PHILIPPINE GLOBAL COMMUNICATIONS, INC. vs.

RELOVA
GR No. L-52819 October 2, 1980
FERNANDO, J.
Contemporary Construction

DOCTRINE:
UNITED STATES DONCTRINE: The doctrine which must be applied in such cases in this jurisdiction does not differ materially from the
equitable doctrine frequently announced and applied by the Supreme Court of the United States in the numerous cases in which similar
questions have come to it from the various States and Territories within its jurisdiction.

CASE SUMMARY:
Appeal by certiorari by the Chief of Staff and the Judge Advocate General of the Armed Forces of the Philippines from a decision of the
Court of First Instance of Rizal, involving a petition (for declaratory relief) filed by the herein eighteen (18) respondents, for a judicial
declaration of their rights under Republic Act 1862, as amended by Republic Act 4902, in the matter conversion of lump sum gratuity
to annual retirement pension.

FACTS:
This is a petition for review on certiorari where the Philippine Global Communications Inc. seeks to set aside decision dated April 27,
1982 declaring petitioner without authority to establish, maintain and operate, apart from its single principal station in Makati, any
other branch or station within the Philippines.

On May 10, 1976 petitioner filed application with the Board of Communications an application for authority to establish a branch station
in Cebu City for the purpose of rendering international telecommunication services from Cebu to any point outside Philippines. This was
opposed by the private respondents. On March 24, 1977, BOC issued Memorandum Circular No. 77-13 Designating Metropolitan Manila
area as the sole gateway, point of entrance into and exit from) for communications in the Philippines. And defining what constitutes
domestic record operations. I was on Jan. 16, 1979 that BOC granted petitioner provisional authority to establish a station in Cebu City
subject to condition that as soon as domestic carriers shall have upgraded their facilities, applicant shall cease its operation and interface
with domestic carriers. On May 24, 1979, BOC granted petitioner the final authority to establish a branch/station in Cebu City subject
to prior approval, anywhere in the Philippines. Private respondents filed petition for declaratory judgment on the proper construction
of petitioners franchise, RA 4617. Petitioners sought dismissal of petition. Motion was denied. Petitioner assailed the order on the
ground of lack of jurisdiction. Court held that the suit for declaratory relief fell within the competence of the Judiciary and did not
require prior action by the administrative agency concerned under the concept of primary jurisdiction.

Parties then agreed to submit the case for decision on the bases of their respective pleadings and memoranda. Court rendered judgment
on April 27, 1982 declaring petitioner without authority to establish, maintain and operate any other branch or station within the
Philippines.

ISSUE:
Whether the petitioner is authorized under its legislative franchise, RA 4617, to establish stations or substations in places or points
outside Metropolitan Manila.

HELD/ RATIO:
It is stressed that the principle of contemporaneous construction of a statute by the executive officers of the government, BOC in his
case, whose duty is to execute it, is entitled to great respect. Therefore, the Bureau of Communications made final the provisional
authority granted to applicant or Phil Global Communications, Inc. to establish branch stations in ay point within the country for the
purpose of receiving and transmitting messages to countries outside the Philippines where it is authorized to render international
communications services in accordance with its legislative franchise, RA 4617 and Memorandum Circular No. 77-13.

SC DECISION: The decision appealed from is reversed.