LIM VS CA

G.R. No. 111397                        August 12, 2002

FACTS:

Before us is a petition for review on certiorari1 of the Decision of the Court of Appeals dated March 25, 1993,2 and its Resolution dated July 13, 19933 which denied petitioners’ motion for reconsideration. The assailed Decision sustained the orders dated December 29, 1992, January 20, 1993 and March 2, 1993,4 issued by Branch 36 of the Regional Trial Court of Manila. The trial court’s orders enjoined petitioner Alfredo Lim ("Lim" for brevity), then Mayor of Manila, from investigating, impeding or closing down the business operations of the New Bangkok Club and the Exotic Garden Restaurant owned by respondent Bistro Pigalle Inc. ("Bistro" for brevity).

RULING: 

The authority of mayors to issue business licenses and permits is beyond question. The law expressly provides for such authority. Section 11 (l), Article II of the Revised Charter of the City of Manila, reads: Sec. 11. General duties and powers of the mayor. The general duties and powers of the mayor shall be:

x x x.

(l) To grant and refuse municipal licenses or permits of all classes and to revoke the same for violation of the conditions upon which they were granted, or if acts prohibited by law or municipal ordinances are being committed under the protection of such licenses or in the premises in which the business for which the same have been granted is carried on, or for any other reason of general interest." (Emphasis supplied)

On the other hand, Section 455 (3) (iv) of the Local Government Code provides:

"Sec. 455. Chief Executive, Powers, Duties and Compensation: xxx. (b) For efficient, effective and economical governance the purpose of which is the general welfare of the City and its inhabitants pursuant to Section 16 of this Code, the City Mayor shall:

(3) x x x.

(iv) Issue licenses and permits and suspend or revoke the same for any violation of the conditionupon which said licenses or permits had been issued, pursuant to law or ordinance." (Emphasis supplied)

From the language of the two laws, it is clear that the power of the mayor to issue business licenses and permits necessarily includes the corollary power to suspend, revoke or even refuse to issue the same. However, the power to suspend or revoke these licenses and permits is expressly premised on the violation of the conditions of these permits and licenses. The laws specifically refer to the "violation of the condition(s)" on which the licenses and permits were issued. Similarly, the power to refuse to issue such licenses and permits is premised on non-compliance with the prerequisites for the issuance of such licenses and permits. The mayor must observe due process in exercising these powers, which means that the mayor must give the applicant or licensee notice and opportunity to be heard.