ROMMEL G. MUOZ, G.R. No.

170678
Petitioner,
Present:

Panganiban, C.J.,
Puno,
Quisumbing,
Ynares-Santiago,
Sandova-Gutierre!,
- versus - "ar#io,
$ustria-%artine!,
"orona,
"ar#io-%oraes,
"ae&o, Sr.,
$!'una,
(inga,
")i'o-Na!ario,
Gar'ia, and
*eas'o, +r., JJ.
COMMISSION ON ELECTIONS,
CARLOS IRWIN G. BALDO, JR., Promugated:
Res#ondents.
+u, 17, -006
DECISION


YNARES-SANTIAGO, J.:


()is is a #etition .or certiorari and #ro)ibition /it) #ra,er .or t)e issuan'e o. a /rit o.
#reiminar, in&un'tion and0or tem#orar, restraining order .ied b, #etitioner Romme G.
%u1o! assaiing t)e Resoution
213
dated 4e'ember 15, -005 o. t)e "ommission on 6e'tions
7"8%696": En Banc in SP" No. 0;-1-; /)i') a..irmed t)e Resoution
2-3
dated 8'tober -5,
-00; o. t)e "8%696" <irst 4ivision granting t)e #etition o. #rivate res#ondent "aros =r/in
G. >ado, +r. to annu #etitioner?s #ro'amation as ma,or o. "amaig, $ba,.

()e .a'ts o. t)e 'ase are as .oo/s:

Petitioner and #rivate res#ondent /ere 'andidates .or ma,or o. "amaig, $ba, in
t)e %a, 10, -00; ee'tion.
2@3
$t 6:00 o?'o'A in t)e evening o. %a, 10, -00;, t)e %uni'i#a
>oard o. "anvassers 7%>": 'onvened and 'anvassed t)e ee'tion returns 76R:.
2;3


8n %a, 11, -00;, t)e a/,ers o. #rivate res#ondent ob&e'ted to t)e in'usion o. t)e
-6 6Rs .rom various #re'in'ts based on t)e .oo/ing grounds: 1: eig)t 6Rs a'A inner seaB
-: seven 6Rs a'A materia dataB @: one 6R a'A signaturesB ;: .our 6Rs a'A signatures and
t)umbmarAs o. t)e members o. t)e >oard o. 6e'tion =ns#e'tors on t)e enveo#e 'ontaining
t)emB 5: one 6R a'A t)e name and signature o. t)e #o 'erA on t)e se'ond #age t)ereo.B 6:
one 6R a'A t)e number o. votes in /ords and .iguresB and 7: .our 6Rs /ere aeged,
#re#ared under intimidation.
253


8n %a, 1@, -00;, t)e %>" denied t)e ob&e'tions and rued to in'ude t)e ob&e'ted
6Rs in t)e 'anvass. Private res#ondent a##eaed t)e said ruing to t)e "8%696" on %a,
18, -00; and /as do'Aeted as SP" No. 0;-087 and ra..ed to t)e "8%696" <irst 4ivision.
263

4es#ite t)e #enden', o. t)e a##ea, #etitioner /as #ro'aimed on %a, 1C, -00; b,
t)e %>" as t)e /inning 'andidate .or ma,or o. "amaig, $ba,.
273

8n %a, -1, -00;, #rivate res#ondent .ied /it) t)e "8%696" a #etition to annu
t)e #ro'amation o. t)e #etitioner .or being #remature and iega. ()e 'ase /as do'Aeted as
SP" No. 0;-1-; and ra..ed to t)e "8%696" <irst 4ivision.
283


8n 8'tober -5, -00;, t)e "8%696" <irst 4ivision rendered a Resoution in SP"
No. 0;-1-; granting t)e #etition to annu t)e #ro'amation. ()e dis#ositive #ortion t)ereo.
reads:

DE6R6<8R6, in vie/ o. t)e .oregoing, t)e "ommission 7<=RS(
4=*=S=8N: )ereb, GR$N(S t)e Petition. ()e #ro'amation o. F F F
R8%%69 %GH8I as /inning 'andidate .or ma,or o. "amaig, $ba, is
$NNG9964 .or )aving been made in an irreguar #ro'eeding and .or being
#re'i#itate and #remature.

S8 8R46R64.
2C3

Petitioner?s motion .or re'onsideration
2103
/as denied .or a'A o. merit b, t)e
"8%696" En Banc in a Resoution dated 4e'ember 15, -005, t)us:

DE6R6<8R6, #remises 'onsidered, t)e "ommission 6n >an'
)ereb, 46N=6S t)e %otion .or Re'onsideration .ied b, F F F %u1o! .or
a'A o. merit. $''ording,, t)e $NNG9%6N( and S6((=NG $S=46, b,
t)e <irst 4ivision, o. t)e #ro'amation o. F F F R8%%69 %GH8I as t)e
du, ee'ted %a,or is )ereb, $<<=R%64.

()e Regiona 6e'tion 4ire'tor o. Region *, $tt,. Ia'arias ".
Iarago!a, +r., is )ereb, 4=R6"(64 to 'onstitute a ne/ %uni'i#a >oard o.
"anvassers .rom among t)e 6e'tion 8..i'ers in t)e Region.

$''ording,, t)e ne/ %uni'i#a >oard o. "anvassers o. "amaig,
$ba, is )ereb, 4=R6"(64 to:

a: R6"8N*6N6, and a.ter due noti'e to a
#arties0'andidates 'on'erned,

b: R6-"$N*$SS a t)e ee'tion returns o.
"amaig, $ba,, and on t)e basis t)ereo.,

': PR6P$R6 a ne/ "erti.i'ate o. "anvass, and
.ort)/it)

d: PR8"9$=% t)e /inning 'andidates .or
%a,orat, #osition.

S8 8R46R64.
2113

Een'e, #etitioner .ies t)e instant #etition .or 'ertiorari and #ro)ibition /it) #ra,er .or
t)e issuan'e o. a /rit o. #reiminar, in&un'tion and0or tem#orar, restraining order.

8n +anuar, 17, -006, t)e "ourt issued a tem#orar, restraining order e..e'tive
immediate, and ordered t)e "8%696" to 'ease and desist .rom im#ementing and
en.or'ing t)e4e'ember 15, -005 Resoution in SP" No. 0;-1-;.
21-3

Petitioner reies on t)e .oo/ing grounds in su##ort o. )is #etition:

=
(E6 PG>9=" 2R6SP8N46N(3 "8%696" "8%%=((64 GR$*6
$>GS6 8< 4=S"R6(=8N $%8GN(=NG (8 9$"J 8R 6K"6SS 8<
+GR=S4="(=8N DE6N =( =SSG64 (E6 $SS$=964 R6S89G(=8N
46NY=NG <8R 9$"J 8< %6R=( P6(=(=8N6R?S %8(=8N <8R
R6"8NS=46R$(=8N 8< (E6 -5 8"(8>6R 2-00;3 R6S89G(=8N 8<
(E6 PG>9=" R6SP8N46N(?S <=RS( 4=*=S=8N, <8R >6=NG
"8N(R$RY (8 9$D, RG96S $N4 D699-S6((964
+GR=SPRG46N"6B

==
(E6 PG>9=" R6SP8N46N( "8%%=((64 GR$*6 $>GS6 8<
4=S"R6(=8N $%8GN(=NG (8 9$"J 8R 6K"6SS 8<
+GR=S4="(=8N DE6N =( =SSG64 (E6 $SS$=964 R6S89G(=8N
$NNG99=NG $N4 S6((=NG $S=46 (E6 PR8"9$%$(=8N 8<
P6(=(=8N6R $S 4G9Y 696"(64 %$Y8R 8< "$%$9=G, $9>$Y
D=(E8G( <=RS( R6S89*=NG (E6 P6N4=NG $PP6$9 <=RS(
=N=(=$(64, SP" 0;-87B

===
(E6 PG>9=" R6SP8N46N( "8%%=((64 GR$*6 $>GS6 8<
4=S"R6(=8N $%8GN(=NG (8 9$"J 8R 6K"6SS 8<
+GR=S4="(=8N DE6N =( =SSG64 (E6 $SS$=964 R6S89G(=8N
4=R6"(=NG (E6 N6D %GN="=P$9 >8$R4 8< "$N*$SS6RS 8<
"$%$9=G, $9>$Y, (8 R6"8N*6N6 $N4 R6-"$N*$SS $99
696"(=8N R6SG9(S 8< "$%$9=G, $9>$Y, <8R >6=NG
"8N(R$RY (8 9$D.
21@3


()e .oregoing issues ma, be summari!ed into t/o: 1: /)et)er or not t)e "8%696"
<irst 4ivision 'ommitted grave abuse o. dis'retion /)en it de'ided on, t)e Petition to $nnu
Pro'amation des#ite t)e agreement o. t)e #arties to 'onsoidate #rivate res#ondent?s a##ea
.rom t)e ruing o. t)e %>" sin'e bot) 'ases /ere ra..ed to t)e same 4ivision and t)e issue
in t)e atter 'ase /as 'onne'ted to, i. not determinative o., t)e merits o. t)e .ormer 'aseB and
-: /)et)er or not t)e "8%696" En Banc 'orre't, ordered t)e ne/ %>" to re-'anvass a
t)e 6Rs and to #ro'aim t)e /inner on t)e basis t)ereo. des#ite t)e #enden', o. t)e a##ea
/it) t)e <irst 4ivision.

()e #etition is #art, granted.

$nent t)e .irst issue, /e .ind no merit in #etitioner?s 'ontention.

D)ie Se'tion C, Rue @ o. t)e "8%696" Rues o. Pro'edure #rovides t)at Lwhen
an action or proceeding involves a question of law and fact which is similar to or common
with that of another action or proceeding, the same may be consolidated with the action or
proceeding bearing the lower docket number,M )o/ever, t)is rue is on, #ermissive, not
mandator,. De )ave 'onsistent, )ed t)at t)e term LmayM is indi'ative o. a mere #ossibiit,,
an o##ortunit, or an o#tion. ()e grantee o. t)at o##ortunit, is vested /it) a rig)t or .a'ut,
/)i') )e )as t)e o#tion to eFer'ise. =. )e ')ooses to eFer'ise t)e rig)t, )e must 'om#, /it)
t)e 'onditions atta')ed t)ereto,
21;3
/)i') in t)is 'ase reNuire t)at t)e 'ases to be 'onsoidated
must invove simiar Nuestions o. a/ and .a't.

=n t)e 'ase at bar, t)e 'onsoidation o. SP" No. 0;-087 /it) SP" No. 0;-1-; is
ina##ro#riate as t)e, do not invove simiar Nuestions o. a/ and .a't. SP" No. 0;-087
assais t)e in'usion o. t)e -6 6Rs b, t)e %>" on t)e ground t)at t)ese /ere in'om#ete,
'ontained materia de.e'ts and /ere #re#ared under intimidation, issues /)i') are #ro#er .or
a #re-#ro'amation 'ontrovers, under #aragra#)s 7b: and 7': o. Se'tion -;@ o. t)e 8mnibus
6e'tion "ode. 8n t)e ot)er )and, SP" No. 0;-1-; is a #etition .or t)e annument o.
#etitioner?s #ro'amation .or aeged, being #remature, done, in vioation o. Se'tion @67i:
o. "8%696" Resoution No. 666C
2153
/)i') instru'ts t)e board o. 'anvassers Lnot proclaim
any candidate as winner unless authorized by the Commission after the latter has ruled on the
objections brought to it on appeal by the losing party !a"ny proclamation made in violation
hereof shall be void ab initio, unless the contested returns#certificates will not affect the
results of the elections.M =n .ine, SP" No. 0;-087 #ertains to t)e #re#aration o. t)e 6Rs /)i')
is a #re-#ro'amation 'ontrovers,, /)ie SP" No. 0;-1-; re.ers to t)e 'ondu't o. t)e %>" in
#ro'aiming t)e #etitioner /it)out aut)orit, o. t)e "8%696".

%ere #enden', o. t)e t/o 'ases be.ore t)e same division o. t)e "8%696" is not a
ground .or t)eir outrig)t 'onsoidation. ()e dis'retion to 'onsoidate 'ases ma, be eFer'ised
on, /)en t)e 'onditions are #resent. =n an, event, t)e re'ords are bere.t o. eviden'e t)at t)e
#arties agreed to 'onsoidate t)e t/o 'ases or t)at t)e "8%696" <irst 4ivision )ad granted
t)e same.

<urt)er, /e .ind t)at t)e "8%696" <irst 4ivision 'orre't, annued t)e
#ro'amation o. t)e #etitioner. (ime and again, t)is "ourt )as given its im#rimatur on t)e
#rin'i#e t)at "8%696" is /it) aut)orit, to annu an, 'anvass and #ro'amation /)i') /as
iega, made.
2163
$t t)e time t)e #ro'amation /as made, t)e "8%696" <irst 4ivision )ad
not ,et resoved SP" No. 0;-087. Pursuant to Se'tion @67i: o. "8%696" Resoution No.
666C, /)i') .inds basis in Se'tion -07i: o. Re#ubi' $'t 7R.$.: No. 7166,
2173
t)e %>" s)oud
not )ave #ro'aimed #etitioner as t)e /inning 'andidate absent t)e aut)ori!ation .rom t)e
"8%696". $n, #ro'amation made under su') 'ir'umstan'es is void ab initio$
2183

De iAe/ise do not agree /it) #etitioner?s 'ontention t)at t)e #ro'amation /as vaid
as t)e 'ontested 6Rs /i not a..e't t)e resuts o. t)e ee'tion.

Se'tion -07i: o. R.$. No. 7166 reads:

Se'. -0. %rocedure in &isposition of Contested Election 'eturns$ O

F F F F

7i: ()e board o. 'anvassers s)a not #ro'aim an, 'andidate
as /inner uness aut)ori!ed b, t)e "ommission a.ter t)e atter )as rued on
t)e ob&e'tions broug)t to it on a##ea b, t)e osing #art,. $n, #ro'amation
made in vioation )ereo. s)a be void ab initio, unless the !nteste"
#etu#ns $%ll n!t &"'e#sel( &))et the #esults !) the elet%!n. 76m#)asis
su##ied:

()e #)rase Lresults of the electionM is not statutori, de.ined. Eo/ever, it )ad been
&uris#rudentia, eF#ained in (ucero v$ Commission on Elections
21C3
to mean:

2(3)e net resut o. t)e ee'tion in t)e rest o. t)e #re'in'ts in a given
'onstituen',, su') t)at i. t)e margin o. a eading 'andidate over t)at o. )is
'osest riva in t)e atter #re'in'ts is ess t)an t)e tota number o. votes in
t)e #re'in't /)ere t)ere /as .aiure o. ee'tion, t)en su') .aiure /oud
'ertain, a..e't Lt)e resut o. t)e ee'tion.M
2-03


$t)oug) t)e (ucero 'ase invoves a .aiure o. ee'tion, t)e de.inition o. Lresults of
electionM a##ies to t)e dis#osition o. 'ontested ee'tion returns under Se'tion -07i: o. R.$.
No. 7166. =n bot) situations, t)e a/ endeavors to determine t)e /i o. t)e #eo#e in an
eF#editious manner in t)at i. t)e tota number o. votes in t)e #re'in't /)ere t)ere is a .aiure
o. ee'tion or in 'ase o. t)e 'ontested 6Rs, is ess t)an t)e ead o. a 'andidate over )is 'osest
riva, t)e resuts o. t)e ee'tion /oud not be adverse, a..e'ted. Een'e, a #ro'amation ma,
be made be'ause t)e /inning 'andidate 'an be as'ertained. 8t)er/ise, a s#e'ia ee'tion
must be )ed or an aut)ori!ation o. t)e "8%696" is ne'essar, a.ter ruing on t)e ob&e'tions
broug)t to it on a##ea b, t)e osing #art, in order to determine t)e /i o. t)e ee'torate.
Pro'amation made in vioation o. t)e rues is void ab initio as it /oud be based on an
in'om#ete 'anvass o. votes. =t is /e setted t)at an in'om#ete 'anvass o. votes is iega
and 'annot be t)e basis o. a subseNuent #ro'amation. $ 'anvass is not re.e'tive o. t)e true
vote o. t)e ee'torate uness t)e board o. 'anvassers 'onsiders a returns and omits none.
2-13

=n t)e 'ase at bar, #etitioner obtained a margin o. 76- votes over t)e #rivate
res#ondent based on t)e 'anvass o. t)e un'ontested 6Rs /)ereas t)e tota number o. votes in
t)e -6 'ontested 6Rs is 5,178, /)i') is )ig)er t)an t)e 76--ead o. t)e #etitioner over t)e
#rivate res#ondent. "ear,, t)e resuts o. t)e ee'tion /oud be adverse, a..e'ted b, t)e
un'anvassed returns.

$s a#t, )ed b, t)e "8%696" <irst 4ivision:

()e votes obtained b, #etitioner and #rivate res#ondent taied in
t)e 'ontested ee'tion returns 'an not be t)e basis o. t)e #artia
#ro'amation. ()e ob&e'ted ee'tion returns 'annot be 'onsidered, even
#rovisiona,, as t)e true and .ina resut o. t)e ee'tions in t)e 'ontested
#re'in'ts. ()e #ossibiit, remains, remote t)oug)t 7si': it ma, be t)at t)e,
'oud be eF'uded and t)e resuts re.e'ted t)erein disregarded. ()e
'ontested ee'tion returns invoved 5,178 votes as t)is is t)e number o.
voters /)o a'tua, voted in t)e #re'in'ts 'overed b, t)e ob&e'tions. ()e
ead o. 2#etitioner3 over 2#rivate res#ondent3 as s)o/n in t)e un'ontested
returns /as ess t)an t)is number. "ear,, t)e resuts o. t)e ee'tions 'oud
be adverse, a..e'ted b, t)e un'anvassed returns. (ru,, t)e >oard erred in
its #er'e#tion t)at its #artia #ro'amation /as /arranted.
2--3

D)ie t)e "8%696" En Banc 'orre't, a..irmed t)e 8'tober -5, -00; Resoution
o. its <irst 4ivision in SP" 0;-1-; inso.ar as it annued #etitioner?s #ro'amation, )o/ever,
/e .ind t)at it eF'eeded its aut)orit, and t)us grave, abused its dis'retion /)en it ordered
t)e ne/ %>" to re-'anvass a 6Rs even be.ore its <irst 4ivision 'oud de'ide on SP" No.
0;-087 .ied b, #rivate res#ondent assaiing t)e ruing o. t)e %>" to in'ude t)e -6 'ontested
6Rs in t)e 'anvass.

Se'tion @ o. $rti'e =K-" o. t)e 1C87 "onstitution #rovides:

Se'. @. ()e "ommission on 6e'tions ma, sit en banc or in t/o
divisions, and s)a #romugate its rues o. #ro'edure in order to eF#edite
dis#osition o. ee'tion 'ases, in'uding #re-#ro'amation 'ontroversies. $
su') ee'tion 'ases s)a be )eard and de'ided in division, #rovided t)at
motions .or re'onsideration o. de'isions s)a be de'ided b, t)e
"ommission en banc$

=n )armiento v$ Commission on Elections
2-@3
and *arate v$ Commission on Elections,
2-;3
t)e "ourt simiar, )ed t)at Lelection cases must first be heard and decided by a &ivision
of the Commission,M and t)at t)e LCommission, sitting en banc, does not have the authority to
hear and decide the same at the first instance.M

()us, in +costa v$ Commission on Elections,
2-53
t)e "ourt )ed t)at t)e
"8%696" En Banc vioated t)e .oregoing "onstitutiona mandate /)en it a..irmed t)e tria
'ourt?s de'ision t)at /as not t)e sub&e't o. t)e s#e'ia 'ivi a'tion be.ore it, but o. t)e a##ea
.ied b, t)erein #etitioner, /)i') /as sti undo'Aeted at t)e time and t)e #arties )ave not ,et
submitted an, eviden'e in reation t)ereto.

"ear,, b, ordering t)e re-'anvass o. a t)e 6Rs in SP" No. 0;-1-;, t)e
"8%696" En Banc in e..e't rendered a de'ision on t)e merits o. SP" No. 0;-087, /)i') u#
to t)e #resent is sti #ending be.ore its <irst 4ivision, in vioation o. t)e rue t)at it does not
)ave t)e aut)orit, to )ear and de'ide ee'tion 'ases, in'uding #re-#ro'amation 'ontroversies,
at t)e .irst instan'e. $s t)e #ro'amation o. t)e /inning 'andidate )as been dea,ed .or more
t)an t/o ,ears no/ due to t)ese 'ases, t)e "8%696" <irst 4ivision is dire'ted to
eF#editious, resove SP" No. 0;-087, /)i') is summar, in nature.

W*ERE+ORE, in vie/ o. t)e .oregoing, t)e #etition is ,ARTLY
GRANTED. ()e 4e'ember 15, -005 Resoution o. t)e "8%696" En Banc in SP" No. 0;-
1-; /)i') a..irmed t)e annument and setting aside b, its <irst 4ivision o. t)e #ro'amation
o. #etitioner Romme G. %u1o! as %a,or o. "amaig, $ba, .or being #remature,
is A++IRMED $%th the MODI+ICATION t)at t)e order to 'onstitute a ne/ %uni'i#a
>oard o. "anvassers to re-'anvass a t)e ee'tion returns o. "amaig, $ba,B to #re#are a ne/
"erti.i'ate o. "anvassB and to de'are t)e /inning 'andidate .or ma,orat, #osition is SET
ASIDE .or )aving been issued /it) grave abuse o. dis'retion. ()e (6%P8R$RY
R6S(R$=N=NG 8R46R issued on+anuar, 17, -006 is )ereb, SET ASIDE.

