G.R. No. L-23825 December 24, 1965 EMMANUEL PELAEZ, Petitioner, THE AUDITOR GENERAL, Respondent

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G.R. No.

L-23825      December 24, 1965 Upon petition of a majority of the voters in the areas affected, shall first be obtained whenever the boundary of any province
a new barrio may be created or the name of an existing one or subprovince is to be defined or any province is to be divided
EMMANUEL PELAEZ, petitioner, may be changed by the provincial board of the province, upon into one or more subprovinces. When action by the (Governor-
vs. recommendation of the council of the municipality or General) President of the Philippines in accordance herewith
THE AUDITOR GENERAL, respondent. municipalities in which the proposed barrio is stipulated. The makes necessary a change of the territory under the
recommendation of the municipal council shall be embodied in jurisdiction of any administrative officer or any judicial
a resolution approved by at least two-thirds of the entire officer, the (Governor-General) President of the Philippines,
Zulueta, Gonzales, Paculdo and Associates for petitioner. membership of the said council: Provided, however, That no with the recommendation and advice of the head of the
Office of the Solicitor General for respondent. new barrio may be created if its population is less than five Department having executive control of such officer, shall
hundred persons. redistrict the territory of the several officers affected and
CONCEPCION, J.: assign such officers to the new districts so formed.
Hence, since January 1, 1960, when Republic Act No. 2370 became
During the period from September 4 to October 29, 1964 the President effective, barrios may "not be created or their boundaries altered nor Upon the changing of the limits of political divisions in
of the Philippines, purporting to act pursuant to Section 68 of the their names changed" except by Act of Congress or of the corresponding pursuance of the foregoing authority, an equitable distribution
Revised Administrative Code, issued Executive Orders Nos. 93 to 121, provincial board "upon petition of a majority of the voters in the areas of the funds and obligations of the divisions thereby affected
124 and 126 to 129; creating thirty-three (33) municipalities enumerated affected" and the "recommendation of the council of the municipality or shall be made in such manner as may be recommended by the
in the margin.1 Soon after the date last mentioned, or on November 10, municipalities in which the proposed barrio is situated." Petitioner (Insular Auditor) Auditor General and approved by the
1964 petitioner Emmanuel Pelaez, as Vice President of the Philippines argues, accordingly: "If the President, under this new law, cannot even (Governor-General) President of the Philippines.
and as taxpayer, instituted the present special civil action, for a writ of create a barrio, can he create a municipality which is composed of
prohibition with preliminary injunction, against the Auditor General, to several barrios, since barrios are units of municipalities?" Respondent alleges that the power of the President to create
restrain him, as well as his representatives and agents, from passing in municipalities under this section does not amount to an undue delegation
audit any expenditure of public funds in implementation of said Respondent answers in the affirmative, upon the theory that a new of legislative power, relying upon Municipality of Cardona vs.
executive orders and/or any disbursement by said municipalities. municipality can be created without creating new barrios, such as, by Municipality of Binañgonan (36 Phil. 547), which, he claims, has settled
placing old barrios under the jurisdiction of the new municipality. This it. Such claim is untenable, for said case involved, not the creation of a
Petitioner alleges that said executive orders are null and void, upon the theory overlooks, however, the main import of the petitioner's argument, new municipality, but a mere transfer of territory — from an already
ground that said Section 68 has been impliedly repealed by Republic Act which is that the statutory denial of the presidential authority to create a existing municipality (Cardona) to another municipality
No. 2370 and constitutes an undue delegation of legislative power. new barrio implies a negation of the bigger power to create (Binañgonan), likewise, existing at the time of and prior to said
Respondent maintains the contrary view and avers that the present action municipalities, each of which consists of several barrios. The cogency transfer (See Gov't of the P.I. ex rel. Municipality of Cardona vs.
is premature and that not all proper parties — referring to the officials of and force of this argument is too obvious to be denied or even Municipality, of Binañgonan [34 Phil. 518, 519-5201) — in consequence
the new political subdivisions in question — have been impleaded. questioned. Founded upon logic and experience, it cannot be offset of the fixing and definition, pursuant to Act No. 1748, of the common
Subsequently, the mayors of several municipalities adversely affected by except by a clear manifestation of the intent of Congress to the contrary, boundaries of two municipalities.
the aforementioned executive orders — because the latter have taken and no such manifestation, subsequent to the passage of Republic Act
away from the former the barrios composing the new political No. 2379, has been brought to our attention. It is obvious, however, that, whereas the power to fix such common
subdivisions — intervened in the case. Moreover, Attorneys Enrique M. boundary, in order to avoid or settle conflicts of jurisdiction between
Fernando and Emma Quisumbing-Fernando were allowed to and did Moreover, section 68 of the Revised Administrative Code, upon which adjoining municipalities, may partake of an administrative nature —
appear as amici curiae. the disputed executive orders are based, provides: involving, as it does, the adoption of means and ways to carry into
effect the law creating said municipalities — the authority to create
The third paragraph of Section 3 of Republic Act No. 2370, reads: The (Governor-General) President of the Philippines may by municipal corporations is essentially legislative in nature. In the
executive order define the boundary, or boundaries, of any language of other courts, it is "strictly a legislative function" (State ex
Barrios shall not be created or their boundaries altered nor province, subprovince, municipality, [township] municipal rel. Higgins vs. Aicklen, 119 S. 425, January 2, 1959) or "solely
their names changed except under the provisions of this Act or district, or other political subdivision, and increase or diminish and exclusively the exercise of legislative power" (Udall vs. Severn, May
by Act of Congress. the territory comprised therein, may divide any province into 29, 1938, 79 P. 2d 347-349). As the Supreme Court of Washington has
one or more subprovinces, separate any political division other put it (Territory ex rel. Kelly vs. Stewart, February 13, 1890, 23 Pac.
than a province, into such portions as may be required, merge 405, 409), "municipal corporations are purely the creatures of statutes."
