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Red Line Transportation Co. vs. Rural Transit Co. · PSC relied on a Resolution in case No. 23217,
authorizing Bachrach Motor to continue using Rural Transit’s
GR No. 41570 | Sept. 6, 1934
name as its tradename in all its applications and petitions to
be filed before the PSC. Said resolution was given a
retroactive effect as of the date of filing of the application or
April 30, 1930
· This is a petition for review of an order of the Public
Service Commission granting to the Rural Transit Company,
Ltd., a certificate of public convenience to operate a Issue: Can the Public Service Commission authorize a
transportation service between Ilagan in the Province of corporation to assume the name of another corporation as a
Isabela and Tuguegarao in the Province of Cagayan, and trade name?
additional trips in its existing express service between Manila
Ruling: NO
· On June 4, 1932, Rural Transit filed an application for
certification of a new service between Tuguegarao and Ilagan · The Rural Transit Company, Ltd., and the Bachrach
with the Public Company Service Commission (PSC), since the Motor Co., Inc., are Philippine corporations and the very law
present service is not sufficient of their creation and continued existence requires each to
adopt and certify a distinctive name
· Rural Transit further stated that it is a holder of a
certificate of public convenience to operate a passenger bus · The incorporators "constitute a body politic and
service between Manila and Tuguegarao corporate under the name stated in the certificate."
· Red Line opposed said application, arguing that they · A corporation has the power "of succession by its
already hold a certificate of public convenience for corporate name." It is essential to its existence and cannot
Tuguegarao and Ilagan, and is rendering adequate service. change its name except in the manner provided by the
They also argued that granting Rural Transit’s application statute. By that name alone is it authorized to transact
would constitute a ruinous competition over said route business.
· On Dec. 21, 1932, Public Service Commission approved · The law gives a corporation no express or implied
Rural Transit’s application, with the condition that "all the authority to assume another name that is unappropriated:
other terms and conditions of the various certificates of still less that of another corporation, which is expressly set
public convenience of the herein applicant and herein apart for it and protected by the law. If any corporation could
incorporated are made a part hereof." assume at pleasure as an unregistered trade name the name
of another corporation, this practice would result in
· A motion for rehearing and reconsideration was filed by
confusion and open the door to frauds and evasions and
Red Line since Rural Transit has a pending application before
difficulties of administration and supervision.
the Court of First Instance for voluntary dissolution of the
corporation In this case, the order of the commission authorizing the
Bachrach Motor Co., Incorporated, to assume the name of
· A motion for postponement was filed by Rural Transit as
the Rural Transit Co., Ltd. likewise incorporated, as its trade
verified by M. Olsen who swears "that he was the secretary of
name being void. Accepting the order of December 21, 1932,
the Rural Transit Company, Ltd
at its face as granting a certificate of public convenience to
· During the hearing before the Public Service the applicant Rural Transit Co., Ltd., the said order last
Commission, the petition for dissolution and the CFI’s mentioned is set aside and vacated on the ground that the
decision decreeing the dissolution of Rural Transit were Rural Transit Company, Ltd., is not the real party in interest
admitted without objection and its application was fictitious
· At the trial of this case before the Public Service
Commission an issue was raised as to who was the real party
in interest making the application, whether the Rural Transit
Company, Ltd., as appeared on the face of the application, or
the Bachrach Motor Company, Inc., using name of the Rural
Transit Company, Ltd., as a trade name
· However, PSC granted Rural Transit’s application for
certificate of public convenience and ordered that a
certificate be issued on its name

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