G.R. No. 83558, February 27, 1989 NATIONAL POWER CORPORATION, vs. HONORABLE ABRAHAM P. VERA, Presiding Judge, Regional Trial Court, National Capital Judicial Region, Branch 90, Quezon City and SEA LION INTERNATIONAL PORT TERMINAL SERVICES, INC.

A corporation is not limited to the powers expressly granted by its charter but may also exercise powers reasonably necessary or incidental to accomplishing its lawful corporate purposes, provided such acts are not prohibited by law. Thus, NPC was authorized to undertake stevedoring and arrastre services because unloading coal at its pier was indispensable to the operation of its coal-fired power plant and the generation of electricity.

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Facts of the Case:

The National Power Corporation (NPC) had a contract with Sea Lion International Port Terminal Services, Inc. for stevedoring and arrastre services for coal-handling operations at NPC’s Batangas Coal-Fired Thermal Power Plant in Calaca, Batangas.

When Sea Lion’s contract expired, NPC refused to renew it and took over the provision of the stevedoring and arrastre services at its pier. Sea Lion filed a complaint for prohibition and mandamus with damages against NPC and the Philippine Ports Authority (PPA), alleging that NPC acted in bad faith and with grave abuse of discretion in refusing to renew the contract and taking over the services.

The trial court initially issued a restraining order prohibiting NPC from undertaking the services. NPC moved to dissolve the order, arguing that under Presidential Decree No. 1818, the court had no jurisdiction to issue an injunction and that Sea Lion had no cause of action because its contract had already expired.

The trial court denied NPC’s motion and issued a writ of preliminary injunction, ruling that NPC’s charter, Republic Act No. 6395, as amended, did not authorize it to engage in stevedoring and arrastre services. The court also directed NPC either to enter into a contract for the services or to conduct a public bidding, while allowing Sea Lion to continue providing them. Consequently, NPC filed a petition before the Supreme Court seeking to annul the trial court’s order.

G.R. No. 83558, February 27, 1989 NATIONAL POWER CORPORATION, vs. HONORABLE ABRAHAM P. VERA, Presiding Judge, Regional Trial Court, National Capital Judicial Region, Branch 90, Quezon City and SEA LION INTERNATIONAL PORT TERMINAL SERVICES, INC.

Citations

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