Case Digest: Air Manila vs. Balatbat; 38 SCRA 489 (1971)

            Due Process | Constitutional Law


Facts:
On April 1, 1968, Philippine Airlines (PAL) submitted a petition to the Civil Aeronautics Board (CAB) seeking approval for a proposed flight schedule. The CAB deferred action on the petition for further study. Subsequently, the CAB issued Resolution No. 109 (68), referring PAL's petition to a hearing examiner to assess its economic justification. On May 28, 1968, the CAB issued Resolution No. 139 (68), granting approval to PAL's proposed schedule for a period of 30 days, subject to specific conditions. However, on May 31, 1968, Air Manila, Inc. filed a petition arguing that the CAB acted beyond its jurisdiction or with abuse of discretion in approving Resolution No. 139 (68). Air Manila claimed that the proposed schedule, which involved increased frequencies, would saturate routes served by both airlines and impact Air Manila's own schedule. 

Issue:
WoN the CAB's approval without considering the evidence presented deprived them of their right to be heard and constituted a capricious exercise of power.
 

Held: 
There is no merit to the contention of petitioner. It has been correctly said that administrative proceedings are not exempt from the operation of certain basic and fundamental procedural principles, such as the due process requirements in investigations and trials.

In the present case, it can not truthfully be said that the provisional approval by the Board of PAL's proposed DTS-35 violates the requisites of administrative due process. 

Principle:
Administrative due process is recognized to include:
(a) the right to notice, be it actual or constructive, of the institution of the proceedings that may affect a person's legal rights; 
(b) reasonable opportunity to appear and defend his rights, introduce witnesses and relevant evidence in his favor, 
(c) a tribunal so constituted as to give him reasonable assurance of honesty and impartiality, and one of competent Jurisdiction; and 
(4) a finding or decision by that tribunal supported by substantial evidence presented at the hearing, or at least contained in the records or disclosed to the parties affected.

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