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    NPC vs. VERA

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    itablemj

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    NPC vs. VERA

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    itablemj
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    19 views1 page

    NPC vs. VERA

    Uploaded by

    itablemj

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    © All Rights Reserved
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    of 1

    NATIONAL POWER CORPORATION, petitioner, vs. HONORABLE ABRAHAM P.

    VERA,
    G.R. No. 83558 February 27, 1989

    FACTS:
    Sea Lion International Port Terminal Services, private respondent filed a complaint for prohibition and mandamus with
    damages against NPC and Philippine Ports Authority (PPA), wherein the former alleged that NPC had acted in bad
    faith and with grave abuse of discretion in not renewing its Contract for Stevedoring Services for Coal-Handling
    Operations at NPC's plant, and in taking over its stevedoring services.

    Soon after the filing of the complaint, respondent judge issued a restraining order against NPC enjoining the latter
    from undertaking stevedoring services at its pier. Consequently, NPC filed an "Urgent Motion" to dissolve the
    restraining order, asserting, inter alia: (1) that by virtue of P.D. No. 1818, respondent judge had no jurisdiction to
    issue the order; and (2) that private respondent, whose contract with NPC had expired prior to the commencement
    of the suit, failed to establish a cause of action for a writ of preliminary injunction.

    Respondent judge issued the assailed Order denying NPC's motion and issuing a writ of preliminary injunction,
    after finding that NPC was not empowered by its Charter, Republic Act No. 6395, as amended, to engage in
    stevedoring and arrastre services.

    Issue: WON NPC should be allowed to engage in stevedoring and arrastre services even if it’s not stated in its
    Charter

    Held:

    Yes.

    To carry out the national policy of total electrification of the country, specifically the development of hydroelectric
    generation of power and the production of electricity from nuclear, geothermal and other sources to meet the
    needs of industrial development and dispersal and the needs of rural electrification, the NPC was created and
    empowered not only to construct, operate and maintain power plants ,reservoirs, transmission lines, and other
    works, but also:
    xxx xxx xxx
    ... To exercise such powers and do such things as may be reasonably necessary to carry out the business and
    purposes for which it was organized, or which, from time to time, may be declared by the Board to be
    necessary, useful, incidental or auxiliary to accomplish said purpose, . . . [Sec. 3 (1) of Rep. Act No. 6395, as
    amended.]

    In determining whether or not an NPC act falls within the purview of the above provision, the Court must decide
    whether or not a logical and necessary relation exists between the act questioned and the corporate purpose
    expressed in the NPC charter. For if that act is one which is lawful in itself and not otherwise prohibited, and is
    done for the purpose of serving corporate ends, and reasonably contributes to the promotion of those ends in a
    substantial and not in a remote and fanciful sense, it may be fairly considered within the corporation's charter
    powers

    The Court affirmed the rule that a corporation is not restricted to the exercise of powers expressly conferred upon
    it by its charter, but has the power to do what is reasonably necessary or proper to promote the interest or welfare
    of the corporation.

    In the instant case, it is an undisputed fact that the pier located at Calaca, Batangas, which is owned by NPC,
    receives the various shipments of coal which is used exclusively to fuel the Batangas Coal-Fired Thermal Power
    Plant of the NPC for the generation of electric power. The stevedoring services which involve the unloading of the
    coal shipments into the NPC pier for its eventual conveyance to the power plant are incidental and indispensable to
    the operation of the plant The Court holds that NPC is empowered under its Charter to undertake such services, it
    being reasonably necessary to the operation and maintenance of the power plant.

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