Pursuant to the first two (2) paragraphs of the same Section 3:
any of such subdivisions or portions with another, name any
new subdivision so created, and may change the seat of Although1a Congress may delegate to another branch of the Government
All barrios existing at the time of the passage of this Act shall government within any subdivision to such place therein as the the power to fill in the details in the execution, enforcement or
come under the provisions hereof. public welfare may require: Provided, That the authorization administration of a law, it is essential, to forestall a violation of the
of the (Philippine Legislature) Congress of the Philippines principle of separation of powers, that said law: (a) be complete in itself
— it must set forth therein the policy to be executed, carried out or "public interest," respectively, as sufficient standards for a valid or creating a Municipal Board of Control which shall determine whether
implemented by the delegate2 — and (b) fix a standard — the limits of delegation of the authority to execute the law. But, the doctrine laid or not the laying out, construction or operation of a toll road is in the
which are sufficiently determinate or determinable — to which the down in these cases — as all judicial pronouncements — must be "public interest" and whether the requirements of the law had been
delegate must conform in the performance of his functions.2a Indeed, construed in relation to the specific facts and issues involved therein, complied with, in which case the board shall enter an order creating a
without a statutory declaration of policy, the delegate would in effect, outside of which they do not constitute precedents and have no binding municipal corporation and fixing the name of the same (Carolina-
make or formulate such policy, which is the essence of every law; and, effect.4 The law construed in the Calalang case conferred upon the Virginia Coastal Highway vs. Coastal Turnpike Authority, 74 S.E. 2d.
without the aforementioned standard, there would be no means to Director of Public Works, with the approval of the Secretary of Public 310).
determine, with reasonable certainty, whether the delegate has acted Works and Communications, the power to issue rules and regulations
within or beyond the scope of his authority.2b Hence, he could thereby to promote safe transit upon national roads and streets. Upon the other Insofar as the validity of a delegation of power by Congress to the
arrogate upon himself the power, not only to make the law, but, also — hand, the Rosenthal case referred to the authority of the Insular President is concerned, the case of Schechter Poultry Corporation vs.
and this is worse — to unmake it, by adopting measures inconsistent Treasurer, under Act No. 2581, to issue and cancel certificates or permits U.S. (79 L. Ed. 1570) is quite relevant to the one at bar. The Schechter
with the end sought to be attained by the Act of Congress, thus nullifying for the sale of speculative securities. Both cases involved grants case involved the constitutionality of Section 3 of the National Industrial
the principle of separation of powers and the system of checks and to administrative officers of powers related to the exercise of their Recovery Act authorizing the President of the United States to approve
balances, and, consequently, undermining the very foundation of our administrative functions, calling for the determination of questions "codes of fair competition" submitted to him by one or more trade or
Republican system. of fact. industrial associations or corporations which "impose no inequitable
restrictions on admission to membership therein and are truly
Section 68 of the Revised Administrative Code does not meet these well Such is not the nature of the powers dealt with in section 68. As above representative," provided that such codes are not designed "to promote
settled requirements for a valid delegation of the power to fix the details indicated, the creation of municipalities, is not monopolies or to eliminate or oppress small enterprises and will not
in the enforcement of a law. It does not enunciate any policy to be an administrative function, but one which is essentially and eminently operate to discriminate against them, and will tend to effectuate the
carried out or implemented by the President. Neither does it give a legislative in character. The question of whether or not "public interest" policy" of said Act. The Federal Supreme Court held:
standard sufficiently precise to avoid the evil effects above referred to. In demands the exercise of such power is not one of fact. it is "purely a
this connection, we do not overlook the fact that, under the last clause of legislative question "(Carolina-Virginia Coastal Highway vs. Coastal To summarize and conclude upon this point: Sec. 3 of the
the first sentence of Section 68, the President: Turnpike Authority, 74 S.E. 2d. 310-313, 315-318), or Recovery Act is without precedent. It supplies no standards for
a political question (Udall vs. Severn, 79 P. 2d. 347-349). As the any trade, industry or activity. It does not undertake to
... may change the seat of the government within any Supreme Court of Wisconsin has aptly characterized it, "the question as prescribe rules of conduct to be applied to particular states of
subdivision to such place therein as the public welfare may to whether incorporation is for the best interest of the community in any fact determined by appropriate administrative procedure.
require. case is emphatically a question of public policy and statecraft" (In re Instead of prescribing rules of conduct, it authorizes the
Village of North Milwaukee, 67 N.W. 1033, 1035-1037). making of codes to prescribe them. For that legislative
It is apparent, however, from the language of this clause, that the phrase undertaking, Sec. 3 sets up no standards, aside from the
"as the public welfare may require" qualified, not the clauses preceding For this reason, courts of justice have annulled, as constituting undue statement of the general aims of rehabilitation, correction and
the one just quoted, but only the place to which the seat of the delegation of legislative powers, state laws granting the judicial expansion described in Sec. 1. In view of the scope of that
government may be transferred. This fact becomes more apparent when department, the power to determine whether certain territories should be broad declaration, and of the nature of the few restrictions that
we consider that said Section 68 was originally Section 1 of Act No. annexed to a particular municipality (Udall vs. Severn, supra, 258-359); are imposed, the discretion of the President in approving or
1748,3 which provided that, "whenever in the judgment of the Governor- or vesting in a Commission the right to determine the plan and frame of prescribing codes, and thus enacting laws for the government
General the public welfare requires, he may, by executive order," effect government of proposed villages and what functions shall be exercised of trade and industry throughout the country, is virtually
the changes enumerated therein (as in said section 68), including the by the same, although the powers and functions of the village are unfettered. We think that the code making authority thus
change of the seat of the government "to such place ... as the public specifically limited by statute (In re Municipal Charters, 86 Atl. 307- conferred is an unconstitutional delegation of legislative
interest requires." The opening statement of said Section 1 of Act No. 308); or conferring upon courts the authority to declare a given town or power.
1748 — which was not included in Section 68 of the Revised village incorporated, and designate its metes and bounds, upon petition
Administrative Code — governed the time at which, or the conditions of a majority of the taxable inhabitants thereof, setting forth the area If the term "unfair competition" is so broad as to vest in the President a
under which, the powers therein conferred could be exercised; whereas desired to be included in such village (Territory ex rel Kelly vs. Stewart, discretion that is "virtually unfettered." and, consequently, tantamount to
the last part of the first sentence of said section referred exclusively to 23 Pac. 405-409); or authorizing the territory of a town, containing a a delegation of legislative power, it is obvious that "public welfare,"
the place to which the seat of the government was to be transferred. given area and population, to be incorporated as a town, on certain steps which has even a broader connotation, leads to the same result. In fact, if
being taken by the inhabitants thereof and on certain determination by a the validity of the delegation of powers made in Section 68 were upheld,
court and subsequent vote of the inhabitants in favor thereof, insofar as there would no longer be any legal impediment to a statutory grant of
At any rate, the conclusion would be the same, insofar as the case at bar the court is allowed to determine whether the lands embraced in the
is concerned, even if we assumed that the phrase "as the public welfare authority to the President to do anything which, in his opinion, may be
petition "ought justly" to be included in the village, and whether the required by public welfare or public interest. Such grant of authority
may require," in said Section 68, qualifies all other clauses thereof. It is interest of the inhabitants will be promoted by such incorporation, and to
true that in Calalang vs. Williams (70 Phil. 726) and People vs. would be a virtual abdication of the powers of Congress in favor of the
enlarge and diminish the boundaries of the proposed village "as justice Executive, and would bring about a total collapse of the democratic
Rosenthal (68 Phil. 328), this Court had upheld "public welfare" and may require" (In re Villages of North Milwaukee, 67 N.W. 1035-1037);
system established by our Constitution, which it is the special duty and discretion by its officials. Manifestly, such control does not include the policy as regards the new municipalities involved in this case, in the
privilege of this Court to uphold. authority either to abolish an executive department or bureau, or to absence of an allegation to such effect, and none has been made by him.
