TITLE Republic of the Philippines, petitioner, vs Judge of CFI of Rizal, respondent
GR NUMBER G.R. No. L-35919
DATE September 11, 1980
PONENTE DE CASTRO, J.
NATURE/ Special civil action of certiorari and mandamus with
KEYWORDS preliminary injunction
FACTS April 11, 1970, Respondent Sison filed a complaint
against Rice & Corn Administration (RCA) for a sum of money with the Court of First Instance, presided by the respondent Judge. The RCA filed a motion to dismiss the said complaint on the ground of non-sustainability of the RCA as a mere governmental agency but it was denied by the respondent Judge May 10, 1972, after trial, the respondent Judge ruled in favor of Sison and ordered the RCA to pay the corn grains it purchased from Sison (P1,628,451.54) and the attorney's fees (P250,000.00) and the costs of the suit. May 24, 1972, RCA filed a notice of appeal as well as a motion for extension (30 days from June 16, 1972) within which to file the record on appeal (granted) Before expiration of original period to file the record, RCA files its appeal on June 15, 1972 Sison filed a motion to dismiss the appeal for the RCA's failure to post an appeal bond and the RCA, represented by the office of the Solicitor General, filed an opposition to Sison's motion to dismiss the appeal. The record on appeal filed by the RCA was approved by the respondent Judge but the RCA's exemption from the payment of legal fees and from posting of the appeal bond was denied. The respondent Judge issued an order giving the RCA 5 days within which to post an appeal bond. The RCA filed a motion for reconsideration, alleging that they are exempt from posting an appeal bond. Sison filed a motion to dismiss the appeal on the ground of petitioner's refusal to file the appeal bond. The respondent Judge dismissed the RCA's appeal and ruled that the RCA, being a mere instrumentality of the Government of the Philippines, is not exempt from the payment of legal fees and from posting of an appeal bond.
ISSUE(S) Whether or not the petitioner RCA (Rice and Corn
Administration) is exempt from paying legal fees and from posting an appeal bond
RULING(S) Yes. RCA is a governmental agency of Republic of the
Philippines without a separate, distinct and independent legal personality from the latter thus exempt from the payment of legal fees as well as the posting of an appeal bond. (Legal basis: Under the decisional laws which form part of the legal system of the PH, the Republic of the PH is exempted; practically a matter of public knowledge and matter of judicial notice on the part of the courts)
The legal character of RCA was passed upon in the case
Ramos vs. Court of Industrial Relations. In that cited case, the court held: Congress, by said RA 3452, approved June 14, 1962, created RCA in pursuance of its declared policy - That in order to stabilize the price of palay, rice and corn, it shall engage in the purchase of these basic foods directly from those farmers in the Philippines who wish to dispose their produce at a price that will afford them a fair and just return for their labor and capital investment.
Therefore, RCA is a governmental machinery to carry out a
declared government policy, and not for profit. It is not possessed of a separate & distinct corporate existence. It is an office directly under the Office of the President of the Philippines.
CONCLUSION WHEREFORE, the order of the dismissal of the RCA's appeal
by the respondent Judge is hereby set aside and the latter is heretofore directed to allow and give due course to the aforesaid appeal without the posting of an appeal bond. No pronouncement as to costs. SO ORDERED.