GR No. L-32052

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PVTA VS CIR

G.R. NO. L-32052


JULY 25, 1975
PONENTE: FERNANDO, J.
TOPIC: MEASURE OF RECOVERY (GOVERNMENT)
FACTS:

Petitioner Philippine Virginia Tobacco Administration (PVTA) calls for resolution


in its appeal by certiorari from an order of respondent Court of Industrial
Relations (CIR).
PVTA was sued for the failure to pay overtime compensation beyond the
regular eight hours a day workload in accordance with Commonwealth Act
No. 444.
PVTA raised the issue of special defences of lack of a cause of action and lack
of jurisdiction. They insisted that its beyond the jurisdiction of respondent
Court as it is exercising governmental functions governmental functions and
that is exempt from the operation of Commonwealth Act No. 444.

ISSUES:
1. W/N the Court is devoid of jurisdiction
HELD/RATIO:
1. NO, exercising governmental functions and being exempt from the operation
of Commonwealth Act No. 444 is not a necessary consequence that
respondent Court is devoid of jurisdiction.
The challenged order cannot be set aside on the additional argument
that the Eight-Hour Labor Law is not applicable to it.
There is no constitutional obstacle to a government pursuing line of
endeavour formerly reserved for private enterprises. The government
has an increased responsibility to provide for the general welfare of the
people.

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