create a new one. As a consequence, the alleged power of the President
It may not be amiss to note that the executive orders in question were to create municipal corporations would necessarily connote the exercise WHEREFORE, the Executive Orders in question are hereby declared
issued after the legislative bills for the creation of the municipalities by him of an authority even greater than that of control which he has null and void ab initio and the respondent permanently restrained from
involved in this case had failed to pass Congress. A better proof of the over the executive departments, bureaus or offices. In other words, passing in audit any expenditure of public funds in implementation of
fact that the issuance of said executive orders entails the exercise of Section 68 of the Revised Administrative Code does not merely fail to said Executive Orders or any disbursement by the municipalities above
purely legislative functions can hardly be given. comply with the constitutional mandate above quoted. Instead of giving referred to. It is so ordered.
the President less power over local governments than that vested in him
over the executive departments, bureaus or offices, it reverses the
Again, Section 10 (1) of Article VII of our fundamental law ordains: process and does the exact opposite, by conferring upon Bengzon, C.J., Bautista Angelo, Reyes, J.B.L., Barrera and Dizon,
him more power over municipal corporations than that which he has JJ., concur.
The President shall have control of all the executive over said executive departments, bureaus or offices.
departments, bureaus, or offices, exercise general supervision Zaldivar, J., took no part.
over all local governments as may be provided by law, and In short, even if it did entail an undue delegation of legislative powers,
take care that the laws be faithfully executed. as it certainly does, said Section 68, as part of the Revised
Administrative Code, approved on March 10, 1917, must be deemed
The power of control under this provision implies the right of the repealed by the subsequent adoption of the Constitution, in 1935, which
President to interfere in the exercise of such discretion as may be vested is utterly incompatible and inconsistent with said statutory enactment.7
by law in the officers of the executive departments, bureaus, or offices of
the national government, as well as to act in lieu of such officers. This There are only two (2) other points left for consideration, namely,
power is denied by the Constitution to the Executive, insofar as local respondent's claim (a) that "not all the proper parties" — referring to the
governments are concerned. With respect to the latter, the fundamental officers of the newly created municipalities — "have been impleaded in
law permits him to wield no more authority than that of checking this case," and (b) that "the present petition is premature."
whether said local governments or the officers thereof perform their
duties as provided by statutory enactments. Hence, the President cannot
interfere with local governments, so long as the same or its officers act As regards the first point, suffice it to say that the records do not show,
Within the scope of their authority. He may not enact an ordinance and the parties do not claim, that the officers of any of said
which the municipal council has failed or refused to pass, even if it had municipalities have been appointed or elected and assumed office. At
thereby violated a duty imposed thereto by law, although he may see to it any rate, the Solicitor General, who has appeared on behalf of
that the corresponding provincial officials take appropriate disciplinary respondent Auditor General, is the officer authorized by law "to act and
action therefor. Neither may he vote, set aside or annul an ordinance represent the Government of the Philippines, its offices and agents, in
passed by said council within the scope of its jurisdiction, no matter how any official investigation, proceeding or matter requiring the services of
patently unwise it may be. He may not even suspend an elective official a lawyer" (Section 1661, Revised Administrative Code), and, in
of a regular municipality or take any disciplinary action against him, connection with the creation of the aforementioned municipalities, which
except on appeal from a decision of the corresponding provincial board.5 involves a political, not proprietary, function, said local officials, if any,
are mere agents or representatives of the national government. Their
interest in the case at bar has, accordingly, been, in effect, duly
Upon the other hand if the President could create a municipality, he represented.8
could, in effect, remove any of its officials, by creating a new
municipality and including therein the barrio in which the official
concerned resides, for his office would thereby become vacant.6 Thus, by With respect to the second point, respondent alleges that he has not as
merely brandishing the power to create a new municipality (if he had it), yet acted on any of the executive order & in question and has not
without actually creating it, he could compel local officials to submit to intimated how he would act in connection therewith. It is, however, a
his dictation, thereby, in effect, exercising over them the power of matter of common, public knowledge, subject to judicial cognizance,
control denied to him by the Constitution. that the President has, for many years, issued executive orders creating
municipal corporations and that the same have been organized and in
actual operation, thus indicating, without peradventure of doubt, that the
Then, also, the power of control of the President over executive expenditures incidental thereto have been sanctioned, approved or
departments, bureaus or offices implies no more than the authority to passed in audit by the General Auditing Office and its officials. There is
assume directly the functions thereof or to interfere in the exercise of no reason to believe, therefore, that respondent would adopt a different
Administrative Code. Then Vice-President Emmanuel Pelaez filed a Community Environment and Natural Resources (CENRO) of the
special civil action for a writ of prohibition, alleging in main that the Department of Environment and Natural Resources (DENR) certifying
Executive Orders were null and void, Section 68 having been repealed the total land area of the Municipality of Andong, "created under
by Republic Act No. 2370,6 and said orders constituting an undue Executive Order No. 107 issued [last] October 1, 1964."17 He also
delegation of legislative power.7 submits a Certification issued by the Provincial Statistics Office of
Marawi City concerning the population of Andong, which is pegged at
After due deliberation, the Court unanimously held that the challenged fourteen thousand fifty nine (14,059) strong. Camid also enumerates a
Executive Orders were null and void. A majority of five justices, led by list of governmental agencies and private groups that allegedly recognize
the ponente, Justice (later Chief Justice) Roberto Concepcion, ruled that Andong, and notes that other municipalities have recommended to the
Section 68 of the Revised Administrative Code did not meet the well- Speaker of the Regional Legislative Assembly for the immediate
settled requirements for a valid delegation of legislative power to the implementation of the revival or re-establishment of Andong.18
executive branch,8 while three justices opined that the nullity of the
issuances was the consequence of the enactment of the 1935 The petition assails a Certification dated 21 November 2003, issued by
[G.R. NO. 161414 : January 17, 2005] Constitution, which reduced the power of the Chief Executive over local the Bureau of Local Government Supervision of the Department of
governments.9 Pelaez was disposed in this wise: Interior and Local Government (DILG).19 The Certification enumerates
SULTAN OSOP B. CAMID, Petitioner, v. THE OFFICE OF THE eighteen (18) municipalities certified as "existing," per DILG records.
