# 143 By: Tangonan

Case Name: Municipality of Makati vs. CA Topic: Consent to Execution

GR Nos. 89898-99
Date: 01 October 1990
FACTS:
In 1986, an action for eminent domain was filde. A bank account w PNB-Buedia was then opened for the purpose of
paying the amount of expropriation.
In 1987, the RTC ruled that the property of private resp. Admiral Finance Creditors Consortium (AFCC) was valued at
Php 5.3M less the advance payment of Php 338k (Php 4.9M).
After it became final executory, a writ of execution and notice of garnishment were then respectively issued and served
upon the manager of PNB-Buendia. However, the sheriff was informed that theres a hold order on pet. Municipality of
Makatis account.
In 1988, ownership over the property was transferre to Phil Savings Bank (PSB). A compromise was entered into by
AFCC & PSB, wherein they agreed to divide between themselves the Php 4.9M.
Accordingly, the RTC approved the compromise, ordered PNB-Buendia to reelase the Php 4.9M, & ordered PSB and
AFCC to execute the necessary deed of conveyance.
Curiously, the manager of PNB-Buendia still failed to comply w said order. He argued that the requested funds could
neither be garnished or levied upon execution w/o the proper appropriation required under law.
Both the RTC and CA ruled against the Municipality, hence this petition for review.

ISSUE/S: W/N the manager of PNB-Buendia was correct that it could not validly release the requested funds w/o the proper
appropriation.

RULING: YES
Since the funds deposited w PNB were public funds of the municipal government, they cannot be subject to levy/execution
unless otherwise provided for by statute. Herein, absent any showing that the municipal council of Makati passed an ordinance
appropriating from its public funds the requested amt, no levy or execution may be validly effected.

However, where a municipality/city refuses, w/o justifiable reason, to effect payment of a final money judgement rendered against
it, a claimant may avail of the remedy of mandamus in order to compel the enactment and approval of the necessary appropriation
ordinance, and the disbursement of municipal funds therefor. The States power of eminent domain shouldnt be exercised w/in
the bounds of fair play & justice.

In the case, since pet had enjoyed possession and use of the property for 3 yrs, the Court found that it had more than reasonable
time to pay full compensation. Thus, the Court ordered petitioner Municipality of Makati to immediately pay Philippine Savings
Bank, Inc. and private respondent the amount of P4,953,506.45.