Republic of the Philippines

SUPREME COURT
Manila
EN BANC
March 27, !"#
$%R% No% &'"7(7
T)E PEOP&E O* T)E P)+&+PP+NES, plaintiff'appellee,
,s%
-+ON+S+O .ERSO&A, /efen/ant'appellant%
*rancisco Cal/eron for appellant%
Office of the Solicitor $eneral A0brosio Pa/illa an/ Solicitor *lorencio .illa0or for
appellee%
CONCEPC+ON, 1%2
This is an appeal, ta3en b4 /efen/ant -ionisio .ersola, fro0 a /ecision of the Court of
*irst +nstance of Cotabato, con,ictin5 hi0 of operatin5 a rice 0ill 6ithout a license
therefor, in ,iolation of section 7 of Act No% 7#!7, other6ise 3no6n as 8The $eneral
Bon/e/ 9arehouse Act,8 an/ sentencin5 hi0 to pa4 a fine of P(%((, 6ith subsi/iar4
i0prison0ent in cue of insol,enc4, as 6ell as the costs, an/ the a0ount of the license/
re:uire/ b4 la6, for the 4ear !", an/, also, tap file the bon/ prescribe/ in sai/ Act%
Appellant is the o6ner an/ operator of a rice 0ill enclose/ 6ithin a structure or
8ca0arin8, ; b4 # 0eters, 0a/e of 6oo/en posts an/ partition 6alls, 6ith co5on roof,
locate/ in the barrio of Bana6a, 0unicipalit4 of <abacan, pro,ince of Cotabato,
Philippines% +t is not /ispute/ that in 1anuar4, !", an/ prior thereto, appellant accepte/
an/ 0ille/ pala4 in his afore0entione/ 8ca0arin8, an/ char5e/ therefor frorn P(%"( to
P(%#( per ca,an, 6ithout securin5 the license pro,i/e/ for in Act No% 7#!7, fro0 the
Bureau of Co00erce% 9hat is 0ore, he refuse/ to obtain sai/ license, althou5h a
representati,e of sai/ office ha/= ur5e/ hi0 to secure one% Appellant 0aintains that his
0ill is not sub>ect to the pro,isions of sai/ Act, upon the 5roun/ that the structure abo,e
0entione/ is use/ for 0illin5 onl4, not for the stora5e an/ /eposit of pala4 or rice? that,
so0eti0es, his custo0ers brin5 s0all :uantities of pala4, ran5in5 fro0 one petroleu0 can
to a sac3? an/ that the pala4 or rice recei,e/ in his 8ca0arin8 is not 3ept therein for o,er
an hour%
Sections 7, @ an/ " of Act No% 7#!7 rea/2
SEC% 7% No person shall en5a5e in the business of recei,in5 rice for stora5e 6ithout first
securin5 a license therefor fro0 the -irector of the Bureau of Co00erce an/ +n/ustr4%
Sai/ license shall be annual an/ shall eApire on the thirt4'first /a4 of -ece0ber%
SEC% @% An4 person appl4in5 for a license to en5a5e in the business of recei,in5 rice for
stora5e shall set forth in the application the place or places 6here the business an/ the
6arehouse are to be establishe/ or locate/ an/ the 0aAi0u0 :uantit4 of rice to be
recei,e/% The application shall be acco0panie/ b4 a cash bon/ or bon/ secure/ b4 real
estate or si5ne/ b4 a /ul4 authoriBe/ bon/in5 co0pan4, the a0ount of 6hich shall be
fiAe/ b4 the -irector of the Bureau of Co00erce an/ +n/ustr4 at not less than thirt4'three
an/ one'thir/ per cent of the 0ar3et ,alue of the 0aAi0u0 :uantit4 of rice to be
recei,e/% Sai/ bon/ shall be so con/itione/ as to respon/ for the 0ar3et ,alue of the rice
actuall4 /eli,ere/ an/ recei,e/ at an4 ti0e, the 6arehouse0an is unable to return the rice
or to pa4 its ,alue% The bon/ shall be appro,e/ b4 the -irector of the Bureau of
Co00erce an/ +n/ustr4 before a license shall issue, an/ it shall be the /ut4 of sai/
-irector, before issuin5 a license un/er this Act, to satisf4 hi0self concernin5 the
sufficienc4 of such bon/, an/ to /eter0ine 6hether the 6arehouse for 6hich such license
