MANILA ELECTRIC COMPANY v . HSING NAN TANNERY PHILS., INC. 578 SCRA 640 (2009)
The employees of Manila Electric Company (MERALCO) inspected the electric meters of Hsing Nan Tannery Phils., Inc. (Hsing Nan) and discovered that the meters appeared to be tampered with, hence they replaced the meters with a new one and brought it to the laboratory for testing. MERALCO thereafter issued a differential billing to Hsing Nan through a demand letter and asked it to appear in a conference which did not push through, MERALCO subsequently issued another demand letter to Hsing Nan. Hsing Nan filed for a complaint for damages in the Regional Trial Court (RTC) of Malolos, Bulacan and an issuance of a temporary restraining order and writ of preliminary injunction against MERALCO. On MERALCO‘s, counterclaim, the RTC held Hsing Nan liable for manipulating the electric meters and ordered it to pay the differential billing, attorney‘s fees and exemplary damages. Hsing Nan appealed to the Court of Appeals (CA) which reversed the ruling of the RTC due to the non presentation of tampered meters during trial and the absence of representatives from the Energy Regulatory Board (ERB) as required by law during the inspection of Hsing Nan‘s meters. MERALCO filed a motion for reconsideration of the CA‘s decision but the same was denied.
ISSUE:
Whether or not the inspection made by MERALCO of the electric meters of Hsing Nan was lawful and proper
HELD:
In the present case, it is admitted that no police officer or ERB representative was present during the inspection, removal and subsequent replacement of the electric meters alleged to have been tampered with; hence, the requirement of the law was not complied with – a lapse fatal to MERALCO‘s cause. MERALCO‘s argument that Section 4 of Republic Act No. 7832 applies only to criminal proceedings does not lie. Under said provision, the investigation by the prosecutor, as well as the subsequent filing of the appropriate information if warranted, is only one of the courses of action to be taken once any of the therein enumerated circumstances establishing a prima facie case for illegal use of electricity is discovered.