PRESIDENT, DEPARTMENT OF THE INTERIOR AND LOCAL WHEREFORE, the Executive Orders in question are declared null and Notably, these eighteen (18) municipalities are among the thirty-three
GOVERNMENT, AUTONOMOUS REGION IN MUSLIM void ab initio and the respondent permanently restrained from passing in (33), along with Andong, whose creations were voided by this Court
MINDANAO, DEPARTMENT of FINANCE, DEPARTMENT of audit any expenditure of public funds in implementation of said in Pelaez. These municipalities are Midaslip, Pitogo, Naga, and Bayog in
BUDGET AND MANAGEMENT, COMMISSION ON AUDIT, and Executive Orders or any disbursement by the municipalities above Zamboanga del Sur; Siayan and Pres. Manuel A. Roxas in Zamboanga
the CONGRESS OF THE PHILIPPINES (HOUSE of referred to. It is so ordered.10 del Norte; Magsaysay, Sta. Maria and New Corella in Davao; Badiangan
REPRESENTATIVES AND SENATE), Respondents. and Mina in Iloilo; Maguing in Lanao del Sur; Gloria in Oriental
Among the Executive Orders annulled was Executive Order No. 107 Mindoro; Maasim in Sarangani; Kalilangan and Lantapan in Bukidnon;
DECISION which created the Municipality of Andong. Nevertheless, the core issue and Maco in Compostela Valley.20
presented in the present petition is the continued efficacy of the judicial
TINGA, J.: annulment of the Municipality of Andong. Camid imputes grave abuse of discretion on the part of the DILG "in not
classifying [Andong] as a regular existing municipality and in not
This Petition for Certiorari presents this Court with the prospect of our Petitioner Sultan Osop B. Camid (Camid) represents himself as a current including said municipality in its records and official database as [an]
own Brigadoon1 the municipality of Andong, Lanao del Sur―which resident of Andong,11 suing as a private citizen and taxpayer whose locus existing regular municipality."21 He characterizes such non-classification
like its counterpart in filmdom, is a town that is not supposed to exist yet standi "is of public and paramount interest especially to the people of the as unequal treatment to the detriment of Andong, especially in light of
is anyway insisted by some as actually alive and thriving. Yet unlike in Municipality of Andong, Province of Lanao del Sur."12 He alleges that the current recognition given to the eighteen (18) municipalities
the movies, there is nothing mystical, ghostly or anything even remotely Andong "has metamorphosed into a full-blown municipality with a similarly annulled by reason of Pelaez. As appropriate relief, Camid
charming about the purported existence of Andong. The creation of the complete set of officials appointed to handle essential services for the prays that the Court annul the DILG Certification dated 21 November
putative municipality was declared void ab initio by this Court four municipality and its constituents,"13 even though he concedes that since 2003; direct the DILG to classify Andong as a "regular existing
decades ago, but the present petition insists that in spite of this 1968, no person has been appointed, elected or qualified to serve any of municipality;" all public respondents, to extend full recognition and
insurmountable obstacle Andong thrives on, and hence, its legal the elective local government positions of Andong.14 Nonetheless, the support to Andong; the Department of Finance and the Department of
personality should be given judicial affirmation. We disagree. municipality of Andong has its own high school, Bureau of Posts, a Budget and Management, to immediately release the internal revenue
Department of Education, Culture and Sports office, and at least allotments of Andong; and the public respondents, particularly the
seventeen (17) "barangay units" with their own respective DILG, to recognize the "Interim Local Officials" of Andong.22
The factual antecedents derive from the promulgation of our ruling
in Pelaez v. Auditor General2 in 1965. As discussed therein, then chairmen.15 From 1964 until 1972, according to Camid, the public
President Diosdado Macapagal issued several Executive Orders3 creating officials of Andong "have been serving their constituents through the Moreover, Camid insists on the continuing validity of Executive Order
thirty-three (33) municipalities in Mindanao. Among them was Andong minimal means and resources with least (sic) honorarium and No. 107. He argues that Pelaez has already been modified by
in Lanao del Sur which was created by virtue of Executive Order No. recognition from the Office of the then former President Diosdado supervening events consisting of subsequent laws and jurisprudence.
107.4 Macapagal." Since the time of Martial Law in 1972, Andong has Particularly cited is our Decision in Municipality of San Narciso v. Hon.
allegedly been getting by despite the absence of public funds, with the Mendez,23 wherein the Court affirmed the unique status of the
"Interim Officials" serving their constituents "in their own little ways municipality of San Andres in Quezon as a "de facto municipal
These executive orders were issued after legislative bills for the creation
and means."16 corporation."24 Similar to Andong, the municipality of San Andres was
of municipalities involved in that case had failed to pass
created by way of executive order, precisely the manner which the Court
Congress.5 President Diosdado Macapagal justified the creation of these
In support of his claim that Andong remains in existence, Camid in Pelaez had declared as unconstitutional. Moreover, San Narciso cited,
municipalities citing his powers under Section 68 of the Revised
presents to this Court a Certification issued by the Office of the as Camid does, Section 442(d) of the Local Government Code of 1991
as basis for the current recognition of the impugned municipality. The legislature, and without objection or interruption for so long a period as Siva,33 Municipality of Malabang v. Benito,34 and Municipality of
provision reads: to furnish evidence of a prescriptive right.28 Kapalong v. Moya.35 No subsequent ruling by this Court declared Pelaez
as overturned or inoperative. No subsequent legislation has been passed
Section 442. Requisites for Creation. - xxx What is clearly essential is a factual demonstration of the continuous since 1965 creating a Municipality of Andong. Given these facts, there is
exercise by the municipal corporation of its corporate powers, as well as hardly any reason to elaborate why Andong does not exist as a duly
(d) Municipalities existing as of the date of the effectivity of this Code the acquiescence thereto by the other instrumentalities of the state. constituted municipality.
shall continue to exist and operate as such. Existing municipal districts Camid does not have the opportunity to make an initial factual
organized pursuant to presidential issuances or executive orders and demonstration of those circumstances before this Court. Indeed, the This ratiocination does not admit to patent legal errors and has the
which have their respective sets of elective municipal officials holding factual deficiencies aside, Camid's plaint should have undergone the additional virtue of blessed austerity. Still, its sweeping adoption may
office at the time of the effectivity of (the) Code shall henceforth be usual administrative gauntlet and, once that was done, should have been not be advisedly appropriate in light of Section 442(d) of the Local
considered as regular municipalities.25 filed first with the Court of Appeals, which at least would have had the Government Code and our ruling in Municipality of San Narciso, both of
power to make the necessary factual determinations. Camid's seeming which admit to the possibility of de facto municipal corporations.
There are several reasons why the petition must be dismissed. These can ignorance of the principles of exhaustion of administrative remedies and
be better discerned upon examination of the proper scope and application hierarchy of courts, as well as the concomitant prematurity of the present To understand the applicability of Municipality of San Narciso and
of Section 442(d), which does not sanction the recognition of just any petition, cannot be countenanced. Section 442(b) of the Local Government Code to the situation of
municipality. This point shall be further explained further on. Andong, it is necessary again to consider the ramifications of our
It is also difficult to capture the sense and viability of Camid's present decision in Pelaez.