SO ORDERED.
G.R. N!. -.-//0 Jul( -0, 122/
RE,UBLIC O+ T*E ,*ILI,,INES, #e3#esente" 4( NATIONAL
ELECOMMUNICATIONS COMMISSION 5NTC6,#etitioner,
vs.
INTERNATIONAL COMMUNICATIONS COR,ORATION 5ICC6, res#ondent.
4 6 " = S = 8 N
GARCIA, J.:
=n t)is #etition .or revie/ under Rue ;5 o. t)e Rues o. "ourt, #etitioner Re#ubi', t)roug)
t)e Nationa (ee'ommuni'ations "ommission 7N(":, seeAs t)e annument and setting aside
o. t)e A7en"e" De%s%!n
1
dated Se#tember @0, 1CCC o. t)e "ourt o. $##eas 7"$:, setting
aside t)e orders dated +une ;, 1CC6 and +une -5, 1CC7 o. t)e N(" inso.ar as said orders
reNuired res#ondent =nternationa "ommuni'ations "or#oration 7="": to #a, t)e amount
o. P1,1C0,750.50 b, /a, o. #ermit .ee as a 'ondition .or t)e grant o. a #rovisiona aut)orit,
to o#erate an internationa tee'ommuni'ations eased 'ir'uit servi'e, and t)e
Resoution
-
dated +anuar, -;, -000, den,ing N("Ps motion .or re'onsideration.
()ere is no dis#ute as to t)e .a'ts:
8n $#ri ;, 1CC5, res#ondent ="", )oder o. a egisative .ran')ise under Re#ubi' $'t 7R$:
No. 76@@ to o#erate domesti' tee'ommuni'ations, .ied /it) t)e N(" an a##i'ation .or a
"erti.i'ate o. Pubi' "onvenien'e and Ne'essit, to insta, o#erate, and maintain an
internationa tee'ommuni'ations eased 'ir'uit servi'e bet/een t)e P)ii##ines and ot)er
'ountries, and to ')arge rates t)ere.or, /it) #rovisiona aut)orit, .or t)e #ur#ose.
=n an 8rder
@
dated +une ;, 1CC6, t)e N(" a##roved t)e a##i'ation .or a #rovisiona aut)orit,
sub&e't, among ot)ers, to t)e 'ondition:
-. ()at a##i'ant 2=""3 s)a #a, a #ermit .ee in t)e amount o. P1,1C0,750.00, in
a''ordan'e /it) se'tion ;07g: o. t)e Pubi' Servi'e $'t,
;
as amendedB
Res#ondent ="" .ied a motion .or #artia re'onsideration o. t)e 8rder inso.ar as t)e same
reNuired t)e #a,ment o. a #ermit .ee. =n a subseNuent 8rder dated +une -5, 1CC7, t)e N("
denied t)e motion.
()ere.rom, ="" /ent to t)e "$ on a #etition .or certiorari /it) #ra,er .or a tem#orar,
restraining order and0or /rit o. #reiminar, in&un'tion, Nuestioning t)e N("Ps im#osition
against it o. a #ermit .ee o. P1,1C0,750.50 as a 'ondition .or t)e grant o. t)e #rovisiona
aut)orit, a##ied .or.
=n its origina de'ision
5
dated +anuar, -C, 1CCC, t)e "$ rued in .avor o. t)e N(" /)ose
')aenged orders /ere sustained, and a''ording, denied =""Ps 'ertiorari #etition, t)us:
DE6R6<8R6, t)e instant #etition is )ereb, 46N=64. =n vie/ t)ereo., t)e assaied
orders dated ; +une 1CC6 and -5 +une 1CC7, reNuiring t)e #a,ment o. #ermit .ees in
t)e amount o. 8ne %iion 8ne Eundred Ninet, ()ousand Seven Eundred <i.t, and
500100 Pesos 7P1,1C0,750.50: as a 'ondition .or t)e grant o. a Provisiona $ut)orit,
to o#erate an =nternationa "ir'uit servi'e, are )ereb, $<<=R%64.
$""8R4=NG9Y, t)e =nternationa "ommuni'ations "or#oration is )ereb, ordered
to #a, t)e amount o. 8ne %iion 8ne Eundred Ninet, ()ousand Seven Eundred
<i.t, and 500100 Pesos 7P1,1C0,750.50: to t)e Nationa (ee'ommuni'ations
"ommission.
S8 8R46R64.
=n time, ="" moved .or a re'onsideration. ()is time, t)e "$, in its $mended 4e'ision dated
Se#tember @0, 1CCC, reversed itse., to /it:
DE6R6<8R6, t)e instant %otion .or Re'onsideration is )ereb, GR$N(64.
$''ording,, t)e 4e'ision dated -C +anuar, 1CCC in'uding t)e im#osition b, t)e
#ubi' res#ondent o. #ermit .ees /it) res#e't to 2=""?s3 internationa eased 'ir'uit
servi'e is )ereb, R6*6RS64. +udgment is )ereb, rendered, setting aside t)e
Nuestioned orders dated 0; +une 1CC6 and -5 +une 1CC7, inso.ar as t)e, im#ose u#on
#etitioner ="" t)e #a,ment o. t)e amount o. 8ne %iion 8ne Eundred Ninet,
()ousand Seven Eundred <i.t, and <i.t, "entavos 7P1,1C0,750.50: b, /a, o.
#ermit .ees as a 'ondition .or t)e grant o. a #rovisiona aut)orit, to o#erate an
=nternationa 9eased "ir'uit Servi'e. No 'osts.
S8 8R46R64. 7Dord in bra'Aet added:.
Petitioner N(" .ied a motion .or re'onsideration, but its motion /as denied b, t)e "$ in its
eNua, ')aenged Resoution dated +anuar, -;, -000. Een'e, N("Ps #resent re'ourse
'aiming t)at t)e "$ erred in ruing t)at:
1. N(" )as arrogated u#on itse. t)e #o/er to taF an entit,B
-. Se'tion ;07g: o. t)e Pubi' Servi'e $'t )as been amended b, Se'tion 57g: o. R.$.
7C-5B
6
@. ()e im#osition o. #ermit .ees is no onger aut)ori!ed b, R.$. 7C-5B and
;. ()e im#osed #ermit .ee in t)e amount o. P1,1C0,750.50 .or res#ondentPs
#rovisiona aut)orit, is eForbitant.
>e.ore addressing t)e issues raised, /e s)a .irst d/e on t)e #ro'edura matter raised b,
res#ondent ="", name,, t)at t)e #resent #etition s)oud be dismissed outrig)t .or )aving
been .ied out o. time. =t is res#ondentPs #osture t)at #etitionerPs motion .or re'onsideration
.ied /it) t)e "$ vis-a-vis t)e atterPs $mended 4e'ision is apro forma motion and, t)ere.ore,
did not to t)e running o. t)e regementar, #eriod to 'ome to t)is "ourt via t)is #etition .or
revie/.
Gnder Se'tion - o. Rue ;5 o. t)e Rues o. "ourt, a re'ourse to t)is "ourt b, /a, o. a #etition
.or revie/ must be .ied /it)in .i.teen 715: da,s .rom noti'e o. t)e &udgment or .ina order or
resoution a##eaed .rom, or of the denial of the petitioner,s motion for new trial or
reconsideration .ied in due time a.ter noti'e o. t)e &udgment. D)ie a motion .or
re'onsideration ordinari, tos t)e #eriod .or a##ea, one t)at .ais to #oint out t)e .indings or
'on'usions /)i') /ere su##osed, 'ontrar, to a/ or t)e eviden'e does not )ave su') an
e..e't on t)e regementar, #eriod as it is mere, a #ro .orma motion.
7
=n arguing .or t)e outrig)t dismissa o. t)is #etition, res#ondent ="" 'aims t)at t)e motion
.or re'onsideration .ied b, #etitioner N(" in 'onne'tion /it) t)e "$?s $mended 4e'ision
.aied to #oint out s#e'i.i'a, t)e .indings or 'on'usions o. t)e "$ /)i') /ere su##osed,
'ontrar, to a/. Res#ondent 'ontends t)at t)e issues raised b, t)e #etitioner in its motion .or
re'onsideration /ere mere reiterations o. t)e same issues /)i') )ad aread, been 'onsidered
and #assed u#on b, t)e "$ /)en it #romugated its $mended 4e'ision. 8n t)is #remise,
res#ondent maintains t)at #etitioner?s a.orementioned motion .or re'onsideration is a mere
#ro .orma motion t)at did not to t)e #eriod .or .iing t)e #resent #etition.
Gnder estabis)ed &uris#ruden'e, t)e mere .a't t)at a motion .or re'onsideration reiterates
issues aread, #assed u#on b, t)e 'ourt does not, b, itse., maAe it a pro
forma motion.
8
$mong t)e ends to /)i') a motion .or re'onsideration is addressed is
#re'ise, to 'onvin'e t)e 'ourt t)at its ruing is erroneous and im#ro#er, 'ontrar, to t)e a/ or
eviden'eB and in so doing, t)e movant )as to d/e o. ne'essit, on issues aread, #assed u#on.
=. a motion .or re'onsideration ma, not dis'uss t)ose issues, t)e 'onseNuen'e /oud be t)at
a.ter a de'ision is rendered, t)e osing #art, /oud be 'on.ined to .iing on, motions .or
reo#ening and ne/ tria.
C
D)ere t)ere is no a##arent intent to em#o, diator, ta'ti's, 'ourts s)oud be so/ in
de'aring outrig)t a motion .or re'onsideration as pro forma. ()e do'trine reating to pro
forma motions )as a dire't bearing u#on t)e movantPs vauabe rig)t to a##ea. Een'e, i.
#etitionerPs motion .or re'onsideration /as indeed pro forma, it /oud sti be in t)e interest o.
&usti'e to revie/ t)e $mended 4e'ision a quo on t)e merits, rat)er t)an to abort t)e a##ea
due to a te')ni'ait,, es#e'ia, /)ere, as )ere, t)e industr, invoved 7tee'ommuni'ations: is
vested /it) #ubi' interest. $ t)e more so given t)at t)e instant #etition raises some
arguments t)at are /e-/ort) resoving .or .uture re.eren'e.
()is brings us to t)e substantive merits o. t)e #etition.
=n its $mended 4e'ision, t)e "$ rued t)at #etitioner N(" )ad arrogated u#on itse. t)e
#o/er to taF an entit,, /)i') it is not aut)ori!ed to do. Petitioner disagreed, 'ontending t)e
.ee in Nuestion is not in t)e nature o. a taF, but is mere, a reguator, measure.
Se'tion ;07g: o. t)e Pubi' Servi'e $'t #rovides:
Se'. ;0. ()e "ommission is aut)ori!ed and ordered to ')arge and 'oe't .rom an,
#ubi' servi'e or a##i'ant, as t)e 'ase ma, be, t)e .oo/ing .ees as reimbursement
of its expenses in the authorization, supervision andor re!u"ation of the pub"i#
servi#es:
FFF FFF FFF
g: <or ea') #ermit, aut)ori!ing t)e in'rease in eNui#ment, t)e instaation o. ne/
units or aut)ori!ing t)e in'rease o. 'a#a'it,, or t)e eFtension o. means or genera
eFtensions in t)e servi'es, t/ent, 'entavos .or ea') one )undred #esos or .ra'tion o.
t)e additiona 'a#ita ne'essar, to 'arr, out t)e #ermit. 76m#)asis su##ied:
"ear,, Se'tion ;07g: o. t)e Pubi' Servi'e $'t is not a taF measure but a sim#e reguator,
#rovision .or t)e 'oe'tion o. .ees im#osed #ursuant to t)e eFer'ise o. t)e State?s #oi'e
#o/er. $ taF is im#osed under t)e taFing #o/er o. government #rin'i#a, .or t)e #ur#ose o.
raising revenues. ()e a/ in Nuestion, )o/ever, mere, aut)ori!es and reNuires t)e 'oe'tion
o. .ees .or t)e reimbursement o. t)e "ommissionPs eF#enses in t)e aut)ori!ation, su#ervision
and0or reguation o. #ubi' servi'es. ()ere 'an be no doubt t)en t)at #etitioner N(" is
aut)ori!ed to 'oe't su') .ees. Eo/ever, t)e amount t)ereo. must be reasonab, reated to t)e
'ost o. su') su#ervision and0or reguation.
10
Petitioner N(" aso assais t)e "$Ps ruing t)at Se'tion ;07g: o. t)e Pubi' Servi'e $'t )ad
been amended b, Se'tion 57g: o. R.$. No. 7C-5, /)i') reads:
Se'. 5. Res#onsibiities o. t)e Nationa (ee'ommuni'ations "ommission. - ()e
Nationa (ee'ommuni'ations "ommission 7"ommission: s)a be t)e #rin'i#a
administrator o. t)is $'t and as su') s)a taAe t)e ne'essar, measures to im#ement
t)e #oi'ies and ob&e'tives set .ort) in t)is $'t. $''ording,, in addition to its
eFisting .un'tions, t)e "ommission s)a be res#onsibe .or t)e .oo/ing:
FFF FFF FFF
g: =n t)e eFer'ise o. its reguator, #o/ers, #ontinue to impose su#h fees and
#har!es as may be ne#essary to #over reasonab"e #osts and expenses for the
re!u"ation and supervision of the operations of te"e#ommuni#ations entities.
76m#)asis su##ied:
()e "$ ratio'inated t)at /)ie Se'tion ;07g: o. t)e Pubi' Servi'e $'t 7"$ 1;6, as amended:,
su#ra, ao/ed N(" to im#ose .ees as reimbursement o. its eF#enses reated to, among ot)er
t)ings, t)e Qaut)ori!ationQ o. #ubi' servi'es, Se'tion 57g:, above, o. R.$. No. 7C-1 no onger
s#eaAs o. Qaut)ori!ationQ but on, o. QreguationQ and Qsu#ervision.Q (o t)e "$, t)e omission
b, Se'tion 57g: o. R.$. No. 7C-1 o. t)e /ord Qaut)ori!ationQ .ound in Se'tion ;07g: o. t)e
Pubi' Servi'e $'t, as amended, meant t)at t)e .ees /)i') N(" ma, im#ose are on, .or
reimbursement o. its eF#enses .or reguation and su#ervision but no onger .or aut)ori!ation
#ur#oses.
De .ind, )o/ever, t)at N(" is 'orre't in sa,ing t)at t)ere is no s)o/ing o. egisative intent
to re#ea, even im#ied,, Se'tion ;07g:, su#ra, o. t)e Pubi' Servi'e $'t, as amended. $n
im#ied re#ea is #redi'ated on a substantia 'on.i't bet/een t)e ne/ and #rior a/s. =n t)e
absen'e o. an eF#ress re#ea, a subseNuent a/ 'annot be 'onstrued as re#eaing a #rior one
uness an irre'on'iabe in'onsisten', and re#ugnan', eFist in t)e terms o. t)e ne/ and od
a/s.
11
()e t/o a/s must be absoute, in'om#atibe su') t)at t)e, 'annot be made to stand
toget)er.
1-
"ourts o. &usti'e, /)en 'on.ronted /it) a##arent, 'on.i'ting statutes or #rovisions, s)oud
endeavor to re'on'ie t)e same instead o. de'aring outrig)t t)e vaidit, o. one as against t)e
ot)er. Su') aa'rit, s)oud be avoided. ()e /ise #oi', is .or t)e &udge to )armoni!e su')
statutes or #rovisions i. t)is is #ossibe, bearing in mind t)at t)e, are eNua, t)e )andi/orA
o. t)e same egisature, and so give e..e't to bot) /)ie at t)e same time aso a''ording due
res#e't to a 'oordinate de#artment o. t)e government. =t is t)is #oi', t)e "ourt /i a##, in
arriving at t)e inter#retation o. t)e a/s and t)e 'on'usions t)at s)oud .oo/ t)ere.rom.
1@
=t is a rue o. statutor, 'onstru'tion t)at re#eas b, im#i'ation are not .avored. $n im#ied
re#ea /i not be ao/ed uness it is 'onvin'ing, and unambiguous, demonstrated t)at t)e
t/o a/s are so 'ear, re#ugnant and #atent, in'onsistent /it) ea') ot)er t)at t)e, 'annot
'o-eFist. ()is is based on t)e rationae t)at t)e /i o. t)e egisature 'annot be overturned b,
t)e &udi'ia .un'tion o. 'onstru'tion and inter#retation. "ourts 'annot taAe t)e #a'e o.
"ongress in re#eaing statutes. ()eir .un'tion is to tr, to )armoni!e, as mu') as #ossibe,
seeming 'on.i'ts in t)e a/s and resove doubts in .avor o. t)eir vaidit, and 'o-eFisten'e.
1;
Eere, t)ere does not even a##ear to be a 'on.i't bet/een Se'tion ;07g: o. t)e Pubi' Servi'e
$'t, as amended, and Se'tion 57g: o. R.$. 7C-5. =n .a't, t)e atter #rovision dire'ts #etitioner
N(" to Q#ontinue to impose su') .ees and ')arges as ma, be ne'essar, to 'over reasonabe
'osts and eF#enses .or t)e reguation and su#ervision o. tee'ommuni'ations entities.Q ()e
absen'e aone o. t)e /ord Qaut)ori!ationQ in Se'tion 57g: o. R.$. No. 7C-1 'annot be
'onstrued to mean t)at #etitioner N(" )ad t)us been de#rived o. t)e #o/er to 'oe't su')
.ees. $s #ointed out b, t)e #etitioner, t)e /ords Qaut)ori!ation, su#ervision and0or reguationQ
used in Se'tion ;07g: o. t)e Pubi' Servi'e $'t are not distin't and 'om#ete, se#arabe
'on'e#ts /)i') ma, be taAen sing, or #ie'emea. (aAen in t)eir entiret,, t)e, are t)e
Nuintessen'e o. t)e "ommissionPs reguator, .un'tions, and must go )and-in-)and /it) one
anot)er. =n #etitionerPs o/n /ords, Q2t3)e "ommission aut)ori!es, su#ervises and reguates
tee'ommuni'ations entities and t)ese .un'tions... 'annot be 'onsidered sing, /it)out
destro,ing t)e /)oe 'on'e#t o. t)e "ommissionPs reguator, .un'tions.Q
15
Een'e, #etitioner
N(" is 'orre't in asserting t)at t)e #assage o. R.$. 7C-5 did not bring /it) it t)e aboition o.
#ermit .ees.
Eo/ever, /)ie #etitioner )ad made some vaid #oints o. argument, its #osition must, o.
ne'essit,, 'rumbe on t)e .ourt) issue raised in its #etition. Petitioner itse. admits t)at t)e
.ees im#osed are #re'ise, reguator, and su#ervision .ees, and not taFes. ()is ne'essari,
im#ies, )o/ever, t)at su') .ees must be 'ommensurate to t)e 'osts and eF#enses invoved in
dis')arging its su#ervisor, and reguator, .un'tions. =n t)e /ords o. Se'tion ;07g: o. t)e
Pubi' Servi'e $'t itse., t)e .ees and ')arges /)i') #etitioner N(" is aut)ori!ed to 'oe't
.rom an, #ubi' servi'e or a##i'ant are imited to t)e Qreimbursement o. its eF#enses in t)e
aut)ori!ation, su#ervision and0or reguation o. #ubi' servi'es.Q =t is di..i'ut to 'om#re)end
)o/ t)e 'ost o. i'ensing, reguating, and surveian'e 'oud amount to P1,1C0,750.50. ()e
"$ /as 'orre't in .inding t)e amount im#osed as #ermit .ee eForbitant and in 'om#ete
disregard o. t)e basi' imitation t)at t)e .ee s)oud be at east a##roFimate, 'ommensurate to
t)e eF#ense. Petitioner itse. admits t)at it )ad im#osed t)e maFimum amount #ossibe under
t)e Pubi' Servi'e $'t, as amended. ()at is )ard, taAing into 'onsideration t)e a'tua 'osts o.
.u.iing its reguator, and su#ervisor, .un'tions.
=nde#endent o. t)e above, t)ere is one basi' 'onsideration .or t)e dismissa o. t)is #etition,
about /)i') #etitioner N(" did not bot)er to 'omment at a. De re.er to t)e .a't t)at, as
res#ondent ="" a#t, observed, t)e #rin'i#a ground given b, t)e "$ in striAing do/n t)e
im#osition o. t)e P1,1C0,750.50 .ee is t)at res#ondent ="" is entited to t)e bene.its o. t)e so-
'aed Q#arit, 'auseQ embodied in Se'tion -@ o. R.$. No. 7C-5, to /it:
Se'tion -@. 6Nuait, o. (reatment in t)e (ee'ommuni'ations =ndustr,. - $n,
advantage, .avor, #riviege, eFem#tion, or immunit, granted under eFisting
.ran')ises, or ma, )erea.ter be granted, s)a i#so .a'to be'ome #art o. #revious,
granted tee'ommuni'ations .ran')ises and s)a be a''orded immediate, and
un'onditiona, to t)e grantees o. su') .ran')ises F F F.
=n t)is 'onne'tion, it is signi.i'ant to note t)at t)e subseNuent 'ongressiona .ran')ise granted
to t)e 4omesti' Sateite "or#oration under Presidentia 4e'ree No. C;7, states:
Se'tion 6. =n 'onsideration o. t)e .ran')ise and rig)ts )ereb, granted, t)e grantee
s)a #a, to t)e Re#ubi' o. t)e P)ii##ines during t)e i.e o. t)is .ran')ise a taF o.
one-)a. #er'ent o. gross earnings derived b, t)e grantee .rom its o#eration under
t)is .ran')ise and /)i') originate .rom t)e P)ii##ines. Su') taF s)a be due and
#a,abe annua, /it)in ten da,s a.ter t)e audit and a##rova o. t)e a''ounts b, t)e
"ommission on $udit as #res'ribed in Se'tion 11 )ereo. and sha"" be in "ieu of a""
taxes, assessments, #har!es, fees, or "evies of any $ind, nature, or
des#ription "evied, estab"ished or #o""e#ted by any muni#ipa", provin#ia", or
nationa" authority F F F 76m#)asis su##ied:
()e "$ /as 'orre't in ruing t)at t)e above-Nuoted #rovision is, b, a/, 'onsidered as ipso
facto #art o. =""Ps .ran')ise due to t)e Q#arit, 'auseQ embodied in Se'tion -@ o. R.$. No.
7C-5. $''ording,, res#ondent ="" 'annot be made sub&e't to t)e #a,ment o. t)e sub&e't .ees
be'ause its #a,ment o. t)e .ran')ise taF is Qin ieuQ o. a ot)er taFes and .ees.
W*ERE+ORE, t)e #etition is )ereb, DENIED and t)e assaied $mended 4e'ision and
Resoution o. t)e "$ areA++IRMED.
SO ORDERED.
G.R. N!. -.8.28 Jul( -., 122/
CONCE,CION ,ARAYNO, #etitioner,
vs.
JOSE JO9ELLANOS &n" the MUNICI,ALITY O+ CALASIAO,
,ANGASINAN,
R
res#ondents.
4 6 " = S = 8 N
CORONA, J.:
()is is a #etition .or revie/ on 'ertiorari under Rue ;5 o. t)e 1CC7 Rues o. "ourt
Nuestioning t)e resoution o. t)e "ourt o. $##eas 7"$: /)i') dismissed t)e #etition .or
'ertiorari, mandamus and #ro)ibition, /it) #ra,er .or issuan'e o. a #reiminar, and
mandator, in&un'tion, .ied b, #etitioner "on'e#'ion Para,no against res#ondents +ose
+oveanos and t)e %uni'i#ait, o. "aasiao, Pangasinan.
Petitioner /as t)e o/ner o. a gasoine .iing station in "aasiao, Pangasinan. =n 1C8C, some
residents o. "aasiao #etitioned t)e Sangguniang >a,an 7S>: o. said muni'i#ait, .or t)e
'osure or trans.er o. t)e station to anot)er o'ation. ()e matter /as re.erred to t)e %uni'i#a
6ngineer, ")ie. o. Poi'e, %uni'i#a Eeat) 8..i'er and t)e >ureau o. <ire Prote'tion .or
investigation. G#on t)eir advise, t)e Sangguniang >a,an re'ommended to t)e %a,or t)e
'osure or trans.er o. o'ation o. #etitionerPs gasoine station. =n Resoution No. 50, it
de'ared:
a: FFF t)e eFisting gasoine station is a batant vioation and disregard o. eFisting a/
to /it:
()e 8..i'ia Ioning "ode o. "aasiao, $rt. 6, Se'tion ;;,
1
t)e nearest
s')oo buiding /)i') is San %igue 6ementar, S')oo and ')ur'), t)e
distan'es are ess t)an 100 meters. No neig)bors /ere 'aed as /itnesses
/)en a'tua measurements /ere done b, E9GR> Sta.., >aguio "it, dated
-- +une 1C8C.
b: ()e gasoine station remains in t)i'A, #o#uated area /it) 'ommer'ia0residentia
buidings, )ouses 'osed 7si': to ea') ot)er /)i') sti endangers t)e ives and sa.et,
o. t)e #eo#e in 'ase o. .ire. %oreover, additiona seing and storing o. severa 9PG
tanAs in t)e station 7si':.
': ()e residents o. our baranga, a/a,s 'om#ain o. t)e irritating sme o. gasoine
most o. t)e time es#e'ia, during gas .iing /)i') tend to eF#ose residents
es#e'ia, ')idren to .reNuent 'ods, ast)ma, 'oug) and t)e iAe no/ada,s.
d: FFF t)e gasoine station vioated >uiding and <ire Sa.et, "odes be'ause t)e
station )as -nd .oor store, buiding used .or business renta o..i'es, /it) iron gried
/indo/s, no .ire/as. =t aso endangers t)e ives o. #eo#e u#stairs.
e: =t )am#ers t)e .o/ o. tra..i', t)e gasoine station is too sma and narro/, t)e
entran'e and eFit are 'osed to t)e street #ro#ert, ines. =t 'oudnPt 'o#e situation 7si':
on tra..i' be'ause t)e #a'e is a 'ongested area.
-
Petitioner moved .or t)e re'onsideration o. t)e S> resoution but it /as denied. Een'e, s)e
.ied a s#e'ia 'ivi a'tion .or #ro)ibition and mandamus /it) t)e Regiona (ria "ourt 7R(":
o. 4agu#an "it,, >ran') ;; against res#ondents. ()e 'ase, do'Aeted as SP "ivi "ase No. CC-
0@010-4, /as ra..ed to t)e saa o. +udge "ris#in 9aron.
Petitioner 'aimed t)at )er gasoine station /as not 'overed b, Se'tion ;; o. t)e 8..i'ia
Ioning "ode sin'e it /as not a Qgasoine servi'e stationQ but a Qgasoine .iing stationQ
governed b, Se'tion -1 t)ereo.. S)e added t)at t)e de'ision o. t)e Eousing and 9and Gse
Reguator, >oard 7E9GR>:,
@
in a #revious 'ase .ied b, t)e same res#ondent +oveanos
against )er #rede'essor 74ennis Para,no:, barred t)e grounds invoAed b, res#ondent
muni'i#ait, in Resoution No. 50. =n t)e E9GR> 'ase, res#ondent +oveanos o##osed t)e
estabis)ment o. t)e gas station on t)e grounds t)at: 71: it /as /it)in t)e 100-meter #ro)ibited
radius under Se'tion ;; and 7-: it #osed a #erni'ious e..e't on t)e )eat) and sa.et, o. t)e
#eo#e in "aasiao.
$.ter t)e )earing on t)e #ro#riet, o. issuing a /rit o. #reiminar, #ro)ibitor, and mandator,
in&un'tion, t)e tria 'ourt rued:
()ere is no basis .or t)e 'ourt to issue a /rit o. #reiminar, #ro)ibitor, and
mandator, in&un'tion. $beit,Set%!n .. !) the O))%%&l Z!n%n; C!"e !) #es3!n"ent
7un%%3&l%t( "!es n!t 7ent%!n & ;&s!l%ne )%ll%n; st&t%!n, <4ut= )!ll!$%n; the
3#%n%3le !) e%usdem !eneris, & ;&s!l%ne )%ll%n; st&t%!n )&lls $%th%n the &74%t !)
Set%!n ...
()e gasoine .iing station o. t)e #etitioner is o'ated under t)e estabis)ment
beonging to t)e #etitioner and is ver, near severa buidings o''u#ied b, severa
#ersons. Just%e "%t&tes th&t the s&7e sh!ul" n!t 4e &ll!$e" t! !nt%nue
!3e#&t%n; %ts 4us%ness !n th&t 3&#t%ul&# 3l&e. +u#the#, the ;&s!l%ne )%ll%n;
st&t%!n en"&n;e#s the l%'es &n" s&)et( !) 3e!3le 4e&use !ne the#e %s )%#e, the
est&4l%sh7ent &n" h!uses ne&#4( $%ll 4e #&>e" t! the ;#!un".
;
7em#)asis
su##ied:
Petitioner moved .or re'onsideration o. t)e de'ision but it /as denied b, t)e tria 'ourt.
Petitioner eevated t)e 'ase to t)e "$ via a #etition .or 'ertiorari, #ro)ibition and
mandamus,
5
/it) a #ra,er .or in&un'tive reie.. S)e as'ribed grave abuse o. dis'retion,
amounting to a'A or eF'ess o. &urisdi'tion, on t)e #art o. +udge 9aron /)o dismissed )er
'ase.
$.ter t)e "$ dismissed t)e #etition, #etitioner .ied a motion .or re'onsideration but t)e same
/as denied. Een'e, t)is a##ea.
>e.ore us, #etitioner insists t)at 71: t)e ega maFim o. ejusdem generis did not a##, to )er
'aseB 7-: t)e 'osure0trans.er o. )er gasoine .iing station b, res#ondent muni'i#ait, /as an
invaid eFer'ise o. t)e atterPs #oi'e #o/ers and 7@: it /as t)e #rin'i#e o. res judicata t)at
a##ied in t)is 'ase.
6
De .ind merit in t)e #etition.
The ,#%n%3le !) E%usdem &eneris
De )od t)at t)e !oning ordinan'e o. res#ondent muni'i#ait, made a 'ear distin'tion
bet/een Qgasoine servi'e stationQ and Qgasoine .iing station.Q ()e #ertinent #rovisions
read:
FFF FFF FFF
Se'tion -1. +%ll%n; St&t%!n. $ retai station servi'ing automobies and ot)er motor
ve)i'es /it) gasoine and oi on,.
7
FFF FFF FFF
Se'tion ;-. Se#'%e St&t%!n. $ buiding and its #remises /)ere gasoine oi, grease,
batteries, tires and 'ar a''essories ma, be su##ied and dis#ensed at retai and /)ere,
in addition, t)e .oo/ing servi'es ma, be rendered and saes and no ot)er.
a. Sae and servi'ing o. s#arA #ugs, batteries, and distributor #artsB
b. (ire servi'ing and re#air, but not re'a##ing or regroovingB
'. Re#a'ement o. mu..ers and tai #i#es, /ater )ose, .an bets, braAe
.uids, ig)t bubs, .uses, .oor mats, seat 'overs, /inds)ied /i#ers and
/i#er bades, grease retainers, /)ee, bearing, mirrors and t)e iAeB
d. Radiator 'eaning and .us)ingB
e. Das)ing and #ois)ing, and sae o. automobie /as)ing and #ois)ing
materiasB
.. Grease and ubri'atingB
g. 6mergen', /iring re#airsB
). %inor servi'ing o. 'arburatorsB
i. $d&usting and re#airing braAesB
&. %inor motor ad&ustments not invoving remova o. t)e )ead or 'ranA'ase,
or raising t)e motor.
8
FFF FFF FFF
=t is evident .rom t)e .oregoing t)at t)e ordinan'e intended t)ese t/o terms to be se#arate and
distin't .rom ea') ot)er. 6ven res#ondent muni'i#ait,Ps 'ounse admitted t)is dissimiarit,
during t)e )earing on t)e a##i'ation .or t)e issuan'e o. a /rit o. #reiminar, #ro)ibitor, and
mandator, in&un'tion. "ounse in .a't admitted:
1. ()at t)ere eFist2ed3 an o..i'ia !oning 'ode o. "aasiao, Pangasinan /)i') 2/as3
not ,et amendedB
-. Th&t un"e# A#t%le III !) s&%" !))%%&l >!n%n; !"e the#e <$e#e= e#t&%n
"%st%nt%!ns 7&"e 4( s&%" 7un%%3&l%t( &4!ut the "es%;n&t%!n !) the ;&s!l%ne
)%ll%n; st&t%!n &n" th&t !) the ;&s!l%ne se#'%e st&t%!n &s &33e&#%n; %n A#t%le III,
N!s. 1- &n" .1, <#es3et%'el(=?
@. Th&t the 4us%ness !) the 3et%t%!ne# <$&s= !ne !) & ;&s!l%ne )%ll%n; st&t%!n &s
"e)%ne" %n A#t%le III, Set%!n 1- !) the >!n%n; !"e &n" n!t &s & se#'%e st&t%!n
&s "%))e#entl( "e)%ne" un"e# A#t%le .1 !) the s&%" !))%%&l >!n%n; !"e?
;. Th&t un"e# Set%!n .. !) the !))%%&l >!n%n; !"e !) C&l&s%&!, the te#7 )%ll%n;
st&t%!n &s le&#l( "e)%ne" un"e# A#t%le III, Set%!n 1-, <"%"= n!t &33e&# %n the
$!#"%n;s the#e!)?
C
7emphasis supplied:
()e .oregoing /ere &udi'ia admissions /)i') /ere 'on'usive on t)e muni'i#ait,, t)e #art,
maAing t)em.
10
Res#ondent muni'i#ait, t)us 'oud not .ind soa'e in t)e ega maFim
o. ejusdem generis
11
/)i') means Qo. t)e same Aind, 'ass or nature.Q Gnder t)is maFim,
/)ere genera /ords .oo/ t)e enumeration o. #arti'uar 'asses o. #ersons or t)ings, t)e
genera /ords /i a##, on, to #ersons or t)ings o. t)e same genera nature or 'ass as t)ose
enumerated.
1-
=nstead, /)at a##ied in t)is 'ase /as t)e ega maFim e-pressio unius est
e-clusio alterius/)i') means t)at t)e eF#ress mention o. one t)ing im#ies t)e eF'usion o.
ot)ers.
1@
Een'e, be'ause o. t)e distin't and de.inite meanings auded to t)e t/o terms b, t)e
!oning ordinan'e, res#ondents 'oud not insist t)at Qgasoine servi'e stationQ under Se'tion ;;
ne'essari, in'uded Qgasoine .iing stationQ under Se'tion -1. =ndeed, t)e a'tivities
undertaAen in a Qgas servi'e stationQ did not automati'a, embra'e t)ose in a Qgas .iing
station.Q
The E@e#%se !) ,!l%e ,!$e#s
Res#ondent muni'i#ait, invaid, used its #oi'e #o/ers in ordering t)e 'osure0trans.er o.
#etitionerPs gasoine station. D)ie it )ad, under R$ 7160,
1;
t)e #o/er to taAe a'tions and
ena't measures to #romote t)e )eat) and genera /e.are o. its 'onstituents, it s)oud )ave
given due de.eren'e to t)e a/ and t)e rig)ts o. #etitioner.
$ o'a government is 'onsidered to )ave #ro#er, eFer'ised its #oi'e #o/ers on, /)en t)e
.oo/ing reNuisites are met: 71: t)e interests o. t)e #ubi' genera,, as distinguis)ed .rom
t)ose o. a #arti'uar 'ass, reNuire t)e inter.eren'e o. t)e State and 7-: t)e means em#o,ed
are reasonab, ne'essar, .or t)e attainment o. t)e ob&e't soug)t to be a''om#is)ed and not
undu, o##ressive.
15
()e .irst reNuirement re.ers to t)e eNua #rote'tion 'ause and t)e
se'ond, to t)e due #ro'ess 'ause o. t)e "onstitution.
16
Res#ondent muni'i#ait, .aied to 'om#, /it) t)e due #ro'ess 'ause /)en it #assed
Resoution No. 50. D)ie it maintained t)at t)e gasoine .iing station o. #etitioner /as ess
t)an 100 meters .rom t)e nearest #ubi' s')oo and ')ur'), t)e re'ords do not s)o/ t)at it
even attem#ted to measure t)e distan'e, not/it)standing t)at su') distan'e /as 'ru'ia in
determining /)et)er t)ere /as an a'tua vioation o. Se'tion ;;. ()e di..erent o'a o..i'es
t)at res#ondent muni'i#ait, ta##ed to 'ondu't an investigation never 'ondu'ted su')
measurement eit)er.
%oreover, #etitionerPs business 'oud not be 'onsidered a nuisan'e /)i') res#ondent
muni'i#ait, 'oud summari, abate in t)e guise o. eFer'ising its #oi'e #o/ers. ()e
abatement o. a nuisan'e /it)out &udi'ia #ro'eedings is #ossibe on, i. it is a nuisan'e per se.
$ gas station is not a nuisan'e per se or one a..e'ting t)e immediate sa.et, o. #ersons and
#ro#ert,,
17
)en'e, it 'annot be 'osed do/n or trans.erred summari, to anot)er o'ation.
$s a rue, t)is "ourt does not #ass u#on eviden'e submitted b, t)e #arties in t)e o/er
'ourts.
18
De deem it ne'essar,, )o/ever, to re'a t)e .indings o. t)e E9GR> /)i') #etitioner
submitted as eviden'e during t)e #ro'eedings be.ore t)e tria 'ourt, i. on, to unders'ore
#etitionerPs 'om#ian'e /it) t)e reNuirements o. a/ be.ore s)e #ut u# )er gasoine station.
$not)er .a'tor t)at s)oud not be e.t unnoti'ed is t)e diigen'e eFer'ised b,
2#etitioner3 in 'om#,ing /it) t)e reNuirements o. t)e severa a/s #rior to t)e a'tua
im#ementation o. t)e #ro&e't as 'an be attested b, t)e .a't t)at 2#etitioner3 )as
se'ured t)e ne'essar, buiding #ermit and a##rova o. 2)er3 a##i'ation .or aut)orit,
to reo'ate as #er t)e etter o. t)e 6nerg, Reguator, >oard FFF.
1C
8n t)e aeged )a!ardous e..e'ts o. t)e gasoine station to t)e ives and #ro#erties o. t)e
#eo#e o. "aasiao, /e again note:
Reative to t)e aegations t)at t)e #ro&e't 7gasoine station: is )a!ardous to i.e and
#ro#ert,, t)e >oard taAes 'ogni!an'e o. t)e res#ondentPs 'ontention t)at t)e #ro&e't
Qis not a .ire )a!ard sin'e #etroeum #rodu'ts s)a be sa.e, stored in underground
tanAs and t)at t)e instaation and 'onstru'tion o. t)e underground tanAs s)a be in
a''ordan'e /it) t)e "ateF 6ngineering Pro'edures /)i') is true to a gasoine
stations in t)e 'ountr,. FFF
Een'e, the B!&#" %s %nl%ne" t! 4el%e'e th&t the 3#!Aet 4e%n; h&>&#"!us t! l%)e
&n" 3#!3e#t( %s 7!#e 3e#e%'e" th&n )&tu&l. <or, a.ter a, even t)e <ire Station
"ommander, a.ter stud,ing t)e #ans and s#e'i.i'ations o. t)e sub&e't #ro#osed
'onstru'tion, re'ommended on -0 +anuar, 1C8C, Qto buid su') buidings a.ter
'on.orm 7sic: a t)e reNuirements o. PP 1185.Q It %s )u#the# &lle;e" 4( the
!73l&%n&nts th&t the 3#!3!se" l!&t%!n %s B%n the he&#t !) the th%Cl( 3!3ul&te"
#es%"ent%&l &#e& !) C&l&s%&!.B A;&%n, )%n"%n;s !) the <*LURB= st&)) ne;&te the
&lle;&t%!ns &s the s&7e %s $%th%n & "es%;n&te" Bus%nessDC!77e#%&l Z!ne 3e#
the Z!n%n; O#"%n&ne. FFF
-0
7em#)asis su##ied:
()e .indings o. .a't o. t)e E9GR> are binding as t)e, are aread, .ina and 'on'usive vis./.
vis t)e eviden'e submitted b, res#ondents.
The ,#%n%3le !) 'es Judi#ata
Petitioner #oints out t)at t)e E9GR> de'ision in t)e #revious 'ase .ied against )er
#rede'essor 74ennis Para,no: b, res#ondent +oveanos )ad e..e'tive, barred t)e issues in
Resoution No. 50 based on t)e #rin'i#e o. res judicata. De agree.
'es judicata re.ers to t)e rue t)at a .ina &udgment or de'ree on t)e merits b, a 'ourt o.
'om#etent &urisdi'tion is 'on'usive o. t)e rig)ts o. t)e #arties or t)eir #rivies in a ater suits
on a #oints and matters determined in t)e .ormer suit.
-1
<or res judicata to a##,, t)e
.oo/ing eements must be #resent: 71: t)e &udgment or order must be .inaB 7-: t)e &udgment
must be on t)e meritsB 7@: it must )ave been rendered b, a 'ourt )aving &urisdi'tion over t)e
sub&e't matter and t)e #arties and 7;: t)ere must be, bet/een t)e .irst and se'ond a'tions,
identit, o. #arties, o. sub&e't matter and o. 'ause o. a'tion.
--
Res#ondent muni'i#ait, does not 'ontest t)e .irst, se'ond and t)ird reNuisites. Eo/ever, it
'aims t)at it /as not a #art, to t)e E9GR> 'ase but on, its 'o-res#ondent +oveanos,
)en'e, t)e .ourt) reNuisite /as not met. ()e argument is untenabe.
()e absoute identit, o. #arties is not reNuired .or t)e #rin'i#e o. res judicata to a##,.
-@
$
s)ared identit, o. interests is su..i'ient to invoAe t)e a##i'ation o. t)is #rin'i#e.
-;
()e
#ros'ri#tion ma, not be evaded b, t)e mere eF#edient o. in'uding an additiona #art,.
-5
'es
judicata ma, ie as ong as t)ere is a 'ommunit, o. interests bet/een a #art, in t)e .irst 'ase
and a #art, in t)e se'ond 'ase at)oug) t)e atter ma, not )ave been im#eaded in t)e .irst.
-6
=n t)e assaied resoution o. res#ondent muni'i#ait,, it raised t)e same grounds invoAed b, its
'o-res#ondent in t)e E9GR>: 71: t)at t)e resoution aimed to 'ose do/n or trans.er t)e
gasoine station to anot)er o'ation due to t)e aeged vioation o. Se'tion ;; o. t)e !oning
ordinan'e and 7-: t)at t)e )a!ards o. said gasoine station t)reatened t)e )eat) and sa.et, o.
t)e #ubi'. ()e E9GR> )ad aread, setted t)ese 'on'erns and its ad&udi'ation )ad ong
attained .inait,. =t is to t)e interest o. t)e #ubi' t)at t)ere s)oud be an end to itigation b,
t)e #arties over a sub&e't matter aread, .u, and .air, ad&udged. <urt)ermore, an individua
s)oud not be veFed t/i'e .or t)e same 'ause.
-7
W*ERE+ORE, t)e #etition is )ereb, GRANTED. ()e assaied resoution o. t)e "ourt o.
t)e $##eas isRE9ERSED and SET ASIDE. Res#ondent %uni'i#ait, o. "aasiao is )ereb,
dire'ted to 'ease and desist .rom en.or'ing Resoution No. 50 against #etitioner inso.ar as it
seeAs to 'ose do/n or trans.er )er gasoine station to anot)er o'ation.
No 'osts.
SO ORDERED.
46P$R(%6N( 8< $GR$R=$N G.R. No. 15-6;0
R6<8R%, re#. b, S6"R6($RY
E6RN$N= $. >R$G$NI$, Present:
Petitioner,
PGN8, J$, Chairperson,
S$N48*$9-GG(=6RR6I,
- versus - "8R8N$,
$I"GN$, and
G$R"=$, ++.

PE=9=PP=N6 "8%%GN="$(=8NS Promugated:
S$(699=(6 "8RP.,
Res#ondent. +une 15, -006
DECISION

AZCUNA, J.:

()is is a #etition .or revie/ on 'ertiorari under Rue ;5 o. t)e Rues o. "ourt b, t)e
4e#artment o. $grarian Re.orm 74$R: seeAing t)e nui.i'ation o. t)e 4e'ision and
Resoution, dated November -@, -001 and %ar') 7, -00-, res#e'tive,, o. t)e "ourt o.
$##eas in "$-G.R. SP No. 57;@5, entited LP)ii##ine "ommuni'ations Sateite
"or#oration 7PE=9"8%S$(: v. 4$R.M

()e 'ontrovers, invoves a #ar'e o. and o/ned b, res#ondent PE=9"8%S$( situated
/it)in t)e area /)i') )ad been de'ared a se'urit, !one under Presidentia 4e'ree 7P.4.: No.
18;5, as amended b, P.4. No. 18;8, entited L4e'aring t)e $rea /it)in a Radius o. ()ree
Jiometers surrounding t)e Sateite 6art) Station in >aras, Ri!a, a Se'urit, Ione.M

()e .a'ts o. t)e 'ase are as .oo/s:

PE=9"8%S$( is t)e o/ner o. a #ar'e o. and situated in Pinuga,, >aras, Ri!a, /)ere
its P)ii##ine S#a'e "ommuni'ations "enter 7PS"": is o'ated. ()e PS"", /)i') #rin'i#a,
'onsists o. )erein res#ondent?s sateite eart) station, serves as t)e 'ommuni'ations gate/a,
o. t)e P)ii##ines to more t)an t/o-t)irds o. t)e /ord. =n'identa,, t)e #ro#ert, )ad been
#anted /it) .ruit trees, ri'e and 'orn b, .armers o''u#,ing t)e surrounding areas o. t)e
PS"".

8n $#ri @0, 1C8-, P.4. No. 18;5 /as #romugated. ()is de'ree /as amended
on +u, -C, 1C8- b, P.4. No. 18;8, Se'tion 1 o. /)i') states:

Se'tion 1. 4e'aration o. Se'urit, Ione. O ()e entire area
surrounding t)e sateite eart) station in Sitio San %igue, >arrio
Pinuga,, %uni'i#ait, o. >aras, Provin'e o. Ri!a, =sand o. 9u!on, /it)in a
radius o. t)ree Aiometers, more or ess, .rom t)e main sateite eart) station,
t)e metes and bounds o. su') area to be determined b, t)e %inister o.
Nationa 4e.ense, is )ereb, de'ared a se'urit, !one. <or t)is #ur#ose, and
in t)e interest o. nationa se'urit,, ingress to and egress .rom t)e se'urit,
!one as /e as o''u#an', o. #ortions t)ereo. s)a be 'ontroed and
reguated, /it)out #re&udi'e to t)e #a,ments o. &ust 'om#ensation to
#ersons /)ose rig)ts o. o/ners)i# ma, be in&urious, a..e'ted t)ereb, F F
F.

()e t)ree-Aiometer se'urit, !one 'overs an area o. 5,65; )e'tares, /)i') in'udes
t)e 700 )e'tares o/ned b, PE=9"8%S$( t)at is being sub&e'ted to t)e "om#re)ensive
$grarian Re.orm Program 7"$RP:
213
o. t)e government. $so in'uded /it)in t)is t)ree-
Aiometer radius is t)e 1.5 Aiometers radius .rom t)e antenna /)erein o'a )arm.u Radio
<reNuen', =nter.eren'e resuting .rom ignition s,stems, motor starters, )ig) votage
dis')arges, and t)e iAe, is 'a#tured and am#i.ied /)i') 'an )am#er tee'ommuni'ations
servi'es.
2-3

Pursuant to t)e de'ree, t)e %inistr, o. Nationa 4e.ense #romugated t)e 'evised
'ules and 'egulations to 0mplement %$&$ 1o$ 2345 dated 67 +pril 2839, as amended,
&eclaring the %hilippine Earth )tation :%E); )ecurity *one. =n vie/ o. t)is, t)e metes and
bounds o. PE=9"8%S$(?s sateite eart) station in >aras, Ri!a, /ere deineated.

=n 1CC-, a Noti'e o. "overage /as sent to PE=9"8%S$( b, #etitioner 4$R
in.orming t)e .ormer t)at t)e and in Nuestion s)a be #a'ed under "$RP?s 'om#usor,
a'Nuisition s')eme.

8n +anuar, -8, 1CC;, PE=9"8%S$( /rote to 4$R seeAing an eFem#tion o. t)e
sub&e't #ro#ert, .rom "$RP 'overage, insisting t)at t)e and /i be utii!ed .or t)e
eF#ansion o. its o#erations, and .or t)e .oo/ing reasons:
2@3

1: ()e and is being used .or nationa de.ense in a''ordan'e
/it) Se'tion 10 o. Re#ubi' $'t 7R.$.: No. 6657 /)i') #rovides:

LSe'tion 10. 6Fem#tions and 6F'usions. --
9ands a'tua,, dire't, and eF'usive, used and .ound
ne'essar, .or #arAs, /idi.e, .orest reserves,
re.orestation, .is) san'tuaries and breeding grounds,
/aters)eds and mangroves, nationa de.ense F F F, s)a
be eFem#t .rom t)e 'overage o. t)is $'t.M

-: ()e 'om#an, s)oud be .ree .rom )arm.u Radio
<reNuen', =nter.eren'e 7R<=: to maintain )ig)est servi'e reiabiit,B

@: "om#ian'e /it) t)e #rovisions o. P.4. No. 18;5, as
amended b, P.4.18;8, stating t)e vitait, o. t)e PS"" in t)e se'urit,
s,stem /it)in t)e #urvie/ o. nationa de.enseB and,

;: ()e deveo#ment o. t)e area, in res#onse to
t)e P)ii##ines? #an to aun') its o/n nationa sateite and to address t)e
massive tee'ommuni'ations buid-u# in t)e $sia-Pa'i.i' Region.
2;3

Res#ondent?s a##i'ation .or eFem#tion .rom "$RP 'overage /as evauated b,
4$R. 4uring t)e #enden', o. t)e a##i'ation, t)en 4$R Se'retar, 6rnesto 4. Gariao, in a
etter dated %ar') -1, 1CC;, suggested t)at res#ondent enter into a usu.ru'tuar, agreement
/it) t)e o''u#ants o. t)e sub&e't #ro#ert, unti su') time t)at it /i )ave to use t)e #ro#ert,
.or its #anned eF#ansion. ()e o''u#ants, )o/ever, re.used to enter into su') an agreement.
253

%ean/)ie, t)e Sangguniang >a,an o. (ana,, Ri!a, in its Resoution No. 65-C; t)at
/as endorsed to 4$R, moved .or t)e 'overage o. t)e 700-)e'tare PE=9"8%S$( #ro#ert,
/it)in t)e se'urit, !one under "$RP. ()e Provin'ia $grarian Re.orm 8..i'er o. (eresa,
Ri!a .urt)er o#ined t)at sub&e'ting t)e surrounding agri'utura area /it)in t)e se'urit, !one
under "$RP /i not be detrimenta to t)e o#erations o. PE=9"8%S$(.
263

8n %a, -5, 1CC8, an 8rder /as issued b, t)en Se'retar, Gariao re&e'ting
PE=9"8%S$(?s a##i'ation .or eFem#tion .rom "$RP, 'iting t)ree main reasons:

1: ()e o''u#ants in t)e area 'an be 'onsidered as bona
fide tenants o. t)e registered o/ner be.ore PE=9"8%S$(
a'Nuired t)e same .or its #ro&e'ted eF#ansion o. o#erations as t)e,
)ave been tiing said area .or severa ,earsB
-: Said o''u#ants )ad been identi.ied b, t)e %uni'i#a $grarian
Re.orm 8..i'er 7%$R8: as #otentia "$RP bene.i'iaries /)en t)e
and /as #a'ed under t)e 'om#usor, a'Nuisition s')emeB and,

@: ()e term Lse'urit, !oneM is not embra'ed /it)in t)e de.inition
o. ands used .or nationa de.ense under Se'tion 10 o. R. $. No.
6657.
273

=ts motion .or re'onsideration o. t)e a.oresaid 8rder )aving been denied,
PE=9"8%S$( .ied a Petition .or Revie/ /it) t)e "ourt o. $##eas.

Granting said #etition, t)e "ourt o. $##eas )ed:

DE6R6<8R6, #remises 'onsidered, t)e instant #etition is )ereb,
GR$N(64. ()e 8rder dated -5 %a, 1CC8 issued b, res#ondent
4e#artment o. $grarian Re.orm as /e as t)e Resoution dated @1 +anuar,
-000 den,ing #etitioner?s motion .or re'onsideration o. t)e said 8rder are
)ereb, NG99=<=64 and S6( $S=46 and a ne/ one is entered, de'aring
t)e sub&e't and)odings o. #etitioner situated at Pinuga,, >aras, Ri!a,
eFem#ted .rom t)e "$RP 'overage, 'onsidering t)at it /as de'ared a
se'urit, !one under P.4. 2No.3 18;5, as revised b, P.4. 2No.3 18;8.

S8 8R46R64.
283

$ motion .or re'onsideration o. t)e above de'ision /as .ied b, 4$R but t)e same /as
denied b, t)e "ourt o. $##eas in its Resoution, dated %ar') 7, -00-.
2C3

Een'e, t)is #etition /it) t)e .oo/ing assignment o. errors:

=
(E6 E8N8R$>96 "8GR( 8< $PP6$9S 6RR64 DE6N =(
46"9$R64 (E$( R.$. N8. 6657 7"8%PR6E6NS=*6 $GR$R=$N
R6<8R% 9$D 8< 1C88: $N4 P.4. N8. 18;8, DE="E 46"9$R64
(E6 SG>+6"( 9$N4E894=NG $S $ S6"GR=(Y I8N6, "$NN8(, =N
6<<6"(, "8-6K=S( D=(E 6$"E 8(E6RB

==
(E6 E8N8R$>96 "8GR( 8< $PP6$9S 6RR64 DE6N =(
$PP9=64 (E6 S($(G(8RY RG96 <E1E'+(0+ )%EC0+(0B=) 1>1
&E'><+1?B $N4,

===
(E6 E8N8R$>96 "8GR( 8< $PP6$9S 6RR64 DE6N =(
RG964 (E$( (E6 SG>+6"( PR8P6R(Y =S 6K6%P( <R8% (E6
"8*6R$G6 8< "$RP.

()us, t)e main issue in t)is 'ase is /)et)er or not t)e sub&e't #ro#ert, o.
PE=9"8%S$( /)i') )ad been de'ared a se'urit, !one under P.4. No. 18;5, as amended b,
P.4. No. 18;8, 'an be sub&e'ted to "$RP.

P.4. No. 18;5, as amended b, P.4. No. 18;8, /as issued /a, be.ore t)e e..e'tivit, o.
t)e "om#re)ensive $grarian Re.orm 9a/ o. 1C88. ()e same /as issued in 1C8- #ursuant to
an eFigen', to 'reate a se'urit, !one in t)e surrounding areas o. PE=9"8%S$(?s sateite
eart) station in order to ensure its se'urit, and uninterru#ted o#eration 'onsidering t)e vita
roe o. t)e eart) station in t)e 'ountr,?s tee'ommuni'ations and nationa deveo#ment. ()us,
P.4. No. 18;5 #rovides:

DE6R6$S, t)e on, eart) station in t)e P)ii##ines .or /ord
sateite tee'ommuni'ations is o'ated in a remote and s#arse, #o#uated
#a'e in sitio San %igue, >arrio
Pinuga,, %uni'i#ait, o. >aras, Provin'eo. Ri!aB

DE6R6$S, t)e said eart) station is vita to t)e eFisten'e and
maintenan'e o. sateite tee'ommuni'ations bet/een t)e P)ii##ines and
most 'ountries o. t)e /ord and #a,s an invauabe roe in t)e sustenan'e
and deveo#ment o. our #oiti'a, e'onomi', 'ommer'ia, and so'ia i.eB

DE6R6$S, in vie/ o. its o'ation, it /oud be eas, .or saboteurs
or 'rimina eements to destro, or 'ause damage to t)e said eart) station
t)ereb, #ara,!ing t)e s,stem and 'urtaiing momentous #ubi' servi'eB and

DE6R6$S, to #rote't and insure t)e sa.et, and uninterru#ted
o#eration o. t)is modern media o. internationa 'ommuni'ations, it is
ne'essar, to estabis) a se'urit, !one a around t)e said eart) station.


P.4. No. 18;8, amending P.4. No. 18;5, sub&e'ted t)e se'urit, !one to t)e aut)orit, o.
t)e %inistr, o. Nationa 4e.ense, 'onseNuent, 'on.erring on t)e %inister o. Nationa
4e.ense t)e #o/er and aut)orit, to determine /)o 'an o''u#, t)e areas /it)in t)e se'urit,
!one, and )o/ t)e ands s)a be utii!ed, to /it:

S6". @. -- >ccupation by >wner. 8/ners o. and /it)in t)e
se'urit, !one and0or t)eir bona .ide tenants, essees, or agents 'an o''u#, or
'ontinue to o''u#, t)eir res#e'tive ands or areas t)erein sub&e't to #rior
/ritten #ermission or aut)orit, o. t)e %inister o. Nationa 4e.ense.

