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    Napocor Vs Vera

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    Lindsay Mills
    The National Power Corporation filed a motion to dissolve a restraining order issued against it that prevented it from undertaking stevedoring services at its pier. The court had to determine if undertaking stevedoring services was within NPC's charter powers. The Supreme Court held that NPC's charter empowered it not only to construct and operate power plants, but also to exercise powers reasonably necessary to carry out its business purposes. If an act is lawful, not prohibited, and reasonably contributes to promoting corporate ends, it can be considered within a corporation's charter powers. Therefore, undertaking stevedoring services was within NPC's charter powers since it was reasonably related to accomplishing its purpose of total electrification of the country.

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    Napocor Vs Vera

    Uploaded by

    Lindsay Mills
    761 views1 page
    The National Power Corporation filed a motion to dissolve a restraining order issued against it that prevented it from undertaking stevedoring services at its pier. The court had to determine if undertaking stevedoring services was within NPC's charter powers. The Supreme Court held that NPC's charter empowered it not only to construct and operate power plants, but also to exercise powers reasonably necessary to carry out its business purposes. If an act is lawful, not prohibited, and reasonably contributes to promoting corporate ends, it can be considered within a corporation's charter powers. Therefore, undertaking stevedoring services was within NPC's charter powers since it was reasonably related to accomplishing its purpose of total electrification of the country.

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    Case Digest

    Original Title

    Napocor vs Vera

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    The National Power Corporation filed a motion to dissolve a restraining order issued against it that prevented it from undertaking stevedoring services at its pier. The court had to determine if undertaking stevedoring services was within NPC's charter powers. The Supreme Court held that NPC's charter empowered it not only to construct and operate power plants, but also to exercise powers reasonably necessary to carry out its business purposes. If an act is lawful, not prohibited, and reasonably contributes to promoting corporate ends, it can be considered within a corporation's charter powers. Therefore, undertaking stevedoring services was within NPC's charter powers since it was reasonably related to accomplishing its purpose of total electrification of the country.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    761 views1 page

    Napocor Vs Vera

    Uploaded by

    Lindsay Mills
    The National Power Corporation filed a motion to dissolve a restraining order issued against it that prevented it from undertaking stevedoring services at its pier. The court had to determine if undertaking stevedoring services was within NPC's charter powers. The Supreme Court held that NPC's charter empowered it not only to construct and operate power plants, but also to exercise powers reasonably necessary to carry out its business purposes. If an act is lawful, not prohibited, and reasonably contributes to promoting corporate ends, it can be considered within a corporation's charter powers. Therefore, undertaking stevedoring services was within NPC's charter powers since it was reasonably related to accomplishing its purpose of total electrification of the country.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    National Power Corp. vs.

    Vera
    G.R. No. 83558; February 27, 1989
    FACTS:
    Sea Lion International Port Services, private respondent, filed a
    complaint for prohibition and mandamus against petitioner NPC alleging that
    it had acted in bad faith in not renewing its contract for stevedoring services
    for its plant and in taking over its stevedoring services. Respondent judge
    issued a restraining order against NPC enjoining the latter from undertaking
    stevedoring services at its pier. Consequently, NPC filed an "Urgent Motion" to
    dissolve the restraining order, asserting that respondent judge had no
    jurisdiction to issue the order and private respondent, whose contract with
    NPC had expired prior to the commencement of the suit, failed to establish a
    cause of action for a writ of preliminary injunction. The respondent judge
    denied the NPCs motion and issued a TRO after finding that NPC was not
    empowered by its Charter to engage in stevedoring and arrastre services.
    ISSUE:
    WON the undertaking of stevedoring services is empowered by the
    NPCs charter powers.
    HELD:
    YES. To carry out the national policy of total electrification of the
    country, the NPC was created and empowered not only to construct, operate
    and maintain power plants, reservoirs, transmission lines, and other works,
    but also to exercise such powers and do such things as may be reasonably
    necessary to carry out the business and purposes for which it was organized,
    or which, from time to time, may be declared by the Board to be necessary,
    useful, incidental or auxiliary to accomplish said purpose.
    In determining whether or not an NPC act falls within the purview of the
    above provision, the Court must decide whether or not a logical and necessary
    relation exists between the act questioned and the corporate purpose
    expressed in the NPC charter. For if that act is one which is lawful in itself and
    not otherwise prohibited, and is done for the purpose of serving corporate
    ends, and reasonably contributes to the promotion of those ends in a
    substantial and not in a remote and fanciful sense, it may be fairly considered
    within the corporation's charter powers.

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