Notably, as pointed out by the public respondents, through the Office of action. The assailed issuance is the Certification issued by the DILG.
the Solicitor General (OSG), the case is not a fit subject for the special But such Certification does not pretend to bear the authority to create or The eminent legal doctrine enunciated in Pelaez was that the President
civil actions of certiorari and mandamus, as it pertains to the de revalidate a municipality. Certainly, the annulment of the Certification was then, and still is, not empowered to create municipalities through
novo appreciation of factual questions. There is indeed no way to will really do nothing to serve Camid's ultimate cause - the recognition executive issuances. The Court therein recognized "that the President
confirm several of Camid's astonishing factual allegations pertaining to of Andong. Neither does the Certification even expressly refute the has, for many years, issued executive orders creating municipal
the purported continuing operation of Andong in the decades since it was claim that Andong still exists, as there is nothing in the document that corporations, and that the same have been organized and in actual
annulled by this Court. No trial court has had the opportunity to ascertain comments on the present status of Andong. Perhaps the Certification is operation . . . ."36 However, the Court ultimately nullified only those
the validity of these factual claims, the appreciation of which is beyond assailed before this Court if only to present an actual issuance, rather thirty-three (33) municipalities, including Andong, created during the
the function of this Court since it is not a trier of facts. than a long-standing habit or pattern of action that can be annulled period from 4 September to 29 October 1964 whose existence petitioner
through the special civil action of certiorari . Still, the relation of Vice-President Pelaez had specifically assailed before this Court. No
the Certification to Camid's central argument is forlornly strained. pronouncement was made as to the other municipalities which had been
The importance of proper factual ascertainment cannot be gainsaid,
especially in light of the legal principles governing the recognition previously created by the President in the exercise of power the Court
of de facto municipal corporations. It has been opined that municipal These disquisitions aside, the central issue remains whether a deemed unlawful.
corporations may exist by prescription where it is shown that the municipality whose creation by executive fiat was previously voided by
community has claimed and exercised corporate functions, with the this Court may attain recognition in the absence of any curative or Two years after Pelaez was decided, the issue again came to fore
knowledge and acquiescence of the legislature, and without interruption reimplementing statute. Apparently, the question has never been decided in Municipality of San Joaquin v. Siva.37 The Municipality of Lawigan
or objection for period long enough to afford title by before, San Narciso and its kindred cases pertaining as they did to was created by virtue of Executive Order No. 436 in 1961. Lawigan was
prescription.26 These municipal corporations have exercised their powers municipalities whose bases of creation were dubious yet were never not one of the municipalities ordered annulled in Pelaez. A petition for
for a long period without objection on the part of the government that judicially nullified. The effect of Section 442(d) of the Local prohibition was filed contesting the legality of the executive order, again
although no charter is in existence, it is presumed that they were duly Government Code on municipalities such as Andong warrants on the ground that Section 68 of the Revised Administrative Code was
incorporated in the first place and that their charters had been explanation. Besides, the residents of Andong who belabor under the unconstitutional. The trial court dismissed the petition, but the Supreme
lost.27 They are especially common in England, which, as well-worth impression that their town still exists, much less those who may comport Court reversed the ruling and entered a new decision declaring Executive
noting, has existed as a state for over a thousand years. The reason for themselves as the municipality's "Interim Government," would be well Order No. 436 void ab initio. The Court reasoned without elaboration
the development of that rule in England is understandable, since that served by a rude awakening. that the issue had already been squarely taken up and settled
country was settled long before the Roman conquest by nomadic Celtic in Pelaez which agreed with the argument posed by the challengers to
tribes, which could have hardly been expected to obtain a municipal The Court can employ a simplistic approach in resolving the substantive Lawigan's validity.38
charter in the absence of a national legal authority. aspect of the petition, merely by pointing out that the Municipality of
Andong never existed.29 Executive Order No. 107, which established In the 1969 case of Municipality of Malabang v. Benito,39 what was
In the United States, municipal corporations by prescription are less Andong, was declared "null and void ab initio" in 1965 by this Court challenged is the validity of the constitution of the Municipality of
common, but it has been held that when no charter or act of in Pelaez, along with thirty-three (33) other executive orders. The phrase Balabagan in Lanao del Sur, also created by an executive order,40 and
incorporation of a town can be found, it may be shown to have claimed "ab initio" means "from the beginning,"30 "at first,"31 "from the which, similar to Lawigan, was not one of the municipalities annulled
and exercised the powers of a town with the knowledge and assent of the inception."32 Pelaez was never reversed by this Court but rather it was in Pelaez. This time, the officials of Balabagan invoked de facto status as
expressly affirmed in the cases of Municipality of San Joaquin v. a municipal corporation in order to dissuade the Court from nullifying
action. They alleged that its status as a de facto corporation cannot be Nevertheless, when the Court decided Municipality of San Narciso49 in The holding in San Narciso was subsequently affirmed in Municipality
collaterally attacked but should be inquired into directly in an action 1995, it indicated a shift in the jurisprudential treatment of municipalities of Candijay v. Court of Appeals56 and Municipality of Jimenez v.
for quo warranto at the instance of the State, and not by a private created through presidential issuances. The questioned municipality of Baz57 In Candijay, the juridical personality of the Municipality of Alicia,
individual as it was in that case. In response, the Court conceded that an San Andres, Quezon was created on 20 August 1959 by Executive Order created in a 1949 executive order, was attacked only beginning in
inquiry into the legal existence of a municipality is reserved to the State No. 353 issued by President Carlos P. Garcia. Executive Order No. 353 1984. Pelaez was again invoked in support of the challenge, but the
in a proceeding for quo warranto, but only if the municipal corporation was not one of the thirty-three issuances annulled by Pelaez in 1965. The Court refused to invalidate the municipality, citing San Narciso at
is a de facto corporation.41 legal status of the Municipality of San Andres was first challenged only length. The Court noted that the situation of the Municipality of Alicia
in 1989, through a petition for quo warranto filed with the Regional was strikingly similar to that in San Narciso; hence, the town should
Ultimately, the Court refused to acknowledge Balabagan as a de Trial Court of Gumaca, Quezon, which did cite Pelaez as likewise "benefit from the effects of Section 442(d) of the Local
facto corporation, even though it had been organized prior to the Court's authority.50 The RTC dismissed the petition for lack of cause of action, Government Code, and should [be] considered as a regular, de
decision in Pelaez. The Court declared void the executive order creating and the petitioners therein elevated the matter to this Court. jure municipality." 58
Balabagan and restrained its municipal officials from performing their
official duties and functions.42 It cited conflicting American authorities In dismissing the petition, the Court delved in the merits of the petition, The valid existence of Municipality of Sinacaban, created in a 1949
on whether a de facto corporation can exist where the statute or charter if only to resolve further doubt on the legal status of San Andres. It noted executive order, was among the issues raised in Jimenez. The Court,
creating it is unconstitutional.43 But the Court's final conclusion was a circumstance which is not present in the case at bar that San Andres through Justice Mendoza, provided an expert summation of the evolution
unequivocal that Balabagan was not a de was in existence for nearly thirty (30) years before its legality was of the rule.
