Certainly, the respondents (movants) themselves would be the first ones to raise
their voice of protest if their application for renewal were to be summarily
disapproved, without benefit of any hearing.
PETITIONER: violation re: belated filing of application ceased to exist because of
Circular:
CIRCULAR (JUL 24 1962) due to violation of radio laws and regulations (late
submission of application for new and renewal licenses), radio stations are
requested to examine closely operating practices, permits and licenses and take
ramedial measures as soon as possible but not later than Aug 10 1962.
INTENTION OF INVESTIGATION: To find out whether there is ground to disapprove
the application for renewal
BUT, only reason relied upon by respondents is the alleged late filing of the petitions
for renewal notices alleged only 1 violation which would justify disapproval
CIRCULAR non-observance by station operators regarding filing of petitions for
renewal was condoned if steps were taken before Aug 10 1962
All applications were made before said date (even before issuance of Circular)
The violation, in legal effect, ceased to exist and there is no need for the present
investigation (raison detre for it disappeared)
(1) By specific provision of law, Department Secretary is given discretion either to
bring criminal action against violators and confiscate radio apparatus in case of
illegal operation or suspend or revoke licenses or refuse to renew licenses or just
reprimand and warn offenders
Circular approved by Undersecretary of Public Works and Communications
warning offenders is an act authorized under the law
(2) Circular having been issued by respondents themselves, they cannot claim its
illegality to evade effect of its enforcement.
2. WON there was abandonment or renunciation by the CBN of Channel 9 in
favor of PBS? NO
No express agreement only basis is the statement Channel 10 assigned in lieu of
Channel 9 appearing in the construction permit to transfer TV station from QC to
Baguio
Statement alone does not establish any agreement between the radio control
authority and the station operator on the switch or change of operations of CBN
from CH9 to CH10
Assignment of C10 was to be effective upon the final transfer of station
necessary to avoid interference of its broadcast with that of Clark Air Force Base
station in Pampanga (CH 8)
CH10 would be assigned to PETITIONER only when Baguio station starts to
operate when the plan to transfer to Baguio had to be abandoned, it did not
mean abandonment by the station of its right to operate and broadcast on Ch 9 in
QC
CONSTRUCTION PERMIT NO 798 issued to PH BROADCASTING SERVICE
construction of this station shall be begun after CH 9 Manila of Chronicle broadcasting
networks permit to transfer is approved upon approval of request to transfer,
PETITIONER was deemed to have renounced or abandoned on CH 9
COURT: STATEMENT CANNOT BIND PETITIONER
(1) Clause Chronicle broadcasting Networks permit to transfer is approved was
merely placed by personnel after erasing the original words written does not
appear what were really written there before erasure
(2) CBN had no participation in the preparation of permit it is an inter alios acta
which cannot bind it
(3) CBN was allowed to continue and did continue operating on CH 9 even after the
approval of is proposed transfer
3. WON PBS can legally operate Channel 9 and is entitled to damages for
CBNs refusal to give up operations thereof? NO
Since failed to prove agreement between CBN and PBS on exchange of use of
CH9&10, no right belonging to PBS had been violated by CBNs refusal to give up its
present operation of CH9
APPROPRIATION TO OPERATE PH BROADCASTING SERVICE AS APPROVED
BY CONGRESS AND INCORPORATED IN 1962-1963 BUDGET OF RP No
portion of this appropriation shall be used for the operation of television stations in
Luzon or any part of the PH where there are television stations VETOED BY
PRESIDENT
Under the Constitution, the President has the power to veto any particular item or
Items of an appropriation bill. However, when a provision of an appropriation bill
affects one or more Items of the same the President cannot veto the provision without
at the same time vetoing the particular item or items to which it relates.

IN CASE AT BAR, amount appropriated for operation of PH Broadcasting Service

was made subject to the condition that the same shall not be used or expended for
operation of TV stations in Luzon, where there are already existing commercial TV
stations

WON PRESIDENT MAY LEGALLY VETO A CONDITION ATTACHED TO AN

APPROPRIATION OR ITEM IN THE APPROPRIATION BILL? NO
STATE V HOLDER such action by the Chief Executive was illegal executives
veto power does not carry with it the power to strike out conditions or restrictions

If the veto is unconstitutional, it follows that the same produced no effect whatsoever,
and the restriction imposed by the appropriation bill, therefore, remains.

Any expenditure made by the PBS, for the purpose of installing or operating a
television station in Manila, where there are already television stations in operation,
would be in violation of the express condition for the release of the appropriation and,
consequently, null and void. It is not difficult to see that even if it were able to prove its
right to operate on Channel 9, PBS would not have been entitled to reimbursement of
its illegal expenditures.

IN VIEW OF THE FOREGOING, writ prayed for is GRANTED. Writ of preliminary

injunction made PERMANENT.