NATIONAL POWER CORPORATION and ADMINISTRATOR OF ECONOMIC COORDINATION

Jun 21st, 2015
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This declaratory relief proceeding was started in the lower court by petitioners, Alalayan and Philippine Power and Development Company, both franchise holders of electric plants in Laguna, to test the validity of a section of an amendatory act,1 empowering respondent National Power Corporation "in any contract for the supply of electric power to a franchise holder

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Republic of the PhilippinesSUPREME COURTManilaEN BANCG.R. No. L-24396 July 29, 1968SANTIAGO P. ALALAYAN, ET AL., suing in his behalf and for the benefit of all other persons having common or general interest with him in accordance with Sec. 12, Rule 3, Rules of Court, petitioners-appellants, vs.NATIONAL POWER CORPORATION and ADMINISTRATOR OF ECONOMIC COORDINATION, respondents-appellees.Alafriz Law Offices for petitioners-appellants. The Government Corporate Counsel and Office of the Solicitor General for respondents-appellees.FERNANDO, J.:This declaratory relief proceeding was started in the lower court by petitioners, Alalayan and Philippine Power and Development Company, both franchise holders of electric plants in Laguna, to test the validity of a section of an amendatory act,1 empowering respondent National Power Corporation "in any contract for the supply of electric power to a franchise holder," receiving at least 50% of its electric power and energy from it to require as a condition that such franchise holder "shall not realize a net profit of more than twelve percent annually of its investments plus two-month operating expenses." Respondent, under such provision, could likewise "renew all existing contracts with franchise holders for the supply of electric power and energy," so that the provisions of the Act could be given effect.2 This statutory provision was assailed on the ground that, being a rider, it is violative of the constitutiona

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