facto corporation.ςηαñrοblεš  Î½Î¹r†υαl  lαω  lιbrαrÿ challenged. The Court did not declare the executive order creating San
Andres null and void. Still, acting on the premise that the said executive The principal basis for the view that Sinacaban was not validly created
In the cases where a de facto municipal corporation was recognized as order was a complete nullity, the Court noted "peculiar circumstances" as a municipal corporation is the ruling in Pelaez v. Auditor General that
such despite the fact that the statute creating it was later invalidated, the that led to the conclusion that San Andres had attained the unique status the creation of municipal corporations is essentially a legislative matter
decisions could fairly be made to rest on the consideration that there was of a "de facto municipal corporation."51 It noted that Pelaez limited its and therefore the President was without power to create by executive
some other valid law giving corporate vitality to the organization. Hence, nullificatory effect only to those executive orders specifically challenged order the Municipality of Sinacaban. The ruling in this case has been
in the case at bar, the mere fact that Balabagan was organized at a time therein, despite the fact that the Court then could have very well reiterated in a number of cases later decided. However, we have since
when the statute had not been invalidated cannot conceivably make it extended the decision to invalidate San Andres as well.52 This statement held that where a municipality created as such by executive order is later
a de facto corporation, as, independently of the Administrative Code squarely contradicts Camid's reading of San Narciso that the creation of impliedly recognized and its acts are accorded legal validity, its creation
provision in question, there is no other valid statute to give color of San Andres, just like Andong, had been declared a complete nullity on can no longer be questioned. In Municipality of San Narciso, Quezon v.
authority to its creation.44 the same ground of unconstitutional delegation of legislative power Mendez, Sr., this Court considered the following factors as having
found in Pelaez.53 validated the creation of a municipal corporation, which, like the
The Court did clarify in Malabang that the previous acts done by the Municipality of Sinacaban, was created by executive order of the
municipality in the exercise of its corporate powers were not necessarily The Court also considered the applicability of Section 442(d)54 of the President before the ruling in Pelaez v. Auditor General: (1) the fact that
a nullity.45 Camid devotes several pages of his petition in citing this Local Government Code of 1991. It clarified the implication of the for nearly 30 years the validity of the creation of the municipality had
point,46 yet the relevance of the citation is unclear considering that provision as follows: never been challenged; (2) the fact that following the ruling in Pelaez
Camid does not assert the validity of any corporate act of Andong prior no quo warranto suit was filed to question the validity of the executive
to its judicial dissolution. Notwithstanding, the Court Equally significant is Section 442(d) of the Local Government Code to order creating such municipality; and (3) the fact that the municipality
in Malabang retained an emphatic attitude as to the unconstitutionality the effect that municipal districts "organized pursuant to presidential was later classified as a fifth class municipality, organized as part of a
of the power of the President to create municipal corporations by way of issuances or executive orders and which have their respective sets of municipal circuit court and considered part of a legislative district in the
presidential promulgations, as authorized under Section 68 of the elective municipal officials holding office at the time of the effectivity of Constitution apportioning the seats in the House of Representatives.
Revised Administrative Code. (the) Code shall henceforth be considered as regular municipalities." No Above all, it was held that whatever doubt there might be as to
pretension of unconstitutionality per se of Section 442(d) of the Local the de jure character of the municipality must be deemed to have been
This principle was most recently affirmed in 1988, in Municipality of Government Code is preferred. It is doubtful whether such a pretext, put to rest by the Local Government Code of 1991 (R. A. No. 7160),
Kapalong v. Moya.47 The municipality of Santo Tomas, created by even if made, would succeed. The power to create political '442(d) of which provides that "municipal districts organized pursuant to
President Carlos P. Garcia, filed a complaint against another subdivisions is a function of the legislature. Congress did just that presidential issuances or executive orders and which have their
municipality, who challenged Santo Tomas's legal personality to institute when it has incorporated Section 442(d) in the Code. Curative laws, respective sets of elective officials holding office at the time of the
suit. Again, Santo Tomas had not been expressly nullified by prior which in essence are retrospective, and aimed at giving "validity to acts effectivity of this Code shall henceforth be considered as regular
judicial action, yet the Court refused to recognize its legal existence. The done that would have been invalid under existing laws, as if existing municipalities."
blunt but simple ruling: "Now then, as ruled in the Pelaez case supra, the laws have been complied with," are validly accepted in this jurisdiction,
President has no power to create a municipality. Since [Santo Tomas] subject to the usual qualification against impairment of vested rights. Here, the same factors are present so as to confer on Sinacaban the status
has no legal personality, it can not be a party to any civil action'. "48 (Emphasis supplied)55 of at least a de facto municipal corporation in the sense that its legal
existence has been recognized and acquiesced publicly and officially.
Sinacaban had been in existence for sixteen years when Pelaez v.