is applie/ for is suitable for the proper stora5e of rice%
SEC% "% 9hene,er the -irector of the Bureau of Co00erce an/ +n/ustr4 shall /eter0ine
that a bon/ appro,e/ b4 hi0, is, or for an4 cause, has beco0e insufficient, he 0a4 re:uire
an a//itional bon/ or bon/s to be 5i,en b4 the 6arehouse0an concerne/, confor0in5
6ith the re:uire0ents of the prece/in5 section, an/ unless the sa0e be 5i,en 6ithin the
ti0e fiAe/ b4 a 6ritten /e0an/ therefor the license of such 6arehouse0an 0a4 be
suspen/e/ or re,o3e/%
At first blush, these pro,isions 6oul/ see0 to appl4 onl4 to 6arehouses actuall4 use/ for
stora5e o rice, not for 0illin5 eAclusi,el4% )o6e,er, section 2 of sai/ Act pro,i/es2
As use/ in this Act, the ter0 86arehouse8 shall be /ee0e/ to 0ean e,er4 buil/in5,
structure, or other protecte/ inclosure in 6hich rice is 3ept for stora5e% The ter0 8rice8
shall be /ee0e/ to 0ean either pala4, in bun/les or in 5rains, of cleane/ rice, or both%
8Person8 inclu/es a corporation or partnership or t6o or 0ore persons ha,in5 a >oint or
co00on interest? 86arehouse0an8 0eans a person en5a5e/ in the business of recei,in5
rice for stora5e? an/ 8receipt8 0eans an4 receipt issue/ b4 a 6arehouse0an for rice
/eli,ere/ to hi0% *or the purpose of this Act, the business of recei,in5 rice for stora5e
shall inclu/e CD an4 contract or transaction 6herein the 6arehouse0an in obli5ate/ to
return the 8sa0e rice /eli,ere/ to hi0 or to pa4 its ,alue? C2D an4 contract or transaction
6herein the rice /eli,ere/ is to be 0ille/ for an/ on account of the o6ner thereof ? C7D
an4 contract or transaction 6herein the rice /eli,ere/ is co00in5le/ 6ith rice /eli,ere/
b4 or belon5in5 to other persons, an/ the 6arehouse0an is obli5ate/ to return rice of the
sa0e 3in/ or to pa4 its ,alue%8 CE0phasis oursD
+t is a/0itte/ that appellant has been en5a5e/ in transactions pursuant to 6hich the pala4
8/eli,ere/ is to be 0ille/ for an/ on account of the o6ner thereof8% +t is clear, therefore,
that his business falls un/er the secon/ sub/i,ision of the fore5oin5 enu0eration%
Appellant insists, ho6e,er, that the pro,isions abo,e :uote/ coul/ ha,e no possible
application 6here rice is /eli,ere/, not for stora5e, but for 0illin5 purposes, as, he
clai0s, in his case% )o6e,er, 6e are incline/ to hol/ other6ise% To be5in 6ith, the la6
eAplicitl4 applies to an4 0ill enclose/ in a structure 6here pala4 is recei,e/ 0ainl4 for
0illin5% Secon/l4, in the or/inar4 course of business, this purpose cannot be
acco0plishe/ 6ithout 3eepin5 the pala4 for so0e ti0e in the 0ill, an/, hence, 6ithout
storin5 therein sai/ co00o/it4%
*or ob,ious reasons, e,er4 re5ion has its o6n har,est an/ 0illin5 seasons% 9hen the
sa0e co0e, the pala4 plante/ in each re5ion are har,este/ at about the sa0e ti0e% As a
conse:uence, the bul3 of sai/ pala4 is li3e6ise 0ille/ 6ithin the sa0e perio/ of ti0e%
9hen the rice 0ill is E as that of appellant herein E one of the onl4 t6o C2D eAistin5
6ithin the peri0eter of three C7D barrios, 6ith hun/re/s of fa0ilies resi/in5 therein, it is
boun/ to be hea,il4 presse/ b4 the /e0an/s of its custo0ers /urin5 the 0illin5 season%
As a conse:uence, not all pala4 brou5ht to the 0ill coul/ al6a4s be hulle/ i00e/iatel4,
0uch less re0o,e/ therefro0 6ithin one hour% This is speciall4 true 6hen 6e consi/er