S6" ;. -- =n 'ases /)ere an o/ner or a bona .ide o''u#ant is, in
t)e determination o. t)e %inister o. Nationa 4e.ense, not entited to an
o''u#an', #ermit, )e s)a )ave t)e o#tion o. demanding #a,ment o. &ust
'om#ensation .or )is #ro#ert, rig)ts, or to se su') rig)ts to an, #erson
Nuai.ied to o/n or o''u#, su') #ro#ert,.

S6". 5. -- ()e $rmed <or'es o. t)e P)ii##ines ma,, t)ru
negotiation or eF#ro#riation, a'Nuire o/ners)i# o. an, and or area o'ated
or situated /it)in t)e !one.

()e a/, in e..e't, b, de'aring t)e area a se'urit, !one, )as granted to t)e %inistr, o.
Nationa 4e.ense t)e 'ontro and administration o. t)e same. $s a rue, /)ere a genera #o/er
is 'on.erred or dut, en&oined, ever, #arti'uar #o/er ne'essar, .or t)e eFer'ise o. one or t)e
#er.orman'e o. t)e ot)er is aso 'on.erred.
2103

G#on t)e #assage o. t)e "om#re)ensive $grarian Re.orm 9a/ /)i') be'ame e..e'tive
on +u, 15, 1C88, a #ubi' and #rivate agri'utura ands,
2113
and ot)er ands o. #ubi' domain
suitabe .or agri'uture, regardess o. tenuria arrangement and 'ommodit, #rodu'ed, /ere
de'ared sub&e't to its 'overage.
21-3

()e area in Nuestion /)i') is in'uded /it)in t)e se'urit, !one is agri'utura. =t )as
been #anted /it) di..erent 'ro#s and .ruit trees b, its o''u#ants, and )as been .ound b, 4$R
to be suitabe .or agri'uture.
()e area, )o/ever, s)oud be eFem#t .rom "$RP 'overage b, virtue o. P.4. No.
18;5, as amended, /)i'), as stated earier, de'ared t)e area to be a se'urit, !one under t)e
&urisdi'tion o. t)e %inistr, o. Nationa 4e.ense.

=t is evident .rom t)e ver, /ording o. t)e a/ t)at t)e government re'ogni!ed t)e
'ru'ia roe o. PE=9"8%S$(?s o#erations to nationa se'urit,, t)ereb, ne'essitating t)e
#rote'tion o. its o#erations .rom unne'essar, and even anti'i#ated disru#tion. ()us, ever,
statute is understood, b, im#i'ation, to 'ontain a su') #rovisions as ma, be ne'essar, to
e..e'tuate its ob&e't and #ur#ose, or to maAe e..e'tive rig)ts, #o/ers, #rivieges or &urisdi'tion
/)i') it grants, in'uding a su') 'oatera and subsidiar, 'onseNuen'es as ma, be .air, and
ogi'a, in.erred .rom its terms.
21@3

=n t)is regard, t)e "ourt agrees /it) t)e "ourt o. $##eas /)en it stated t)at:

()e sub&e't #ro#ert, is 'ear, /it)in t)e s'o#e o. t)e
"om#re)ensive $grarian Re.orm 9a/, in a''ordan'e /it) ")a#ter ==,
se'tion ;7d: t)ereo., )ad it not been de'reed b, P.4. No. 18;5 t)at it is a
se'urit, !one. ()e ver, #ur#ose b, /)i') P.4. No. 18;5 /as #assed
de'aring t)e area /it)in a radius o. t)ree Aiometers surrounding t)e
sateite eart) station in >aras, Ri!a a se'urit, !one is to #rote't and insure
t)e sa.et, and uninterru#ted o#eration o. t)e modern media o. internationa
'ommuni'ations in t)e said #ro#ert,, as indi'ated in t)e /)ereas 'ause o.
said a/. ()us, to sub&e't said se'urit, !one to t)e "om#re)ensive $grarian
Re.orm Program o. t)e government /oud negate t)e ver, #ur#ose b,
/)i') P.4. 18;5, as revised b, P.4. 18;8, /as de'reed. ()ese a/s )ave
never been re#eaed.

P.4. 18;8 is aso s#e'i.i' in t)at o''u#ation o. t)e area, eit)er b, t)e
o/ners or t)eir bona .ide tenants, reNuire a #rior /ritten #ermission or
aut)orit, .rom t)e %inistr, o. t)e Nationa 4e.ense, no/ 4e#artment o.
Nationa 4e.ense. =t is t)ere.ore t)e 4e#artment o. Nationa 4e.ense /)i')
/i determine 2F F F3 /)o 'an o''u#, t)e sub&e't #ro#ert,, and not t)e
4e#artment o. $grarian Re.orm. (o sub&e't t)e #ro#ert, in Nuestion to
agrarian re.orm is indire't, giving t)e 4e#artment o. $grarian Re.orm
aut)orit, to determine 2F F F3 /)o 'an o''u#, t)e #ro#ert,, in vioation o.
t)e mandate o. P.4. 18;8.
De .ind it not ne'essar, to determine /)et)er or not t)e sub&e't
#ro#ert, is a'tua,, dire't,, and eF'usive, used .or nationa de.ense, to
be eFem#ted .rom t)e 'overage o. R.$. 6657. ()e a/ /)i') de'reed t)e
areas a se'urit, !one is ver, 'ear in its #ur#ose. =t is a #rin'i#e in statutor,
'onstru'tion t)at /)ere t)ere are t/o statutes t)at a##, to a #arti'uar 'ase,
t)at /)i') /as s#e'i.i'a, designed .or t)e said 'ase must #revai over t)e
ot)er 79a#id v. "ourt o. $##eas, @@; S"R$ 7@8:.
21;3

Se'tion 10 o. t)e "om#re)ensive $grarian Re.orm 9a/ or R.$. No. 6657,
2153
as
amended, #rovides t)at ands a'tua,, dire't, and eF'usive, used and .ound to be ne'essar,
.or nationa de.ense s)a be eFem#t .rom t)e 'overage o. t)e $'t. ()e determination as to
/)et)er or not t)e sub&e't #ro#ert, is a'tua,, dire't,, and eF'usive, used .or nationa
de.ense usua, entais a .inding o. .a't /)i') t)is "ourt /i not norma, deve into
'onsidering t)at, sub&e't to 'ertain eF'e#tions, in a #etition .or 'ertiorari under Rue ;5 o. t)e
Rues o. "ourt, t)e "ourt is 'aed u#on to revie/ on, errors o. a/.
2163
Su..i'e it to state,
)o/ever, t)at as a matter o. #rin'i#e, it 'annot serious, be denied t)at t)e a't o. se'uring a
vita 'ommuni'ation .a'iities is an a't o. nationa de.ense. Een'e, t)e a/, b, segregating an
area .or #ur#oses o. a se'urit, !one .or su') .a'iities, in e..e't devoted t)at area to nationa
de.ense.

W*ERE+ORE, t)e #etition is DENIED. ()e 4e'ision and Resoution o. t)e "ourt o.
$##eas in "$-G.R. SP No. 57;@5, dated
November -@, -001 and %ar') 7, -00-, res#e'tive,, are )ereb, A++IRMED.

No 'osts.

SO ORDERED.

