The Supreme Court (SC) en banc issued a temporary restraining order (TRO) stopping the implementation of the Mandaluyong Regional Trial Court’s (RTC) ruling.

“Effective immediately and continuing until further orders from this Court, You, Branch 209, Regional Trial Court, Mandaluyong City and respondent Panay Electric Company, Incorporated (PECO), your agents, representatives, or persons acting in your place or stead, are hereby commanded and directed to cease and desist from implementing the Judgement dated July 1, 2019 issued in Civil Case No. R-MND-19-00571,” read part of a resolution dated Dec. 3, 2019.

The Mandaluyong RTC’s decision declared Sections 10 and 17 of Republic Act (RA) No. 11212 “void and unconstitutional”, and
made permanent a TRO it issued last March 14.

The law, which was signed by President Rodrigo Duterte last Febuary, grants MORE Electric and Power Corp. (MORE Power), a 25-year franchise to operate as Iloilo City’s sole power distributor.

However, PECO, whose franchise expired last January, questioned the two sections of the law.

Section 10 authorizes MORE to exercise the power of eminent domain and acquire such private property as is actually necessary for the realization of the purpose for which the franchise is granted.

Section 17 states the power of MORE, as grantee, to effectively acquire power distribution assets. The distribution assets that exist within the franchise area could only refer to those of PECO.

Roel Castro, MORE Power president, said they were “very pleased with the latest issuance” of the SC.

The SC’s decision, according to Castro, affirmed that:
-MORE Power has a clear and unmistakable right to be protected
-there is material and substantial invasion of such right
-there is an urgent need for the writ to prevent irreparable injury to MORE Power, and
-no other ordinary, speedy, and adequate remedy exists to prevent the infliction of irreparable injury other than the issuance of the TRO

“This is but a manifestation of the rule of law. Republic Act No. 11212, or the law granting MORE Power its legislative franchise, was regularly passed by Philippine Congress and signed into law by the President,” said Castro.

“Basic is the rule that every law has in its favor the presumption of constitutionality. To justify the nullification of Sections 10 and 17 of R.A. No. 11212, there must be a clear and unequivocal breach of the Constitution, and not one that is doubtful, speculative, or argumentative,” he added.

With the issuance of the TRO, Castro said they are “confident that the lower court will take its cue and decisively rule on the Application for the Issuance of the Writ of Possession.”

“With all due respect, the law and rules are clear: Upon compliance with the requirements, a petitioner in an expropriation case is entitled to a writ of possession as a matter of right and it becomes the ministerial duty of the trial court to forthwith issue the writ of possession,” he further said.

Last month, the Iloilo City RTC Branch 35 “suspended further proceedings” in the expropriation case filed by MORE Power against PECO.

Presiding Judge Daniel Antionio Gerardo said the suspension is “in the interest of judicial fairness, respect to the Honorable Supreme Court (SC), and for practical considerations.”

He cited OCA Circular No. 113-2019 that “requires all RTC judges and Clerks of Courts to comply with requirements mentioned therein specifically the deposit to the Court of the amount equivalent to the sum of 100 percent of the value of the land based on the current relevant zonal valuation of the BIR (Bureau of Internal Revenue) issued not more than three years prior to the filing of the expropriation complaint pursuant to Republic Act 10752.”

“The consumers of Iloilo City have filed their complaint-in-intervention which has been admitted by this Court. The parties have yet to file their answer-in-intervention. The complainants-in-intervention have the right to be heard,” he added.

MORE Power, a firm controlled by billionaire Enrique Razon Jr.,filed the expropriation case last March to acquire the distribution assets of PECO.IMT