- Petitioner
- Sergio R. Osmeña Iii
- Respondent
- Power Sector Assets
- Citation
- G.R. No. 212686
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Velasco, Jr., J.
- Decided
- October 5, 2016
Summary
This Supreme Court case resolved the aftermath of a government asset privatization bidding where TPVI won the bid for the 153.1MW Naga Power Plant Complex but had their Notice of Award cancelled due to SPC's exercise of a Right to Top provision. After the Court nullified SPC's Right to Top in a prior decision, TPVI sought reinstatement of their award. The Court granted the motion, finding that the bidding procedures' severability clause allowed the award to survive the nullification. The Court held that SPC never validly exercised its right due to conditional acceptance, and that the genuine competition requirement was satisfied. The decision reinforced principles of government procurement law, conditional obligations under civil law, and the application of severability clauses in preserving valid contractual arrangements despite nullification of specific provisions.