G.R. N!. -.0-E1 June 10, 122/
GO9ERNMENT SER9ICE INSURANCE SYSTEM, Petitioner,
vs.
T*E CITY ASSESSOR O+ ILOILO CITY, T*E REGISTER O+ DEEDS O+ ILOILO
CITY &n" ROSALINA +RANCISCO, #e3#esente" 4( he# &tt!#ne(-%n-)&t, SAL9ADOR
,AJA I,
R
Res#ondents.
4 6 " = S = 8 N
CORONA, J.:
$ssaied in t)is #resent #etition .or revie/ under Rue ;5 o. t)e Rues o. "ourt are t)e
de'ision
1
and resoution
-
o. t)e "ourt o. $##eas 7"$: dismissing a #etition .or annument o.
&udgment
@
.ied b, #etitioner, t)e Government Servi'e =nsuran'e S,stem 7GS=S:, in "adastra
"ase No. 8; and anot)er unnumbered 'adastra 'ase de'ided b, t)e Regiona (ria "ourt
7R(":, >ran')es @6 and @1, o. =oio "it,, res#e'tive,.
=n t)e t/o 'adastra 'ases, #rivate res#ondent Rosaina <ran'is'o #etitioned .or t)e issuan'e
o. ne/ trans.er 'erti.i'ates o. tite 7("(s: in )er name over t/o #ar'es o. and, to /it:
("( No. ;1681
$ #ar'e o. and Ano/n as 9ot No. 6, >o'A -, o. t)e Subdivision Pan 79R": Psd-18;005
being a #ortion o. 9ot --1;->, +aro "adastre, 9R" 7G9R8: Re'ord No. 8 situated in t)e
4istri't o. +aro, =oio "it,, =sand o. Pana,, registered in t)e name o. GS=S '0o >adomero
4agdag, o. ega age, <ii#ino 'iti!en and resident o. +aro, =oio "it,, P)ii##ines on +une -8,
1CC1.
("( No. ;8580
$ #ar'e o. and Ano/n as 9ot No. --, >o'A -, o. t)e Subdivision Re'ord No. 8 situated in
t)e 4istri't o. +aro, =oio "it,, =sand o. Pana,, registered in t)e name o. GS=S '0o Rodo.o
"eres, o. ega age, <ii#ino "iti!en and a resident o. =oio "it,, P)ii##ines, /it) an area o.
(/o Eundred Ninet, <our 7-C;: sNuare meters, more or ess.
Private res#ondent <ran'is'o #ur')ased t)e sub&e't #ro#erties in t)e au'tion saes )ed .or t)e
satis.a'tion o. deinNuent rea #ro#ert, taFes. $.ter t)e a#se o. t)e one-,ear redem#tion
#eriod and t)e .aiure o. t)e registered o/ner or an, interested #erson to redeem t)e
#ro#erties, t)e =oio "it, (reasurer issued t)e 'orres#onding .ina bi o. sae to #rivate
res#ondent. ()e saes /ere ater on du, annotated on t)e 'erti.i'ates o. tite on .ie /it) t)e
Register o. 4eeds. Eo/ever, t)e .ina bi o. sae 'oud not be registered be'ause t)e o/ner?s
du#i'ate 'erti.i'ate o. tite /as unavaiabe at t)at time.
(o e..e't registration in )er name, #rivate res#ondent instituted se#arate #etitions .or t)e entr,
o. tite in )er name over t)e t/o ots /it) t)e R("s o. =oio "it,. >ot) #etitions /ere
uno##osed.
<inding merit in )er #etitions, t)e R("s, in se#arate orders issued on se#arate dates, dire'ted
t)e issuan'e o. ne/ du#i'ate ("(s. ()e dis#ositive #ortion o. t)e $#ri -C, 1CC@ order o.
R(" >ran') @6 in "adastra "ase No. 8; read:
DE6R6<8R6, #remises 'onsidered, t)e Register o. 4eeds o. t)e "it, o. =oio is )ereb,
ordered to issue ne/ o/ner?s du#i'ate 'o#, o. (rans.er "erti.i'ate o. (ite No. (-;1681 in
t)e name o. GS=S '0o >adomero 4agdag, u#on #a,ment o. t)e reNuired ega .ees.
$''ording,, t)e ost 'o#, o. t)e sub&e't tite is )ereb, de'ared as NG99 and *8=4.
;
8n t)e ot)er )and, R(" >ran') @1 aso issued an order, dated November 8, 1CC;, in t)e ot)er
7unnumbered: 'adastra 'ase, t)e dis#ositive #ortion o. /)i') read:
DE6R6<8R6, as #ra,ed .or, t)e Register o. 4eeds, "it, o. =oio is )ereb, dire'ted to issue
a ne/ o/ner?s du#i'ate 'erti.i'ate o. (ite No. (-;8580 in t)e name o. t)e G.S.=.S. "08
R8489<8 "6R6S, t)e registered o/ner, basing t)e same on t)e 8rigina "erti.i'ate o. (ite
.ound inta't and eFisting in t)e 8..i'e o. t)e Register o. 4eeds and t)e atter to 'an'e
(rans.er "erti.i'ate o. (ite No. (-;8580 toget)er /it) t)e en'umbran'es t)erein and to issue
a ne/ (rans.er "erti.i'ate o. (ite in t)e name o. R8S$9=N$ <R$N"=S"8 o. ega age,
singe, <ii#ino "iti!en and resident o. >rg,. (a'as, +aro, =oio "it,, P)ii##ines. ()e o/ner?s
du#i'ate 'erti.i'ate o. tite No. (-;8580 /)i') /as not surrendered is )ereb, de'ared nu
and void.
5
No a##ea /as made .rom bot) orders o. t)e 'ourts a quo, )en'e, t)e, be'ame .ina and
eFe'utor,.
=n a #etition to annu t)e &udgment o. t)e tria 'ourt, #etitioner, as t)e aeged #revious o/ner
o. t)e #ar'es o. and sod at #ubi' au'tion, assaied t)e orders o. t)e R("s o. =oio "it,
be.ore t)e "$. =t 'aimed t)at t)e assessment o. rea #ro#ert, taFes on it 7GS=S: /as void
sin'e, under its ')arter 7R$ 8-C1:, it /as eFem#t .rom a .orms o. taFes 7in'uding rea
#ro#ert, taFes on t)e #ro#erties )ed b, it: t)at /ere due to t)e o'a governments /)ere su')
#ro#erties /ere o'ated. <urt)ermore, it 'aimed t)at t)e #ro'eedings in t)e assessment and
ev, o. said taFes, as /e as t)e sae o. t)e #ro#erties at #ubi' au'tion, /ere )ed /it)out
noti'e to it, )en'e, its rig)t to due #ro'ess /as vioated.
()e a##eate 'ourt gave no 'reden'e to t)e arguments o. #etitioner and dismissed its #etition.
$''ording to t)e "$, t)e eFem#tion o. GS=S under its ')arter /as not a##i'abe #ursuant to
Se'tion -@;7a: o. R$ 7160, ot)er/ise Ano/n as ()e 9o'a Government "ode o. 1CC1 79G":.
Gnder t)at a/, t)e taF-eFem#t status o. GS=S 'annot be invoAed /)ere t)e a'tua use or
bene.i'ia o/ners)i# o. t)e #ro#erties under its tite )as been 'onve,ed to anot)er
#erson.
6
()e "$ added t)at t)ere /as aso no basis .or GS=S?s 'aim t)at it /as denied due
#ro'ess.
7
Petitioner .ied a motion .or re'onsideration but t)is /as denied b, t)e "$, )en'e, it broug)t
t)is 'ase to us via a #etition .or revie/ on 'ertiorari under Rue ;5 o. t)e Rues o. "ourt.
=n t)is #etition, #etitioner essentia, .auts t)e "$ .or ruing t)at its #ro#erties /ere not
eFem#t .rom a .orms o. taFes under its ')arter 7R$ 8-C1: and t)at t)e #ro'eedings on t)e
assessment and ev, o. its #ro#erties /ere ega.
=n su##ort o. its #osition, #etitioner #oints to Se'tion @C o. R$ 8-C1 /)i') reads:
Set%!n FE. E@e73t%!n )#!7 T&@, Le;&l ,#!ess &n" L%en. O =t is )ereb, de'ared t)at t)e
a'tuaria soven', o. t)e .unds o. t)e GS=S s)a be #reserved and maintained at a times and
t)at t)e 'ontribution rates are ne'essar, to sustain t)e bene.its under t)is $'t s)a be Ae#t o/
as #ossibe in order not to burden t)e member o. t)e GS=S and t)eir em#o,ers. (aFes
im#osed on t)e GS=S tend to im#air t)e a'tuaria soven', o. its .unds and in'rease t)e
'ontribution rate ne'essar, to sustain t)e bene.its o. t)is $'t. +ccordingly, notwithstanding
any laws to the contrary, the <)0), its assets, revenues, including all accruals thereto, and
benefits paid shall be e-empt from all ta-es, assessment fees, charges or duties of all
kinds$ ()ese eFem#tions s)a 'ontinue uness eF#ress, and s#e'i.i'a, revoAed and an,
assessment against t)e GS=S as o. t)e a##rova o. t)is $'t are )ereb, 'onsidered #aid.
"onseNuent,, a a/s, ordinan'es, reguations, issuan'es, o#inions, or &uris#ruden'e 'ontrar,
to or in derogation o. t)is #rovision are )ereb, deemed re#eaed, su#erseded and rendered
ine..e'tive and /it)out ega .or'e and e..e't.
FFF FFF FFF
()e .unds and0or #ro#erties re.erred to )erein as /e as t)e bene.its, sums or monies
'orres#onding to t)e bene.its under t)is $'t s)a be eFem#t .rom atta')ment, garnis)ment,
eFe'ution, ev, or ot)er #ro'esses issued b, t)e 'ourts, Nuasi-&udi'ia agen'ies or
administrative bodies in'uding t)e "ommission on $udit 7"8$: disao/an'es and .rom a
.inan'ia obigations o. t)e members, in'uding )is #e'uniar, a''ountabiit, arising .rom or
'aused or o''asioned b, )is eFer'ise or #er.orman'e o. )is o..i'ia .un'tions or duties, or
in'urred reative to or in 'onne'tion /it) )is #osition or ot)er/ise, is in .avor o.
GS=S.
8
7itai's su##ied:
De .ind no reversibe error in t)e de'ision and resoution o. t)e "$.
6ven i. t)e ')arter o. t)e GS=S genera, eFem#ts it .rom taF iabiities, t)e #res'ri#tion is not
so en'om#assing as to maAe t)e taF eFem#tion a##i'abe to t)e #ro#erties in dis#ute )ere.
=n t)e ear, 'ase o. City of Baguio v$ Busuego,
C
/e )ed t)at t)e taF-eFem#t status o. t)e GS=S
'oud not #revent t)e a''rua o. t)e rea estate taF iabiit, on #ro#erties trans.erred b, it to a
#rivate bu,er t)roug) a 'ontra't to se. =n t)e #resent 'ase, GS=S )ad aread, 'onve,ed t)e
#ro#erties to #rivate #ersons t)us maAing t)em sub&e't to assessment and #a,ment o. rea
#ro#ert, taFes.
10
()e aienation o. t)e #ro#erties sod b, GS=S /as t)e #roFimate 'ause and
ne'essar, 'onseNuen'e o. t)e deinNuent taFes due.
()e do'trine aid do/n in City of Baguio is re.e'ted in Se'tion -@; 7a: o. t)e 9G",
11
/)i')
states:
Se'tion -@;. E@e73t%!ns )#!7 Re&l ,#!3e#t( T&@. S The )!ll!$%n; &#e e@e73te" )#!7
3&(7ent !) the #e&l 3#!3e#t( t&@:
7a: Rea #ro#ert, o/ned b, t)e Re#ubi' o. t)e P)ii##ines or an, o. its #oiti'a
subdivisions e@e3t $hen the 4ene)%%&l use the#e!) h&s 4een ;#&nte", )!# !ns%"e#&t%!n
!# !the#$%se, t! & t&@&4le 3e#s!n.7em#)asis su##ied:
Petitioner, )o/ever, 'aims t)at R$ 8-C1, /)i') tooA e..e't in 1CC7, abrogated Se'tion -@;
7a: o. t)e 9G" o. 1CC1.
De disagree.
()e abrogation or re#ea o. a a/ 'annot be assumedB t)e intention to revoAe must be 'ear
and mani.est.
1-
R$ 8-C1 made no eF#ress re#ea or abrogation o. t)e #rovisions o. R$ 7160,
#arti'uar, Se'tion -@; 7a: t)ereo..
Re#ea b, im#i'ation in t)is 'ase is not at a 'onvin'ing eit)er. (o bring about an im#ied
re#ea, t)e t/o a/s must be absoute, in'om#atibe. ()e, must be 'ear, re#ugnant in a
/a, t)at t)e ater a/ 7R$ 8-C1: 'annot eFist /it)out nui.,ing t)e #rior a/ 7R$ 7160:.
1@
=ndeed, t)ere is not)ing in R$ 8-C1 /)i') abrogates, eF#ress, or im#ied,, t)at #arti'uar
#rovision o. t)e 9G". ()e t/o statutes are not in'onsistent on t)at s#e'i.i' #oint, et aone so
irre'on'iabe as to 'om#e us to u#)od one and striAe do/n t)e ot)er.
()e rue is t)at ever, statute must be inter#reted and broug)t into a''ord /it) ot)er a/s in a
/a, t)at /i .orm a uni.orm s,stem o. &uris#ruden'e.
1;
()e egisature is #resumed to )ave
Ano/n eFisting a/s on t)e sub&e't and not to )ave ena'ted 'on.i'ting a/s.
15
()us, t)e
egisature 'annot be #resumed to )ave intended Se'tion -@; 7a: to run 'ounter to Se'tion @C
o. R$ 8-C1.
()is 'on'usion is buttressed b, t)e "ourt?s -00@ de'ision in 1ational %ower Corporation v$
City of Cabanatuan
16
/)ere /e de'ared t)at t)e taF #rovisions o. t)e 9G" /ere t)e most
signi.i'ant #rovisions t)erein inso.ar as t)e, removed t)e banAet eF'usion o.
instrumentaities and agen'ies o. t)e nationa government 7iAe #etitioner: .rom t)e 'overage
o. o'a taFation. =n t)at 'ase, #etitioner Nationa Po/er "or#oration 7NP": 'aimed t)at it
/as an instrumentait, o. t)e government eFem#t under its ')arter .rom #a,ing .ran')ise taF.
()e "ourt overrued NP" and u#)ed t)e rig)t o. res#ondent 'it, government to im#ose t)e
.ran')ise taF on its #riviege to transa't business in its area.
$gain, in t)e -00; 'ase o. 'ubia v$ <overnment )ervice 0nsurance )ystem,
17
t)e "ourt
de'ared t)at an, inter#retation t)at gave Se'tion @C an eF#ansive 'onstru'tion to eFem#t a
GS=S assets and #ro#erties .rom ega #ro'esses /as un/arranted. ()ese #ro'esses in'uded
t)e ev, and garnis)ment o. its assets .or taFes or 'aims en.or'ed against it. ()e "ourt t)ere
rued t)at t)e eFem#tion under Se'tion @C o. t)e GS=S ")arter s)oud be read 'onsistent,
/it) its avo/ed #ur#ose O t)e maintenan'e o. its a'tuaria soven', to .inan'e t)e retirement,
disabiit, and i.e insuran'e bene.its o. its members. ()e "ourt meant t)at t)e taF-eFem#t
#ro#erties and assets o. GS=S re.erred to t)ose t)at remained at its dis#osa and use, eit)er .or
investment or .or in'ome-generating #ur#oses. Pro#erties /)ose a'tua and bene.i'ia use )ad
been trans.erred to #rivate taFabe #ersons, .or 'onsideration or ot)er/ise, /ere eF'uded and
/ere t)us taFabe.
=n @actan Cebu 0nternational +irport +uthority v$ @arcos,
18
t)e "ourt rued t)at t)e
eFem#tion o. a government-o/ned or 'ontroed 'or#oration .rom taFes and ot)er ')arges
/as not absoute and 'oud be /it)dra/n, as in .a't 'ertain #rovisions o. t)e 9G", in'uding
Se'tion -@; 7a:, /ere deemed to )ave eF#ress, /it)dra/n t)e taF-eFem#t #riviege o.
#etitioner as a government-o/ned 'or#oration.
9ast,, even i. /e /ere to 'onstrue t)at R$ 8-C1 abrogated Se'tion -@;7a: o. t)e 9G", sti it
'annot be made to a##, retroa'tive, /it)out im#airing t)e vested rig)ts o. #rivate
res#ondent. ()e a##eate 'ourt t)us 'orre't, stated:
FFF it )as been t)e 'ourts? 'onsistent ruing t)at a re#eaing statute must not inter.ere /it)
vested rig)ts or im#air t)e obigation o. 'ontra'tsB t)at i. an, ot)er 'onstru'tion is #ossibe,
t)e a't s)oud not be 'onstrued so as to a..e't rig)ts /)i') )ave vested under t)e od a/.
Private res#ondent2s3, /e reiterate, )ave be'ome t)e #rivate o/ner2s3 o. t)e #ro#erties in
Nuestion in t)e reguar 'ourse o. #ro'eedings estabis)ed b, a/, and a.ter t)e de'isions
granting su') rig)ts )ave be'ome .ina and eFe'utor,. ()e ena'tment o. t)e ne/ GS=S
")arter 'annot be a##ied in a retroa'tive manner as to divest t)e #rivate res#ondent2s3 o.
2t)eir3 o/ners)i#.
1C
7'itations omitted:
W*ERE+ORE, t)e #etition is )ereb, DENIED.
No 'osts.
SO ORDERED.
G.R. N!. -/2-E- June 8, 122/
TWIN ACE *OLDINGS COR,ORATION, Petitioner,
vs.
RU+INA AND COM,ANY, Res#ondent.
4 6 " = S = 8 N
C*ICO-NAZARIO, J.:
<rom t)e re'ords, it a##ears t)at on @ 4e'ember 1CC1, (/in $'e Eodings "or#oration 7(/in
$'e: .ied a "om#aint
1
.or re'over, o. #ossession o. #ersona #ro#ert,, #ermanent in&un'tion
and damages /it) #ra,er .or t)e issuan'e o. a /rit o. re#evin, tem#orar, restraining order
and a /rit o. #reiminar, in&un'tion against Ru.ina and "om#an, 7Ru.ina:.
$s aeged in t)e 'om#aint, (/in $'e is a #rivate domesti' 'or#oration engaged in t)e
manu.a'ture o. r)um, /ines and iNuor under t)e name and st,e Q(andua, 4istiers.Q =t )as
registered its marA o. o/ners)i# o. its bottes /it) t)e >ureau o. Patent, (rademarAs and
(e')noog, (rans.er under Re#ubi' $'t No. 6-@. =n t)e 'ondu't o. its business, it ses its
#rodu'ts to t)e #ubi' eF'uding t)e bottes. =t maAes substantia investments in brand ne/
bottes /)i') it bu,s .rom gass .a'tories and /)i') t)e, use .or about .ive times in order to
re'over t)e 'ost o. a'Nuisition. (/in $'e t)us retrieves its used em#t, bottes, /as)es and
uses t)em over and over again as 'ontainers .or its #rodu'ts.
8n t)e ot)er )and, Ru.ina is engaged in t)e #rodu'tion, eFtra'tion, .ermentation and
manu.a'ture o. #atis and ot)er .ood seasonings and is engaged in t)e bu,ing and seing o. a
Ainds o. .oods, mer')andise and #rodu'ts .or domesti' use or .or eF#ort to ot)er 'ountries. =n
#rodu'ing #atis and ot)er .ood seasonings, Ru.ina uses as 'ontainers bottes o/ned b, (/in
$'e /it)out an, aut)orit, or #ermission .rom t)e atter. =n t)e #ro'ess, Ru.ina is undu,
bene.ited .rom t)e use o. t)e bottes.
G#on t)e #osting o. (/in $'e o. t)e reNuired bond, t)e Regiona (ria "ourt 7R(": o.
%ania, >ran') -6, issued an 8rder dated 5 <ebruar, 1CC- granting t)e a##i'ation .or t)e
issuan'e o. a /rit o. re#evin.
-
G#on t)e im#ementation o. t)e said /rit, 4e#ut, S)eri..
$mado P. Sevia /as abe to sei!e a tota o. -6,-;1 em#t, bottes marAed Q($N4G$Y
4=S(=996RY, =N".,Q
@
at t)e address o. Ru.ina.
=n its $ns/er /it) 'ounter-a##i'ation .or a Drit o. Preiminar, =n&un'tion, Ru.ina 'aimed
t)at t)e marAed bottes it used as 'ontainers .or its #rodu'ts /ere #ur')ased .rom &unA
deaersB )en'e, it be'ame t)e o/ner t)ereo..
$.ter )earing, t)e tria 'ourt rendered its de'ision dated -0 %a, 1CC5 t)e dis#ositive #ortion
o. /)i') states:
DE6R6<8R6, PR6%=S6S "8NS=46R64, &udgment is )ereb, rendered in .avor o. t)e
de.endant as .oo/s:
a: dismissing t)e 'om#aint .or a'A o. meritB
b: dissoving t)e order o. re#evinB
': ordering t)e #ainti.. to return -6,-;1 bottes to t)e de.endant in t)e #a'e /)ere
t)e bottes /ere sei!ed at t)e eF#ense o. t)e #ainti.. /it)in ;8 )ours .rom re'ei#t
)ereo.B
d: ordering t)e #ainti.. to #a, t)e de.endant t)e sum o. P100,000.00 as a'tua
damages sustained b, t)e atter to be taAen .rom t)e re#evin bondB
e: ordering t)e #ainti.. to #a, t)e de.endant t)e sum o. P1,000,000.00 as damages
.or besmir')ed re#utationB
.: ordering t)e #ainti.. to #a, t)e sum o. P100,00.00 as nomina damagesB
g: ordering t)e #ainti.. to #a, t)e de.endant t)e sum o. P50,000.00 as attorne,?s .eeB
and
): ordering t)e #ainti.. to #a, t)e 'ost o. t)e suit.
;
(/in $'e a##eaed to t)e "ourt o. $##eas. 8n -7 Se#tember -00-, t)e a##eate 'ourt
rendered its de'ision
5
modi.,ing t)e de'ision o. t)e tria 'ourt as .oo/s:
DE6R6<8R6, in vie/ o. a t)e .oregoing, t)e a##eaed de'ision dated %a, -0, 1CC5 o.
>ran') -6, Regiona (ria "ourt, %ania, in "ivi "ase No. C--5C86- is %84=<=64, in t)at
t)e a/ard o. damages, eF'e#t nomina damages, and attorne,?s .ees is 4696(64 .or a'A o.
ega and .a'tua basis. ()e a/ard o. nomina damages is redu'ed toP50,000.00. =n a ot)er
res#e'ts, t)e assaied de'ision is $<<=R%64.
"osts against #ainti..-a##eant.
6
$ motion .or re'onsideration dated 1C 8'tober -00-
7
.ied b, (/in $'e /as denied in a
resoution o. t)e "ourt o. $##eas dated -C Se#tember -00@.
8
Een'e, t)is Petition .or Revie/.
<or resoution are t)e .oo/ing issues:
=.
(E6 E8N8R$>96 "8GR( 8< $PP6$9S 6RR64 =N E894=NG (E$(
R6SP8N46N( RG<=N$ =S N8( "8*6R64 D=(E=N (E6 6K6%P(=8N
PR8*=464 >Y S6"(=8N 6 8< R.$. 6-@, $S $%6N464 >Y R.$. 5700.
==.
(E6 E8N8R$>96 "8GR( 8< $PP6$9S 6RR64 =N $D$R4=NG N8%=N$9
4$%$G6S $G$=NS( P6(=(=8N6R (D=N $"6 "8NS=46R=NG (E$( =( D$S
(E6 8N6 DE8S6 R=GE(S E$*6 >66N *=89$(64 8R =N*$464 >Y
R6SP8N46N( RG<=N$.
===.
(E6 E8N8R$>96 "8GR( 8< $PP6$9S 6RR64 =N N8( <=N4=NG (E$(
P6(=(=8N6R $S 8DN6R 8< (E6 SG>+6"( >8((96S =S 6N(=(964 (8
"8%P6NS$(=8N <8R =(S GN$G(E8R=I64 GS6 >Y R6SP8N46N(
RG<=N$.
C
Pertinent #rovision o. Re#ubi' $'t No. 6-@,
10
as amended b, Re#ubi' $'t No. 5700,
11
is
Nuoted )ereunder .or 'arit,:
Se'. -. =t s)a be una/.u .or an, #erson, /it)out t)e /ritten 'onsent o. t)e manu.a'turer,
botter, or seer, /)o )as su''ess.u, registered t)e marAs o. o/ners)i# in a''ordan'e /it)
t)e #rovisions o. t)e neFt #re'eding se'tion, to .i su') bottes, boFes, Aegs, barres, stee
',inders, tanAs, .asAs, a''umuators, or ot)er simiar 'ontainers so marAed or stam#ed, .or
t)e #ur#ose o. sae, or to se, dis#ose o., bu, or tra..i' in, or /anton, destro, t)e same,
/)et)er .ied or not to use t)e same .or drinAing vesses or gasses or drain #i#es, .oundation
#i#es, .or an, ot)er #ur#ose t)an t)at registered b, t)e manu.a'turer, botter or seer. $n,
vioation o. t)is se'tion s)a be #unis)ed b, a .ine o. not more t)an one t)ousand #esos or
im#risonment o. not more t)an one ,ear or bot).
Se'. @. ()e use b, an, #erson ot)er t)an t)e registered manu.a'turer, botter or seer, /it)out
/ritten #ermission o. t)e atter o. an, su') botte, 'asA, barre, Aeg, boF, stee ',inders,
tanAs, .asAs, a''umuators, or ot)er simiar 'ontainers, or t)e #ossession t)ereo. /it)out
/ritten #ermission o. t)e manu.a'turer, b, an, &unA deaer or deaer in 'asAs, barres, Aegs,
boFes, stee ',inders, tanAs, .asAs, a''umuators, or ot)er simiar 'ontainers, t)e same being
du, marAed or stam#ed and registered as )erein #rovided, s)a give rise to a #rima .a'ie
#resum#tion t)at su') use or #ossession is una/.u.
1-
Se'. ;. ()e 'rimina a'tion #rovided in t)is $'t s)a in no /a, a..e't an, 'ivi a'tion to
/)i') t)e registered manu.a'turer, botter, or seer, ma, be entited b, a/ or 'ontra't.
Se'. 5. No a'tion s)a be broug)t under t)is $'t against an, #erson to /)om t)e registered
manu.a'turer, botter, or seer, )as trans.erred b, /a, o. sae, an, o. t)e 'ontainers )erein
re.erred to, but t)e sae o. t)e beverage 'ontained in t)e said 'ontainers s)a not in'ude t)e
sae o. t)e 'ontainers uness s#e'i.i'a, so #rovided.
Se'. 6. ()e #rovisions o. t)is $'t s)a not be inter#reted as #ro)ibiting t)e use o. bottes as
'ontainers .or Qsisi,Q Qbagoong,Q Q#atis,Q and simiar native #rodu'ts.
1@
=n sum, (/in $'e asserts t)at t)e #rovision under t)e a/ a..ords #rote'tion on, to sma
s'ae #rodu'ers0manu.a'turers /)o do not )ave t)e 'a#a'it, to bu, ne/ bottes .or use in
t)eir #rodu'ts and 'annot eFtend to Ru.ina /)i') )ad uneNuivo'ab, admitted in its
$ns/er
1;
and a..irmed in t)e de'ision o. t)e tria 'ourt t)at it is engaged, on a arge s'ae
basis, in t)e #rodu'tion and manu.a'ture o. .ood seasonings.
<or its #art, Ru.ina 'ounters t)at t)e a/ did not rea, distinguis) bet/een arge s'ae
manu.a'turers and sma time #rodu'ers.
()e #etition is not meritorious.
()e earier 'ase o. ?win +ce Aoldings Corporation v$ Court of +ppeals,
15
a##ies to t)e
#resent #etition. =n said 'ase, (/in $'e .ied a "om#aint .or Re#evin against 9oren!ana
<ood "or#oration to re'over t)ree )undred eig)t, t)ousand bottes aeged, o/ned b, (/in
$'e but detained and used b, 9oren!ana <ood "or#oration as 'ontainers .or its native
#rodu'ts /it)out its eF#ress #ermission, in vioation o. t)e a/. =n t)at 'ase, t)is "ourt
a'Ano/edged t)at t)e eFem#tion under t)e a/ is unNuai.ied as t)e a/ did not maAe a
distin'tion t)at it on, a##ies to sma s'ae industries but not to arge s'ae manu.a'turers.
()us, even i. t)e 'ourt in said 'ase )ed t)at t)e eFem#tion is #rimari, meant to give
#rote'tion to sma s'ae industries, it did not Nuai., t)at t)e #rote'tion t)erein /as intended
and imited on, to su'). ()e "ourt )ed:
Petitioner itse. aeges t)at res#ondent 98R6NI$N$ uses t)e sub&e't @50 m., @75 m. and
750 m. bottes as 'ontainers .or #ro'essed .oods and ot)er reated #rodu'ts su')
as patis, toyo, bagoong, vinegar and ot)er .ood seasonings. Een'e, Se'. 6 sNuare, a##ies in
#rivate res#ondent?s .avor. 8bvious,, t)e 'ontention o. (D=N $"6 t)at t)e eFem#tion re.ers
on, to 'rimina iabiit, but not to 'ivi iabiit, is /it)out merit. =t is in'on'eivabe t)at an
a't s#e'i.i'a, ao/ed b, a/, in ot)er /ords ega, 'an be t)e sub&e't o. in&un'tive reie.
and damages. >esides, t)e inter#retation o..ered b, #etitioner de.eats t)e ver, #ur#ose .or
/)i') t)e eFem#tion /as #rovided.
Re#ubi' $'t No. 6-@, Q$n $'t to Reguate t)e Gse o. 4u, Stam#ed or %arAed >ottes,
>oFes, "asAs, Jegs, >arres and 8t)er Simiar "ontainers,Q as amended b, R$ No. 5700, /as
meant to #rote't t)e intee'tua #ro#ert, rig)ts o. t)e registrants o. t)e 'ontainers and #revent
un.air trade #ra'ti'es and .raud on t)e #ubi'. Eo/ever, t)e eFem#tion granted in Se'. 6
t)ereo. /as deemed eFtreme, ne'essar, to #rovide assistan'e and in'entive to t)e ba'A,ard,
'ottage and sma-s'ae manu.a'turers o. indigenous native #rodu'ts su') as #atis, sisi and
to,o /)o do not )ave t)e 'a#ita to bu, brand ne/ bottes as 'ontainers nor a..ord to #ass t)e
added 'ost to t)e ma&orit, o. #oor <ii#inos /)o use t)e #rodu'ts as t)eir dai, 'ondiments or
viands. =. t)e 'ontention o. #etitioner is a''e#ted, i.e., to 'onstrue t)e eFem#tion as to a##, to
'rimina iabiit, on, but not to 'ivi iabiit,, t)e ver, #ur#ose .or /)i') t)e eFem#tion /as
granted /i be de.eated. None o. t)e sma-s'ae manu.a'turers o. t)e indigenous native
#rodu'ts #rote'ted /oud #ossib, /is) to use t)e registered bottes i. t)e, are vunerabe to
'ivi suits. ()e e..e't is a virtua eimination o. t)e 'ear and unNuai.ied eFem#tion embodied
in Se'. 6. =t is /ort), to note t)at Eouse >i No. -0585 /as 'om#ete, re&e'ted be'ause it
soug)t to eF#ress, and dire't, eiminate t)at /)i') #etitioner indire't, #ro#oses to do /it)
t)is #etition.
16
76m#)asis su##ied.:
=t is /ort) noting t)at 9oren!ana <ood "or#oration /)i') #revaied in t)e 'ase .ied b, (/in
$'e against it is 'ertain, not a sma s'ae industr,. +ust iAe Ru.ina, 9oren!ana <ood
"or#oration aso manu.a'tures and eF#orts #ro'essed .oods and ot)er reated #rodu'ts, e.g.,
#atis, to,o, bagoong, vinegar and ot)er .ood seasonings.
=t is a basi' rue in statutor, 'onstru'tion t)at /)en t)e a/ is 'ear and .ree .rom an, doubt or
ambiguit,, t)ere is no room .or 'onstru'tion or inter#retation. $s )as been our 'onsistent
ruing, /)ere t)e a/ s#eaAs in 'ear and 'ategori'a anguage, t)ere is no o''asion .or
inter#retationB t)ere is on, room .or a##i'ation.
17
Notab,, attem#ts to amend t)e #rote'tion a..orded b, Se'tion 6 o. Re#ubi' $'t No. 6-@, b,
giving #rote'tion on, to sma s'ae manu.a'turers or t)ose /it) a 'a#itai!ation o. .ive
)undred t)ousand #esos or ess 7P500,000.00:, t)roug) t)en Eouse >i No. -0585,
18
and
subseNuent, t)roug) Eouse >i No. @0;00,
1C
#roved unsu''ess.u as t)e amendment
#ro#osed in bot) >is /as never #assed.
=n vie/ o. t)ese 'onsiderations, /e .ind and so )od t)at t)e eFem#tion 'ontained in Se'tion 6
o. Re#. $'t No. 6-@ a##ies to a manu.a'turers o. sisi, bagoong, #atis and simiar native
#rodu'ts /it)out distin'tion or Nuai.i'ation as to /)et)er t)e, are sma, medium or arge
s'ae.
8n t)e issue o. nomina damages, $rti'e ---- o. t)e "ivi "ode
-0
states t)at t)e 'ourt ma,
a/ard nomina damages in ever, obigation arising .rom an, sour'e enumerated in $rti'e
1157,
-1
or in ever, ot)er 'ase /)ere an, #ro#ert, rig)t )as been invaded.
--
Nomina damages
are given in order t)at a rig)t o. t)e #ainti.., /)i') )as been vioated or invaded b, t)e
de.endant, ma, be vindi'ated or re'ogni!ed, and not .or t)e #ur#ose o. indemni.,ing t)e
#ainti.. .or an, oss su..ered b, )im.
-@
=n anot)er 'ase,
-;
t)is "ourt )ed t)at /)en #ainti..
su..ers some s#e'ies o. in&ur, not enoug) to /arrant an a/ard o. a'tua damages, t)e 'ourt
ma, a/ard nomina damages. "onsidering t)e .oregoing, /e .ind t)at t)e a/ard o. nomina
damages to Ru.ina in t)e amount o. .i.t, t)ousand #esos 7P50,000.00: is reasonabe,
/arranted and &usti.ied.
$s to t)e t)ird issue, Rue 60, Se'tion -7a:, o. t)e Revised Rues o. "ourt mandates t)at a
#art, #ra,ing .or t)e re'over, o. #ossession o. #ersona #ro#ert, must s)o/ b, )is o/n
a..idavit or t)at o. some ot)er #erson /)o #ersona, Ano/s t)e .a'ts t)at )e is t)e o/ner o.
t)e #ro#ert, 'aimed, #arti'uar, des'ribing it, or is entited to t)e #ossession t)ereo..
-5
=t
must be borne in mind t)at re#evin is a #ossessor, a'tion t)e gist o. /)i') .o'uses on t)e
rig)t o. #ossession t)at, in turn, is de#endent on a ega basis t)at, not in.reNuent,, ooAs to
t)e o/ners)i# o. t)e ob&e't soug)t to be re#evied.
-6
Drong.u detention b, t)e de.endant o.
t)e #ro#erties soug)t in an a'tion .or re#evin must be satis.a'tori, estabis)ed. =. on, a
me')anisti' averment t)ereo. is o..ered, t)e /rit s)oud not be issued.
-7
=n t)is 'ase, (/in $'e
)as not s)o/n t)at it is entited to t)e #ossession o. t)e bottes in Nuestion and 'onseNuent,
t)ere is t)us no basis .or t)e demand b, it o. due 'om#ensation. $s stated b, t)e 'ourt in t)e
earier 'ase o. (/in $'e Eodings "or#oration v. "ourt o. $##eas
-8
:
Petitioner 'annot seeA re.uge in Se'. 5 o. R$ No. 6-@ to su##ort its 'aim o. 'ontinuing
o/ners)i# over t)e sub&e't bottes. =n Gnited States v. %anue 27 P)i. --1 71C06:3 /e )ed
t)at sin'e t)e #ur')aser at )is dis'retion 'oud eit)er retain or return t)e bottes, t)e
transa'tion must be regarded as a sae o. t)e bottes /)en t)e #ur')aser a'tua, eFer'ised t)at
dis'retion and de'ided not to return t)em to t)e vendor. De aso taAe &udi'ia noti'e o. t)e
standard #ra'ti'e toda, t)at t)e 'ost o. t)e 'ontainer is in'uded in t)e seing #ri'e o. t)e
#rodu't su') t)at t)e bu,er o. iNuor or an, su') #rodu't .rom an, store is not reNuired to
return t)e botte nor is t)e iNuor #a'ed in a #asti' 'ontainer t)at #ossession o. t)e botte is
retained b, t)e store.
DE6R6<8R6, #remises 'onsidered, t)e instant #etition is 46N=64 .or a'A o. merit and t)e
de'ision dated -7 Se#tember -00- and resoution dated -C Se#tember -00@, in "$-G.R. "*
No. 5-85-, bot) o. t)e "ourt o. $##eas are $..irmed.
S8 8R46R64.
G.R. N!. -GG20/ +e4#u&#( 10, 122/
LUIS MARCOS ,. LAUREL, Petitioner,
vs.
*ON. ZEUS C. ABROGAR, ,#es%"%n; Ju";e !) the Re;%!n&l T#%&l C!u#t, M&C&t% C%t(,
B#&nh -G2, ,EO,LE O+ T*E ,*ILI,,INESH ,*ILI,,INE LONG DISTANCE
TELE,*ONE COM,ANY, Res#ondents.
4 6 " = S = 8 N
CALLEJO, SR., J.:
>e.ore us is a Petition .or Revie/ on "ertiorari o. t)e 4e'ision
1
o. t)e "ourt o. $##eas 7"$:
in "$-G.R. SP No. 688;1 a..irming t)e 8rder issued b, +udge Ieus ". $brogar, Regiona
(ria "ourt 7R(":, %aAati "it,, >ran') 150, /)i') denied t)e Q%otion to Quas) 7Dit)
%otion to 4e.er $rraignment:Q in "rimina "ase No. CC--;-5 .or t)e.t.
P)ii##ine 9ong 4istan'e (ee#)one "om#an, 7P94(: is t)e )oder o. a egisative .ran')ise
to render o'a and internationa tee'ommuni'ation servi'es under Re#ubi' $'t No.
708-.
-
Gnder said a/, P94( is aut)ori!ed to estabis), o#erate, manage, ease, maintain and
#ur')ase tee'ommuni'ation s,stems, in'uding transmitting, re'eiving and s/it')ing
stations, .or bot) domesti' and internationa 'as. <or t)is #ur#ose, it )as instaed an
estimated 1.7 miion tee#)one ines nation/ide. P94( aso o..ers ot)er servi'es as
aut)ori!ed b, "erti.i'ates o. Pubi' "onvenien'e and Ne'essit, 7"P"N: du, issued b, t)e
Nationa (ee'ommuni'ations "ommission 7N(":, and o#erates and maintains an
=nternationa Gate/a, <a'iit, 7=G<:. ()e P94( net/orA is t)us #rin'i#a, 'om#osed o. t)e
Pubi' S/it') (ee#)one Net/orA 7PS(N:, tee#)one )andsets and0or tee'ommuni'ations
eNui#ment used b, its subs'ribers, t)e /ires and 'abes inAing said tee#)one )andsets and0or
tee'ommuni'ations eNui#ment, antenna, t)e =G<, and ot)er tee'ommuni'ations eNui#ment
/)i') #rovide inter'onne'tions.
@
2avvphil$net
P94( aeges t)at one o. t)e aternative 'aing #atterns t)at 'onstitute net/orA .raud and
vioate its net/orA integrit, is t)at /)i') is Ano/n as =nternationa Sim#e Resae 7=SR:. =SR
is a met)od o. routing and 'om#eting internationa ong distan'e 'as using =nternationa
Private 9eased 9ines 7=P9:, 'abes, antenna or air /ave or .reNuen',, /)i') 'onne't dire't,
to t)e o'a or domesti' eF')ange .a'iities o. t)e terminating 'ountr, 7t)e 'ountr, /)ere t)e
'a is destined:. ()e =P9 is inAed to s/it')ing eNui#ment /)i') is 'onne'ted to a P94(
tee#)one ine0number. =n t)e #ro'ess, t)e 'as b,#ass t)e =G< .ound at t)e terminating
'ountr,, or in some instan'es, even t)ose .rom t)e originating 'ountr,.
;
8ne su') aternative 'aing servi'e is t)at o..ered b, >a,net "o., 9td. 7>a,net: /)i') ses
Q>a, Su#er 8rient "ardQ #)one 'ards to #eo#e /)o 'a t)eir .riends and reatives in t)e
P)ii##ines. Dit) said 'ard, one is entited to a -7-minute 'a to t)e P)ii##ines .or about
T@7.0@ #er minute. $.ter diaing t)e =SR a''ess number indi'ated in t)e #)one 'ard, t)e =SR
o#erator reNuests t)e subs'riber to give t)e P=N number aso indi'ated in t)e #)one 'ard.
8n'e t)e 'aer?s identit, 7as #ur')aser o. t)e #)one 'ard: is 'on.irmed, t)e =SR o#erator /i
t)en #rovide a P)ii##ine o'a ine to t)e reNuesting 'aer via t)e =P9. $''ording to P94(,
'as made t)roug) t)e =P9 never #ass t)e to 'enter o. =G< o#erators in t)e P)ii##ines.
Gsing t)e o'a ine, t)e >a,net 'ard user is abe to #a'e a 'a to an, #oint in t)e P)ii##ines,
#rovided t)e o'a ine is Nationa 4ire't 4ia 7N44: 'a#abe.
5
P94( asserts t)at >a,net 'ondu'ts its =SR a'tivities b, utii!ing an =P9 to 'ourse its in'oming
internationa ong distan'e 'as .rom +a#an. ()e =P9 is inAed to s/it')ing eNui#ment, /)i')
is t)en 'onne'ted to P94( tee#)one ines0numbers and eNui#ment, /it) >a,net as
subs'riber. ()roug) t)e use o. t)e tee#)one ines and ot)er auFiiar, eNui#ment, >a,net is
abe to 'onne't an internationa ong distan'e 'a .rom +a#an to an, #art o. t)e P)ii##ines,
and maAe it a##ear as a 'a originating .rom %etro %ania. "onseNuent,, t)e o#erator o. an
=SR is abe to evade #a,ment o. a''ess, termination or b,#ass ')arges and a''ounting rates,
as /e as 'om#ian'e /it) t)e reguator, reNuirements o. t)e N(". ()us, t)e =SR o#erator
o..ers internationa tee'ommuni'ation servi'es at a o/er rate, to t)e damage and #re&udi'e
o. egitimate o#erators iAe P94(.
6
P94( #ointed out t)at >a,net utii!ed t)e .oo/ing eNui#ment .or its =SR a'tivities: ines,
'abes, and antennas or eNui#ment or devi'e 'a#abe o. transmitting air /aves or .reNuen',,
su') as an =P9 and tee#)one ines and eNui#mentB 'om#uters or an, eNui#ment or devi'e
'a#abe o. a''e#ting in.ormation a##,ing t)e #res'ribed #ro'ess o. t)e in.ormation and
su##,ing t)e resut o. t)is #ro'essB modems or an, eNui#ment or devi'e t)at enabes a data
termina eNui#ment su') as 'om#uters to 'ommuni'ate /it) ot)er data termina eNui#ment
via a tee#)one ineB muti#eFers or an, eNui#ment or devi'e t)at enabes t/o or more signas
.rom di..erent sour'es to #ass t)roug) a 'ommon 'abe or transmission ineB s/it')ing
eNui#ment, or eNui#ment or devi'e 'a#abe o. 'onne'ting tee#)one inesB and so.t/are,
disAettes, ta#es or eNui#ment or devi'e used .or re'ording and storing in.ormation.
7
P94( aso dis'overed t)at >a,net subs'ribed to a tota o. 1-@ P94( tee#)one
ines0numbers.
8
>ased on t)e (ra..i' Stud, 'ondu'ted on t)e voume o. 'as #assing t)roug)
>a,net?s =SR net/orA /)i') b,#ass t)e =G< to 'enter, P94( in'urred an estimated mont),
oss o. P10,185,@-5.C6.
C
Re'ords at t)e Se'urities and 6F')ange "ommission 7S6": aso
reveaed t)at >a,net /as not aut)ori!ed to #rovide internationa or domesti' ong distan'e
tee#)one servi'e in t)e 'ountr,. ()e .oo/ing are its o..i'ers: Yu&i Ei&ioAa, a +a#anese
nationa 7')airman o. t)e board o. dire'tors:B Gina ". %uAaida, a <ii#ina 7board member and
#resident:B 9uis %ar'os P. 9aure, a <ii#ino 7board member and 'or#orate se'retar,:B Ri'A,
")an Pe, a <ii#ino 7board member and treasurer:B and Yasus)i Ges)ima, aso a +a#anese
nationa 7board member:.
G#on 'om#aint o. P94( against >a,net .or net/orA .raud, and on t)e strengt) o. t/o sear')
/arrants
10
issued b, t)e R(" o. %aAati, >ran') 1;7, Nationa >ureau o. =nvestigation 7N>=:
agents sear')ed its o..i'e at t)e 7t) <oor, S+G >uiding, Jaa,aan $venue, %aAati "it, on
November 8, 1CCC. $tsus)i %atsuura, Nobu,os)i %i,aAe, 6dourd 4. 9a'son and Roando +.
*iegas /ere arrested b, N>= agents /)ie in t)e a't o. manning t)e o#erations o. >a,net.
Sei!ed in t)e #remises during t)e sear') /ere numerous eNui#ment and devi'es used in its
=SR a'tivities, su') as muti#eFers, modems, 'om#uter monitors, "PGs, antenna, assorted
'om#uter #eri#)era 'ords and mi'ro#ro'essors, 'abes0/ires, assorted P94( statement o.
a''ounts, #araboi' antennae and votage reguators.
State Prose'utor 8.eia 9. "ao 'ondu'ted an inNuest investigation and issued a
Resoution
11
on +anuar, -8, -000, .inding #robabe 'ause .or t)e.t under $rti'e @08 o. t)e
Revised Pena "ode and Presidentia 4e'ree No. ;01
1-
against t)e res#ondents t)erein,
in'uding 9aure.
8n <ebruar, 8, -000, State Prose'utor "ao .ied an =n.ormation /it) t)e R(" o. %aAati "it,
')arging %atsuura, %i,aAe, 9a'son and *iegas /it) t)e.t under $rti'e @08 o. t)e Revised
Pena "ode. $.ter 'ondu'ting t)e reNuisite #reiminar, investigation, t)e State Prose'utor
.ied an $mended =n.ormation im#eading 9aure 7a #artner in t)e a/ .irm o. =nges, 9aure,
Sainas, and, unti November 1C, 1CCC, a member o. t)e board o. dire'tors and 'or#orate
se'retar, o. >a,net:, and t)e ot)er members o. t)e board o. dire'tors o. said 'or#oration,
name,, Yu&i Ei&ioAa, Yasus)i Ges)ima, %uAaida, 9a'son and *iegas, as a''used .or t)e.t
under $rti'e @08 o. t)e Revised Pena "ode. ()e in'u#ator, #ortion o. t)e $mended
=n.ormation reads:
8n or about Se#tember 10-1C, 1CCC, or #rior t)ereto, in %aAati "it,, and /it)in t)e
&urisdi'tion o. t)is Eonorabe "ourt, t)e a''used, 'ons#iring and 'on.ederating toget)er and
a o. t)em mutua, )e#ing and aiding one anot)er, /it) intent to gain and /it)out t)e
Ano/edge and 'onsent o. t)e P)ii##ine 9ong 4istan'e (ee#)one 7P94(:, did t)en and
t)ere /i.u,, una/.u, and .eonious, taAe, stea and use t)e internationa ong distan'e
'as beonging to P94( b, 'ondu'ting =nternationa Sim#e Resae 7=SR:, /)i') is a met)od
o. routing and 'om#eting internationa ong distan'e 'as using ines, 'abes, antennae,
and0or air /ave .reNuen', /)i') 'onne't dire't, to t)e o'a or domesti' eF')ange .a'iities
o. t)e 'ountr, /)ere t)e 'a is destined, e..e'tive, steaing t)is business .rom P94( /)ie
using its .a'iities in t)e estimated amount o. P-0,@70,651.C- to t)e damage and #re&udi'e o.
P94(, in t)e said amount.
"8N(R$RY (8 9$D.
1@
$''used 9aure .ied a Q%otion to Quas) 7/it) %otion to 4e.er $rraignment:Q on t)e ground
t)at t)e .a'tua aegations in t)e $mended =n.ormation do not 'onstitute t)e .eon, o. t)e.t
under $rti'e @08 o. t)e Revised Pena "ode. Ee averred t)at t)e Revised Pena "ode, or an,
ot)er s#e'ia #ena a/ .or t)at matter, does not #ro)ibit =SR o#erations. Ee 'aimed t)at
tee#)one 'as /it) t)e use o. P94( tee#)one ines, /)et)er domesti' or internationa,
beong to t)e #ersons maAing t)e 'a, not to P94(. Ee argued t)at t)e 'aer mere, uses t)e
.a'iities o. P94(, and /)at t)e atter o/ns are t)e tee'ommuni'ation in.rastru'tures or
.a'iities t)roug) /)i') t)e 'a is made. Ee aso asserted t)at P94( is 'om#ensated .or t)e
'aer?s use o. its .a'iities b, /a, o. rentaB .or an outgoing overseas 'a, P94( ')arges t)e
'aer #er minute, based on t)e duration o. t)e 'a. ()us, no #ersona #ro#ert, /as stoen
.rom P94(. $''ording to 9aure, t)e P-0,@70,651.C- stated in t)e =n.ormation, i. an,t)ing,
re#resents t)e renta .or t)e use o. P94( .a'iities, and not t)e vaue o. an,t)ing o/ned b, it.
<ina,, )e averred t)at t)e aegations in t)e $mended =n.ormation are aread, subsumed
under t)e =n.ormation .or vioation o. Presidentia 4e'ree 7P.4.: No. ;01 .ied and #ending in
t)e %etro#oitan (ria "ourt o. %aAati "it,, do'Aeted as "rimina "ase No. -76766.
()e #rose'ution, t)roug) #rivate 'om#ainant P94(, o##osed t)e motion,
1;
'ontending t)at
t)e movant una/.u, tooA #ersona #ro#ert, beonging to it, as .oo/s: 1: intangibe
tee#)one servi'es t)at are being o..ered b, P94( and ot)er tee'ommuni'ation 'om#anies,
i.e., t)e 'onne'tion and inter'onne'tion to t)eir tee#)one ines0.a'iitiesB -: t)e use o. t)ose
.a'iities over a #eriod o. timeB and @: t)e revenues derived in 'onne'tion /it) t)e rendition o.
su') servi'es and t)e use o. su') .a'iities.
15
()e #rose'ution asserted t)at t)e use o. P94(?s intangibe tee#)one servi'es0.a'iities ao/s
ee'troni' voi'e signas to #ass t)roug) t)e same, and utimate, to t)e 'aed #art,?s number.
=t averred t)at su') servi'e0.a'iit, is aAin to ee'tri'it, /)i'), at)oug) an intangibe
#ro#ert,, ma,, nevert)eess, be a##ro#riated and be t)e sub&e't o. t)e.t. Su') servi'e over a
#eriod o. time .or a 'onsideration is t)e business t)at P94( #rovides to its 'ustomers, /)i')
enabes t)e atter to send various messages to instaed re'i#ients. ()e servi'e rendered b,
P94( is aAin to mer')andise /)i') )as s#e'i.i' vaue, and t)ere.ore, 'a#abe o.
a##ro#riation b, anot)er, as in t)is 'ase, t)roug) t)e =SR o#erations 'ondu'ted b, t)e movant
and )is 'o-a''used.
()e #rose'ution .urt)er aeged t)at Qinternationa business 'as and revenues 'onstitute
#ersona #ro#ert, envisaged in $rti'e @08 o. t)e Revised Pena "ode.Q %oreover, t)e
intangibe tee#)one servi'es0.a'iities beong to P94( and not to t)e movant and t)e ot)er
a''used, be'ause t)e, )ave no tee#)one servi'es and .a'iities o. t)eir o/n du, aut)ori!ed
b, t)e N("B t)us, t)e taAing b, t)e movant and )is 'o-a''used o. P94( servi'es /as /it)
intent to gain and /it)out t)e atter?s 'onsent.
()e #rose'ution #ointed out t)at t)e a''used, as /e as t)e movant, /ere #aid in eF')ange
.or t)eir iega a##ro#riation and use o. P94(?s tee#)one servi'es and .a'iitiesB on t)e ot)er
)and, t)e a''used did not #a, a singe 'entavo .or t)eir iega =SR o#erations. ()us, t)e a'ts
o. t)e a''used /ere aAin to t)e use o. a Q&um#erQ b, a 'onsumer to de.e't t)e 'urrent .rom
t)e )ouse ee'tri' meter, t)ereb, enabing one to stea ee'tri'it,. ()e #rose'ution em#)asi!ed
t)at its #osition is .orti.ied b, t)e Resoutions o. t)e 4e#artment o. +usti'e in P94( v.
(iongson, et a. 7=.S. No. C7-0C-5: and in P$8"(<-P94( v. 6ton +o)n (uason, et a. 7=.S.
No. -000-@70: /)i') /ere issued on $ugust 1;, -000 .inding #robabe 'ause .or t)e.t against
t)e res#ondents t)erein.
8n Se#tember 1;, -001, t)e R(" issued an 8rder
16
den,ing t)e %otion to Quas) t)e
$mended =n.ormation. ()e 'ourt de'ared t)at, at)oug) t)ere is no a/ t)at eF#ress,
#ro)ibits t)e use o. =SR, t)e .a'ts aeged in t)e $mended =n.ormation Q/i s)o/ )o/ t)e
aeged 'rime /as 'ommitted b, 'ondu'ting =SR,Q to t)e damage and #re&udi'e o. P94(.
9aure .ied a %otion .or Re'onsideration
17
o. t)e 8rder, aeging t)at internationa ong
distan'e 'as are not #ersona #ro#ert,, and are not 'a#abe o. a##ro#riation. Ee maintained
t)at business or revenue is not 'onsidered #ersona #ro#ert,, and t)at t)e #rose'ution .aied to
addu'e #roo. o. its eFisten'e and t)e subseNuent oss o. #ersona #ro#ert, beonging to
anot)er. "iting t)e ruing o. t)e "ourt in Gnited States v. 4e Gu!man,
18
9aure averred t)at t)e
'ase is not one /it) tee#)one 'as /)i') originate /it) a #arti'uar 'aer and terminates
/it) t)e 'aed #art,. Ee insisted t)at tee#)one 'as are 'onsidered #rivieged
'ommuni'ations under t)e "onstitution and 'annot be 'onsidered as Qt)e #ro#ert, o. P94(.Q
Ee .urt)er argued t)at t)ere is no Ains)i# bet/een tee#)one 'as and ee'tri'it, or gas, as t)e
atter are .orms o. energ, /)i') are generated and 'onsumabe, and ma, be 'onsidered as
#ersona #ro#ert, be'ause o. su') ')ara'teristi'. 8n t)e ot)er )and, t)e movant argued, t)e
tee#)one business is not a .orm o. energ, but is an a'tivit,.
=n its 8rder
1C
dated 4e'ember 11, -001, t)e R(" denied t)e movant?s %otion .or
Re'onsideration. ()is time, it rued t)at /)at /as stoen .rom P94( /as its QbusinessQ
be'ause, as aeged in t)e $mended =n.ormation, t)e internationa ong distan'e 'as made
t)roug) t)e .a'iities o. P94( .ormed #art o. its business. ()e R(" noted t)at t)e movant
/as ')arged /it) steaing t)e business o. P94(. (o su##ort its ruing, it 'ited Stro')e'Aer v.
Ramire!,
-0
/)ere t)e "ourt rued t)at interest in business is #ersona #ro#ert, 'a#abe o.
a##ro#riation. =t .urt)er de'ared t)at, t)roug) t)eir =SR o#erations, t)e movant and )is 'o-
a''used de#rived P94( o. .ees .or internationa ong distan'e 'as, and t)at t)e =SR used b,
t)e movant and )is 'o-a''used /as no di..erent .rom t)e Q&um#erQ used .or steaing
ee'tri'it,.
9aure t)en .ied a Petition .or "ertiorari /it) t)e "$, assaiing t)e 8rder o. t)e R(". Ee
aeged t)at t)e res#ondent &udge grave, abused )is dis'retion in den,ing )is %otion to
Quas) t)e $mended =n.ormation.
-1
$s geaned .rom t)e materia averments o. t)e amended
in.ormation, )e /as ')arged /it) steaing t)e internationa ong distan'e 'as beonging to
P94(, not its business. %oreover, t)e R(" .aied to distinguis) bet/een t)e business o.
P94( 7#roviding servi'es .or internationa ong distan'e 'as: and t)e revenues derived
t)ere.rom. Ee o#ined t)at a QbusinessQ or its revenues 'annot be 'onsidered as #ersona
#ro#ert, under $rti'e @08 o. t)e Revised Pena "ode, sin'e a QbusinessQ is Q71: a 'ommer'ia
or mer'antie a'tivit, 'ustomari, engaged in as a means o. ivei)ood and t,#i'a, invoving
some inde#enden'e o. &udgment and #o/er o. de'isionB 7-: a 'ommer'ia or industria
enter#riseB and 7@: re.ers to transa'tions, deaings or inter'ourse o. an, nature.Q 8n t)e ot)er
)and, t)e term QrevenueQ is de.ined as Qt)e in'ome t)at 'omes ba'A .rom an investment 7as in
rea or #ersona #ro#ert,:B t)e annua or #eriodi'a rents, #ro.its, interests, or issues o. an,
s#e'ies o. rea or #ersona #ro#ert,.Q
--
9aure .urt)er #osited t)at an ee'tri' 'om#an,?s business is t)e #rodu'tion and distribution o.
ee'tri'it,B a gas 'om#an,?s business is t)e #rodu'tion and0or distribution o. gas 7as .ue:B
/)ie a /ater 'om#an,?s business is t)e #rodu'tion and distribution o. #otabe /ater. Ee
argued t)at t)e QbusinessQ in a t)ese 'ases is t)e 'ommer'ia a'tivit,, /)ie t)e goods and
mer')andise are t)e #rodu'ts o. su') a'tivit,. ()us, in #rose'utions .or t)e.t o. 'ertain .orms
o. energ,, it is t)e ee'tri'it, or gas /)i') is aeged to be stoen and not t)e QbusinessQ o.
#roviding ee'tri'it, or gas. Eo/ever, sin'e a tee#)one 'om#an, does not #rodu'e an,
energ,, goods or mer')andise and mere, renders a servi'e or, in t)e /ords o. P94(, Qt)e
'onne'tion and inter'onne'tion to t)eir tee#)one ines0.a'iities,Q su') servi'e 'annot be t)e
sub&e't o. t)e.t as de.ined in $rti'e @08 o. t)e Revised Pena "ode.
-@
Ee .urt)er de'ared t)at to 'ategori!e QbusinessQ as #ersona #ro#ert, under $rti'e @08 o. t)e
Revised Pena "ode /oud ead to absurd 'onseNuen'esB in #rose'utions .or t)e.t o. gas,
ee'tri'it, or /ater, it /oud t)en be #ermissibe to aege in t)e =n.ormation t)at it is t)e gas
business, t)e ee'tri' business or t)e /ater business /)i') )as been stoen, and no onger t)e
mer')andise #rodu'ed b, su') enter#rise.
-;
9aure .urt)er 'ited t)e Resoution o. t)e Se'retar, o. +usti'e in Pite v. %endo!a,
-5
/)ere it
/as rued t)at t)e Revised Pena "ode, egisated as it /as be.ore #resent te')noogi'a
advan'es /ere even 'on'eived, is not adeNuate to address t)e nove means o. QsteaingQ
air/aves or airtime. =n said resoution, it /as noted t)at t)e inadeNua', #rom#ted t)e .iing o.
Senate >i -@7C 7si': entited Q()e $nti-(ee'ommuni'ations <raud o. 1CC7Q to deter 'oning
o. 'euar #)ones and ot)er .orms o. 'ommuni'ations .raud. ()e said bi Qaims to #rote't in
number 76SN: 7si': or "a#'ode, mobie identi.i'ation number 7%=N:, ee'troni'-internationa
mobie eNui#ment identit, 76%6=0=%6=:, or subs'riber identit, modueQ and Qan, attem#t to
du#i'ate t)e data on anot)er 'euar #)one /it)out t)e 'onsent o. a #ubi'
tee'ommuni'ations entit, /oud be #unis)abe b, a/.Q
-6
()us, 9aure 'on'uded, Qt)ere is
no 'rime i. t)ere is no a/ #unis)ing t)e 'rime.Q
8n $ugust @0, -00-, t)e "$ rendered &udgment dismissing t)e #etition.
-7
()e a##eate 'ourt
rued t)at a #etition .or 'ertiorari under Rue 65 o. t)e Rues o. "ourt /as not t)e #ro#er
remed, o. t)e #etitioner. 8n t)e merits o. t)e #etition, it )ed t)at /)ie business is genera,
an a'tivit,
/)i') is abstra't and intangibe in .orm, it is nevert)eess 'onsidered Q#ro#ert,Q under $rti'e
@08 o. t)e Revised Pena "ode. ()e "$ o#ined t)at P94(?s business o. #roviding
internationa 'as is #ersona #ro#ert, /)i') ma, be t)e ob&e't o. t)e.t, and 'ited Gnited
States v. "aros
-8
to su##ort su') 'on'usion. ()e tribuna aso 'ited Stro')e'Aer v.
Ramire!,
-C
/)ere t)is "ourt rued t)at one-)a. interest in a da,?s business is #ersona
#ro#ert, under Se'tion - o. $'t No. @C5-, ot)er/ise Ano/n as t)e >uA Saes 9a/. ()e
a##eate 'ourt )ed t)at t)e o#erations o. t)e =SR are not subsumed in t)e ')arge .or vioation
o. P.4. No. ;01.
9aure, no/ t)e #etitioner, assais t)e de'ision o. t)e "$, 'ontending t)at -
(E6 "8GR( 8< $PP6$9S 6RR64 =N RG9=NG (E$( (E6 P6RS8N$9
PR8P6R(Y $996G649Y S(896N P6R (E6 =N<8R%$(=8N =S N8( (E6
Q=N(6RN$(=8N$9 98NG 4=S($N"6 "$99SQ >G( (E6 Q>GS=N6SS 8<
P94(.Q
(E6 "8GR( 8< $PP6$9S 6RR64 =N RG9=NG (E$( (E6 (6R% Q>GS=N6SSQ
=S P6RS8N$9 PR8P6R(Y D=(E=N (E6 %6$N=NG 8< $R(. @08 8< (E6
R6*=S64 P6N$9 "846.
@0
Petitioner avers t)at t)e #etition .or a /rit o. 'ertiorari ma, be .ied to nui., an intero'utor,
order o. t)e tria 'ourt /)i') /as issued /it) grave abuse o. dis'retion amounting to eF'ess
or a'A o. &urisdi'tion. =n su##ort o. )is #etition be.ore t)e "ourt, )e reiterates t)e arguments
in )is #eadings .ied be.ore t)e "$. Ee .urt)er 'aims t)at /)ie t)e rig)t to 'arr, on a
business or an interest or #arti'i#ation in business is 'onsidered #ro#ert, under t)e Ne/ "ivi
"ode, t)e term Qbusiness,Q )o/ever, is not. Ee asserts t)at t)e P)ii##ine 9egisature, /)i')
a##roved t)e Revised Pena "ode /a, ba'A in +anuar, 1, 1C@-, 'oud not )ave 'ontem#ated
to in'ude internationa ong distan'e 'as and QbusinessQ as #ersona #ro#ert, under $rti'e
@08 t)ereo..
=n its 'omment on t)e #etition, t)e 8..i'e o. t)e Soi'itor Genera 78SG: maintains t)at t)e
amended in.ormation 'ear, states a t)e essentia eements o. t)e 'rime o. t)e.t. Petitioner?s
inter#retation as to /)et)er an Qinternationa ong distan'e 'aQ is #ersona #ro#ert, under t)e
a/ is in'onseNuentia, as a reading o. t)e amended in.ormation readi, reveas t)at s#e'i.i'
a'ts and 'ir'umstan'es /ere aeged ')arging >a,net, t)roug) its o..i'ers, in'uding
#etitioner, o. .eonious, taAing, steaing and iega, using internationa ong distan'e 'as
beonging to res#ondent P94( b, 'ondu'ting =SR o#erations, t)us, Qrouting and 'om#eting
internationa ong distan'e 'as using ines, 'abes, antenna and0or air/ave .reNuen', /)i')
'onne't dire't, to t)e o'a or domesti' eF')ange .a'iities o. t)e 'ountr, /)ere t)e 'a is
destined.Q ()e 8SG maintains t)at t)e internationa ong distan'e 'as aeged in t)e
amended in.ormation s)oud be 'onstrued to mean QbusinessQ o. P94(, /)i'), /)ie abstra't
and intangibe in .orm, is #ersona #ro#ert, sus'e#tibe o. a##ro#riation.
@1
()e 8SG avers t)at
/)at /as stoen b, #etitioner and )is 'o-a''used is t)e business o. P94( #roviding
internationa ong distan'e 'as /)i'), t)oug) intangibe, is #ersona #ro#ert, o. t)e P94(.
@-
<or its #art, res#ondent P94( asserts t)at #ersona #ro#ert, under $rti'e @08 o. t)e Revised
Pena "ode 'om#re)ends intangibe #ro#ert, su') as ee'tri'it, and gas /)i') are vauabe
arti'es .or mer')andise, broug)t and sod iAe ot)er #ersona #ro#ert,, and are 'a#abe o.
a##ro#riation. =t insists t)at t)e business o. internationa 'as and revenues 'onstitute
#ersona #ro#ert, be'ause t)e same are vauabe arti'es o. mer')andise. ()e res#ondent
reiterates t)at internationa 'as invove 7a: t)e intangibe tee#)one servi'es t)at are being
o..ered b, it, t)at is, t)e 'onne'tion and inter'onne'tion to t)e tee#)one net/orA, ines or
.a'iitiesB 7b: t)e use o. its tee#)one net/orA, ines or .a'iities over a #eriod o. timeB and 7':
t)e in'ome derived in 'onne'tion t)ere/it).
@@
P94( .urt)er #osits t)at business revenues or t)e in'ome derived in 'onne'tion /it) t)e
rendition o. su') servi'es and t)e use o. its tee#)one net/orA, ines or .a'iities are #ersona
#ro#erties under $rti'e @08 o. t)e Revised Pena "odeB so is t)e use o. said tee#)one
servi'es0tee#)one net/orA, ines or .a'iities /)i') ao/ ee'troni' voi'e signas to #ass
t)roug) t)e same and utimate, to t)e 'aed #art,?s number. =t is aAin to ee'tri'it, /)i'),
t)oug) intangibe #ro#ert,, ma, nevert)eess be a##ro#riated and 'an be t)e ob&e't o. t)e.t.
()e use o. res#ondent P94(?s tee#)one net/orA, ines, or .a'iities over a #eriod o. time .or
'onsideration is t)e business t)at it #rovides to its 'ustomers, /)i') enabes t)e atter to send
various messages to intended re'i#ients. Su') use over a #eriod o. time is aAin to mer')andise
/)i') )as vaue and, t)ere.ore, 'an be a##ro#riated b, anot)er. $''ording to res#ondent
P94(, t)is is /)at a'tua, )a##ened /)en #etitioner 9aure and t)e ot)er a''used beo/
'ondu'ted iega =SR o#erations.
@;
()e #etition is meritorious.
()e issues .or resoution are as .oo/s: 7a: /)et)er or not t)e #etition .or 'ertiorari is t)e
#ro#er remed, o. t)e #etitioner in t)e "ourt o. $##easB 7b: /)et)er or not internationa
tee#)one 'as using >a, Su#er 8rient "ards t)roug) t)e tee'ommuni'ation servi'es
#rovided b, P94( .or su') 'as, or, in s)ort, P94(?s business o. #roviding said
tee'ommuni'ation servi'es, are #ro#er sub&e'ts o. t)e.t under $rti'e @08 o. t)e Revised
Pena "odeB and 7': /)et)er or not t)e tria 'ourt 'ommitted grave abuse o. dis'retion
amounting to eF'ess or a'A o. &urisdi'tion in den,ing t)e motion o. t)e #etitioner to Nuas)
t)e amended in.ormation.
8n t)e issue o. /)et)er or not t)e #etition .or 'ertiorari instituted b, t)e #etitioner in t)e "$
is #ro#er, t)e genera rue is t)at a #etition .or 'ertiorari under Rue 65 o. t)e Rues o. "ourt,
as amended, to nui., an order den,ing a motion to Nuas) t)e =n.ormation is ina##ro#riate
be'ause t)e aggrieved #art, )as a remed, o. a##ea in t)e ordinar, 'ourse o. a/. $##ea and
'ertiorari are mutua, eF'usive o. ea') ot)er. ()e remed, o. t)e aggrieved #art, is to
'ontinue /it) t)e 'ase in due 'ourse and, /)en an un.avorabe &udgment is rendered, assai
t)e order and t)e de'ision on a##ea. Eo/ever, i. t)e tria 'ourt issues t)e order den,ing t)e
motion to Nuas) t)e $mended =n.ormation /it) grave abuse o. dis'retion amounting to eF'ess
or a'A o. &urisdi'tion, or i. su') order is #atent, erroneous, or nu and void .or being
'ontrar, to t)e "onstitution, and t)e remed, o. a##ea /oud not a..ord adeNuate and
eF#editious reie., t)e a''used ma, resort to t)e eFtraordinar, remed, o. 'ertiorari.
@5
$ s#e'ia
'ivi a'tion .or 'ertiorari is aso avaiabe /)ere t)ere are s#e'ia 'ir'umstan'es 'ear,
demonstrating t)e inadeNua', o. an a##ea. $s t)is "ourt )ed in >risto %,ers SNuibb
7P)is.:, =n'. v. *ioria:
@6
Nonet)eess, t)e setted rue is t)at a /rit o. 'ertiorari ma, be granted in 'ases /)ere, des#ite
avaiabiit, o. a##ea a.ter tria, t)ere is at east a #rima .a'ie s)o/ing on t)e .a'e o. t)e
#etition and its anneFes t)at: 7a: t)e tria 'ourt issued t)e order /it) grave abuse o. dis'retion
amounting to a'A o. or in eF'ess o. &urisdi'tionB 7b: a##ea /oud not #rove to be a s#eed,
and adeNuate remed,B 7': /)ere t)e order is a #atent nuit,B 7d: t)e de'ision in t)e #resent
'ase /i arrest .uture itigationsB and 7e: .or 'ertain 'onsiderations su') as #ubi' /e.are and
#ubi' #oi',.
@7
=n )is #etition .or 'ertiorari in t)e "$, #etitioner averred t)at t)e tria 'ourt 'ommitted grave
abuse o. its dis'retion amounting to eF'ess or a'A o. &urisdi'tion /)en it denied )is motion to
Nuas) t)e $mended =n.ormation des#ite )is 'aim t)at t)e materia aegations in t)e $mended
=n.ormation do not ')arge t)e.t under $rti'e @08 o. t)e Revised Pena "ode, or an, o..ense
.or t)at matter. >, so doing, t)e tria 'ourt de#rived )im o. )is 'onstitutiona rig)t to be
in.ormed o. t)e nature o. t)e ')arge against )im. Ee .urt)er averred t)at t)e order o. t)e tria
'ourt is 'ontrar, to t)e 'onstitution and is, t)us, nu and void. Ee insists t)at )e s)oud not be
'om#eed to undergo t)e rigors and tribuations o. a #rotra'ted tria and in'ur eF#enses to
de.end )imse. against a non-eFistent ')arge.
Petitioner is 'orre't.
$n in.ormation or 'om#aint must state eF#i'it, and dire't, ever, a't or omission
'onstituting an o..ense
@8
and must aege .a'ts estabis)ing 'ondu't t)at a #ena statute maAes
'riminaB
@C
and des'ribes t)e #ro#ert, /)i') is t)e sub&e't o. t)e.t to advise t)e a''used /it)
reasonabe 'ertaint, o. t)e a''usation )e is 'aed u#on to meet at t)e tria and to enabe )im
to re, on t)e &udgment t)ereunder o. a subseNuent #rose'ution .or t)e same o..ense.
;0
=t must
s)o/, on its .a'e, t)at i. t)e aeged .a'ts are true, an o..ense )as been 'ommitted. ()e rue is
rooted on t)e 'onstitutiona rig)t o. t)e a''used to be in.ormed o. t)e nature o. t)e 'rime or
'ause o. t)e a''usation against )im. Ee 'annot be 'onvi'ted o. an o..ense even i. #roven
uness it is aeged or ne'essari, in'uded in t)e =n.ormation .ied against )im.
$s a genera #rereNuisite, a motion to Nuas) on t)e ground t)at t)e =n.ormation does not
'onstitute t)e o..ense ')arged, or an, o..ense .or t)at matter, s)oud be resoved on t)e basis
o. said aegations /)ose trut) and vera'it, are ),#ot)eti'a, 'ommittedB
;1
and on additiona
.a'ts admitted or not denied b, t)e #rose'ution.
;-
=. t)e .a'ts aeged in t)e =n.ormation do not
'onstitute an o..ense, t)e 'om#aint or in.ormation s)oud be Nuas)ed b, t)e 'ourt.
;@
De )ave revie/ed t)e $mended =n.ormation and .ind t)at, as mentioned b, t)e #etitioner, it
does not 'ontain materia aegations ')arging t)e #etitioner o. t)e.t o. #ersona #ro#ert,
under $rti'e @08 o. t)e Revised Pena "ode. =t, t)us, be)ooved t)e tria 'ourt to Nuas) t)e
$mended =n.ormation. ()e 8rder o. t)e tria 'ourt den,ing t)e motion o. t)e #etitioner to
Nuas) t)e $mended =n.ormation is a #atent nuit,.
8n t)e se'ond issue, /e .ind and so )od t)at t)e internationa tee#)one 'as #a'ed b, >a,
Su#er 8rient "ard )oders, t)e tee'ommuni'ation servi'es #rovided b, P94( and its
business o. #roviding said servi'es are not #ersona #ro#erties under $rti'e @08 o. t)e
Revised Pena "ode. ()e 'onstru'tion b, t)e res#ondents o. $rti'e @08 o. t)e said "ode to
in'ude, /it)in its 'overage, t)e a.oresaid internationa tee#)one 'as, tee'ommuni'ation
servi'es and business is 'ontrar, to t)e etter and intent o. t)e a/.
()e rue is t)at, #ena a/s are to be 'onstrued stri't,. Su') rue is .ounded on t)e tenderness
o. t)e a/ .or t)e rig)ts o. individuas and on t)e #ain #rin'i#e t)at t)e #o/er o. #unis)ment
is vested in "ongress, not in t)e &udi'ia de#artment. =t is "ongress, not t)e "ourt, /)i') is to
de.ine a 'rime, and ordain its #unis)ment.
;;
4ue res#e't .or t)e #rerogative o. "ongress in
de.ining 'rimes0.eonies 'onstrains t)e "ourt to re.rain .rom a broad inter#retation o. #ena
a/s /)ere a Qnarro/ inter#retationQ is a##ro#riate. ()e "ourt must taAe )eed to anguage,
egisative )istor, and #ur#ose, in order to stri't, determine t)e /rat) and breat) o. t)e
'ondu't t)e a/ .orbids.
;5
Eo/ever, /)en t)e 'ongressiona #ur#ose is un'ear, t)e 'ourt must
a##, t)e rue o. enit,, t)at is, ambiguit, 'on'erning t)e ambit o. 'rimina statutes s)oud be
resoved in .avor o. enit,.
;6
Pena statutes ma, not be enarged b, im#i'ation or intent be,ond t)e .air meaning o. t)e
anguage usedB and ma, not be )ed to in'ude o..enses ot)er t)an t)ose /)i') are 'ear,
des'ribed, not/it)standing t)at t)e "ourt ma, t)inA t)at "ongress s)oud )ave made t)em
more 'om#re)ensive.
;7
Dords and #)rases in a statute are to be 'onstrued a''ording to t)eir
'ommon meaning and a''e#ted usage.
$s ")ie. +usti'e +o)n %ars)a de'ared, Qit /oud be dangerous, indeed, to 'arr, t)e
#rin'i#e t)at a 'ase /)i') is /it)in t)e reason or
mis')ie. o. a statute is /it)in its #rovision, so .ar as to #unis) a 'rime not enumerated in t)e
statute be'ause it is o. eNua atro'it,, or o. Aindred ')ara'ter /it) t)ose /)i') are
enumerated.
;8
D)en inter#reting a 'rimina statute t)at does not eF#i'it, rea') t)e 'ondu't
in Nuestion, t)e "ourt s)oud not base an eF#ansive reading on in.eren'es .rom sub&e'tive and
variabe understanding.
;C
$rti'e @08 o. t)e Revised Pena "ode de.ines t)e.t as .oo/s:
$rt. @08. D)o are iabe .or t)e.t.O ()e.t is 'ommitted b, an, #erson /)o, /it) intent to gain
but /it)out vioen'e, against or intimidation o. #ersons nor .or'e u#on t)ings, s)a taAe
#ersona #ro#ert, o. anot)er /it)out t)e atter?s 'onsent.
()e #rovision /as taAen .rom $rti'e 5@0 o. t)e S#anis) Pena "ode /)i') reads:
1. 9os Nue 'on Unimo de u'rarse, , sin vioen'ia o intimida'iVn en as #ersonas ni .uer!a en
as 'osas, toman as 'osas muebes a&enas sin a vountad de su due1o.
50
<or one to be guit, o. t)e.t, t)e a''used must )ave an intent to stea 7animus .urandi:
#ersona #ro#ert,, meaning t)e intent to de#rive anot)er o. )is o/ners)i#0a/.u #ossession o.
#ersona #ro#ert, /)i') intent is a#art .rom and 'on'urrent, /it) t)e genera 'rimina intent
/)i') is an essentia eement o. a .eon, o. doo 7dous maus:.
$n in.ormation or 'om#aint .or sim#e t)e.t must aege t)e .oo/ing eements: 7a: t)e
taAing o. #ersona #ro#ert,B 7b: t)e said #ro#ert, beongs to anot)erB 7': t)e taAing be done
/it) intent to gainB and 7d: t)e taAing be a''om#is)ed /it)out t)e use o. vioen'e or
intimidation o. #erson0s or .or'e u#on t)ings.
51
8ne is a#t to 'on'ude t)at Q#ersona #ro#ert,Q standing aone, 'overs bot) tangibe and
intangibe #ro#erties and are sub&e't o. t)e.t under t)e Revised Pena "ode. >ut t)e /ords
QPersona #ro#ert,Q under t)e Revised Pena "ode must be 'onsidered in tandem /it) t)e
/ord QtaAeQ in t)e a/. ()e statutor, de.inition o. QtaAingQ and movabe #ro#ert, indi'ates
t)at, 'ear,, not a #ersona #ro#erties ma, be t)e #ro#er sub&e'ts o. t)e.t. ()e genera rue is
t)at, on, movabe #ro#erties /)i') )ave #),si'a or materia eFisten'e and sus'e#tibe o.
o''u#ation b, anot)er are #ro#er ob&e'ts o. t)e.t.
5-
$s eF#ained b, "ueo "aon: Q"osa
&uridi'amente es toda sustan'ia 'or#ora, materia, sus'e#tibe de ser a#re)endida Nue tenga
un vaor 'uaNuiera.Q
5@
$''ording to "ueo "aon, in t)e 'onteFt o. t)e Pena "ode, on, t)ose movabe #ro#erties
/)i') 'an be taAen and 'arried .rom t)e #a'e t)e, are .ound are #ro#er sub&e'ts o. t)e.t.
=ntangibe #ro#erties su') as rig)ts and ideas are not sub&e't o. t)e.t be'ause t)e same 'annot
be QtaAenQ .rom t)e #a'e it is .ound and is o''u#ied or a##ro#riated.
Soamente as 'osas muebes , 'or#oraes #ueden ser ob&eto de )urto. 9a sustra''iVn de 'osas
inmuebes , a 'osas in'or#oraes 7v. gr., os dere')os, as ideas: no #uede integrar este deito,
#ues no es #osibe asiras, tomaras, #ara 'onseguir su a#ro#ia'iVn. 6 "odigo em#ea a
eF#resiVn Q'osas muebeQ en e sentido de 'osa Nue es sus'e#tibe de ser evada de ugar
donde se en'uentra, 'omo dinero, &o,as, ro#as, et'Wtera, asi Nue su 'on'e#to no 'oin'ide #or
'om#eto 'on e .ormuado #or e "odigo 'ivi 7arts. @@5 , @@6:.
5;
()us, movabe #ro#erties under $rti'e @08 o. t)e Revised Pena "ode s)oud be
distinguis)ed .rom t)e rig)ts or interests to /)i') t)e, reate. $ naAed rig)t eFisting mere, in
'ontem#ation o. a/, at)oug) it ma, be ver, vauabe to t)e #erson /)o is entited to
eFer'ise it, is not t)e sub&e't o. t)e.t or ar'en,.
55
Su') rig)ts or interests are intangibe and
'annot be QtaAenQ b, anot)er. ()us, rig)t to #rodu'e oi, good /i or an interest in business,
or t)e rig)t to engage in business, 'redit or .ran')ise are #ro#erties. So is t)e 'redit ine
re#resented b, a 'redit 'ard. Eo/ever, t)e, are not #ro#er sub&e'ts o. t)e.t or ar'en, be'ause
t)e, are /it)out .orm or substan'e, t)e mere Qbreat)Q o. t)e "ongress. 8n t)e ot)er )and,
goods, /ares and mer')andise o. businessmen and 'redit 'ards issued to t)em are movabe
#ro#erties /it) #),si'a and materia eFisten'e and ma, be taAen b, anot)erB )en'e, #ro#er
sub&e'ts o. t)e.t.
()ere is QtaAingQ o. #ersona #ro#ert,, and t)e.t is 'onsummated /)en t)e o..ender
una/.u, a'Nuires #ossession o. #ersona #ro#ert, even i. .or a s)ort timeB or i. su')
#ro#ert, is under t)e dominion and 'ontro o. t)e t)ie.. ()e taAer, at some #arti'uar amount,
must )ave obtained 'om#ete and absoute #ossession and 'ontro o. t)e #ro#ert, adverse to
t)e rig)ts o. t)e o/ner or t)e a/.u #ossessor t)ereo..
56
=t is not ne'essar, t)at t)e #ro#ert,
be a'tua, 'arried a/a, out o. t)e #),si'a #ossession o. t)e a/.u #ossessor or t)at )e
s)oud )ave made )is es'a#e /it) it.
57
Neit)er as#ortation nor a'tua manua #ossession o.
#ro#ert, is reNuired. "onstru'tive #ossession o. t)e t)ie. o. t)e #ro#ert, is enoug).
58
()e essen'e o. t)e eement is t)e taAing o. a t)ing out o. t)e #ossession o. t)e o/ner /it)out
)is #rivit, and 'onsent and /it)out animus revertendi.
5C
(aAing ma, be b, t)e o..ender?s o/n )ands, b, )is use o. inno'ent #ersons /it)out an,
.eonious intent, as /e as an, me')ani'a devi'e, su') as an a''ess devi'e or 'ard, or an,
agen',, animate or inanimate, /it) intent to gain. =ntent to gain in'udes t)e una/.u taAing
o. #ersona #ro#ert, .or t)e #ur#ose o. deriving utiit,, satis.a'tion, en&o,ment and #easure.
60
De agree /it) t)e 'ontention o. t)e res#ondents t)at intangibe #ro#erties su') as ee'tri'a
energ, and gas are #ro#er sub&e'ts o. t)e.t. ()e reason .or t)is is t)at, as eF#ained b, t)is
"ourt in Gnited States v. "aros
61
and Gnited States v. (ambunting,
6-
based on de'isions o. t)e
Su#reme "ourt o. S#ain and o. t)e 'ourts in 6ngand and t)e Gnited States o. $meri'a, gas or
ee'tri'it, are 'a#abe o. a##ro#riation b, anot)er ot)er t)an t)e o/ner. Gas and ee'tri'a
energ, ma, be taAen, 'arried a/a, and a##ro#riated. =n Peo#e v. %enagas,
6@
t)e =inois State
Su#reme "ourt de'ared t)at ee'tri'it,, iAe gas, ma, be seen and .et. 6e'tri'it,, t)e same as
gas, is a vauabe arti'e o. mer')andise, boug)t and sod iAe ot)er #ersona #ro#ert, and is
'a#abe o. a##ro#riation b, anot)er. =t is a vauabe arti'e o. mer')andise, boug)t and sod
iAe ot)er #ersona #ro#ert,, sus'e#tibe o. being severed .rom a mass or arger Nuantit, and
o. being trans#orted .rom #a'e to #a'e. 6e'tri'a energ, ma,, iAe/ise, be taAen and 'arried
a/a,. =t is a vauabe 'ommodit,, boug)t and sod iAe ot)er #ersona #ro#ert,. =t ma, be
trans#orted .rom #a'e to #a'e. ()ere is not)ing in t)e nature o. gas used .or iuminating
#ur#oses /)i') renders it in'a#abe o. being .eonious, taAen and 'arried a/a,.
=n Peo#e eF re >rus) 6e'tri' =uminating "o. v. Dem#e,
6;
t)e "ourt o. $##eas o. Ne/
YorA )ed t)at ee'tri' energ, is manu.a'tured and sod in determinate Nuantities at a .iFed
#ri'e, #re'ise, as are 'oa, Aerosene oi, and gas. =t ma, be 'onve,ed to t)e #remises o. t)e
'onsumer, stored in 'es o. di..erent 'a#a'it, Ano/n as an a''umuatorB or it ma, be sent
t)roug) a /ire, &ust as gas or oi ma, be trans#orted eit)er in a 'ose tanA or .or'ed t)roug) a
#i#e. Eaving rea')ed t)e #remises o. t)e 'onsumer, it ma, be used in an, /a, )e ma, desire,
being, iAe iuminating gas, 'a#abe o. being trans.ormed eit)er into )eat, ig)t, or #o/er, at
t)e o#tion o. t)e #ur')aser. =n Doods v. Peo#e,
65
t)e Su#reme "ourt o. =inois de'ared t)at
t)ere is not)ing in t)e nature o. gas used .or iuminating #ur#oses /)i') renders it in'a#abe
o. being .eonious, taAen and 'arried a/a,. =t is a vauabe arti'e o. mer')andise, boug)t
and sod iAe ot)er #ersona #ro#ert,, sus'e#tibe o. being severed .rom a mass or arger
Nuantit, and o. being trans#orted .rom #a'e to #a'e.
Gas and ee'tri'a energ, s)oud not be eNuated /it) business or servi'es #rovided b,
business entre#reneurs to t)e #ubi'. >usiness does not )ave an eFa't de.inition. >usiness is
re.erred as t)at /)i') o''u#ies t)e time, attention and abor o. men .or t)e #ur#ose o.
ivei)ood or #ro.it. =t embra'es ever,t)ing t)at /)i') a #erson 'an be em#o,ed.
66
>usiness
ma, aso mean em#o,ment, o''u#ation or #ro.ession. >usiness is aso de.ined as a
'ommer'ia a'tivit, .or gain bene.it or advantage.
67
>usiness, iAe servi'es in business,
at)oug) are #ro#erties, are not #ro#er sub&e'ts o. t)e.t under t)e Revised Pena "ode be'ause
t)e same 'annot be QtaAenQ or Qo''u#ied.Q =. it /ere ot)er/ise, as 'aimed b, t)e res#ondents,
t)ere /oud be no &uridi'a di..eren'e bet/een t)e taAing o. t)e business o. a #erson or t)e
servi'es #rovided b, )im .or gain, vis-X-vis, t)e taAing o. goods, /ares or mer')andise, or
eNui#ment 'om#rising )is business.
68
=. it /as its intention to in'ude QbusinessQ as #ersona
#ro#ert, under $rti'e @08 o. t)e Revised Pena "ode, t)e P)ii##ine 9egisature s)oud )ave
s#oAen in anguage t)at is 'ear and de.inite: t)at business is #ersona #ro#ert, under $rti'e
@08 o. t)e Revised Pena "ode.
6C
De agree /it) t)e 'ontention o. t)e #etitioner t)at, as geaned .rom t)e materia averments o.
t)e $mended =n.ormation, )e is ')arged o. Qsteaing t)e internationa ong distan'e 'as
beonging to P94(Q and t)e use t)ereo., t)roug) t)e =SR. "ontrar, to t)e 'aims o. t)e 8SG
and res#ondent P94(, t)e #etitioner is not ')arged o. steaing P-0,@70,651.C5 .rom said
res#ondent. Said amount o. P-0,@70,651.C5 aeged in t)e $mended =n.ormation is t)e
aggregate amount o. a''ess, transmission or termination ')arges /)i') t)e P94( eF#e'ted
.rom t)e internationa ong distan'e 'as o. t)e 'aers /it) t)e use o. >a,net Su#er 8rient
"ards sod b, >a,net "o. 9td.
=n de.ining t)e.t, under $rti'e @08 o. t)e Revised Pena "ode, as t)e taAing o. #ersona
#ro#ert, /it)out t)e 'onsent o. t)e o/ner t)ereo., t)e P)ii##ine egisature 'oud not )ave
'ontem#ated t)e )uman voi'e /)i') is 'onverted into ee'troni' im#uses or ee'tri'a
'urrent /)i') are transmitted to t)e #art, 'aed t)roug) t)e PS(N o. res#ondent P94( and
t)e =SR o. >a,net "ard 9td. /it)in its 'overage. D)en t)e Revised Pena "ode /as
a##roved, on 4e'ember 8, 1C@0, internationa tee#)one 'as and t)e transmission and
routing o. ee'troni' voi'e signas or im#uses emanating .rom said 'as, t)roug) t)e PS(N,
=P9 and =SR, /ere sti non-eFistent. "ase a/ is t)at, /)ere a egisative )istor, .ais to
eviden'e 'ongressiona a/areness o. t)e s'o#e o. t)e statute 'aimed b, t)e res#ondents, a
narro/ inter#retation o. t)e a/ is more 'onsistent /it) t)e usua a##roa') to t)e 'onstru'tion
o. t)e statute. Pena res#onsibiit, 'annot be eFtended be,ond t)e .air s'o#e o. t)e statutor,
mandate.
70
Res#ondent P94( does not a'Nuire #ossession, mu') ess, o/ners)i# o. t)e voi'es o. t)e
tee#)one 'aers or o. t)e ee'troni' voi'e signas or 'urrent emanating .rom said 'as. ()e
)uman voi'e and t)e ee'troni' voi'e signas or 'urrent 'aused t)ereb, are intangibe and not
sus'e#tibe o. #ossession, o''u#ation or a##ro#riation b, t)e res#ondent P94( or even t)e
#etitioner, .or t)at matter. P94( mere, transmits t)e ee'troni' voi'e signas t)roug) its
.a'iities and eNui#ment. >a,net "ard 9td., t)roug) its o#erator, mere, inter'e#ts, reroutes
t)e 'as and #asses t)em to its to 'enter. =ndeed, t)e #arties 'aed re'eive t)e tee#)one
'as .rom +a#an.
=n t)is modern age o. te')noog,, tee'ommuni'ations s,stems )ave be'ome so tig)t,
merged /it) 'om#uter s,stems t)at it is di..i'ut to Ano/ /)ere one starts and t)e ot)er
.inis)es. ()e tee#)one set is )ig), 'om#uteri!ed and ao/s 'om#uters to 'ommuni'ate
a'ross ong distan'es.
71
()e instrumentait, at issue in t)is 'ase is not mere, a tee#)one but
a tee#)one ineF#i'ab, inAed to a 'om#uteri!ed 'ommuni'ations s,stem /it) t)e use o.
>a,net "ards sod b, t)e >a,net "ard 9td. ()e 'or#oration uses 'om#uters, modems and
so.t/are, among ot)ers, .or its =SR.
7-
()e 'ondu't 'om#ained o. b, res#ondent P94( is reminis'ent o. Q#)reaAingQ 7a sang term
.or t)e a'tion o. maAing a tee#)one s,stem to do somet)ing t)at it norma, s)oud not ao/
b, QmaAing t)e #)one 'om#an, bend over and grab its anAesQ:. $ Q#)reaAerQ is one /)o
engages in t)e a't o. mani#uating #)ones and iega, marAets tee#)one servi'es.
7@
Gness
t)e #)one 'om#an, re#a'es a its )ard/are, #)reaAing /oud be im#ossibe to sto#. ()e
#)one 'om#anies in Nort) $meri'a /ere im#eed to re#a'e a t)eir )ard/are and ado#ted
.u digita s/it')ing s,stem Ano/n as t)e "ommon ")anne =nter 8..i'e Signaing.
P)reaAing o''urred on, during t)e 1C60?s and 1C70?s, de'ades a.ter t)e Revised Pena "ode
tooA e..e't.
()e #etitioner is not ')arged, under t)e $mended =n.ormation, .or t)e.t o. tee'ommuni'ation
or tee#)one servi'es o..ered b, P94(. 6ven i. )e is, t)e term Q#ersona #ro#ert,Q under
$rti'e @08 o. t)e Revised Pena "ode 'annot be inter#reted be,ond its seams so as to in'ude
Qtee'ommuni'ation or tee#)one servi'esQ or 'om#uter servi'es .or t)at matter. ()e /ord
Qservi'eQ )as a variet, o. meanings de#endent u#on t)e 'onteFt, or t)e sense in /)i') it is
usedB and, in some instan'es, it ma, in'ude a sae. <or instan'e, t)e sae o. .ood b,
restaurants is usua, re.erred to as Qservi'e,Q at)oug) an a'tua sae is invoved.
7;
=t ma, aso
mean t)e dut, or abor to be rendered b, one #erson to anot)erB #er.orman'e o. abor .or t)e
bene.it o. anot)er.
75
=n t)e 'ase o. P94(, it is to render o'a and internationa
tee'ommuni'ations servi'es and su') ot)er servi'es as aut)ori!ed b, t)e "P"$ issued b, t)e
N(". 6ven at 'ommon a/, neit)er time nor servi'es ma, be taAen and o''u#ied or
a##ro#riated.
76
$ servi'e is genera, not 'onsidered #ro#ert, and a t)e.t o. servi'e /oud not,
t)ere.ore, 'onstitute t)e.t sin'e t)ere 'an be no 'a#tion or as#ortation.
77
Neit)er is t)e
unaut)ori!ed use o. t)e eNui#ment and .a'iities o. P94( b, t)e #etitioner t)e.t under t)e
a.oreNuoted #rovision o. t)e Revised Pena "ode.
78
=. it /as t)e intent o. t)e P)ii##ine 9egisature, in 1C@0, to in'ude servi'es to be t)e sub&e't
o. t)e.t, it s)oud )ave in'or#orated t)e same in $rti'e @08 o. t)e Revised Pena "ode. ()e
9egisature did not. =n .a't, t)e Revised Pena "ode does not even 'ontain a de.inition o.
servi'es.
=. taAing o. tee'ommuni'ation servi'es or t)e business o. a #erson, is to be #ros'ribed, it
must be b, s#e'ia statute
7C
or an amendment o. t)e Revised Pena "ode. Severa states in t)e
Gnited States, su') as Ne/ YorA, Ne/ +erse,, "ai.ornia and *irginia, reai!ed t)at t)eir
'rimina statutes did not 'ontain an, #rovisions #enai!ing t)e t)e.t o. servi'es and #assed
a/s de.ining and #enai!ing t)e.t o. tee#)one and 'om#uter servi'es. ()e Penns,vania
"rimina Statute no/ #enai!es t)e.t o. servi'es, t)us:
7a: $'Nuisition o. servi'es. --
71: $ #erson is guit, o. t)e.t i. )e intentiona, obtains servi'es .or )imse. or .or anot)er
/)i') )e Ano/s are avaiabe on, .or 'om#ensation, b, de'e#tion or t)reat, b, atering or
tam#ering /it) t)e #ubi' utiit, meter or measuring devi'e b, /)i') su') servi'es are
deivered or b, 'ausing or #ermitting su') atering or tam#ering, b, maAing or maintaining
an, unaut)ori!ed 'onne'tion, /)et)er #),si'a,, ee'tri'a, or indu'tive,, to a distribution
or transmission ine, b, atta')ing or maintaining t)e atta')ment o. an, unaut)ori!ed devi'e to
an, 'abe, /ire or ot)er 'om#onent o. an ee'tri', tee#)one or 'abe teevision s,stem or to a
teevision re'eiving set 'onne'ted to a 'abe teevision s,stem, b, maAing or maintaining an,
unaut)ori!ed modi.i'ation or ateration to an, devi'e instaed b, a 'abe teevision s,stem, or
b, .ase toAen or ot)er tri'A or arti.i'e to avoid #a,ment .or t)e servi'e.
=n t)e State o. =inois in t)e Gnited States o. $meri'a, t)e.t o. abor or servi'es or use o.
#ro#ert, is #enai!ed:
7a: $ #erson 'ommits t)e.t /)en )e obtains t)e tem#orar, use o. #ro#ert,, abor or servi'es o.
anot)er /)i') are avaiabe on, .or )ire, b, means o. t)reat or de'e#tion or Ano/ing t)at
su') use is /it)out t)e 'onsent o. t)e #erson #roviding t)e #ro#ert,, abor or servi'es.
=n 1C80, t)e dra.ters o. t)e %ode Pena "ode in t)e Gnited States o. $meri'a arrived at t)e
'on'usion t)at abor and servi'es, in'uding #ro.essiona servi'es, )ave not been in'uded
/it)in t)e traditiona s'o#e o. t)e term Q#ro#ert,Q in ordinar, t)e.t statutes. Een'e, t)e,
de'ided to in'or#orate in t)e "ode Se'tion --@.7, /)i') de.ines and #enai!es t)e.t o.
servi'es, t)us:
71: $ #erson is guit, o. t)e.t i. )e #ur#ose, obtains servi'es /)i') )e Ano/s are avaiabe
on, .or 'om#ensation, b, de'e#tion or t)reat, or b, .ase toAen or ot)er means to avoid
#a,ment .or t)e servi'e. QServi'esQ in'ude abor, #ro.essiona servi'e, trans#ortation,
tee#)one or ot)er #ubi' servi'e, a''ommodation in )otes, restaurants or ese/)ere,
admission to eF)ibitions, use o. ve)i'es or ot)er movabe #ro#ert,. D)ere 'om#ensation .or
servi'e is ordinari, #aid immediate, u#on t)e rendering o. su') servi'e, as in t)e 'ase o.
)otes and restaurants, re.usa to #a, or abs'onding /it)out #a,ment or o..er to #a, gives rise
to a #resum#tion t)at t)e servi'e /as obtained b, de'e#tion as to intention to #a,B 7-: $
#erson 'ommits t)e.t i., )aving 'ontro over t)e dis#osition o. servi'es o. ot)ers, to /)i') )e
is not entited, )e Ano/ing, diverts su') servi'es to )is o/n bene.it or to t)e bene.it o.
anot)er not entited t)ereto.
=nteresting,, a.ter t)e State Su#reme "ourt o. *irginia #romugated its de'ision in 9und v.
"ommon/eat),
80
de'aring t)at neit)er time nor servi'es ma, be taAen and 'arried a/a, and
are not #ro#er sub&e'ts o. ar'en,, t)e Genera $ssemb, o. *irginia ena'ted "ode No. 18---
C8 /)i') reads:
"om#uter time or servi'es or data #ro'essing servi'es or in.ormation or data stored in
'onne'tion t)ere/it) is )ereb, de.ined to be #ro#ert, /)i') ma, be t)e sub&e't o. ar'en,
under Y Y 18.--C5 or 18.--C6, or embe!!ement under Y 18.--111, or .ase #retenses under Y
18.--178.
=n t)e State o. $abama, Se'tion 1@$-8-107a:71: o. t)e Pena "ode o. $abama o. 1C75
#enai!es t)e.t o. servi'es:
Q$ #erson 'ommits t)e 'rime o. t)e.t o. servi'es i.: 7a: Ee intentiona, obtains servi'es
Ano/n b, )im to be avaiabe on, .or 'om#ensation b, de'e#tion, t)reat, .ase toAen or ot)er
means to avoid #a,ment .or t)e servi'es ZQ
=n t)e P)ii##ines, "ongress )as not amended t)e Revised Pena "ode to in'ude t)e.t o.
servi'es or t)e.t o. business as .eonies. =nstead, it a##roved a a/, Re#ubi' $'t No. 8;8;,
ot)er/ise Ano/n as t)e $''ess 4evi'es Reguation $'t o. 1CC8, on <ebruar, 11, 1CC8. Gnder
t)e a/, an a''ess devi'e means an, 'ard, #ate, 'ode, a''ount number, ee'troni' seria
number, #ersona identi.i'ation number and ot)er tee'ommuni'ation servi'es, eNui#ment or
instrumentaities-identi.ier or ot)er means o. a''ount a''ess t)at 'an be used to obtain mone,,
goods, servi'es or an, ot)er t)ing o. vaue or to initiate a trans.er o. .unds ot)er t)an a
trans.er originated soe, b, #a#er instrument. $mong t)e #ro)ibited a'ts enumerated in
Se'tion C o. t)e a/ are t)e a'ts o. obtaining mone, or an,t)ing o. vaue t)roug) t)e use o.
an a''ess devi'e, /it) intent to de.raud or intent to gain and .eeing t)erea.terB and o.
e..e'ting transa'tions /it) one or more a''ess devi'es issued to anot)er #erson or #ersons to
re'eive #a,ment or an, ot)er t)ing o. vaue. Gnder Se'tion 11 o. t)e a/, 'ons#ira', to
'ommit a''ess devi'es .raud is a 'rime. Eo/ever, t)e #etitioner is not ')arged o. vioation o.
R.$. 8;8;.
Signi.i'ant,, a #rose'ution under t)e a/ s)a be /it)out #re&udi'e to an, iabiit, .or
vioation o. an, #rovisions o. t)e Revised Pena "ode in'usive o. t)e.t under Rue @08 o. t)e
Revised Pena "ode and esta.a under $rti'e @15 o. t)e Revised Pena "ode. ()us, i. an
individua steas a 'redit 'ard and uses t)e same to obtain servi'es, )e is iabe o. t)e
.oo/ing: t)e.t o. t)e 'redit 'ard under $rti'e @08 o. t)e Revised Pena "odeB vioation o.
Re#ubi' $'t No. 8;8;B and esta.a under $rti'e @157-:7a: o. t)e Revised Pena "ode /it) t)e
servi'e #rovider as t)e #rivate 'om#ainant. ()e #etitioner is not ')arged o. esta.a be.ore t)e
R(" in t)e $mended =n.ormation.
Se'tion @@ o. Re#ubi' $'t No. 87C-, 6e'troni' "ommer'e $'t o. -000 #rovides:
Se'. @@. Penaties.S ()e .oo/ing $'ts s)a be #enai!ed b, .ine and0or im#risonment, as
.oo/s:
a: Ea'Aing or 'ra'Aing /)i') re.ers to unaut)ori!ed a''ess into or inter.eren'e in a 'om#uter
s,stem0server or in.ormation and 'ommuni'ation s,stemB or an, a''ess in order to 'orru#t,
ater, stea, or destro, using a 'om#uter or ot)er simiar in.ormation and 'ommuni'ation
devi'es, /it)out t)e Ano/edge and 'onsent o. t)e o/ner o. t)e 'om#uter or in.ormation and
'ommuni'ations s,stem, in'uding t)e introdu'tion o. 'om#uter viruses and t)e iAe, resuting
on t)e 'orru#tion, destru'tion, ateration, t)e.t or oss o. ee'troni' data messages or
ee'troni' do'uments s)a be #unis)ed b, a minimum .ine o. 8ne )undred t)ousand #esos
7P100,000.00: and a maFimum 'ommensurate to t)e damage in'urred and a mandator,
im#risonment o. siF 76: mont)s to t)ree 7@: ,ears.
=N 9=GE( 8< $99 (E6 <8R6G8=NG, t)e #etition is GR$N(64. ()e assaied 8rders o.
t)e Regiona (ria "ourt and t)e 4e'ision o. t)e "ourt o. $##eas are R6*6RS64 and S6(
$S=46. ()e Regiona (ria "ourt is dire'ted to issue an order granting t)e motion o. t)e
#etitioner to Nuas) t)e $mended =n.ormation.
S8 8R46R64.
R6G=N8 SY "$(==S, G.R. N8. 15@C7C
Petitioner,
Present:

