Pangasinan Transportation Co. vs.

Public Service Commission

G.R. No. 47065

June 26, 1940
Laurel, J.
Fact:
PANTRANCO, a holder of an existing Certificate of Public Convenience is applying to
operate additional buses with the Public Service Commission (PSC) has been engaged
in transporting passengers in certain provinces by means of public transportation
utility. Patranco applied for authorization to operate 10 additional trucks. The PSC
granted the application but added several conditions for PANTRANCO’s compliance.
One is that the service can be acquired by government upon payment of the cost price
less depreciation, and that the certificate shall be valid only for a definite period of
time.
Issue:
Whether or not PSC can impose said conditions.
Ruling:
The Supreme Court held that there was valid delegation of powers.
The theory of the separation of powers is designed by its originators to secure action at
the same time forestall over action which necessarily results from undue
concentration of powers and thereby obtain efficiency and prevent deposition. But due
to the growing complexity of modern life, the multiplication of subjects of
governmental regulation and the increased difficulty of administering laws, there is a
constantly growing tendency toward the delegation of greater powers by the
legislature, giving rise to the adoption, within certain limits, of the principle of
“subordinate legislation.”
All that has been delegated to the Commission is the administrative function, involving
the use of discretion to carry out the will of the National Assembly having in view, in
addition, the promotion of public interests in a proper and suitable manner.