Auditor General was decided on December 24, 1965. Yet the validity of Court decisions cannot obviously lose their efficacy due to the sheer We thus assert the proper purview to Section 442(d) of the Local
E.O. No. 258 creating it had never been questioned. Created in 1949, it defiance by the parties aggrieved. Government Code that it does not serve to affirm or reconstitute the
was only 40 years later that its existence was questioned and only judicially dissolved municipalities such as Andong, which had been
because it had laid claim to an area that apparently is desired for its It bears noting that based on Camid's own admissions, Andong does not previously created by presidential issuances or executive orders. The
revenue. This fact must be underscored because under Rule 66, '16 of the meet the requisites set forth by Section 442(d) of the Local Government provision affirms the legal personalities only of those municipalities
Rules of Court, a quo warranto suit against a corporation for forfeiture Code. Section 442(d) requires that in order that the municipality created such as San Narciso, Alicia, and Sinacaban, which may have been
of its charter must be commenced within five (5) years from the time the by executive order may receive recognition, they must "have their created using the same infirm legal basis, yet were fortunate enough not
act complained of was done or committed. On the contrary, the State and respective set of elective municipal officials holding office at the time of to have been judicially annulled. On the other hand, the municipalities
even the Municipality of Jimenez itself have recognized Sinacaban's the effectivity of [the Local Government] Code." Camid admits that judicially dissolved in cases such as Pelaez, San Joaquin, and Malabang,
corporate existence. Under Administrative Order No. 33 dated June 13, Andong has never elected its municipal officers at all.60 This incapacity remain inexistent, unless recreated through specific legislative
1978 of this Court, as reiterated by '31 of the Judiciary Reorganization ties in with the fact that Andong was judicially annulled in 1965. Out of enactments, as done with the eighteen (18) municipalities certified by the
Act of 1980 (B. P. Blg. 129), Sinacaban is constituted part of a obeisance to our ruling in Pelaez, the national government ceased to DILG. Those municipalities derive their legal personality not from the
municipal circuit for purposes of the establishment of Municipal Circuit recognize the existence of Andong, depriving it of its share of the public presidential issuances or executive orders which originally created them
Trial Courts in the country. For its part, Jimenez had earlier recognized funds, and refusing to conduct municipal elections for the void or from Section 442(d), but from the respective legislative statutes which
Sinacaban in 1950 by entering into an agreement with it regarding their municipality. were enacted to revive them.ςηαñrοblεš  Î½Î¹r†υαl  lαω
common boundary. The agreement was embodied in Resolution No. 77 lιbrαrÿ
of the Provincial Board of Misamis Occidental. The failure to appropriate funds for Andong and the absence of elections
in the municipality in the last four decades are eloquent indicia of the And what now of Andong and its residents? Certainly, neither Pelaez or
Indeed Sinacaban has attained de jure status by virtue of the Ordinance non-recognition by the State of the existence of the town. The this decision has obliterated Andong into a hole on the ground. The legal
appended to the 1987 Constitution, apportioning legislative districts certifications relied upon by Camid, issued by the DENR-CENRO and effect of the nullification of Andong in Pelaez was to revert the
throughout the country, which considered Sinacaban part of the Second the National Statistics Office, can hardly serve the purpose of attesting to constituent barrios of the voided town back into their original
District of Misamis Occidental. Moreover, following the ruling Andong's legal efficacy. In fact, both these certifications qualify that municipalities, namely the municipalities of Lumbatan, Butig and
in Municipality of San Narciso, Quezon v. Mendez, Sr., 442(d) of the they were issued upon the request of Camid, "to support the restoration Tubaran.67 These three municipalities subsist to this day as part of Lanao
Local Government Code of 1991 must be deemed to have cured any or re-operation of the Municipality of Andong, Lanao del Sur,"61 thus del Sur,68 and presumably continue to exercise corporate powers over the
defect in the creation of Sinacaban'.59 Ï‚ηαñrοblεš  Î½Î¹r†υαl obviously conceding that the municipality is at present barrios which once belonged to Andong.
lαω  lιbrαrÿ inoperative.ςηαñrοblεš  Î½Î¹r†υαl  lαω  lιbrαrÿ
If there is truly a strong impulse calling for the reconstitution of Andong,
From this survey of relevant jurisprudence, we can gather the applicable We may likewise pay attention to the Ordinance appended to the 1987 the solution is through the legislature and not judicial confirmation of
rules. Pelaez and its offspring cases ruled that the President has no Constitution, which had also been relied upon in Jimenez and San void title. If indeed the residents of Andong have, all these years, been
power to create municipalities, yet limited its nullificatory effects to the Narciso. This Ordinance, which apportioned the seats of the House of governed not by their proper municipal governments but by a ragtag
particular municipalities challenged in actual cases before this Court. Representatives to the different legislative districts in the Philippines, "Interim Government," then an expedient political and legislative
However, with the promulgation of the Local Government Code in 1991, enumerates the various municipalities that are encompassed by the solution is perhaps necessary. Yet we can hardly sanction the retention
the legal cloud was lifted over the municipalities similarly created by various legislative districts. Andong is not listed therein as among the of Andong's legal personality solely on the basis of collective amnesia
executive order but not judicially annulled. The de facto status of such municipalities of Lanao del Sur, or of any other province for that that may have allowed Andong to somehow pretend itself into existence
municipalities as San Andres, Alicia and Sinacaban was recognized by matter.62 On the other hand, the municipalities of San Andres, Alicia and despite its judicial dissolution. Maybe those who insist Andong still
this Court, and Section 442(b) of the Local Government Code deemed Sinacaban are mentioned in the Ordinance as part of exists prefer to remain unperturbed in their blissful ignorance, like the
curative whatever legal defects to title these municipalities had labored Quezon,63 Bohol,64 and Misamis Occidental65 respectively. inhabitants of the cave in Plato's famed allegory. But the time has come
under. for the light to seep in, and for the petitioner and like-minded persons to
How about the eighteen (18) municipalities similarly nullified awaken to legal reality.
Is Andong similarly entitled to recognition as a de facto municipal in Pelaez but certified as existing in the DILG Certification presented by
corporation? It is not. There are eminent differences between Andong Camid? The petition fails to mention that subsequent to the ruling WHEREFORE, the Petition is DISMISSED for lack of merit. Costs
and municipalities such as San Andres, Alicia and Sinacaban. Most in Pelaez, legislation was enacted to reconstitute these municipalities.66 It against petitioner.
prominent is the fact that the executive order creating Andong was is thus not surprising that the DILG certified the existence of these
expressly annulled by order of this Court in 1965. If we were to affirm eighteen (18) municipalities, or that these towns are among the SO ORDERED.
Andong's de facto status by reason of its alleged continued existence municipalities enumerated in the Ordinance appended to the
despite its nullification, we would in effect be condoning defiance of a Constitution. Andong has not been similarly reestablished through
valid order of this Court.ςηαñrοblεš  Î½Î¹r†υαl  lαω statute. Clearly then, the fact that there are valid organic statutes passed
lιbrαrÿ by legislation recreating these eighteen (18) municipalities is sufficient
legal basis to accord a different legal treatment to Andong as against
these eighteen (18) other municipalities.
TRIAL COURT, BRANCH 14, 10th JUDICIAL REGION, municipality to be known as the municipality of
OROQUIETA CITY, and MUNICIPALITY OF SINACABAN Sinacaban, which shall consist of the southern
through its MAYOR EUFRACIO D. LOOD, VICE-MAYOR portion of the municipality of Jimenez, Misamis
BASILIO M. BANAAG, COUNCILORS CONCEPCION E. LAGA- Occidental, more particularly described and bounded
AC, MIGUEL F. ABCEDE, JUANITO B. TIU, CLAUDIO T. as follows:
REGIL, ANICETO S. MEJAREZ NAZIANCINO PAYE, JOSE P.
