Baliwag Transit Inc v Court of Appeals

G.R. No. 57493

January 01, 1987

Facts:

Martinez, claiming to be an employee of two bus lines operating under different grants of franchise but were issued only one ID Number: “Baliwag Transit” owned and operated by the late Tuazon and “Baliwag Transit Inc” (BTI) owned by de Tengco, (Martinez) filed a petition with the Social Security Commission to compel BTI to remit his premium contributions to SSS. BTI denied ever employing Martinez, and alleges that he was in fact employed by Tuason who operated a separate and distinct bus line from BTI. The Social Security Commission granted Martinez’s petition. On appeal, the CA reversed the decision of the commission, finding that Tuason was operating under the kabit system; that while Tuason was the owner and operator, his buses were not registered with the Public Service Commission in his own name; and thus ordered BTI to remit Martinez’ premiums to SSS.

Issue:

Whether or not the issuance by SSS of one ID Number to the two bus lines necessarily indicates that one of them is operating under the kabit system.

Held:

No. The “Kabit System” has been defined by the Supreme Court as an arrangement whereby a person who has been granted a certificate of convenience allows another person who owns motor vehicles to operate under such franchise for a fee.

The determining factor, therefore, is the possession of a franchise to operate which negates the existence of the “Kabit System” and not the issuance of one SSS ID Number for both bus lines from which the existence of said system was inferred.

Thus, it is evident that both bus lines operated under their own franchises but opted to retain the firm name “Baliwag Transit” with slight modification, by the inclusion of the word “Inc.” in the case of herein petitioner, obviously to take advantage of the goodwill such firm name enjoys with the riding public. Conversely, the conclusion of the Court of Appeals that the late Pascual Tuazon, during the time material to this case operated his buses under the “Kabit System” on the ground that while he was actually the owner and operator, his buses were not registered with the Public Service Commission (now the Bureau of Land Transportation) in his own name, is not supported by the records.