P$NG$N=>$N, C.J.,
:Chairperson;
- versus - YN$R6S-S$N(=$G8,
$GS(R=$-%$R(=N6I,
"$996+8, SR., and
"E="8-N$I$R=8, JJ.

"8GR( 8< $PP6$9S 717
t)
4ivision:, R6YN$948 $.
P$($"S=9, 6NR="8 4. 98P6I,
9GI*=%=N4$ $. P8R(GGG6I
and (E6 >GR6$G 8< +$=9
%$N$G6%6N( $N4 P6N898GY,
N$(=8N$9 "$P=($9 R6G=8N,
%$J$(= "=(Y +$=9, (ER8GGE
=(S 8<<="6R-=N-"E$RG6 D$R46N,
"E=6< =NSP. =S$G$N= %. G$%=N8, Promugated:
Res#ondents. <ebruar, 6, -006
D E C I S I O N

AUSTRIA-MARTINEZ, J.:

>e.ore us is a #etition .or revie/ on certiorari .ied b, Regino S, "atiis 7#etitioner:
seeAing to nui., t)e 4e'ision
213
dated +une 1;, -00- o. t)e "ourt o. $##eas 7"$: /)i')
sustained t)e 8rder dated 4e'ember 18, -001 o. t)e Regiona (ria "ourt, >ran')
C6, Que!on "it,,
2-3
ao/ing #rivate res#ondents to #ost bai and t)e 8rder dated 4e'ember
-1, -001 o. t)e 6Fe'utive +udge o. t)e same 'ourt
2@3
a##roving t)e suret, bond #osted b,
res#ondents and t)eir reease.

Petitioner .ied a etter-'om#aint dated %a, -8, -001 against #rivate res#ondents
Re,nado $. Pata'si, 6nri'o 4. 9o#e!, 9u!viminda $. Portugue! and a
'ertain %argie,n (a.aabe.ore t)e 8..i'e o. t)e "it, Prose'utor o. Que!on "it,, .or
vioation o. $rt. @15, No. -7a: o. t)e Revised Pena "ode in reation to Presidentia 4e'ree
No. 168C 7s,ndi'ated esta.a: and ot)er reated o..enses. ()e 'om#aint /as do'Aeted as =.S.
No. 01-10686. Private res#ondents, eF'e#t .or (a.aa, .ied t)eir &oint 'ounter-a..idavits
den,ing t)e ')arges against t)em.

8n 8'tober 10, -001, $ssistant "it, Prose'utor $essandro 4. +urado issued a
Resoution
2;3
.inding t)e eFisten'e o. a #robabe 'ause .or s,ndi'ated 6sta.a against #rivate
res#ondents and (a.aa /it) no bai re'ommended. ()e Resoution /as a##roved b, "it,
Prose'utor "aro $. $reano.

$n =n.ormation /as .ied on t)e same da, b, Prose'utor +urado against #rivate
res#ondents and (a.aa be.ore t)e Regiona (ria "ourt o. Que!on "it, and ra..ed o.. to
>ran') C6, /)i') reads:

()e undersigned a''uses R6YN$948 $. P$($"S=9, 6NR="8
4. 98P6I, 9GI*=%=N4$ $. P8R(GGG6I and %$RG=69YN
($<$99$, o. t)e 'rime o. 6sta.a under $rti'e @15, #aragra#) -7a: o. t)e
Revise Pena "ode in reation to P.4. 168C, 'ommitted as .oo/s:

()at on or about t)e @
rd
/eeA o. +anuar, -000 or
subseNuent t)ereto in Que!on "it, and /it)in t)e
&urisdi'tion o. t)is Eonorabe "ourt, t)e above-named
a''used, 'ons#iring and 'on.ederating toget)er and a o.
t)em mutua, )e#ing and aiding one anot)er in a
s,ndi'ated manner 'onsisting o. .ive 75: or more #ersons
t)roug) 'or#orations registered /it) t)e Se'urities and
6F')ange "ommission 7S6": and0or unregistered .oreign
entities /it) intention o. 'arr,ing out t)e una/.u or
iega a't, transa'tion, enter#rise or s')eme, /it) intent
to gain and b, means o. .raud and de'eit, did t)en and
t)ere /i.u,, una/.u, and .eonious, de.raud
R6G=N8 SY "$(==S and severa ot)er #ersons in t)e
.oo/ing manner, to /it: b, .ase, or .rauduent,
#retending or re#resenting, in a transa'tion or series o.
transa'tions, /)i') t)e, made /it) t)e "om#ainant and
t)e #ubi' in genera to t)e e..e't t)at t)e, /ere in a
egitimate business o. .oreign eF')ange trading
su''essive, or simutaneous, o#erating under t)e
.oo/ing name and st,e o. $sia Pro.its P)ii##ines,
=n'or#oration, Dinggod %anagement P)ii##ines
=n'or#orated, >eAin %anagement "onsutan',, =n'.
and0or>eAin Pro.its 9imited or ot)er unregistered .oreign
entities indu'ed and su''eeded in indu'ing
'om#ainant and severa ot)er #ersons to give and deiver
and in .a't, t)e atter and said #ersons gave and deivered
to said a''used t)e amount o. at east GS[ 1-@,;61.1; or
its eNuivaent in P)ii##ine Pesos on t)e strengt) o. said
mani.estations and re#resentations, t)e a''used Ano/ing
.u, /e t)at t)e above-named 'or#orations registered
/it) t)e S6" and0or t)ose unregistered .oreign entities
are not i'ensed nor aut)ori!ed to engage in .oreign
eF')ange trading 'or#orations and t)at su')
mani.estations and re#resentations to transa't in .oreign
eF')ange /ere .ase and .rauduent t)at resuted to t)e
damage and #re&udi'e o. t)e 'om#ainant and ot)er
#ersons and t)at t)e de.raudation#ertains to .unds
soi'ited .rom t)e #ubi' in genera b, su')
'or#orations0asso'iations.
253



8n November 7, -001, +udge 9u'as P. >ersamin issued an 8rder .inding #robabe
'ause against a t)e a''used and a##roved t)e re'ommendation o. t)e "it, Prose'utor t)at
t)e ')arge be non-baiabe. ()e 'orres#onding /arrants o. arrest /ere issued.
263


$ return
273
on t)e /arrant o. arrest /as made b, P8@ +oseito %. "orone, PNP
"rimina =nvestigation and 4ete'tion Grou#, "am# "rame, Que!on "it,, /it) t)e in.ormation
t)at eF'e#t .or %argie,n (a.aa, /)o remained at arge, a ot)er a''used /ere aread,
detained at t)e %aAati "it, +ai.

