Short answer. Yes. Article 1765 of the Civil Code expressly authorizes the Public Service Commission to cancel the certificate of public convenience granted to any common carrier that repeatedly fails to comply with its duty to observe extraordinary diligence. The cancellation may be initiated by the Commission itself or by any interested party.
What the law says
The Public Service Commission may, on its own motion or on petition of any interested party, after due hearing, cancel the certificate of public convenience granted to any common carrier that repeatedly fails to comply with his or its duty to observe extraordinary diligence as prescribed in this Section.
Civil Code, Article 1765 — Cancellation of the Certificate. Read the full provision →
The power to cancel under Article 1765
Article 1765 of the Civil Code gives the Public Service Commission specific authority to act against common carriers who repeatedly fail to meet their legal obligations: The Public Service Commission may, on its own motion or on petition of any interested party, after due hearing, cancel the certificate of public convenience granted to any common carrier that repeatedly fails to comply with his or its duty to observe extraordinary diligence as prescribed in this Section. A bus company, as a common carrier, operates under a certificate of public convenience — a franchise that authorizes it to serve the public. That certificate can be cancelled if the company habitually fails to maintain the safety standard the law demands.
What extraordinary diligence means for common carriers
Common carriers — buses, ships, airlines, jeepneys, and similar operators who transport passengers or goods for compensation — are held to a higher standard of care than ordinary persons. The Civil Code's provisions on common carriers require them to observe extraordinary diligence in transporting passengers and their belongings safely to their destination. This is not the ordinary prudence of a reasonable person; it is the utmost diligence of a very careful person. Repeated failures to meet this standard — recurring accidents, systematic negligence, habitual violations of safety protocols — are the kind of conduct that Article 1765 is designed to address.
Who can initiate the cancellation
Article 1765 allows the cancellation to be initiated in two ways. The Public Service Commission may act on its own motion — the Commission may decide, based on information available to it, that a carrier's repeated failures warrant the opening of cancellation proceedings. Alternatively, cancellation may be initiated on petition of any interested party. This means a passenger who was injured, a shipper whose goods were damaged, a competitor, or any person with a legitimate interest in the matter may formally petition the Commission to proceed against the carrier. The process requires a due hearing before any cancellation can take effect.
What happens after cancellation
Cancellation of the certificate of public convenience is a serious consequence — it removes the company's legal authority to operate as a common carrier. Without a valid certificate, the carrier can no longer lawfully transport passengers or goods for compensation. Article 1765 frames this as a regulatory sanction triggered by the carrier's repeated failure to observe the extraordinary diligence owed to the public it serves. The standard is not a single lapse but repeated failures — a pattern of non-compliance with the duty of care. This makes the provision targeted at habitual offenders rather than isolated incidents, while still providing a meaningful deterrent to carriers that put passengers at risk.