that no person coul/ possibl4 li,e an/ support his fa0il4, if the fiel/ he culti,ates
pro/uce/ onl4 fro0 a petroleu0 can to a sac3 of pala4 4earl4% Nor0all4, therefore, each
one of those a,ailin5 the0sel,es of the ser,ices of sai/ 0ill 6oul/ ha,e scores of ca,anes
of pala4, the hullin5 of 6hich 6oul/ re:uire so0e ti0e% 9hen the co00o/it4 belon5in5
to a 5i,en custo0er cannot be 0ille/ ri5ht a6a4, he is constraine/, therefore, to lea,e it in
the 8ca0arin8, for it 6oul/ be incon,enient an/ i0practical for hi0 to ta3e the 5rains
bac3 to his place, not onl4 because of the ti0e consu0e/, the trouble ta3en, an/ perhaps,
the eApenses incurre/ in brin5in5 the cereals to the 0ill, but also, because he 6oul/ ha,e
to haul the pala4 once 0ore to the 0ill, either the neAt /a4 or at so0e other ti0e, 6ithout
an4 assurance that others 0i5ht not be ahea/ of hi0% +n other 6or/s, it is 5enerall4 0ore
a/,anta5eous for sai/ custo0er to lea,e in the 8ca0arin8 the pala4 abo,e referre/ to, for
hullin5 6hen its turn shoul/ co0e%
Upon the other han/, it is not to be eApecte/ that the o6ner or operator of the 0ill 6oul/
refuse to recei,e pala4 6hich, o6in5 to pen/in5 6or3, coul/ not be 0ille/ forth6ith% +n
fact, appellant /i/ not testif4 that he re>ecte/ such pala4% 9hat is 0ore, appellant ha/ to
increase the siBe of his 8ca0arin8, fro0 siA C;D b4 siA C;D 0eter as it 6as ori5inall4 built
E to siA C;D b4 ei5ht C#D 0eters% This in/icates clearl4 that he ha/ foun/ it necessar4 to
0a3e 0ore roo0 for the stora5e of co00o/ities therein%
At an4 rate, 6hene,er a rice 0ill, en5a5e/ in the business of hullin5 pala4 for others, is
house/ in a8 ca0arin8 li3e that of appellant herein, the 3eepin5 of pala4 or rice therein
follo6s as a necessar4 conse:uence% This is true, e,en if the 5rains 6ere recei,e/ therein
eAclusi,el4 for 0illin5 purposes% )ence, one 6a4 or the other, there is a for0 of stora5e,
the /uration of 6hich 0a4 ,ar4, /epen/in5 upon circu0stances% +n an4 e,ent, the rice
0ill operator is responsible for the pala4 or rice, 6hile the sa0e is in his possession, an/
public polic4 or public interest /e0an/s that the ri5hts of the o6ners of co00o/it4 E
6hich is our 0ain staple E be /ul4 protecte/% )ence, the nee/ of securin5 the license
prescribe/ in Act No% 7#!7, in or/er that the -irector of Co00erce coul/ /eter0ine the
con/itions un/er 6hich the 0ill 0a4 be authoriBe/ to operate, confor0abl4 6ith the
ob>ecti,e of sai/ le5islation, an/ the a0ount of the bon/ to be re:uire/ for the protection
of the people 6ho a,ail the0sel,es of its ser,ices%
This appeal is, therefore, untenable% )o6e,er, 6e a5ree 6ith the Solicitor $eneral that,
un/er the pro,isions of sai/ Act, the lo6er court ha/ no authorit4 to or/er, in this cri0inal
case, the pa40ent b4 appellant of the license for !", an/ the filin5 of the bon/
afore0entione/% These are not part of the penalt4 prescribe/ b4 la6 for the offense
char5e/, apart fro0 bein5 6ithin the a/0inistrati,e >uris/iction of the -irector of
Co00erce%
9herefore, 6ith the eli0ination of the or/er >ust 0entione/, the /ecision appeale/ fro0
is hereb4 affir0e/, in all other respects, 6ith costs a5ainst /efen/ant'appellant -ionisio
.ersola% +t is so or/ere/%
Paras, C%1%, Ben5Bon, Pa/illa, Monte0a4or, Re4es, A, Bautista An5elo, Re4es, 1%B%&%,
En/encia an/ *eliA, 1%1%, concur%