8n November 1-, -001, a noti'e o. )earing /as issued b, +udge >ersamin setting
t)e 'ase .or arraignment on November -0, -001. Private res#ondents on t)e same da, .ied an
urgent motion to .iF bai.

8n November -0, -001, #rivate res#ondents, /)en arraigned, entered #eas o. not
guit,. ()e Prose'ution /as reNuired to .ie t)eir 'omment0o##osition on #rivate res#ondents?
motion to .iF bai /)i') t)e, did t)roug) t)e Private Prose'utor /it) t)e 'on.ormit, o.
$ssistant "it, Prose'utor $rt)ur 8. %aabaguio.
283

8n 4e'ember 18, -001, +udge >ersamin issued an 8rder re'onsidering )is earier
8rder o. November 7, -001 b, de'aring t)at t)e o..ense ')arged is baiabe. =n .inding t)at
t)e a''used are entited to bai, +udge >ersamin made t)e .oo/ing disNuisitions:

F F F

=n order to im#ose t)e #enat, o. i.e im#risonment to deat) under
Se'. 1, P.4. No. 168C, t)e esta.a or s/inding must be 'ommitted 4( &
s(n"%&te. ()e a/ #ain, states t)at a s,ndi'ate 'onsists o. )%'e !#
7!#e #ersons .ormed /it) t)e intention o. 'arr,ing out t)e una/.u or
iega a't, transa'tion, enter#rise, or s')eme, and t)e de.raudation resuts in
t)e misa##ro#riation o. mone, or o. .unds soi'ited b,
'or#orations0asso'iations .rom t)e genera #ubi'.

Eerein, on, .our #ersons are a'tua, ')arged. "onseNuent,,
t)e esta.a ')arged )as no reation to t)e 'rime #unis)ed /it) i.e
im#risonment to deat) under Se'. 1, Presidentia 4e'ree No. 168C.

()e aegation o. t)e in.ormation t)at t)e a''used 'ons#ired /it)
ea') ot)er Lin a s,ndi'ated manner 'onsisting o. .ive 75: or more #ersons
t)roug) 'or#orations registered /it) t)e Se'urities and 6F')ange
"ommission 7S6": and0or unregistered .oreign entities /it) intention o.
'arr,ing out t)e una/.u or iega a't, transa'tion, enter#rise or s')emeM
'annot ')ange t)e &uridi'a nature o. t)e o..ense ')arged. I) the
G!'e#n7ent h&s h!sen t! %n"%t !nl( )!u# 3e#s!ns, $%th!ut 7!#e, the
!4'%!us #e&s!n %s th&t !nl( the 3e#s!ns &tu&ll( h&#;e" $e#e %n'!l'e"
%n the !77%ss%!n !) the !))ense. $s su'), t)ere /as no s,ndi'ate.

=n a iAei)ood, t)e aegation o. L%n & s(n"%&te" 7&nne#
!ns%st%n; !) )%'e 5G6 !# 7!#e 3e#s!nsM is made )erein soe, .or )aving
bai denied. D)et)er t)at is true or not is beside t)e #oint, but t)e "ourt
'annot no/ end itse. to su') a iAei)ood /)i'), a''ording to t)e
.oregoing disNuisition, a'As ega basis. <or t)at matter, t)e "ourt must
re'ant its a##rova o. t)e re'ommendation to den, bai.

()e Prose'ution re#resents t)at t)e Su#reme "ourt )as a..irmed
in %eople vs$ 'omero a 'onvi'tion under Presidentia 4e'ree No.168C Leven
i. t)e a''used ')arged is on, ess t)an .ive 75: a''used.M

Suh #e3#esent&t%!n %s ;#!ssl( 7%sle&"%n;. <ar to t)e 'ontrar,,
in %eople v$ 'omero, /)ere t/o a''used /ere a'tua, ')arged but on, one
/as utimate, #enai!ed due to t)e deat) o. t)e ot)er a''used during
t)e #enden', o. t)e 'ase, t)e Su#reme "ourt did not im#ose t)e )ig)er
#enat, o. i.e im#risonment to deat) be'ause t)e Prose'ution L.aied to
'ear, estabis) t)at t)e 'or#oration /as a s,ndi'ate, as de.ined under t)e
a/,M )oding, instead, t)at, sin'e t)e 'rime /as not 'ommitted 4( &
s(n"%&te, t)e #ro#er #enat, is t)at #rovided in t)e se'ond #aragra#) o.
Se'.1, P.4. No. 168C, to /it:

D)en not 'ommitted b, a s,ndi'ate as above
de.ined, t)e #enat, im#osabe s)a be reclusion
temporal to reclusion perpetua i. t)e amount o. t)e .raud
eF'eeds 100,000.00 #esos.

Yet, one should asA: D)ere, as )ere, t)e amount aeged in t)e
in.ormation 'ear, LeF'eeds 100,000.00 #esosM su') t)at t)e se'ond
#aragra#) o. Se'. 1, P.4. No. 168C, is a##i'abe, is t)e o..ense
stibaiabe 'onsidering t)at t)e range o. t)e im#osabe #enat, is
.rom reclusion temporal to reclusion perpetua\

()e ans/er is in t)e a..irmative.

Gnder Rue 110, -000 Rues o. "rimina Pro'edure, t)e
=n.ormation s)oud aver, among ot)ers, t)e Iu&l%)(%n; &n" &;;#&'&t%n;
%#u7st&nes o. t)e o..ense Lin ordinar, and 'on'ise anguage and not
ne'essari, in t)e anguage used in t)e statute but in terms su..i'ient to
enabe a #erson o. 'ommon understanding to Ano/ /)at o..ense is being
')arged as /e as its Nuai.,ing and aggravating 'ir'umstan'e and .or t)e
'ourt to #ronoun'e &udgment.M

$ #erusa o. t)e in.ormation dis'oses th&t n! &;;#&'&t%n;
%#u7st&ne h&s 4een &lle;e" %n the %n)!#7&t%!n. ()e omission
'onseNuent, #re'udes t)e State .rom #roving &n( &;;#&'&t%n;
%#u7st&ne/)i') /i raise t)e #enat, to its maFimum #eriod
o. reclusion perpetua. ()e "ourt itse. is aso #ro)ibited .rom
im#osing reclusion perpetua, sin'e t)e reNuirement o. !73lete &lle;&t%!ns
!) the 3&#t%ul&#s in t)e indi'tment is based on t)e rig)t o. t)e a''used to
be .u, in.ormed o. t)e nature o. t)e ')arges against )im so t)at )e ma,
adeNuate, #re#are .or )is de.ense #ursuant to t)e due #ro'ess 'ause o. t)e
"onstitution.

$s stated in %eople v$ 'omero, su#ra, t)e #enat, under t)e se'ond
#aragra#) o. Se'.1, P.4. No. 168C, $hen the#e %s ne%the# 7%t%;&t%n; !#
&;;#&'&t%n; %#u7st&ne &tten"&nt, is t)e 7e"%u7 3e#%!" o.re#"usion
tempora", t)at is .rom siFteen 716: ,ears and one 71: da, to t/ent, 7-0:
,ears.

Een'e, t)e o..ense ')arged is unNuestionab, baiabe.
2C3



8n 4e'ember -6, -001, #etitioner .ied /it) t)e "$ a #etition .or certiorari /it)
#ra,er .or tem#orar, restraining order and0or /rit o. #reiminar, in&un'tion
2103
assaiing t)e
8rder o. +udge >ersamin ao/ing #rivate res#ondents to #ost bai.

8n t)e same da,, t)en $sso'iate +usti'e Romeo +. "ae&o Sr.,
2113
+usti'e on 4ut, Per
8..i'e %emorandum o. Presiding +usti'e, issued a Resoution
21-3
granting #etitioner?s #ra,er
.or t)e issuan'e o. a tem#orar, restraining order, t)us, #rivate res#ondents and a t)ose a'ting
.or and in t)eir be)a. /ere tem#orari, restrained .rom en.or'ing and im#ementing t)e
8rder o. +udge >ersamin and .rom .urt)er #ro'eeding in "rimina "ase No. 01-105;@0.

Eo/ever, unAno/n to #etitioner, #rivate res#ondents )ad aread, .ied or #osted
t)eir suret, bonds on 4e'ember -1, -001 /it) t)e 8..i'e o. 6Fe'utive
+udge %onina $.Ienarosa
21@3
/)o a##roved t)e same on t)e same da, and ordered t)e
immediate reease o. #rivate res#ondents uness )ed .or ot)er a/.u 'ause.
21;3
Petitioner .ied
a su##ementa #etition /it) t)e "$ on +anuar, 1;, -00- assaiing t)e &urisdi'tion o.
+udge Ienarosa in issuing t)e 8rder dated 4e'ember -1, -001.
8n +une 1;, -00-, t)e "$ issued its assaied de'ision den,ing due 'ourse to t)e #etition
and dismissed t)e same a.ter it .ound no grave abuse o. dis'retion 'ommitted b,
+udge>ersamin and +udge Ienarosa in issuing t)e assaied orders.

Een'e, t)e instant #etition .ied b, #etitioner raising t)e .oo/ing issues, to /it:

$

D)et)er or not t)e issuan'e o. t)e Nuestioned
4e'ision #romugated +une 1;, -00- b, t)e 17
t)
4ivision o. t)e "ourt o.
$##eas sustaining t)e vaidit, o. t)e 1
st
assaied 8rder dated 4e'ember 18,
-001 o. Eon. Presiding +udge 9u'as P. >ersamin o. >ran') C6 o. t)e
Regiona (ria "ourt o. Que!on "it, ruing t)at t)ere s)oud be at east .ive
75: #ersons t)at must be ')arged under Se'tion 1, Presidentia 4e'ree No.
168C is not in a''ordan'e /it) a/ or /it) a##i'abe de'isions o. t)is
Eonorabe Su#reme "ourt.

>

D)et)er or not t)e Nuestioned 4e'ision san'tioning t)e grant o.
bai in t)e 1
st
assaied 8rder dated 4e'ember 18, -001 o. Eon. Presiding
+udge 9u'as P. >ersamin o. >ran') C6 o. t)e Regiona (ria "ourt
o.Que!on "it, vioated Se'tion 7, Rue 11; o. t)e Revised Rues o.
"rimina Pro'edure and a'tua, de#arted .rom t)e a''e#ted and usua
'ourse in t)e determination o. baiabiit, o. 'rimina o..enses.

"

D)et)er or not t)e Nuestioned 4e'ision sustaining t)e order o.
reease in t)e -
nd
assaied 8rder dated 4e'ember -1 o. Eon. 6Fe'utive
+udge %onina $. Ienarosa o. t)e Regiona (ria "ourt o. Que!on "it,
vioated Se'tion 17, Rue 11; o. t)e Revised Rues o. "rimina
Pro'edure
2153



$nent t)e .irst issue, #etitioner 'ontends t)at under Se'tion 1 o. P.4. No. 168C, t)e
term Lan, #ersonM must be understood and read in its singuar meaning so t)at even on, one
#erson 'an be indi'ted .or 'ommitting Lesta.a or ot)er .orms o. s/indingM in reation to P.4.
No. 168C 'iting t)e 'ase o. %eople v$ 'omeroB t)at +udge >ersamin erred /)en )e aread,
'om#uted t)e #ossibe #enat, in 'ase o. #rivate res#ondents? 'onvi'tionB t)at t)e 'a#ita
nature o. an o..ense .or t)e #ur#ose o. baiabiit, is determined b, t)e #enat, #res'ribed b,
a/, not b, #enat, /)i') ma, a'tua, be im#osed sin'e t)e atter reNuires a 'onsideration o.
t)e eviden'e on triaB t)at sin'e no eviden'e )ad ,et been #resented b, bot) #rose'ution and
de.ense, +udge >ersamin )as again s)o/n bias b, aread, 'om#uting t)e im#osabe #enat,
&ust to stret') t)e a##i'ation o. t)e a/ and Nuestionab, grant bai in .avor o. #rivate
res#ondents.

De are not #ersuaded.

()e "$ .ound t)at t)e assaied order o. +udge >ersamin 'annot be ')ara'teri!ed as
one issued /it) grave abuse o. dis'retion .or )e 'orre't, determined t)at t)e =n.ormation did
not ')arge a s,ndi'ated 6sta.aB t)at /it) on, .our ')arged in t)e in.ormation, it 'oud not be
'onsidered as 'ommitted b, a s,ndi'ate /)i') must 'onsist o. .ive or more #ersons and )e
'annot be .auted .or t)at.

Se'tion 1 o. P.4. No. 168C, in'reasing t)e #enat, .or 'ertain .orms o. s/inding
or esta.a, #rovides:

S6"(=8N 1. $n, #erson or #ersons /)o s)a 'ommit esta.a or
ot)er .orms o. s/inding as de.ined in $rti'es @15 and @16 o. t)e Revised
Pena "ode, as amended, s)a be #unis)ed b, i.e im#risonment to deat) i.
t)e s/inding 7esta.a: is 'ommitted b, a s,ndi'ate 'onsisting o. .ive or
more #ersons .ormed /it) t)e intention o. 'arr,ing out t)e una/.u or
iega a't, transa'tion, enter#rise or s')eme, and t)e de.raudationresuts in
t)e misa##ro#riation o. mone,s 'ontributed b, sto'A)oders, or members o.
rura banAs 'oo#eratives, Qsama)ang na,on7s:,Q or .armers? asso'iations, or
o. .unds soi'ited b, 'or#orations0asso'iations .rom t)e genera #ubi'.

D)en not 'ommitted b, a s,ndi'ate as above de.ined, t)e #enat,
im#osabe s)a be reclusion temporal to reclusion perpetua i. t)e amount
o. t)e .raud eF'eeds 100,000 #esos.


"ear,, P.4. No. 168C #enai!es o..enders /it) i.e im#risonment to deat) regardess
o. t)e amount invoved, #rovided t)at a s,ndi'ate 'ommitted t)e 'rime. $ s,ndi'ate is
de.ined in t)e same a/ as L'onsisting o. .ive or more #ersons .ormed /it) t)e intention o.
'arr,ing out t)e una/.u or iega a't, transa'tion, enter#rise or s')eme.M Gnder t)e se'ond
#aragra#), it is #rovided t)at i. t)e o..enders are not members o. a s,ndi'ate, t)e, s)a
nevert)eess be )ed iabe .or t)e a'ts #ro)ibited b, t)e a/ but t)e, s)a be #enai!ed
b, reclusion temporal toreclusion perpetua i. t)e amount o. t)e .raud is more
t)an P100,000.00.

Petitioner?s inter#retation t)at t)e term Lan, #ersonM in t)e .irst #aragra#) o. se'tion
1 'oud mean t)at even one #erson 'an be indi'ted .or s,ndi'ated esta.a is 'ontrar, to t)e
#rovision o. t)e a/. =t bears stressing t)at t)e a/ must be 'onsidered as a /)oe, &ust as it is
ne'essar, to 'onsider a senten'e in its entiret, in order to gras# its true meaning.
2163
=t is a
dangerous #ra'ti'e to base 'onstru'tion u#on on, a #art o. a se'tion sin'e one #ortion ma, be
Nuai.ied b, t)e ot)er #ortion.
2173
=n .a't, t)ere is no need .or an, 'onstru'tion or
inter#retation o. P. 4. No. 168C sin'e t)e a/ is 'ear and .ree .rom an, doubt or
ambiguit,. Se'tion 1 o. P.4. No. 168C )as de.ined /)at 'onstitutes a s,ndi'ate and su')
de.inition is 'ontroing. D)ere a reNuirement is made in eF#i'it and unambiguous terms, no
dis'retion is e.t to t)e &udi'iar,. =t must see to it t)at its mandate is obe,ed.
2183


=n t)is 'ase, t)e =n.ormation s#e'i.i'a, ')arged on, .our #ersons /it)out
s#e'i.,ing an, ot)er #erson /)o )ad #arti'i#ated in t)e 'ommission o. t)e 'rime ')arged,
t)us, based on t)e de.inition o. s,ndi'ate under t)e a/, t)e 'rime ')arged /as not 'ommitted
b, a s,ndi'ate. De .ind no reversibe error 'ommitted b, t)e "$ /)en it u#)ed t)e ruing o.
+udge>ersamin t)at /it) on, .our #ersons a'tua, ')arged, t)e esta.a ')arged )as no
reation to t)e 'rime #unis)ed /it) i.e im#risonment to deat) under se'tion 1 o. P. 4. No.
168C.

()e /ordings in t)e in.ormation t)at t)e a''used 'ons#ired /it) ea') ot)er Lin a
s,ndi'ated manner 'onsisting o. .ive 75: or more #ersons t)roug) 'or#orations registered /it)
t)e Se'urities and 6F')ange "ommission 7S6": and0or unregistered .oreign entities /it)
intention o. 'arr,ing out t)e una/.u or iega a't, transa'tion, enter#rise or s')emeM is not
su..i'ient 'om#ian'e /it) t)e reNuirements o. t)e a/ on /)at 'onstitute a s,ndi'ate. =t
bears stressing t)at t)e .irst #aragra#) o. t)e a''usator, #ortion o. t)e =n.ormation ')arges
on, .our #ersons. (o re#eat, P.4. No. 168C )as #rovided .or t)e de.inition o. a s,ndi'ate and
it is 'ontroing. $s 'orre't, .ound b, t)e tria 'ourt, i. t)e government )as ')osen to indi't
on, .our #ersons, /it)out more, t)e obvious reason is t)at on, t)e #ersons a'tua, ')arged
/ere invoved in t)e 'ommission o. t)e o..ense, t)us, t)ere /as no s,ndi'ate.

Petitioner?s reian'e in %eople v$ 'omero to su##ort )is argument is
miseading. <irst, t)e issue o. /)et)er on, one #erson 'an be indi'ted .or
s,ndi'ated esta.a /as not an issue in t)e 'omero 'ase. Se'ond,, t)e "ourt did not im#ose
t)e #enat, o. i.e im#risonment to deat) on t)e a''used sin'e t)e #rose'ution .aied to 'ear,
estabis) t)at t)e 'or#oration /as as(n"%&te &s "e)%ne" un"e# the l&$. ()ere is no ot)er
/a, o. estabis)ing a s,ndi'ate under P.4. No. 168C t)an b, t)e ad)eren'e to t)e de.inition
#rovided b, a/.

Sin'e t)e 'rime ')arged /as not 'ommitted b, a s,ndi'ate as de.ined under t)e a/,
t)e #enat, o. i.e im#risonment to deat) 'annot be im#osed on #rivate res#ondents.
+udge>ersamin is 'orre't /)en )e rued t)at #rivate res#ondents 'oud on, be #unis)ed
/it) reclusion temporal to reclusion perpetua in 'ase o. 'onvi'tion sin'e t)e amount o. t)e
.raud eF'eeds P100,000.00. ()e neFt Nuestion is, /)et)er +udge >ersamin is 'orre't in
.inding t)at t)e 'rime ')arged is baiabe des#ite t)at t)e im#osabe #enat, ranges
.rom reclusion temporalto reclusion perpetua\

()e "ourt ans/ers in t)e a..irmative.

Se'tions 8 and C o. Rue 110 o. t)e Revised Rues o. "rimina Pro'edure, /)i')
tooA e..e't on 4e'ember 1, -000, #rovide:

Se'. 8. 4esignation o. t)e o..ense. S ()e 'om#aint or
in.ormation s)a state t)e designation o. t)e o..ense given b, t)e statute,
aver t)e a'ts or omissions 'onstituting t)e o..ense, and s#e'i., its Nuai.,ing
and aggravating 'ir'umstan'es. =. t)ere is no designation o. t)e o..ense,
re.eren'e s)a be made to t)e se'tion or subse'tion o. t)e statute #unis)ing
it.

Se'. C. "ause o. t)e a''usations. S ()e a'ts or omissions
'om#ained o. as 'onstituting t)e o..ense and t)e Nuai.,ing and
aggravating 'ir'umstan'es must be stated in ordinar, and 'on'ise anguage
and not ne'essari, in t)e anguage used in t)e statute but in terms su..i'ient
to enabe a #erson o. 'ommon understanding to Ano/ /)at o..ense is being
')arged as /e as its Nuai.,ing and aggravating 'ir'umstan'es and .or t)e
'ourt to #ronoun'e &udgment.


"ear,, it is no/ a reNuirement t)at t)e aggravating as /e as t)e Nuai.,ing
'ir'umstan'es be eF#ress, and s#e'i.i'a, aeged in t)e 'om#aint or
in.ormation. 8t)er/ise, t)e, 'annot be 'onsidered b, t)e tria 'ourt in t)eir &udgment, even,
i. t)e, are subseNuent, #roved during tria.
21C3
$ reading o. t)e =n.ormation s)o/s t)at t)ere
/as no aegation o. an, aggravating 'ir'umstan'e, t)us +udge >ersamin is 'orre't /)en )e
.ound t)at t)e esser #enat,, i.e., reclusion temporal, is im#osabe in 'ase o. 'onvi'tion.

Se'tion 1@, $rti'e === o. t)e "onstitution #rovides t)at a #ersons, eF'e#t t)ose
')arged /it) o..enses #unis)abe b, reclusion perpetua /)en eviden'e o. guit is strong, s)a
be.ore 'onvi'tion, be baiabe b, su..i'ient sureties or be reeased on re'ogni!an'e as ma, be
#rovided b, a/. =n #ursuan'e t)ereo., Se'tion ; o. Rue 11;, as amended, no/ #rovides t)at
a #ersons in 'ustod, s)a, be.ore 'onvi'tion b, a regiona tria 'ourt o. an o..ense not
#unis)abe b, deat), reclusion perpetua or i.e im#risonment, be admitted to bai as a matter
o. rig)t. Sin'e t)e im#osabe #enat, on #rivate res#ondents, in 'ase o. 'onvi'tion,
is reclusion temporal, t)e, are entited to bai as a matter o. rig)t. Notab,,
+udge >ersamin issued )is 8rder .inding t)e 'rime ')arge baiabe and .iFed t)e amount
o. P150,000.00 ea') .or t)e #rovisiona ibert, o. #rivate res#ondents on, a.ter #etitioner )ad
submitted t)eir 'omment0o##osition to #etitioner?s motion to .iF bai.

Petitioner 'aims t)at t)e 8rder o. +udge >ersamin ao/ing #rivate res#ondents to
#ost bai aread, #re&udged t)e 'aseB t)at )e summari, de'ided t)e eventua and imminent
dismissa o. t)e 'rimina 'ase /it)out even t)e re'e#tion o. eviden'eB t)at su') #re&udgment
'ame .rom a ruing on a mere issue o. bai.

Su') argument is baseess. ()e 8rder /as issued on t)e basis t)at t)e aegations in
t)e =n.ormation do not estabis) t)at t)e 'rime ')arged /as 'ommitted b, a s,ndi'ate as
de.ined under t)e a/ /)ere t)e #enat, o. i.e im#risonment to deat) 'oud be
im#osed. No/)ere in t)e 8rder did +udge >ersamin state t)at t)e a't 'om#ained o. is not
#unis)abe at a.

Petitioner neFt 'ontends t)at #rivate res#ondents? .iing o. bai /it) 6Fe'utive
+udge %onina Ienarosa, ot)er t)an >ran') C6 /)ere t)e 'ase is #ending, is Nuestionabe and
not in a''ordan'e /it) Se'tion 17, Rue 11;
2-03
o. t)e Revised Rues on "rimina Pro'edureB
t)at t)e re'ords s)o/ t)at /)en #rivate res#ondents .ied t)eir bai /it) +udge Ienarosa,
>ran') C6 /as o#en and avaiabe as #rivate res#ondents t)roug) t)eir re#resentative /ere
abe to #a, .or t)e issuan'e o. t)e 'erti.i'ations on t)e =n.ormation and t)e 8rder dated
4e'ember 18, -001B t)at #etitioner?s 'ounse and t)e $ssistant "it, Prose'utor
$rt)ur %aabaguio )ad #ersona, re'eived t)eir res#e'tive 'o#ies o. t)e 8rder dated
4e'ember 18, -001 inside t)e sta.. room o. >ran') C6 and t)e, even attested t)at
+udge >ersamin /as #),si'a, #resent on 4e'ember -1, -00-, t)e da, #rivate res#ondents
.ied t)eir bai bond /it) +udge IenarosaB t)at des#ite t)ese 'ir'umstan'es,
+udge Ienarosa sti eFer'ised &urisdi'tion over t)e bai .ied b, #rivate res#ondents and
issued t)e 8rder dated 4e'ember -1, -001 a##roving t)e suret, bonds and ordering t)e
reease o. #rivate res#ondentsB t)at t)e "$?s &usti.i'ation t)at +udge Ienarosa a''e#ted t)e
bai bond due to t)e .a't t)at +udge >ersamin /as momentari, out o. )is o..i'e or #remises
at t)e time o. #osting o. t)e bond /as not borne b, t)e re'ords.

De are not #ersuaded.

Se'tion 17, Rue 11; o. t)e Revised Rues on "rimina Pro'edure #rovides t)at bai
in t)e amount .iFed ma, be .ied /it) t)e 'ourt /)ere t)e 'ase is #ending, or, in t)e absen'e
or unavaiabiit, o. t)e &udge t)ereo., /it) anot)er bran') o. t)e same 'ourt /it)in t)e
#rovin'e or 'it,. D)ie >ran') C6 is o#en and avaiabe on t)e da, #rivate res#ondents
#osted t)eir bai /it) +udge Ienarosa, it does not ne'essari, .oo/ t)at +udge >ersamin /as
avaiabe at t)at #re'ise moment. $t)oug) it is aeged in t)e su##ementa #etition #re#ared
b, #etitioner?s 'ounse, $tt,. Rodeo Nu1e!, /it) t)e 'on.ormit, o.
Prose'utor %aabaguio .ied be.ore t)e "$ t)at bot) o. t)em sa/ +udge >ersamin dis')arging
)is .un'tion on t)at da,, it is not under oat). %oreover, it is not s#e'i.i'a, stated in t)e
su##ementa #etition t)at at t)e eFa't time +udge Ienarosa a##roved t)e bai,
+udge >ersamin /as avaiabe. ()us, #etitioner .aied to rebut t)e #resum#tion t)at o..i'ia
dut, )ad been reguar, #er.ormed
2-13
b, +udge Ienarosa under t)e rues.

DE6R6<8R6, t)e #etition .or revie/ on certiorari is DENIED. ()e assaied
de'ision o. t)e "ourt o. $##eas dated +une 1;, -00- is A++IRMED. "osts against
#etitioner.

S8 8R46R64.
SONIA MACEDA ALIAS SONIALITA
MACEDA AND GEMMA MACEDA-
G.R. N!. -/.E.0

MACATANGAY,
Petitioners,


- 'e#sus -


,#esent:

QG=SG%>=NG J$, Chairperson,
"$RP=8,
"$RP=8 %8R$96S, and
(=NG$, JJ$

ENCARNACION DE GUZMAN 9DA. DE
MACATANGAY,
Res#ondent.

,#!7ul;&te":

J&nu&#( F-, 122/
D E C I S I O N

CAR,IO MORALES, J.:


Petitioner Sonia %a'eda 7Sonia: and >oni.a'io %a'atanga, 7%a'atanga,:
'ontra'ted marriage on +u, -6, 1C6;.
213
()e union bore one ')id,
#etitioner Gemma %a'atanga,7Gemma:, on %ar') -7, 1C65.
2-3

()e 'ou#e se#arated not ong a.ter t)e marriage.

=n 1C67, t)e 'ou#e eFe'uted a Basunduan
2@3
/)ereb, t)e, agreed to ive se#arate,.



%a'atanga, soon ived /it) "armen +ara!a 7"armen:.

$.ter t)e deat) on 4e'ember 7, 1CC8 o. %a'atanga, /)o /as a member o. t)e
So'ia Se'urit, S,stem 7SSS: or on 4e'ember 1;, 1CC8, )is 'ommon-a/ /i.e "armen .ied a
deat) bene.it a##i'ation be.ore t)e SSS 9u'ena >ran'). ()e SSS denied
2;3
)er a##i'ation, it
ruing t)at it is %a'atanga,?s /i.e /)o is )is #rimar, bene.i'iar,.

8n +anuar, C, 1CCC, #etitioner Sonia .ied be.ore t)e SSS a deat) bene.it
a##i'ation.

%a'atanga,?s ')idren /it) )is 'ommon-a/ /i.e "armen, name, +a,, 6ena, and
+oe, aged -7, @1, and -C ,ears od, res#e'tive,, aso .ied in 1CCC
253
se#arate a##i'ations .or
deat) bene.its .oo/ing t)e SSS? denia o. t)eir mot)er?s a##i'ation.

8n Se#tember 10, 1CCC, t)e SSS denied %a'atanga,?s iegitimate ')idren?s 'aim
on t)e ground t)at under Re#ubi' $'t 8-8-, L(E6 S8"=$9 S6"GR=(Y $"( 8< 1CC7,M it is
t)e de#endent s#ouse, unti )e or s)e remarries, /)o is t)e #rimar, bene.i'iar, o. t)e
de'eased member.
263


Petitioner Sonia?s a##i'ation .or deat) bene.it /as a##roved on 4e'ember -0,
1CCC. S)e re'eived a um# sum amount o. P@@,000 re#resenting L#ensionsM
273
.rom t)e SSS.

8n <ebruar, --, -000, %a'atanga,?s mot)er, )erein res#ondent 6n'arna'ion de
Gu!man, .ied a #etition be.ore t)e So'ia Se'urit, "ommission 7SS":
in %aAati "it,
283
against )erein #etitioners Sonia and Gemma, .or t)e grant to )er o. so'ia
se'urit, bene.its, s)e 'aiming t)at )er son designated )er and )is t)ree iegitimate ')idren
as )is bene.i'iaries under t)e SSSB
2C3
s)e /as made to sign a do'ument regarding t)e
distribution o. bene.its o. %a'atanga, b, SSS 9u'ena >ran') ")ie. $tt,. "ora!on
%. *iama,or /)o, )o/ever, did not .urnis) )er a 'o#, t)ereo. nor in.orm )er o. its natureB
2103
and a.ter s)e signed t)e do'ument, t)e t)ree iegitimate ')idren re'eived noti'es den,ing
t)eir a##i'ation .or deat) bene.its.
2113


()e SSS o..i'e in Que!on "it, .ied a #etition-in-intervention in t)e #etition .ied b,
res#ondent be.ore t)e SS" in %aAati "it,.
21-3

=n )er #osition #a#er, res#ondent 'ontended as .oo/s:

2=3n t)e #resent 'ase, t)e agreement o. t)e s#ouses to ive
se#arate, .our 7;: mont)s a.ter t)eir marriage and /)i') agreement /as
.ina, made in /riting be.ore t)e >aranga, /i unNuestionab, s)o/
t)at Sonia or Soniaita %a'eda /as n!t "e3en"ent u3!n the l&te 7e74e#
)!# su33!#t and t)ere.ore 'annot be 'onsidered as )is #rimar, bene.i'iar,
under t)e a.oresaid a/. Said agreement, t)oug) #ros'ribed b, a/ b,
reasons o. #ubi' #oi',, /as a mutua agreement s)ort o. a 'ourt de'ree .or
ega se#aration and /i not in an, /a, ')ange t)e .a't t)at t)e t/o ived
se#arate,. ()is under an, 'ir'umstan'es /i dis#ute t)e #resum#tion o.
t)e de#enden', .or su##ort arising .rom t)e egitima', o. t)e marita union
as reasoned out b, t)e SSS in t)eir Petition .or =ntervention.
21@3
76m#)asis
and unders'oring su##ied:


Petitioners, on t)e ot)er )and, )inged t)eir 'aim on Se'tion 87e: and 7A: o. ()e
So'ia Se'urit, $'t o. 1CC7. ()us t)e, argued:

Se'tion 8 7e: and 7A: o. Re#ubi' $'t 8-8- is 'r,sta 'ear on /)o
s)oud be >oni.a'io 4e Gu!man %a'atanga,?s bene.i'iar,, t)us:

7e: De3en"ents O ()e de#endents s)a be t)e
.oo/ing:

71: ()e ega s#ouse entited b, a/ to re'eive
su##ort .rom t)e memberB

7-: ()e egitimate, egitimated or ega,
ado#ted, and iegitimate ')id /)o is unmarried, not
gain.u, em#o,ed and )as not rea')ed t/ent,-one ,ears
7-1: o. age, or i. over t/ent,-one 7-1: ,ears o. age, )e is
'ongenita, or /)ie sti a minor )as been #ermanent,
in'a#a'itated and in'a#abe o. se.-su##ort, #),si'a, or
menta,, and

7@: ()e #arent /)o is re'eiving reguar su##ort
.rom t)e member.

7A: Bene)%%&#%es O ()e de#endent s#ouse unti
)e or s)e remarries, t)e de#endent egitimate, egitimated
or ega, ado#ted, and iegitimate ')idren, /)o s)a be
t)e #rimar, bene.i'iaries o. t)e memberB Provided, ()at
t)e de#endent iegitimate ')idren s)a be entited to
.i.t, #er'ent 750]: o. t)e s)are o. t)e egitimate,
egitimated or ega, ado#ted ')idren: Provided, .urt)er,
()at in t)e absen'e o. t)e de#endent egitimate,
egitimated or ega, ado#ted ')idren o. t)e member,
)is0)er de#endent iegitimate ')idren s)a be entited to
one )undred #er'ent 7100]: o. t)e bene.its. =n t)eir
absen'e, t)e de#endent #arents /)o s)a be t)e se'ond
bene.i'iaries o. t)e member. =n t)e absen'e o. a t)e
.oregoing, an, ot)er #erson designated b, t)e member as
)is0)er se'ondar, bene.i'iar,. 7Gnders'oring and
em#)asis in t)e origina:
21;3



$s .or t)e SSS, it argued t)at:

2(3o be 'onsidered de#endent .or su##ort, a surviving s#ouse o. a member
must on, s)o/ t)at s)e is entite2d3 .or su##ort .rom t)e member b, virtue
o. a '&l%" 7&##%&;e. ()e surviving s#ouse is n!t #eIu%#e" t! sh!$ th&t
heDshe &tu&ll( #ee%'e" su33!#t .rom t)e member during )is0)er
i.etime. Eer de#enden', .or su##ort is a'tua, #resumed .rom t)e
egitima', o. t)e marita union.
2153
76m#)asis and unders'oring su##ied:

()e SS", taAing t)e Basunduan
2163
as #roo. t)at Sonia /as no onger de#endent .or
su##ort on >oni.a'io,
2173
and de'aring t)at t)e SSS 9u'ena >ran') a'ted in good .ait) in
granting t)e bene.its to Sonia, granted res#ondent?s #etition b, Resoution o. November 1;,
-001.
2183
=t a''ording, dis#osed as .oo/s:

=N *=6D 8< $99 (E6 <8R6G8=NG, t)e "ommission )ereb,
orders res#ondent Sonia 7Soniaita: %a'atanga, to re.und t)e mont),
#ensions #aid to )er b, mistaAe and .or t)e SSS to 'oe't t)e same
immediate, u#on re'ei#t )ereo..

%ean/)ie, t)e S,stem is ordered to grant t)e SS um# sum deat)
bene.its o. member >oni.a'io %a'atanga, to designated
bene.i'iaries 6n'arna'ion %a'atanga,, 6ena, +oe, and +a, %a'atanga,,
sub&e't to eFisting rues and reguations.

S8 8R46R64.
21C3
7Gnders'oring su##ied:


Petitioners? motion .or re'onsideration
2-03
o. t)e SS" Resoution /as denied b, 8rder
o. $ugust 1;, -00-.
2-13

Petitioners t)ereu#on .ied a #etition .or revie/,
2--3
do'Aeted as "$ G.R. No.
7@0@8, be.ore t)e "ourt o. $##eas /)i') dismissed it outrig)t, b, t)e #resent ')aenged
Resoution o. 8'tober -1, -00-,
2-@3
on t)e .oo/ing #ro'edura grounds:

$ #erusa o. t)e #etition )o/ever s)o/s t)at t)ere /as no /ritten
eF#anation as to /), res#ondents /ere not #ersona, served 'o#ies o. t)e
#etition as reNuired under )ection 22, 'ule 26 of the 288C 'ules of Civil
%rocedure$

$so, t)e #etition is not a''om#anied b, 'o#ies o. t)e #eadings
and do'uments reevant and #ertinent t)ereto 7i.e., #osition #a#ers .ied b,
t)e #arties be.ore t)e SS", motion to dismiss .ied b, #etitioner be.ore t)e
SS": as reNuired under )ection D, 'ule 46 of the 288C 'ules of Civil
%rocedure$

<ina,, #etitioner?s 'ounse .aied to 'om#, /it) t)e reNuirements
under >ar %atter No. -87 /)i') reNuires t)at La a/,ers s)a indi'ate in
a #eadings, motions and #a#ers signed and .ied b, t)em t)e number and
date o. t)eir o..i'ia re'ei#t indi'ating #a,ment o. t)eir annua members)i#
dues to t)e =ntegrated >ar o. t)e P)ii##ines .or t)e 'urrent ,ear F F F.M =n
t)e instant #etition, $tt,. "aa,an .aied to indi'ate t)e number and date o.
t)e o..i'ia re'ei#t eviden'ing #a,ment o. =>P dues.
2-;3
7=tai's in t)e
originaB unders'oring su##ied:


*ia an 8mnibus %otion,
2-53
#etitioners #ra,ed t)e "ourt o. $##eas to 7a:
R6"8NS=46R its Resoution dated 8'tober -1, -00- dismissing t)e Petition .or Revie/B
and 7b: $4%=( t)e t)ereto atta')ed 'erti.ied true 'o#ies o. t)e #arties? Position Pa#ers and
t)e #etitioners? %otion to 4ismiss .ied /it) t)e SS",
2-63
t)e "erti.i'ate o. 9i.e %embers)i# o.
t)eir 'ounse $tt,. Ronado $ntonio "aa,an,
2-73
and t)e 8..i'ia Re'ei#t s)o/ing said
'ounse?s #a,ment o. i.etime members)i# .ee to t)e =ntegrated >ar o. t)e P)ii##ines.
2-83

()e "ourt o. $##eas, .inding no substantia 'om#ian'e b, #etitioners /it) t)e
reNuirement in Se'tion 11, Rue 1@ o. t)e 1CC7 Rues o. "ivi Pro'edure reading:

Se'tion 11. %riorities in @odes of )ervice and Eiling O D)enever
#ra'ti'abe, t)e servi'e and .iing o. #eadings and ot)er #a#ers s)a be
done #ersona,. 6F'e#t /it) res#e't to #a#ers emanating .rom t)e 'ourt, a
resort to ot)er modes must be a''om#anied b, a /ritten eF#anation /),
t)e servi'e or .iing /as not done #ersona,. $ vioation o. t)is rue ma,
'ause to 'onsider t)e #a#er as not .ied.,


denied t)e 8mnibus %otion b, Resoution o. $ugust ;, -00;.
2-C3

Een'e, t)e #resent Petition .or Revie/
2@03
.auting t)e a##eate 'ourt as .oo/s:
=. (E6 E8N8R$>96 "8GR( 8< $PP6$9S 6RR64 =N
S(R="(9Y $4E6R=NG (8 (6"EN="$9=(=6S, R$(E6R (E$N =N
SG>S($N(=$9 "8%P9=$N"6, =N (E6 $PP9="$(=8N 8< (E6
PR8*=S=8NS 8< (E6 1CC7 RG96S 8N "=*=9 PR8"64GR6.


