RAYO V.

CFI BULACAN Facts: During the height of typhoon Kading, the National Power Corporations plant superintendent Chavez opened simultaneously all the three floodgates of the Angat Dam. As a direct and immediate result, several towns in Bulacan were flooded (particularly Norzagaray). About ahundred of its residents died and properties worth million of pesos were destroyed. The petitioners, who are among the unfortunate victims of the man-caused flood, filed several complaints for damages against NPC and the plant superintendent. NPC claimed, as its defense, that in the operation of the Angat Dam, it is performing a purely governmental function. Thus, it cannot be sued without the express consent of the State. The petitioners opposed the claim of NPC and claimed that it is performing not governmental but merely proprietary functions and that based on the organic charter of NPC, it can be sued and be sued in any court. Issue: W/N the power of NPC to sue and be sued under its organic charter includes the power to be sued for tort. Held: YES. The government has organized a private corporation, put money in it and has allowed it to sue and be sued in any court under its charter. NPC, as a government owned and controlled corporation, has a personality of its own, distinct and separate from that of the Government. In any court, NPC can sue and be sued for tort. The petition of the petitioners was granted