==. (E6 "=R"G%S($N"6S PR6*$=9=NG =N (E=S P6(=(=8N
<=N4 SGPP8R( =N 46"=S=8NS 8< (E=S E8N8R$>96 "8GR( =N
<$*8R 8< (E6 R6*6RS$9 8< (E6 "8GR( 8< $PP6$9S?
46"=S=8N GN46R R6*=6D.
2@13
7Gnders'oring su##ied:

Petitioners #osit t)at t)e, 'om#ied substantia, /it) Se'tion 11, Rue 1@ o. t)e
Rues o. "ourt, as .oo/s:

Sonia?s a..idavit o. servi'e 'ear, s)o/s t)e im#ra'ti'abiit, o.
#ersona servi'e o. 'o#ies o. t)e #etition to t)e adverse #arties. %ani.est in
t)e same a..idavit is t)e intervenor So'ia Se'urit, S,stem?s address
inQue!on "it,B t)at o. t)e #rivate res#ondent?s a/,er in 9o#e!, Que!on,
and t)at o. So'ia Se'urit, "ommission in %aAati "it,. Sonia?s 'ounse?s
address is 9u'ena "it,. ()e distan'e bet/een t)ese addresses, it is most
res#e't.u, submitted as a matter o. &udi'ia noti'e, ma, be 'onstrued as
more t)an 'om#etent indi'ia as to /), Sonia resorted to servi'e b, mai.
2@-3
7Gnders'oring su##ied:


$nd t)e, 'ite &uris#ruden'e 'aing .or a ibera inter#retation o. t)e Rues in t)e
interest o. substantia &usti'e,
2@@3
s#e'i.i'a, Barnes v$ 'eyes
2@;3
/)i') 'assi.ies Se'tion 11,
Rue 1@ o. t)e Rues as a dire'tor,, rat)er t)an a mandator,, rue.

()e #etition is meritorious.

=n )olar ?eam Entertainment, 0nc$ v$ 'icafort,
2@53
t)is "ourt, #assing u#on Se'tion 11
o. Rue 1@ o. t)e Rues o. "ourt, )ed t)at a 'ourt )as t)e dis'retion to 'onsider a #eading or
#a#er as not .ied i. said rue is not 'om#ied /it).

,e#s!n&l servi'e and .iing are #re.erred .or obvious
reasons. Pain,, su') s)oud eF#edite a'tion or resoution on a #eading,
motion or ot)er #a#erB and 'onverse,, minimi!e, i. not eiminate, dea,s
iAe, to be in'urred i. servi'e or .iing is done b, mai, 'onsidering t)e
ine..i'ien', o. t)e #osta servi'e. 9iAe/ise, #ersona servi'e /i do a/a,
/it) t)e #ra'ti'e o. some a/,ers /)o, /anting to a##ear 'ever, resort to
t)e .oo/ing ess t)an et)i'a #ra'ti'es: 71: serving or .iing #eadings b,
mai to 'at') o##osing 'ounse o..-guard, t)us eaving t)e atter /it) itte
or no time to #re#are, .or instan'e, res#onsive #eadings or an o##ositionB or
7-: u#on re'eiving noti'e .rom t)e #ost o..i'e t)at t)e registered 'ontaining
t)e #eading o. or ot)er #a#er .rom t)e adverse #art, ma, be 'aimed,
undu, #ro'rastinating be.ore 'aiming t)e #ar'e, or, /orse, not 'aiming it
at a, t)ereb, 'ausing undue dea, in t)e dis#osition o. su') #eading or
ot)er #a#ers.

=. on, to unders'ore t)e mandator, nature o. t)is innovation to
our set o. ad&e'tive rues reNuiring #ersona servi'e /)enever #ra'ti'abe,
Se'tion 11 o. Rue 1@ t)en ;%'es the !u#t the "%s#et%!n t! !ns%"e# &
3le&"%n; !# 3&3e# &s n!t )%le" %) the !the# 7!"es !) se#'%e !# )%l%n;
$e#e n!t #es!#te" t! &n" n! $#%tten e@3l&n&t%!n $&s 7&"e &s t! $h(
3e#s!n&l se#'%e $&s n!t "!ne %n the )%#st 3l&e. The e@e#%se !)
"%s#et%!n 7ust, neess&#%l( !ns%"e# the 3#&t%&4%l%t( !) 3e#s!n&l
se#'%e, )!# Set%!n -- %tsel) 4e;%ns $%th the l&use J$hene'e#
3#&t%&4leK.

De t)us taAe t)is o##ortunit, to 'ari., t)at under Se'tion 11, Rue
1@ o. t)e 1CC7 Rues o. "ivi Pro'edure, #ersona service and filing is t)e
genera rue, and resort to ot)er modes o. servi'e and .iing, t)e
eF'e#tion. Een'e.ort), /)enever #ersona servi'e or .iing is #ra'ti'abe, in
t)e ig)t o. t)e 'ir'umstan'es o. time, #a'e and #erson, #ersona servi'e or
.iing is mandator,. 8n, /)en #ersona servi'e or .iing is not #ra'ti'abe
ma, resort to ot)er modes be )ad, /)i') must t)en be a''om#anied b, a
/ritten eF#anation as to /), #ersona servi'e or .iing /as not #ra'ti'abe
to begin /it). =n ad&udging t)e #ausibiit, o. an eF#anation, a 'ourt s)a
iAe/ise 'onsider t)e im#ortan'e o. t)e sub&e't matter o. t)e 'ase or t)e
issues invoved t)erein, and t)e prima facie merit o. t)e #eading soug)t to
be eF#unged .or vioation o. Se'tion 11.
2@63
76m#)asis and unders'oring
su##ied:


=n @usa v$ +mor, t)is "ourt, on noting t)e im#ra'ti'ait, o. #ersona servi'e,
eFer'ised its dis'retion and ibera, a##ied Se'tion 11 o. Rue 1@:
2@73

$s 2Se'tion 11, Rue 1@ o. t)e Rues o. "ourt3 reNuires, servi'e and .iing o.
#eadings must be done #ersona, /)enever #ra'ti'abe. The !u#t n!tes
th&t %n the 3#esent &se, 3e#s!n&l se#'%e $!ul" n!t 4e
3#&t%&4le. C!ns%"e#%n; the "%st&ne 4et$een the C!u#t !) A33e&ls
&n" D!ns!l, S!#s!;!n $he#e the 3et%t%!n $&s 3!ste", le&#l(, se#'%e 4(
#e;%ste#e" 7&%l <s%= $!ul" h&'e ent&%le" !ns%"e#&4le t%7e, e))!#t

&n" e@3ense. A $#%tten e@3l&n&t%!n $h( se#'%e $&s n!t "!ne
3e#s!n&ll( 7%;ht h&'e 4een su3e#)lu!us. =n an, 'ase, as t)e rue is so
/orded /it) t)e use o. Lma,M, signi.,ing #ermissiveness, a vioation
t)ereo. gives t)e 'ourt dis'retion /)et)er or not to 'onsider t)e #a#er as not
.ied. D)ie it is true t)at #ro'edura rues are ne'essar, to se'ure an
order, and s#eed, administration o. &usti'e, #%;%" &33l%&t%!n !) Set%!n
--, Rule -F 7&( 4e #el&@e" %n th%s &se %n the %nte#est !) su4st&nt%&l
Aust%e.
2@83
76m#)asis and unders'oring su##ied:

=n t)e 'ase at bar, t)e address o. res#ondent?s 'ounse is 9o#e!, Que!on, /)ie
#etitioner Sonia?s 'ounse?s is 9u'ena "it,.
2@C3
9o#e!, Que!on is 8@ Aiometers a/a,
.rom 9u'ena"it,.
2;03
Su') distan'e maAes #ersona servi'e im#ra'ti'abe. $s
in @usa v$ +mor,
2;13
a /ritten eF#anation /), servi'e /as not done #ersona, Lmig)t )ave
been su#er.uous.M

$s t)is "ourt )ed in ?an v$ Court of +ppeals,
2;-3
ibera 'onstru'tion o. a rue o.
#ro'edure )as been ao/ed /)ere, among ot)er 'ases, Lt)e in&usti'e to t)e adverse #art, is
not 'ommensurate /it) t)e degree o. )is t)oug)tessness in not 'om#,ing /it) t)e #ro'edure
#res'ribed.M

Dit)out #reem#ting t)e .indings o. t)e "ourt o. $##eas on t)e merits o. #etitioners?
#etition in "$ G.R. No. 7@0@8, i. #etitioners? aegations o. .a't and o. a/ t)erein are true
and t)e outrig)t dismissa o. t)eir #etition is u#)ed /it)out giving t)em t)e o##ortunit, to
#rove t)eir aegations, #etitioner Sonia /oud be de#rived o. )er rig)t.u deat) bene.its &ust
be'ause
o. t)e Basunduan s)e .orged /it) )er )usband %a'atanga, /)i') 'ontra't is, in t)e .irst
#a'e, una/.u.
2;@3
()e resuting in&usti'e /oud not be 'ommensurate to #etitioners?
'ounse?s Lt)oug)tessnessM in not eF#aining /), res#ondents /ere not #ersona, served
'o#ies o. t)e #etition.

W*ERE+ORE, t)e #etition is GRANTED. ()e Resoutions o. t)e "ourt o.
$##eas dated 8'tober -1, -00- and $ugust ;, -00; in "$ G.R. No. 7@0@8
areRE9ERSED and SET ASIDE.

9et t)e re'ords o. t)e 'ase be REMANDED to t)e "ourt o. $##eas /)i')
is DIRECTED to taAe a##ro#riate a'tion on #etitioner?s #etition .or revie/ in ig)t o. t)e
.oregoing dis'ussions.

SO ORDERED.

G.R. N!. -FGEE1 Jul( 1F, 122.
EASTERN TELECOMMUNICATIONS ,*ILI,,INES, INC. &n"
TELECOMMUNICATIONS TEC*NOLOGIES, INC.,#etitioners,
vs.
INTERNATIONAL COMMUNICATION COR,ORATION, res#ondent.
4 6 " = S = 8 N
AUSTRIA-MARTINEZ, J.:
()e roe o. t)e tee'ommuni'ations industr, in P)ii##ine #rogress and deveo#ment 'annot
be understated. (ime /as /)en t)e industr, /as dominated b, a .e/ -- an oigar'), o. sorts
/)ere t)e eite made t)e de'isions and ser.dom )ad no ')oi'e but a'Nuies'e. Sensing t)e
need to abrogate t)eir dominion, t)e government .ormuated #oi'ies in order to 'reate an
environment 'ondu'ive to t)e entr, o. ne/ #a,ers. ()us, in 8'tober 1CC0, t)e Nationa
(ee'ommuni'ations 4eveo#ment Pan 1CC1--010 7N(4P: /as .ormuated and 'ame into
being. 4esigned b, t)e 4e#artment o. (rans#ortation and "ommuni'ations 748(":, t)e
N(4P #rovides .or t)e .rame/orA o. government #oi'ies, ob&e'tives and strategies t)at /i
guide t)e industr,Ps deveo#ment .or t)e neFt -0 ,ears. $s eF#e'ted, /it) it 'ame t)e in'rease
in t)e demand .or tee'ommuni'ations servi'es, es#e'ia, in t)e area o. o'a eF')ange
'arrier servi'e 796"S:.
1
"on'omitant,, t)e 48(" issued guideines .or t)e rationai!ation o. o'a eF')ange
tee'ommuni'ations servi'e. =n #arti'uar, t)e 48(" issued on Se#tember @0, 1CC1,
4e#artment "ir'uar No. C1--60, /it) t)e #ur#ose o. minimi!ing or eiminating situations
/)erein muti#e o#erators #rovide o'a eF')ange servi'e in a given area. Pursuant t)ereto,
t)e Nationa (ee'ommuni'ations "ommission 7N(": /as tasAed to de.ine t)e boundaries o.
o'a eF')ange areas and aut)ori!e on, one .ran')ised o'a eF')ange 'arrier to #rovide o'a
eF')ange servi'e /it)in su') areas.
()erea.ter, on +u, 1-, 1CC@, t)en President <ide *. Ramos issued 6Fe'utive 8rder No. 10C
entited 9o'a 6F')ange "arrier Servi'e. Se'tion - t)ereo. #rovides t)at a eFisting
=nternationa Gate/a, <a'iit, 7=G<: o#erators
-
are reNuired to #rovide o'a eF')ange 'arrier
servi'es in unserved and underserved areas, in'uding %etro %ania, t)ereb, #romoting
universa a''ess to basi' tee'ommuni'ations servi'e.
()e N(" #romugated %emorandum "ir'uar No. 11-C-C@ on Se#tember 17, 1CC@
im#ementing t)e ob&e'tives o. 6.8. No. 10C.
@
Se'tion @ o. t)e "ir'uar mandates eFisting
=G< o#erators to .ie a #etition .or t)e issuan'e o. "erti.i'ate o. Pubi' "onvenien'e and
Ne'essit, 7"P"N: to insta, o#erate and maintain o'a eF')ange 'arrier servi'es /it)in t/o
,ears .rom e..e'tivit, t)ereo.. Se'tion ; .urt)er reNuires =G< o#erators to #rovide a minimum
o. @00 o'a eF')ange ines #er one internationa s/it') termination and a minimum o.
@00,000 o'a eF')ange ines /it)in t)ree ,ears .rom grant o. aut)orit,.
(o 'a# t)e governmentPs e..orts, Re#ubi' $'t No. 7C-5, ot)er/ise Ano/n as t)e Pubi'
(ee'ommuni'ations Poi', $'t o. t)e P)ii##ines, /as ena'ted on %ar') -@, 1CC5. Dit)
regard to o'a eF')ange servi'e, Se'tion 10 t)ereo. mandates an internationa 'arrier to
'om#, /it) its obigation to #rovide o'a eF')ange servi'e in unserved or underserved areas
/it)in t)ree ,ears .rom t)e grant o. aut)orit, as reNuired b, eFisting reguations. 8n
Se#tember -5, 1CC5, t)e N(" issued t)e =m#ementing Rues and Reguations .or R.$. No.
7C-5 #er its N(" %" No. 8-C-C5.
(aAing advantage o. t)e o##ortunities broug)t about b, t)e #assage o. t)ese a/s, severa =G<
o#erators a##ied .or "P"N to insta, o#erate and maintain o'a eF')ange 'arrier servi'es in
'ertain areas. Res#ondent =nternationa "ommuni'ation "or#oration, no/ Ano/n as >a,an
(ee'ommuni'ations "or#oration or >a,ante,
;
a##ied .or and /as given b, t)e N(" a
Provisiona $ut)orit, 7P$:
5
on %ar') @, 1CC5, to insta, o#erate and #rovide o'a eF')ange
servi'e in Que!on "it,, %aabon and *aen!uea, %etro %ania, and t)e entire >i'o region.
%ean/)ie, #etitioner (ee'ommuni'ations (e')noogies P)ii##ines, =n'. 7((P=:, as an
a..iiate o. #etitioner 6astern (ee'ommuni'ations P)ii##ines, =n'. 76(P=:, /as granted b,
t)e N(" a P$ on Se#tember -5, 1CC6, to insta, o#erate and maintain a o'a eF')ange
servi'e in t)e Provin'es o. >atanes, "aga,an *ae,, =sabea, Jainga-$#a,ao, Nueva
*i!'a,a, =.ugao, Quirino, t)e 'ities o. %ania and "aoo'an, and t)e %uni'i#ait, o. Navotas,
%etro %ania.
=t a##ears, )o/ever, t)at be.ore ((P= /as abe to .u, a''om#is) its roout obigation, =""
a##ied .or and /as given a P$ b, t)e N(" on November 10, 1CC7, to insta, o#erate and
maintain a o'a eF')ange servi'e in %ania and Navotas,
6
t/o areas /)i') /ere aread,
'overed b, ((P= under its P$ dated Se#tember -5, 1CC6.
$ggrieved, #etitioners .ied a #etition .or revie/ /it) t)e "ourt o. $##eas /it) a##i'ation
.or a tem#orar, restraining order and a /rit o. #reiminar, in&un'tion, do'Aeted as "$-G.R.
SP No. ;60;7, arguing t)at t)e N(" 'ommitted grave abuse o. dis'retion in granting a
#rovisiona aut)orit, to res#ondent ="" to o#erate in areas aread, assigned to ((P=.
8n $#ri @0, 1CC8, t)e "ourt o. $##eas dismissed
7
t)e #etition .or revie/ on t)e ground t)at
t)e N(" did not 'ommit an, grave abuse o. dis'retion in granting t)e P$ to ((P=. =t
sustained t)e N("Ps .inding t)at ="" is Qega, and .inan'ia, 'om#etent and its net/orA
#an te')ni'a, .easibe.Q ()e "ourt o. $##eas aso rued t)at t)ere /as no vioation o. t)e
eNua #rote'tion 'ause be'ause t)e P$ granted to ="" and ((P= /ere given under di..erent
situations and t)ere is no #oint o. 'om#arison bet/een t)e t/o.
8
Een'e, t)e #resent #etition .or revie/ on certiorari, raising t)e .oo/ing issues:
=
D)et)er or not t)e Eonorabe "ourt o. $##eas 'ommitted a serious error o. a/ in
u#)oding t)e 8rder o. t)e N(" granting a P$ to Res#ondent to o#erate 96"
servi'es in %ania and Navotas /)i') are areas aread, assigned to #etitioner ((P=
under a #rior and subsisting P$.
==
D)et)er or not Petitioner is entited to a Drit o. Preiminar, =n&un'tion to restrain
Res#ondent .rom instaing 96" servi'es in t)e areas granted to it b, t)e 8rder
under revie/.
C
=n su##ort t)ereo., #etitioners #osit t)e .oo/ing arguments:
71: ()e assignment to ="" o. areas aread, ao'ated to ((P= vioates t)e
Servi'e $rea S')eme 7S$S:, /)i') is t)e guide#ost o. t)e a/s and issuan'es
governing o'a eF')ange servi'eB
7-: ="" did not maAe an, s)o/ing t)at an eFisting o#erator, ((P= in t)is 'ase,
.aied to 'om#, /it) t)e servi'e #er.orman'e and te')ni'a standards #res'ribed b,
t)e N(", and t)at t)e area is underserved, as reNuired under Se'tion -@ o. %" No.
11-C-C@B
7@: ()e .a'ts and .igures 'ited b, t)e N(", i$e$, =""Ps aeged remarAabe
#er.orman'e in .u.iing its roout obigation and t)e gro/t) rate in t)e instaation
o. tee#)one ines in %ania and Navotas, do not &usti., t)e grant o. t)e P$ in .avor
o. ="", nor are t)e, su##orted b, t)e eviden'e on re'ord as t)ese /ere not #resented
during t)e #ro'eedings be.ore t)e N("B
7;: ="" did not 'om#, /it) t)e reNuirement o. Q#rior 'onsutationQ /it) t)e
N(" be.ore it .ied its a##i'ation, in vioation o. Se'tions @ and @.1 o. %" 11-C-C@B
75: ="" did not 'om#, /it) Se'tion -7 o. %" 11-C-C@ reNuiring t)at an
es'ro/ de#osit be made eNuivaent to -0] and a #er.orman'e bond eNuivaent to
10] o. t)e investment reNuired .or t)e .irst t/o ,ears o. t)e #ro&e'tB
76: ="" is not .inan'ia, and te')ni'a, 'a#abe o. undertaAing t)e #ro&e'tB
77: ()e grant o. a P$ in .avor o. ="" to o#erate in areas 'overed b, ((P= /i
render it di..i'ut .or t)e atter to 'ross-subsidi!e its o#erations in ess #ro.itabe
areas 'overed b, it and /i t)reaten its viabiit, to 'ontinue as a o'a eF')ange
o#erator.
10
$.ter a revie/ o. t)e re'ords o. t)is 'ase, t)e "ourt .inds no grave abuse o. dis'retion
'ommitted b, t)e "ourt o. $##eas in sustaining t)e N("Ps grant o. #rovisiona aut)orit, to
="".
()e #o/er o. t)e N(" to grant a #rovisiona aut)orit, )as ong been setted. $s t)e
reguator, agen', o. t)e nationa government /it) &urisdi'tion over a tee'ommuni'ations
entities, it is 'ot)ed /it) aut)orit, and given am#e dis'retion to grant a #rovisiona #ermit or
aut)orit,.
11
=t aso )as t)e aut)orit, to issue "erti.i'ates o. Pubi' "onvenien'e and Ne'essit,
7"P"N: .or t)e instaation, o#eration, and maintenan'e o. 'ommuni'ations .a'iities and
servi'es, radio 'ommuni'ations s,stems, tee#)one and teegra#) s,stems, in'uding t)e
aut)orit, to determine t)e areas o. o#erations o. a##i'ants .or tee'ommuni'ations
servi'es.
1-
=n t)is regard, t)e N(" is 'ot)ed /it) su..i'ient dis'retion to a't on matters soe,
/it)in its 'om#eten'e.
1@
=n granting ="" t)e P$ to o#erate a o'a eF')ange 'arrier servi'e in t)e %ania and Navotas
areas, t)e N(" tooA into 'onsideration =""Ps .inan'ia and te')ni'a resour'es and .ound
t)em to be adeNuate. ()e N(" aso noted =""Ps #er.orman'e in 'om#,ing /it) its roout
obigations under t)e #revious P$ granted to it, t)us:
Dit) t)e #roven tra'A re'ord o. )erein a##i'ant as one o. t)e #a'esetters in 'arr,ing
out its andines 'ommitment in its assigned areas, a##i'ant 'an best res#ond to
#ubi' demand .or .aster instaation o. tee#)one ines in %ania and Navotas.
()e grant o. t)is a##i'ation is, t)ere.ore, a .itting re'ognition t)at s)oud be
a''orded to an, deserving a##i'ant, su') as )erein a##i'ant ="" /)ose remarAabe
#er.orman'e in terms o. #ubi' servi'e as mandated b, 6Fe'utive 8rder 10C and
Re#ubi' $'t No. 7C-5 )as #ersuaded t)is "ommission to a..iF t)e stam# o. its
a##rova.
1;
()e "ourt /i not inter.ere /it) t)ese .indings o. t)e N(", as t)ese are matters t)at are
addressed to its sound dis'retion, being t)e government agen', entrusted /it) t)e reguation
o. a'tivities 'oming under its s#e'ia and te')ni'a .orte.
15
%oreover, t)e eFer'ise o.
administrative dis'retion is a #oi', de'ision and a matter t)at 'an best be dis')arged b, t)e
government agen', 'on'erned, and not b, t)e 'ourts.
16
Petitioner insists 'om#ian'e /it) t)e servi'e area s')eme 7S$S: mandated b, 48(" 4e#t.
"ir'uar No. C1--60, to /it:
1. ()e Nationa (ee'ommuni'ations "ommission 7N(": s)a de.ine t)e
boundaries o. o'a eF')ange areas, and s)a )en'e.ort) aut)ori!e on, one
.ran')ised 9o'a 6F')ange "arrier 796": to #rovide 96" servi'e /it)in su') areas.
()e "ourt is not #ersuaded. Said de#artment 'ir'uar /as issued b, t)e 48(" in 1CC1,
be.ore t)e advent o. 6.8. No. 10C and R.$. No. 7C-5. D)en 6.8. No. 10C /as #romugated
in 1CC@, and R.$. No. 7C-5 ena'ted in 1CC5, t)e servi'e area s')eme /as noti'eab, omitted
t)ere.rom. =nstead, 6.8. No. 10C and R.$. No. 7C-5 ado#ted a #oi', o. )eat), 'om#etition
among t)e o'a eF')ange 'arrier servi'e #roviders.
()e need to .ormuate ne/ #oi'ies is di'tated b, evoving goas and demands in
tee'ommuni'ations servi'es. ()us, 6.8. No. 10C a'Ano/edges t)at t)ere is a Qneed to
#romugate ne/ #oi', dire'tives to meet t)e targets o. Government t)roug) t)e Nationa
(ee'ommuni'ations 4eveo#ment Pan 7N(4P: o. t)e 4e#artment o. (rans#ortation and
"ommuni'ations 748(":, s#e'i.i'a,: 71: to ensure t)e order, deveo#ment o. t)e
tee'ommuni'ations se'tor t)roug) t)e #rovision o. servi'e to a areas o. t)e 'ountr,B 7-: to
satis., t)e unservi'ed demand .or tee#)onesB and 7@: to #rovide )eat), 'om#etition among
aut)ori!ed servi'e #roviders.Q 9iAe/ise, one o. t)e nationa #oi'ies and ob&e'tives o. R.$.
No. 7C-5 is to .oster t)e im#rovement and eF#ansion o. tee'ommuni'ations servi'es in t)e
'ountr, t)roug) a )eat), 'om#etitive environment, in /)i') tee'ommuni'ations 'arriers are
.ree to maAe business de'isions and to intera't /it) one anot)er in #roviding
tee'ommuni'ations servi'es, /it) t)e end in vie/ o. en'ouraging t)eir .inan'ia viabiit,
/)ie maintaining a..ordabe rates.
17
Re'ent,, in (i"ipino )e"ephone Corporation vs. N)C,
18
t)e "ourt )ad o''asion to rue on a
'ase aAin to t)e #resent dis#ute, invoving t)e same res#ondent ="", and t)e Pii#ino
(ee#)one "or#oration 7Pite:. =n t)e %iltel'ase, ="" a##ied .or a #rovisiona aut)orit, to
o#erate a o'a eF')ange servi'e in areas aread, 'overed b, Pite, /)i') in'udes %isamis
8''identa, Iamboanga de Sur, 4avao de Sur, Sout) "otabato and Saranggani. Pite
o##osed =""Ps a##i'ation but t)e N(" denied it, and granted =""Ps a##i'ation. ()e "ourt o.
$##eas dismissed PitePs #etition .or revie/, and on certiorari be.ore t)is "ourt, /e a..irmed
t)e dismissa. ()e "ourt .ound t)at t)e N(" did not 'ommit an, grave abuse o. dis'retion
/)en it granted t)e ="" a #rovisiona aut)orit, to o#erate in areas 'overed b, Pite. De )ed:
De /i not disturb t)e .a'tua .indings o. t)e N(" on t)e te')ni'a and .inan'ia
'a#abiit, o. t)e ="" to undertaAe t)e #ro#osed #ro&e't. De genera, a''ord great
/eig)t and even .inait, to .a'tua .indings o. administrative bodies su') as t)e
N(", i. substantia eviden'e su##orts t)e .indings as in t)is 'ase. ()e eF'e#tion to
t)is rue is /)en t)e administrative agen', arbitrari, disregarded eviden'e be.ore it
or misa##re)ended eviden'e to su') an eFtent as to 'om#e a 'ontrar, 'on'usion
)ad it #ro#er, a##re'iated t)e eviden'e. P=9(69 grave, .aied to s)o/ t)at t)is
eF'e#tion a##ies to t)e instant 'ase. %oreover, t)e eFer'ise o. administrative
dis'retion, su') as t)e issuan'e o. a P$, is a #oi', de'ision and a matter t)at t)e
N(" 'an best dis')arge, not t)e 'ourts.
P=9(69 'ontends t)at t)e N(" vioated Se'tion -@ o. N(" %emorandum "ir'uar
No. 11-C-C@, ot)er/ise Ano/n as t)e Q=m#ementing Guideines on t)e Provisions o.
68 10CQ /)i') states:
Se'tion -@. No ot)er 'om#an, or entit, s)a be aut)ori!ed to #rovide o'a
eF')ange servi'e in areas /)ere t)e *ECs 'om#, /it) t)e reevant
#rovisions o. %(" %" No. 10-17-C0 and N(" %" No. 10-16-C0 and t)at
t)e o'a eF')ange servi'e area is not underserved. 76m#)asis su##ied:
Se'tion -@ o. 68 10C does not 'ategori'a, state t)at t)e issuan'e o. a P$ is
eF'usive to an, tee'ommuni'ations 'om#an,. Neit)er "ongress nor t)e N(" 'an
grant an eF'usive Q.ran')ise, 'erti.i'ate, or an, ot)er .orm o. aut)ori!ationQ to
o#erate a #ubi' utiit,. =n 'epub"i# v. Express )e"e#ommuni#ations Co$, t)e "ourt
)ed t)at Qt)e "onstitution is Nuite em#)ati' t)at t)e o#eration o. a #ubi' utiit, s)a
not be eF'usive.Q Se'tion 11, $rti'e K== o. t)e "onstitution #rovides:
Se'. 11. No .ran')ise, 'erti.i'ate, or an, ot)er .orm o. aut)ori!ation .or t)e
o#eration o. a #ubi' utiit, s)a be granted eF'e#t to 'iti!ens o. t)e
P)ii##ines or to 'or#orations or asso'iations organi!ed under t)e a/s o.
t)e P)ii##ines at east siFt, per centum o. /)ose 'a#ita is o/ned b, su')
'iti!ens,nor sha"" su#h fran#hise, #ertifi#ate or authorization be ex#"usive
in #hara#ter or .or a onger #eriod t)an .i.t, ,ears. Neit)er s)a an, su')
.ran')ise or rig)t be granted eF'e#t under t)e 'ondition t)at it s)a be
sub&e't to amendment, ateration, or re#ea b, t)e "ongress /)en t)e
'ommon good so reNuires. FFF 76m#)asis su##ied:
()us, in 'adio Communi#ations of the (hi"ippines, In#. v. Nationa"
)e"e#ommuni#ations Commission, t)e "ourt rued t)at t)e Q"onstitution mandates
t)at a .ran')ise 'annot be eF'usive in nature.Q
. . .
$mong t)e de'ared nationa #oi'ies in Re#ubi' $'t No. 7C-5, ot)er/ise Ano/n as
t)e QPubi' (ee'ommuni'ations Poi', $'t o. t)e P)ii##ines,Q is t)e )eat),
'om#etition among tee'ommuni'ations 'arriers, to /it:
Z
8bvious,, Qt)e need .or a )eat), 'om#etitive environment in tee'ommuni'ations is
su..i'ient im#etus .or t)e N(" to 'onsider a t)ose a##i'ants, /)o are /iing to
o..er 'om#etition, deveo# t)e marAet and #rovide t)e environment ne'essar, .or
greater #ubi' servi'e.Q
<urt)ermore, Q.ree 'om#etition in t)e industr, ma, aso #rovide t)e ans/er to a
mu')-desired im#rovement in t)e Nuait, and deiver, o. t)is t,#e o. #ubi' utiit,,
to im#roved te')noog,, .ast and )and, mobi2e3 servi'e, and redu'ed user
dissatis.a'tion.Q
P=9(69Ps 'ontention t)at t)e N(" 8rder amounts to a 'on.is'ation o. #ro#ert,
/it)out due #ro'ess o. a/ is untenabe. Q"on.is'ationQ means t)e sei!ure o. #rivate
#ro#ert, b, t)e government /it)out 'om#ensation to t)e o/ner. $ .ran')ise to
o#erate a #ubi' utiit, is not an eF'usive #rivate #ro#ert, o. t)e .ran')isee. Gnder
t)e "onstitution, no .ran')isee 'an demand or a'Nuire eF'usivit, in t)e o#eration o.
a #ubi' utiit,. ()us, a .ran')isee o. a #ubi' utiit, 'annot 'om#ain o. sei!ure or
taAing o. #ro#ert, be'ause o. t)e issuan'e o. anot)er .ran')ise to a 'om#etitor.
6ver, .ran')ise, 'erti.i'ate or aut)orit, to o#erate a #ubi' utiit, is, b, 'onstitutiona
mandate, non-eF'usive. P=9(69 'annot 'om#ain o. a taAing o. an eF'usive rig)t
t)at it does not o/n and /)i') no .ran')isee 'an ever o/n.
9iAe/ise, P=9(69Ps argument t)at t)e N(" 8rder vioates P=9(69Ps rig)ts as a #rior
o#erator )as no merit. ()e "ourt resoved a simiar Nuestion in 'epub"i# v. 'epub"i#
)e"ephone Company, In#$ =n striAing do/n Rete'oPs 'aim t)at it )ad a rig)t to be
#rote'ted in its investment as a .ran')ise-)oder and #rior o#erator o. a tee#)one
servi'e in %aoos, >ua'an, t)e "ourt )ed:
R6(69"8Ps .oremost argument is t)at Qsu') o#erations and maintenan'e o.
t)e tee#)one s,stem and soi'itation o. subs'ribers b, 2#etitioners3
'onstituted an un.air and ruinous 'om#etition to t)e detriment o.
2R6(69"8 /)i')3 is a grantee o. bot) muni'i#a and egisative .ran')ises
.or t)e #ur#ose.Q =n e..e't, R6(69"8 #eads .or #rote'tion .rom t)e 'ourts
on t)e assum#tion t)at its .ran')ises vested in it an eF'usive rig)t as #rior
o#erator. ()ere is no 'ear s)o/ing b, R6(69"8, )o/ever, t)at its
.ran')ises are o. an eF'usive ')ara'ter. FFF $t an, rate, it ma, ver, /e
be #ointed out as /e t)at neit)er did t)e .ran')ise o. P94( at t)e time o.
t)e 'ontrovers, 'on.er eF'usive rig)ts u#on P94( in t)e o#eration o. a
tee#)one s,stem. =n .a't, /e )ave made it a matter o. &udi'ia noti'e t)at
a egisative .ran')ises .or t)e o#eration o. a tee#)one s,stem 'ontain t)e
.oo/ing #rovision:
Q=t is eF#ress, #rovided t)at in t)e even^t t)e P)ii##ine
Government s)oud desire to maintain and o#erate .or itse. t)e
s,stem and enter#rise )erein aut)ori!ed, t)e grantee s)a surrender
)is .ran')ise and /i turn over to t)e Government said s,stem and
a servi'eabe eNui#ment t)erein, at 'ost, ess reasonabe
de#re'iation.Q
1C
Simiar, in t)is 'ase, t)e grant o. a P$ to ="" to o#erate in areas 'overed b, ((P= is not
tainted /it) an, grave abuse o. dis'retion as it /as issued b, t)e N(" a.ter taAing into
a''ount =""Ps te')ni'a and .inan'ia 'a#abiities, and in Aee#ing /it) t)e #oi', o. )eat),
'om#etition .ostered b, 6.8. No. 10C and R.$. No. 7C-5.
=n addition, Se'tion 6 o. R.$. No. 7C-5 s#e'i.i'a, imits t)e 48(" .rom eFer'ising an,
#o/er t)at /i tend to in.uen'e or e..e't a revie/ or a modi.i'ation o. t)e N("Ps Nuasi-
&udi'ia .un'tions, to /it:
Se'tion 6. 'esponsibilities of and (imitations to &epartment %owers$ -- ()e
4e#artment o. (rans#ortation and "ommuni'ations 74e#artment: s)a not eFer'ise
an, #o/er /)i') /i tend to in.uen'e or e..e't a revie/ or a modi.i'ation o. t)e
"ommissionPs Nuasi-&udi'ia .un'tion.
Z
()e #o/er o. t)e N(" in granting or den,ing a #rovisiona aut)orit, to o#erate a o'a
eF')ange 'arrier servi'e is a Nuasi-&udi'ia .un'tion,
-0
a s#)ere in /)i') t)e 48(" 'annot
intrude u#on. =. at a, t)e servi'e area s')eme #rovided in 48(" 4e#t. "ir'uar No. C1--60
is on, one o. t)e .a'tors, but s)oud not in an, /a,, tie do/n t)e N(" in its determination o.
t)e #ro#riet, o. a grant o. a #rovisiona aut)orit, to a Nuai.ied a##i'ant .or o'a eF')ange
servi'e.
(rue, N(" %" No. 11-C-C@ reNuires #rior 'onsutation /it) t)e N(" o. t)e #ro#osed servi'e
areas. $s #etitioners t)emseves argue, #rior 'onsutation ao/s t)e N(" to assess t)e
im#a't o. t)e #ro#osed a##i'ation on t)e viabiit, o. t)e o'a eF')ange o#erator in t)e area
desired b, t)e /oud-be a##i'ant and on t)e viabiit, o. t)e entire tee'ommuni'ations
industr, as /e as rationai!e t)e #ans to minimi!e an, adverse im#a't.
-1
=n t)is 'ase, #rior
'onsutation /as substantia, 'om#ied /it) and its #ur#ose a''om#is)ed, /)en ="" .ied
its a##i'ation and t)e N(" /as given t)e o##ortunit, to assess =""Ps viabiit, to render o'a
eF')ange servi'e in t)e %ania and Navotas areas, and its im#a't on t)e tee'ommuni'ations
industr,.
=t is aso true t)at N(" %" No. 8-C-C5 ao/s a du, en.ran')ised entit, to maintain a o'a
eF')ange net/orA i. it is s)o/n t)at an eFisting aut)ori!ed o'a eF')ange o#erator .ais to
satis., t)e demand .or o'a eF')ange servi'e.
--
=n t)is 'ase, t)e N(" noted t)e in'reasing rate
in t)e demand .or o'a ines /it)in t)e %ania and Navotas areas, and in order .or t)ese areas
to 'at') u# /it) its neig)boring 'ities, instaation o. ines must be s#ed u#.
-@
()is, in .a't, is
tantamount to a .inding t)at t)e eFisting o'a eF')ange o#erator .aied to meet t)e gro/ing
demand .or o'a ines.
=""Ps te')ni'a and .inan'ia 'a#abiities, as /e as t)e gro/t) rate in t)e number o. ines in
#arti'uar areas, are matters /it)in N("Ps 'om#eten'e and s)oud be a''orded res#e't. ()e
N(" is given /ide atitude in t)e evauation o. eviden'e and in t)e eFer'ise o. its ad&udi'ative
.un'tions, and t)is in'udes t)e aut)orit, to taAe &udi'ia noti'e o. .a'ts /it)in its s#e'ia
'om#eten'e.
-;
((P= anti'i#ates t)at ao/ing ="" to enter its servi'e areas /i maAe it di..i'ut .or it to
'ross-subsidi!e its o#erations in t)e ess #ro.itabe areas. Su') argument, )o/ever, is .utie.
()e 'ross-subsid, a##roa') is a##arent, t)e governmentPs res#onse to t)e .oreseen situation
/)erein given its #oi', o. universa a''ess, a o'a eF')ange #rovider /i .ind itse.
o#erating in areas /)ere t)e demand and t)e #ubi'Ps 'a#a'it, to subs'ribe /i be esser t)an
in ot)er areas, maAing t)ese areas more o. a iabiit, t)an an asset. ()us, Se'tion ; o. 6.8.
No. 10C #rovides:
S6". ;. C#!ss-Su4s%"(. Gnti universa a''ess to basi' tee'ommuni'ations is
a')ieved, and su') servi'e is #ri'ed to re.e't a'tua 'osts, o'a eF')ange servi'e
s)a 'ontinue to be 'ross-subsidi!ed b, ot)er tee'ommuni'ations servi'es /it)in
t)e same 'om#an,.
%ean/)ie, N(" %" No. 8-C-C5 #rovides:
$""6SS "E$RG6S
G6N6R$9
7a: Gnti t)e o'a eF')ange servi'e is #ri'ed re.e'ting a'tua 'osts, t)e o'a
eF')ange servi'e s)a be 'ross-subsidi!ed b, ot)er tee'ommuni'ations servi'es.
Z
7': ()e subsid, need b, t)e 96 servi'e o#erator to earn a rate o. return at #arit,
/it) ot)er segments o. tee'ommuni'ations industr, s)a be ')arged against t)e
internationa and domesti' to and "%(S inter'onne't servi'es.
-5
>ot) issuan'es ao/ a o'a eF')ange o#erator to 'ross-subsidi!e its o#erations .rom its ot)er
tee'ommuni'ations servi'es, and not soe, on t)e revenues derived .rom t)e o#eratorPs o'a
eF')ange servi'e.
Notab,, R.$. No. 7617, as amended b, R.$. No. 767;, grants ((P= t)e egisative .ran')ise
to insta, o#erate and maintain tee'ommuni'ations s,stems t)roug)out t)e P)ii##ines but
not imited to t)e o#erations o. o'a eF')ange servi'e or #ubi' s/it')ed net/orA, #ubi'-
'aing stations, inter-eF')ange 'arrier or nationa to transmission, vaue-added or en)an'ed
servi'es inteigent net/orAs, mobie or #ersona 'ommuni'ations servi'es, internationa
gate/a, .a'iit,, and #aging servi'es, among ot)ers._su#-6_ su#`QQa_0su#-6_a <rom t)ese
servi'es, ((P= )as ot)er sour'es o. revenue .rom /)i') it ma, 'ross-subsidi!e its o'a
eF')ange o#erations.
()e "ourt, )o/ever, agrees /it) #etitioners t)at t)e N(" erred /)en it .aied to reNuire =""
to maAe an es'ro/ de#osit and a #er.orman'e bond. Se'tion -7 o. N(" %" No. 11-C-C@
s#e'i.i'a, #rovides:
S6". -7. $ut)ori!ed #ubi' tee'ommuni'ations 'arriers sh&ll 4e #eIu%#e" t!
"e3!s%t %n es#!$ in a re#utabe banA -0] o. t)e investment reNuired .or t)e .irst
t/o ,ears o. t)e im#ementation o. t)e3#!3!se" 3#!Aet.
=n addition to es'ro/, t)e aut)ori!ed #ubi' tee'ommuni'ations 'arriers sh&ll 4e
#eIu%#e" t! 3!st & 3e#)!#7&ne 4!n" eNuivaent to 10] o. t)e investment reNuired
.or t)e .irst t/o ,ears o. t)e &33#!'e" 3#!Aet but not to eF'eed P500 %iion. ()e
#er.orman'e bond s)a be .or.eited in .avor o. t)e government in t)e event t)at t)e
aut)ori!ed P(" .ai to 'om#, /it) t)e terms and 'onditions o. t)e aut)orit, granted.
76m#)ases 8urs:
()e es'ro/ de#osit and t)e #osting o. a #er.orman'e bond are reNuired in ea') #ro#osed and
a##roved #ro&e't o. a o'a eF')ange o#erator. Pro&e't re.ers to a #anned
undertaAing.
-7
=""Ps #ro&e't .or o'a eF')ange servi'e in t)e %ania and Navotas areas is
se#arate and distin't .rom its #ro&e'ts in ot)er areasB )en'e, t)e N(" s)oud )ave dire'ted
="" to submit su') reNuirements. 6vident,, t)e es'ro/ de#osit is reNuired to ensure t)at
t)ere is avaiabe mone, on )and to de.ra, =""Ps eF#enditures .or its #ro&e't, /)ie t)e
#er.orman'e bond /i ans/er .or t)e .ait).u 'om#ian'e and #er.orman'e o. =""Ps roout
obigation and to 'om#ensate t)e government .or an, damages in'urred in 'ase o. =""Ps
de.aut. Dit)out t)ese, t)e government /i be e.t )oding an Qem#t, bagQ in t)e event =""
reneges in its roout obigation.
Se'tion -7 o. N(" %" No. 11-C-C@ is sient as to /)et)er t)e #osting o. an es'ro/ de#osit
and #er.orman'e bond is a 'ondition sine qua non .or t)e grant o. a #rovisiona aut)orit,.
D)ie t)e #rovision uses t)e term Qs)a,Q said dire'tive #ertains to t)e N(", /)i') s)a
reNuire t)e #ubi' tee'ommuni'ations 'arrier to maAe su') de#osit and #osting. =n an, event,
re'ords s)o/ t)at as o. %a, -0, -00;, ="" )as been granted an eFtension o. its #rovisiona
aut)orit, u# to November 10, -006.
-8
Re'ords aso s)o/ t)at ="" )as aread, been #roviding
o'a eF')ange 'arrier servi'e in t)e areas 'on'erned, )aving instaed 16,000 ines in t)e "it,
o. %ania, 1-,000 o. /)i') )ave aread, been subs'ribed, 6-; ines in "aoo'an "it,, a o.
/)i') )ave been subs'ribed, /)ie t)e ro-out #an .or .a'iities and #rovisioning in t)e "it,
o. Navotas is being .inai!ed.
-C
Een'e, so as not to disru#t =""Ps roout #an 'om#ian'e, it
/oud be more &udi'ious .or t)e "ourt to mere, reNuire ="" to 'om#, /it) Se'tion -7 o.
N(" %" No. 11-C-C@, /it)in su') #eriod to be determined b, t)e N(".
<urt)ermore, it is /e to stress t)at #etitioner ((P= 'annot 'aim an, eF'usive rig)t to render
tee'ommuni'ations servi'e in areas /)i') t)e N(" 'onsiders to be in need o. additiona
#roviders. R.$. No. 7C-5 is Nuite em#)ati' on t)is s'ore, viz$:
S6". -@$ Equality of ?reatment in the ?elecommunications 0ndustry$ S $n,
advantage, .avor, #riviege, eFem#tion, or immunit, granted under eFisting
.ran')ises, or ma, )erea.ter be granted, s)a ipso factobe'ome #art o. #revious,
granted tee'ommuni'ations .ran')ises and s)a be a''orded immediate, and
un'onditiona, to t)e grantees o. su') .ran')ises: %rovided, however, Th&t the
)!#e;!%n; sh&ll ne%the# &33l( t! n!# &))et 3#!'%s%!ns !) tele!77un%&t%!ns
)#&nh%ses !ne#n%n; te##%t!#( !'e#e" 4( the )#&nh%se, t)e i.e s#an o. t)e
.ran')ise, or t)e t,#e o. servi'e aut)ori!ed b, t)e .ran')ise. 76m#)asis 8urs:
%ore t)an an,t)ing ese, #ubi' servi'e s)oud be t)e #rimordia ob&e'tive o. o'a eF')ange
o#erators. ()e entr, o. anot)er #rovider in areas 'overed b, ((P= s)oud #ose as a ')aenge
.or it to im#rove its Nuait, o. servi'e. Gtimate,, it /i be t)e #ubi' t)at /i bene.it. $s
#ointed out in 'epub"i# of the (hi"s. vs. 'ep. )e"ephone Co, In#.:
@0
<ree 'om#etition in t)e industr, ma, aso #rovide t)e ans/er to a mu')-desired
im#rovement in t)e Nuait, and deiver, o. t)is t,#e o. #ubi' utiit,, to im#roved
te')noog,, .ast and )and, mobi servi'e, and redu'ed user dissatis.a'tion. $.ter a,
neit)er P94( nor an, ot)er #ubi' utiit, )as a 'onstitutiona rig)t to a mono#o,
#osition in vie/ o. t)e "onstitutiona #ros'ri#tion t)at no .ran')ise 'erti.i'ate or
aut)ori!ation s)a be eF'usive in ')ara'ter or s)a ast onger t)an .i.t, 750: ,ears
7ibid., Se'tion 11B $rti'e K=*, Se'tion 5, 1C7@ "onstitutionB $rti'e K=*, Se'tion 8,
1C@5 "onstitution:.
W*ERE+ORE, t)e #etition .or revie/ on certiorari is P$R(=$99Y GR$N(64. ()e 8rder
o. t)e Nationa (ee'ommuni'ations "ommission dated November 10, 1CC7 in N(" "ase No.
C6-1C5 is $<<=R%64 /it) t)e .oo/ing modi.i'ations:
Res#ondent =nternationa "ommuni'ation "or#oration, in a''ordan'e /it) Se'tion -7 o. N("
%" No. 11-C-C@, is reNuired to:
71: 4e#osit in es'ro/ in a re#utabe banA -0] o. t)e investment reNuired .or
t)e .irst t/o ,ears o. t)e im#ementation o. t)e #ro#osed #ro&e'tB and
7-: Post a #er.orman'e bond eNuivaent to 10] o. t)e investment reNuired .or
t)e .irst t/o ,ears o. t)e a##roved #ro&e't but not to eF'eed P500 %iion.
/it)in su') #eriod to be determined b, t)e Nationa (ee'ommuni'ations "ommission.
No #ronoun'ement as to 'osts.
SO ORDERED.
COMMISSIONER O+ G.R. N!. -GE/E.
INTERNAL RE9ENUE,
,et%t%!ne#, ,#esent:

,&n;&n%4&n, CJ,
- 'e#sus - Chairman,
Yn&#es-S&nt%&;!,
Aust#%&-M&#t%ne>,
AZUCENA T. REYES, C&lleA!, S#., &n"
Res3!n"ent. Ch%!-N&>&#%!, JJ
AZUCENA T. REYES, G.R. N!. -/FG8-
,et%t%!ne#,

- 'e#sus -

COMMISSIONER O+ ,#!7ul;&te":
INTERNAL RE9ENUE,
Res3!n"ent. J&nu&#( 10, 122/
DECISION


,ANGANIBAN, CJ.:


nder t)e #resent #rovisions o. t)e (aF "ode and #ursuant to eementar, due #ro'ess,
taF#a,ers must be in.ormed in /riting o. t)e a/ and t)e .a'ts u#on /)i') a taF
assessment is basedB ot)er/ise, t)e assessment is void. >eing invaid, t)e assessment
'annot in turn be used as a basis .or t)e #er.e'tion o. a taF 'om#romise.

The C&se

>e.ore us are t/o 'onsoidated
213
Petitions .or Revie/
2-3
.ied under Rue ;5 o. t)e Rues
o. "ourt, assaiing t)e $ugust 8, -00@ 4e'ision
2@3
o. t)e "ourt o. $##eas 7"$: in "$-GR SP
No. 71@C-. ()e dis#ositive #ortion o. t)e assaied 4e'ision reads as .oo/s:

LW*ERE+ORE, t)e #etition is GRANTED. ()e assaied
de'ision o. t)e "ourt o. (aF $##eas is ANNULLED and SET
ASIDE /it)out #re&udi'e to t)e a'tion o. t)e Nationa 6vauation >oard on
t)e #ro#osed 'om#romise settement o. t)e %aria ". (an'in'o estate?s taF
iabiit,.M
2;3




The +&ts

()e "$ narrated t)e .a'ts as .oo/s:

G
L8n +u, 8, 1CC@, %aria ". (an'in'o 7or bde'edent?: died, eaving a
1,-C- sNuare-meter residentia ot and an od )ouse t)ereon 7or bsub&e't
#ro#ert,?: o'ated at ;C@1 Pasa,Road, 4asmari1as *iage, %aAati "it,.

L8n t)e basis o. a s/orn in.ormation-.or-re/ard .ied on <ebruar,
17, 1CC7 b, a 'ertain Ra,mond $bad 7or b$bad?:, Revenue 4istri't 8..i'e
No. 50 7Sout) %aAati: 'ondu'ted an investigation on t)e de'edent?s estate
7or bestate?:. SubseNuent,, it issued a Return *eri.i'ation 8rder. >ut
/it)out t)e reNuired #reiminar, .indings being submitted, it issued 9etter
o. $ut)orit, No. 1@-C6@ .or t)e reguar investigation o. t)e estate taF
'ase. $!u'ena (. Re,es 7or b2Re,es3?:, one o. t)e de'edent?s )eirs, re'eived
t)e 9etter o. $ut)orit, on%ar') 1;, 1CC7.

L8n <ebruar, 1-, 1CC8, t)e ")ie., $ssessment 4ivision, >ureau o.
=nterna Revenue 7or b>=R?:, issued a #reiminar, assessment noti'e against
t)e estate in t)e amount o.P1;,580,618.67. 8n %a, 10, 1CC8, t)e )eirs o.
t)e de'edent 7or b)eirs?: re'eived a .ina estate taF assessment noti'e and a
demand etter, bot) dated $#ri --, 1CC8, .or t)e amount o. P1;,C1-,-05.;7,
in'usive o. sur')arge and interest.

L8n +une 1, 1CC8, a 'ertain <eiF %. Sumbio 7or bSumbio?:
#rotested t)e assessment 2o3n be)a. o. t)e )eirs on t)e ground t)at t)e
sub&e't #ro#ert, )ad aread, been sod b, t)e de'edent sometime in 1CC0.

L8n November 1-, 1CC8, t)e "ommissioner o. =nterna Revenue 7or
b2"=R3?: issued a #reiminar, 'oe'tion etter to 2Re,es3, .oo/ed b, a
<ina Noti'e >e.ore Sei!ure dated4e'ember ;, 1CC8.

L8n +anuar, 5, 1CCC, a Darrant o. 4istraint and0or 9ev, /as served
u#on t)e estate, .oo/ed on <ebruar, 11, 1CCC b, Noti'es o. 9ev, on Rea
Pro#ert, and (aF 9ien against it.

L8n %ar') -, 1CCC, 2Re,es3 #rotested t)e noti'e o. ev,. Eo/ever,
on %ar') 11, 1CCC, t)e )eirs #ro#osed a 'om#romise settement
o. P1,000,000.00.

L=n a etter to 2t)e "=R3 dated +anuar, -7, -000, 2Re,es3 #ro#osed to
#a, 50] o. t)e basi' taF due, 'iting t)e )eirs? inabiit, to #a, t)e taF
assessment. 8n %ar') -0, -000, 2t)e "=R3 re&e'ted 2Re,es?s3 o..er,
#ointing out t)at sin'e t)e estate taF is a ')arge on t)e estate and not on t)e
)eirs, t)e atter?s .inan'ia in'a#a'it, is immateria as, in .a't, t)e gross
vaue o. t)e estate amounting to P@-,;-0,@60.00 is more t)an su..i'ient to
sette t)e taF iabiit,. ()us, 2t)e "=R3 demanded #a,ment o. t)e amount
o. P18,0@;,@8-.1@ on or be.ore $#ri 15, -0002B3 ot)er/ise, t)e noti'e o.
sae o. t)e sub&e't #ro#ert, /oud be #ubis)ed.

L8n $#ri 11, -000, 2Re,es3 again /rote to 2t)e "=R3, t)is time
#ro#osing to #a, 100] o. t)e basi' taF due in t)e amount
o. P5,@1@,8C1.00. S)e reiterated t)e #ro#osa in a etter dated %a, 18,
-000.

L$s t)e estate .aied to #a, its taF iabiit, /it)in t)e $#ri 15, -000
deadine, t)e ")ie., "oe'tion 6n.or'ement 4ivision, >=R, noti.ied 2Re,es3
on +une 6, -000 t)at t)e sub&e't #ro#ert, /oud be sod at #ubi' au'tion on
$ugust 8, -000.

L8n +une 1@, -000, 2Re,es3 .ied a #rotest /it) t)e >=R $##eate
4ivision. $ssaiing t)e s')edued au'tion sae, s)e asserted t)at F F F t)e
assessment, etter o. demand2,3 and t)e /)oe taF #ro'eedings against t)e
estate are void ab initio. S)e o..ered to .ie t)e 'orres#onding estate taF
return and #a, t)e 'orre't amount o. taF /it)out sur')arge 2or3 interest.

LDit)out a'ting on 2Re,es?s3 #rotest and o..er, 2t)e "=R3 instru'ted
t)e "oe'tion 6n.or'ement 4ivision to #ro'eed /it) t)e $ugust 8,
-000 au'tion sae. "onseNuent,, on+une -8, -000, 2Re,es3 .ied a
2P3etition .or 2R3evie/ /it) t)e "ourt o. (aF $##eas 7or b"($?:, do'Aeted
as "($ "ase No. 61-;.

L8n +u, 17, -000, 2Re,es3 .ied a %otion .or t)e =ssuan'e o. a Drit
o. Preiminar, =n&un'tion or Status Quo 8rder, /)i') /as granted b, t)e
"($ on +u, -6, -000. G#on 2Re,es?s3 .iing o. a suret, bond in t)e
amount o. P-7,000,000.00, t)e "($ issued a 2R3esoution dated $ugust 16,
-000 ordering 2t)e "=R3 to desist and re.rain .rom #ro'eeding /it) t)e
au'tion sae o. t)e sub&e't #ro#ert, or .rom issuing a 2D3arrant o.
243istraint or 2G3arnis)ment o. 2>3anA 2$3''ount2,3 #ending determination
o. t)e 'ase and0or uness a 'ontrar, order is issued.

L2()e "=R3 .ied a 2%3otion to 243ismiss t)e #etition on t)e grounds
7i: t)at t)e "($ no onger )as &urisdi'tion over t)e 'ase2,3 be'ause t)e
assessment against t)e estate is aread, .ina and eFe'utor,B and 7ii: t)at t)e
#etition /as .ied out o. time. =n a 2R3esoution dated November -@, -000,
t)e "($ denied 2t)e "=R?s3 motion.

L4uring t)e #enden', o. t)e 2P3etition .or 2R3evie/ /it) t)e "($,
)o/ever, t)e >=R issued Revenue Reguation 7or bRR?: No. 6--000 and
Revenue %emorandum 8rder 7or bR%8?: No. ;---000 o..ering 'ertain
taF#a,ers /it) deinNuent a''ounts and dis#uted assessments an
o##ortunit, to 'om#romise t)eir taF iabiit,.

L8n November -5, -000, 2Re,es3 .ied an a##i'ation /it) t)e >=R
.or t)e 'om#romise settement 7or b'om#romise?: o. t)e assessment against
t)e estate #ursuant to Se'. -0;7$: o. t)e (aF "ode, as im#emented b, RR
No. 6--000 and R%8 No. ;---000.

L8n 4e'ember -6, -000, 2Re,es3 .ied an 6F-Parte %otion .or
Post#onement o. t)e )earing be.ore t)e "($ s')edued on +anuar, C, -001,
'iting )er #ending a##i'ation .or 'om#romise /it) t)e >=R. ()e motion
/as granted and t)e )earing /as reset to <ebruar, 6, -001.

L8n +anuar, -C, -001, 2Re,es3 moved .or #ost#onement o. t)e
)earing set on <ebruar, 6, -001, t)is time on t)e ground t)at s)e )ad
aread, #aid t)e 'om#romise amount o.P1,06-,778.-0 but /as sti a/aiting
a##rova o. t)e Nationa 6vauation >oard 7or bN6>?:. ()e "($ granted
t)e motion and reset t)e )earing to <ebruar, -7, -001.

L8n <ebruar, 1C, -001, 2Re,es3 .ied a %otion to 4e'are
$##i'ation .or t)e Settement o. 4is#uted $ssessment as a Per.e'ted
"om#romise. =n said motion, s)e aeged t)at 2t)e "=R3 )ad not ,et signed
t)e 'om#romise2,3 be'ause o. #ro'edura red ta#e reNuiring t)e initias o.
.our 4e#ut, "ommissioners on reevant do'uments be.ore t)e 'om#romise
is signed b, t)e 2"=R3. 2Re,es3 #osited t)at t)e absen'e o. t)e reNuisite
initias and signature2s3 on said do'uments does not vitiate t)e #er.e'ted
'om#romise.

L"ommenting on t)e motion, 2t)e "=R3 'ountered t)at2,3 /it)out t)e
a##rova o. t)e N6>, 2Re,es?s3 a##i'ation .or 'om#romise /it) t)e >=R
'annot be 'onsidered a #er.e'ted or 'onsummated 'om#romise.

L8n %ar') C, -001, t)e "($ denied 2Re,es?s3 motion, #rom#ting )er
to .ie a %otion .or Re'onsideration +d Cautelam. =n a 2R3esoution dated
$#ri 10, -001, t)e "($ denied t)e 2%3otion .or 2R3e'onsideration /it) t)e
suggestion t)at2,3 .or an order, #resentation o. )er 'ase and to #revent
#ie'emea resoutions o. di..erent issues, 2Re,es3 s)oud .ie a
2S3u##ementa 2P3etition .or 2R3evie/2,3 setting .ort) t)e ne/ issue o.
/)et)er t)ere /as aread, a #er.e'ted 'om#romise.

L8n %a, -, -001, 2Re,es3 .ied a Su##ementa Petition .or Revie/
/it) t)e "($, .oo/ed on +une ;, -001 b, its $m#i.i'ator, $rguments
7.or t)e Su##ementa Petition .or Revie/:, raising t)e .oo/ing issues:

b1. D)et)er or not an o..er to 'om#romise b, t)e
2"=R3, /it) t)e a'Nuies'en'e b, t)e Se'retar, o. <inan'e,
o. a taF iabiit, #ending in 'ourt, t)at /as a''e#ted and
#aid b, t)e taF#a,er, is a #er.e'ted and 'onsummated
'om#romise.

b-. D)et)er t)is 'om#romise is 'overed b, t)e
#rovisions o. Se'tion -0; o. t)e (aF "ode 7"(RP: t)at
reNuires a##rova b, t)e >=R 2N6>3.?

L$ns/ering t)e Su##ementa Petition, 2t)e "=R3 averred t)at an
a##i'ation .or 'om#romise o. a taF iabiit, under RR No. 6--000 and
R%8 No. ;---000 reNuires t)e evauation and a##rova o. eit)er t)e N6>
or t)e Regiona 6vauation >oard 7or bR6>?:, as t)e 'ase ma, be.

L8n +une 1;, -001, 2Re,es3 .ied a %otion .or +udgment on t)e
PeadingsB t)e motion /as granted on +u, 11, -001. $.ter submission o.
memoranda, t)e 'ase /as submitted .or 243e'ision.

L8n +une 1C, -00-, t)e "($ rendered a 243e'ision,
t)e de'reta #ortion o. /)i') #ertinent, reads:

bDE6R6<8R6, in vie/ o. a t)e .oregoing, t)e
instant 2P3etition .or 2R3evie/ is )ereb,
46N=64. $''ording,, 2Re,es3 is )ereb, 8R46R64 to
P$Y de.i'ien', estate taF in t)e amount o. Nineteen
%iion <ive Eundred (/ent, <our ()ousand Nine
Eundred Nine and 780100 7P1C,5-;,C0C.78:, 'om#uted as
.oo/s:

F F F F F F F F F

b2Re,es3 is iAe/ise 8R46R64 to P$Y -0]
deinNuen', interest on de.i'ien', estate taF due
o. P17,C@;,@8-.1@ .rom +anuar, 11, -001 unti .u
#a,ment t)ereo. #ursuant to Se'tion -;C7': o. t)e (aF
"ode, as amended.?

L=n arriving at its de'ision, t)e "($ ratio'inated t)at t)ere 'an on,
be a #er.e'ted and 'onsummated 'om#romise o. t)e estate?s taF iabiit,2,3
i. t)e N6> )as a##roved 2Re,es?s3
a##i'ation .or 'om#romise in a''ordan'e /it) RR No. 6--000, as
im#emented b, R%8 No. ;---000.

L$nent t)e vaidit, o. t)e assessment noti'e and etter o. demand
against t)e estate, t)e "($ stated t)at bat t)e time t)e Nuestioned assessment
noti'e and etter o. demand /ere issued, t)e )eirs Ane/ ver, /e t)e a/
and t)e .a'ts on /)i') t)e same /ere based.? =t aso observed t)at t)e
#etition /as not .ied /it)in t)e @0-da, regementar, #eriod #rovided under
Se'. 11 o. Re#. $'t No. 11-5 and Se'. --8 o. t)e (aF "ode.M
253


Rul%n; !) the C!u#t !) A33e&ls


=n #art, granting t)e Petition, t)e "$ said t)at Se'tion --8 o. t)e (aF "ode and RR 1--
CC /ere mandator, and uneNuivo'a in t)eir reNuirement. ()e assessment noti'e and t)e
demand etter s)oud )ave stated t)e .a'ts and t)e a/ on /)i') t)e, /ere basedB ot)er/ise,
t)e, /ere deemed void.
263
()e a##eate 'ourt )ed t)at /)ie administrative agen'ies, iAe t)e
>=R, /ere not bound b, #ro'edura reNuirements, t)e, /ere sti reNuired b, a/ and eNuit,
to observe substantive due #ro'ess. ()e reason be)ind t)is reNuirement, said t)e "$, /as to
ensure t)at taF#a,ers /oud be du, a##rised o. -- and 'oud e..e'tive, #rotest -- t)e basis o.
taF assessments against t)em.
273
Sin'e t)e assessment and t)e demand /ere void, t)e
#ro'eedings emanating .rom t)em /ere iAe/ise void, and an, order emanating .rom t)em
'oud never attain .inait,.

()e a##eate 'ourt added, )o/ever, t)at it /as #remature to de'are as #er.e'ted and
'onsummated t)e 'om#romise o. t)e estate?s taF iabiit,. =t eF#ained t)at, /)ere t)e basi'
taF assessed eF'eeded P1 miion, or /)ere t)e settement o..er /as ess t)an t)e #res'ribed
minimum rates, t)e Nationa 6vauation >oard?s 7N6>: #rior evauation and a##rova /ere
t)e conditio sine qua non to t)e #er.e'tion and 'onsummation o. an, 'om#romise.
283
>esides,
t)e "$ #ointed out, Se'tion -0;7$: o. t)e (aF "ode a##ied to a 'om#romises, /)et)er
government-initiated or not.
2C3
D)ere t)e a/ did not distinguis), 'ourts too s)oud not
distinguis).

Een'e, t)is Petition.
2103

()e =ssues


=n GR No. 15C6C;, #etitioner raises t)e .oo/ing issues .or t)e "ourt?s 'onsideration:

L=.

D)et)er #etitioner?s assessment against t)e estate is vaid.

L==.

D)et)er res#ondent 'an vaid, argue t)at s)e, as /e as t)e ot)er )eirs,
/as not a/are o. t)e .a'ts and t)e a/ on /)i') t)e assessment in Nuestion
is based, a.ter s)e )ad o#ted to #ro#ose severa 'om#romises on t)e estate
taF due, and even #remature, a'ting on su') #ro#osa b, #a,ing -0] o.
t)e basi' estate taF due.M
2113



)he fore!oin! issues #an be simp"ified as fo""o+s: )%#st, +hether the assessment
a!ainst the estate is va"id, and, se!n", +hether the #ompromise entered into
is a"so va"id.

?he CourtFs 'uling

()e Petition is unmeritorious.

+%#st Issue:
-a"idity of the .ssessment .!ainst the Estate


()e se'ond #aragra#) o. Se'tion --8 o. t)e (aF "ode
21-3
is 'ear and mandator,. =t
#rovides as .oo/s:

LSe'. --8. %rotesting of +ssessment. --

F F F F F F F F F

L()e taF#a,ers s)a be in.ormed in /riting o. t)e a/ and t)e .a'ts
on /)i') t)e assessment is made: ot)er/ise, t)e assessment s)a be void.M


=n t)e #resent 'ase, Re,es /as not in.ormed in /riting o. t)e a/ and t)e .a'ts on /)i')
t)e assessment o. estate taFes )ad been made. S)e /as mere, noti.ied o. t)e .indings b, t)e
"=R, /)o )ad sim#, reied u#on t)e #rovisions o. .ormer Se'tion --C
21@3
#rior to its
amendment b, Re#ubi' $'t 7R$: No. 8;-;, ot)er/ise Ano/n as t)e (aF Re.orm $'t o.
1CC7.

Eirst, R$ 8;-; )as aread, amended t)e #rovision o. Se'tion --C on #rotesting an
assessment. ()e od reNuirement o. mere, notifying t)e taF#a,er o. t)e "=R?s.indings /as
')anged in 1CC8 to informing t)e taF#a,er o. not on, t)e a/, but aso o. t)e .a'ts on /)i')
an assessment /oud be madeB ot)er/ise, t)e assessment itse. /oud be invaid.

=t /as on <ebruar, 1-, 1CC8, t)at a #reiminar, assessment noti'e /as issued against
t)e estate. 8n $#ri --, 1CC8, t)e .ina estate taF assessment noti'e, as /e as demand etter,
/as aso issued. 4uring t)ose dates, R$ 8;-; /as aread, in e..e't. ()e noti'e reNuired
under t)e old a/ /as no onger su..i'ient under t)e new a/.

(o be sim#, in.ormed in /riting o. t)e investigation being 'ondu'ted and o. t)e
re'ommendation .or t)e assessment o. t)e estate taFes due is not)ing but a #er.un'tor,
dis')arge o. t)e taF .un'tion o. 'orre't, assessing a taF#a,er. ()e a't 'annot be taAen to
mean t)at Re,es aread, Ane/ t)e a/ and t)e .a'ts on /)i') t)e assessment /as based. =t
does not at a 'on.orm to t)e 'om#usor, reNuirement under Se'tion --8. %oreover, t)e
9etter o. $ut)orit, re'eived b, res#ondent on %ar') 1;, 1CC7 /as .or t)e s)eer #ur#ose o.
investigation and /as not even t)e reNuisite noti'e under t)e a/.

()e #ro'edure .or #rotesting an assessment under t)e (aF "ode is .ound in ")a#ter ===
o. (ite *===, /)i') deas /it) remedies. >eing #ro'edura in nature, 'an its #rovision t)en be
a##ied retroa'tive,\ ()e ans/er is ,es.

()e genera rue is t)at statutes are #ros#e'tive. Eo/ever, statutes t)at are remedia, or
t)at do not 'reate ne/ or taAe a/a, vested rig)ts, do not .a under t)e genera rue against t)e
retroa'tive o#eration o. statutes.
21;3
"ear,, Se'tion --8 #rovides .or t)e #ro'edure in 'ase an
assessment is #rotested. ()e #rovision does not 'reate ne/ or taAe a/a, vested rig)ts. =n
bot) instan'es, it 'an sure, be a##ied retroa'tive,. %oreover, R$ 8;-; does not state,
eit)er eF#ress, or b, ne'essar, im#i'ation, t)at #ending a'tions are eF'e#ted .rom t)e
o#eration o. Se'tion --8, or t)at a##,ing it to #ending #ro'eedings /oud im#air vested
rig)ts.

)econd, t)e non-retroa'tive a##i'ation o. Revenue Reguation 7RR: No. 1--CC is o. no
moment, 'onsidering t)at it mere, im#ements t)e a/.

$ taF reguation is #romugated b, t)e .inan'e se'retar, to im#ement t)e #rovisions o.
t)e (aF "ode.
2153
D)ie it is desirabe .or t)e government aut)orit, or administrative agen',
to )ave one immediate, issued a.ter a a/ is #assed, t)e absen'e o. t)e reguation does not
automati'a, mean t)at t)e a/ itse. /oud be'ome ino#erative.

$t t)e time t)e #re-assessment noti'e /as issued to Re,es, R$ 8;-; aread, stated t)at
t)e taF#a,er must be in.ormed o. bot) t)e a/ and .a'ts on /)i') t)e assessment /as
based. ()us, t)e "=R s)oud )ave reNuired t)e assessment o..i'ers o. t)e >ureau o. =nterna
Revenue 7>=R: to .oo/ t)e 'ear mandate o. t)e ne/ a/. ()e od reguation governing t)e
issuan'e o. estate taF assessment noti'es ran a.ou o. t)e rue t)at taF reguations -- od as
t)e, /ere -- s)oud be in )armon, /it), and not su##ant or modi.,, t)e a/.
2163

=t ma, be argued t)at t)e (aF "ode #rovisions are not se.-eFe'utor,. =t /oud be too
/ide a stret') o. t)e imagination, t)oug), to sti issue a reguation t)at /oud sim#, reNuire
taF o..i'ias to in.orm t)e taF#a,er, in an, manner, o. t)e a/ and t)e .a'ts on /)i') an
assessment /as based. ()at reNuirement is neit)er di..i'ut to maAe nor its desired resuts
)ard to a')ieve.

%oreover, an administrative rue inter#retive o. a statute, and not de'arative o. 'ertain
rig)ts and 'orres#onding obigations, is given retroa'tive e..e't as o. t)e date o.
t)e e..e'tivit, o. t)e statute.
2173
RR 1--CC is one su') rue. >eing inter#retive o. t)e
#rovisions o. t)e (aF "ode, even i. it /as issued on, on Se#tember 6, 1CCC, t)is reguation
/as to retroa't to +anuar, 1, 1CC8 -- a date #rior to t)e issuan'e o. t)e #reiminar, assessment
noti'e and demand etter.
?hird, neit)er Se'tion --C nor RR 1--85 'an #revai over Se'tion --8 o. t)e (aF "ode.

No doubt, Se'tion --8 )as re#a'ed Se'tion --C. ()e #rovision on #rotesting an
assessment )as been amended. <urt)ermore, in 'ase o. dis're#an', bet/een t)e a/ as
amended and its im#ementing but od reguation, t)e .ormer ne'essari, #revais.
2183
()us,
bet/een Se'tion --8 o. t)e (aF "ode and t)e #ertinent #rovisions o. RR 1--85, t)e atter
'annot stand be'ause it 'annot go be,ond t)e #rovision o. t)e a/. ()e a/ must sti be
.oo/ed, even t)oug) t)e eFisting taF reguation at t)at time #rovided .or a di..erent
#ro'edure. ()e reguation t)en sim#, #rovided t)at noti'e be sent to t)e res#ondent in t)e
.orm #res'ribed, and t)at no 'onseNuen'e /oud ensue .or .aiure to 'om#, /it) t)at .orm.

Eourth, #etitioner vioated t)e 'ardina rue in administrative a/ t)at t)e taF#a,er be
a''orded due #ro'ess. Not on, /as t)e a/ )ere disregarded, but no vaid noti'e /as sent,
eit)er. $ void assessment bears no vaid .ruit.
()e a/ im#oses a substantive, not mere, a .orma, reNuirement. (o #ro'eed
)eedess, /it) taF 'oe'tion /it)out .irst estabis)ing a vaid assessment is
evident,vioative o. t)e 'ardina #rin'i#e in administrative investigations: t)at taF#a,ers
s)oud be abe to #resent t)eir 'ase and addu'e su##orting eviden'e.
21C3
=n t)e instant 'ase,
res#ondent )as not been in.ormed o. t)e basis o. t)e estate taF iabiit,. Dit)out 'om#,ing
/it) t)e uneNuivo'a mandate o. .irst in.orming t)e taF#a,er o. t)e government?s 'aim, t)ere
'an be no de#rivation o. #ro#ert,, be'ause no e..e'tive #rotest 'an be made.
2-03
()e )a#)a!ard
s)ot at sa##ing an assessment, su##osed, based on estate taFation?s genera #rovisions t)at
are eF#e'ted to be Ano/n b, t)e taF#a,er, is utter ')i'aner,.

6ven a 'ursor, revie/ o. t)e #reiminar, assessment noti'e, as /e as t)e demand
etter sent, reveas t)e a'A o. basis .or -- not to mention t)e insu..i'ien', o. -- t)e gross
.igures and detais o. t)e itemi!ed dedu'tions indi'ated in t)e noti'e and t)e etter. ()is "ourt
'annot 'ountenan'e an assessment based on estimates t)at a##ear to )ave been arbitrari, or
'a#ri'ious, arrived at. $t)oug) taFes are
t)e i.ebood o. t)e government, t)eir assessment and 'oe'tion Ls)oud be made in
a''ordan'e /it) a/ as an, arbitrariness /i negate t)e ver, reason .or government itse..M
2-13

Eifth, t)e rue against esto##e does not a##,. $t)oug) t)e government 'annot
be esto##ed b, t)e negigen'e or omission o. its agents, t)e obigator, #rovision on #rotesting
a taF assessment 'annot be rendered nugator, b, a mere a't o. t)e "=R .

(aF a/s are 'ivi in nature.
2--3
Gnder our "ivi "ode, a'ts eFe'uted against t)e
mandator, #rovisions o. a/ are void, eF'e#t /)en t)e a/ itse. aut)ori!es t)e vaidit, o.
t)ose a'ts.
2-@3
<aiure to 'om#, /it) Se'tion --8 does not on, render t)e assessment void,
but aso .inds no vaidation in an, #rovision in t)e (aF "ode. De 'annot 'ondone errant or
enter#rising taF o..i'ias, as t)e, are eF#e'ted to be vigiant and a/-abiding.

Se!n" Issue:
-a"idity of Compromise


=t /oud be #remature .or t)is "ourt to de'are t)at t)e 'om#romise on t)e estate taF
iabiit, )as been #er.e'ted and 'onsummated, 'onsidering t)e earier determination t)at t)e
assessment against t)e estate /as void. Not)ing )as been setted or .inai!ed. Gnder Se'tion
-0;7$: o. t)e (aF "ode, /)ere t)e basi' taF invoved eF'eeds one miion #esos or t)e
settement o..ered is ess t)an t)e #res'ribed minimum rates, t)e 'om#romise s)a be sub&e't
to t)e a##rova o. t)e N6> 'om#osed o. t)e #etitioner and .our de#ut, 'ommissioners.

<ina,, as 'orre't, )ed b, t)e a##eate 'ourt, t)is #rovision a##ies to a
'om#romises, /)et)er government-initiated or
not. =bi le- non distinguit, nec nos distingueredebemos. D)ere t)e a/ does not distinguis),
/e s)oud not distinguis).

DE6R6<8R6, t)e Petition is )ereb, DENIED and t)e assaied
4e'ision .//I'0ED. No #ronoun'ement as to 'osts.

S8 8R46R64.