BANQUE, NUMERIANO B. MARIQUIT, and FEDERICO On the north by a line starting from point 1, the
QUINIMON, and THE PROVINCE OF MISAMIS OCCIDENTAL center of the lighthouse on the Tabo-o point S. 84°
through the PROVINCIAL BOARD OF MISAMIS OCCIDENTAL 30'W., 7,250 meters to point 2 which is on the bank
and its members, VICE-GOVERNOR FLORENCIO L. GARCIA, of Palilan River branch; thence following Palilan
BOARD MEMBERS MARIVIC S. CHIONG, PACITA M. YAP, River branch 2,400 meters southwesterly to point 3,
ALEGRIA V. CARINO, JULIO L. TIU, LEONARDO R. thence a straight line S 87° 00' W, 22,550 meters to
REGALADO II, CONSTANCIO C. BALAIS, and ERNESTO P. point 4, where this intersects the Misamis
IRA, and THE COMMISSION ON AUDIT, through its Chairman, Occidental-Zamboanga boundary; on the west, by
HON. EUFEMIO DOMINGO, and THE DEPARTMENT OF the present Misamis Occidental-Zamboanga
LOCAL GOVERNMENT through its Secretary, HON. LUIS boundary; and on the south by the present Jimenez-
SANTOS (now HON. CESAR SARINO), and THE DEPARTMENT Tudela boundary; and on the east, by the limits of
OF BUDGET AND MANAGEMENT, through its Secretary, HON. the municipal waters which the municipality of
GUILLERMO CARAGUE (now HON. SALVADOR ENRIQUEZ), Sinacaban shall have pursuant to section 2321 of the
and The Hon. CATALINO MACARAIG (now HON. FRANKLIN Revised Administrative Code, (Description based on
DRILON), EXECUTIVE SECRETARY OFFICE OF THE data shown in Enlarged Map of Poblacion of
PRESIDENT, respondents. Jimenez, Scale 1:8:000).

The municipality of Sinacaban contains the barrios


MENDOZA, J.:p of Sinacaban, which shall be the seat of the
municipal government, Sinonoc, Libertad, the
This is a petition for review of the decision dated March 4, 1992 of the southern portion of the barrio of Macabayao, and the
Regional Trial Court, Branch 14 of Oroquieta City, 1 affirming the legal sitios of Tipan, Katipunan, Estrella, Flores, Senior,
existence of the Municipality of Sinacaban in Misamis Occidental and Adorable, San Isidro, Cagayanon, Kamanse,
ordering the relocation of its boundary for the purpose of determining Kulupan and Libertad Alto.
G.R. No. 105746 December 2, 1996 whether certain areas claimed by it belong to it.
The municipality of Jimenez shall have its present
MUNICIPALITY OF JIMENEZ, through its MAYOR The antecedent facts are as follows: territory, minus the portion thereof included in the
ELEUTERIO A. QUIMBO, VICE-MAYOR ROBINSON B. LOMO, municipality of Sinacaban.
COUNCILORS TEOFILO GALORIO, CASIANO ADORABLE,
The Municipality of Sinacaban was created by Executive Order No. 258
MARIO APAO, ANTONIO BIENES, VEDE SULLANO,
of then President Elpidio Quirino, pursuant to §68 of the Revised The municipality of Sinacaban shall begin to exist
MARIETO TAN, SR., HERMINIO SERINO, BENJAMIN DANO,
Administrative Code of 1917. The full text of the Order reads: upon the appointment and qualification of the mayor,
and CRISPULO MUNAR, and ELEUTERIO A. QUIMBO,
vice-mayor, and a majority of the councilors thereof.
ROBINSON B. LOMO, TEOFILO GALORIO, CASIANO
EXECUTIVE ORDER NO. 258 The new municipality shall, however, assume
ADORABLE, MARIO APAO, ANTONIO BIENES, VEDE
payment of a proportionate share of the loan of the
SULLANO, MARIETO TAN, SR., HERMINIO SERINO,
municipality of Jimenez with the Rehabilitation
BENJAMIN DANO, and CRISPULO MUNAR, in their private CREATING THE MUNICIPALITY OF Finance Corporation as may be outstanding on the
capacities as taxpayer in the Province of Misamis Occidental and in SINACABAN, date of its organization, the proportion of such
the Municipality of Jimenez, Misamis Occidental, and BENJAMIN IN THE PROVINCE OF MISAMIS OCCIDENTAL payment to be determined by the Department of
C. GALINDO and BENHUR B. BAUTISTA, in their private
Finance.
capacities as taxpayers in the Province of Misamis Occidental and
Upon the recommendation of the Secretary of the
the Municipality of Jimenez, Misamis Occidental, petitioners,
Interior, and pursuant to the provisions of Section 68 Done in the City of Manila, this 30th day of August,
vs.
of the Revised Administrative Code, there is hereby in the year of Our Lord, nineteen hundred and forty-
HON. VICENTE T. BAZ, JR., Presiding Judge, REGIONAL
created, in the Province of Misamis Occidental, a
nine, and of the Independence of the Philippines, the The suit was filed against Sinacaban, the Province of Misamis judgment is hereby rendered declaring a STATUS
fourth. Occidental and its Provincial Board, the Commission on Audit, the QUO, that is, the municipality of Sinacaban shall
Departments of Local Government, Budget and Management, and the continue to exist and operate as a regular
(SGD.) ELPIDIO QUIRINO Executive Secretary. Jimenez alleged that, in accordance with the municipality; declaring the decision dated October
President of the Philippines decision in Pelaez v. Auditor General, 8 the power to create 11, 1989 rendered by the Sangguniang Panlalawigan
municipalities is essentially legislative and consequently Sinacaban, fixing the boundaries between Sinacaban and
which was created by an executive order, had no legal personality and no Jimenez, Misamis Occi. as null and void, the same
By the President: right to assert a territorial claim vis-a-vis Jimenez, of which it remains not being in accordance with the boundaries
part. Jimenez prayed that Sinacaban be enjoined from assuming control provided for in Executive Order No. 258 creating the
(SGD.) TEODORO EVANGELISTA and supervision over the disputed barrios; that the Provincial Board be municipality of Sinacaban; dismissing the petition
Executive Secretary enjoined from assuming jurisdiction over the claim of Sinacaban; that for lack of merit, without pronouncement as to costs
E.O. No. 258 be declared null and void; that the decision dated October and damages. With respect to the counterclaim, the
By virtue of Municipal Council Resolution No 171, 2 dated November 11, 1989 and Resolution No. 13-90 of the Provincial Board be set aside same is hereby ordered dismissed.
22, 1988, Sinacaban laid claim to a portion of Barrio Tabo-o and to for having been rendered without jurisdiction; that the Commission on
Barrios Macabayao, Adorable, Sinara Baja, and Sinara Alto,3 based on Audit be enjoined from passing in audit any expenditure of public funds The Commissioners are hereby ordered to conduct
the technical description in E.O. No. 258. The claim was filed with the by Sinacaban; that the Department of Budget and Management be the relocation survey of the boundary of Sinacaban
Provincial Board of Misamis Occidental against the Municipality of enjoined from allotting public funds to Sinacaban; and that the Executive within 60 days from the time the decision shall have
Jimenez. Secretary be enjoined from exercising control and supervision over said become final and executory and another 60 days
municipality. within which to submit their report from the
In its answer, the Municipality of Jimenez, while conceding that under completion of the said relocation survey.
E.O. No. 258 the disputed area is part of Sinacaban, nonetheless asserted During pre-trial, the parties agreed to limit the issues to the following:
jurisdiction on the basis of an agreement it had with the Municipality of SO ORDERED.
Sinacaban. This agreement was approved by the Provincial Board of A. Whether the Municipality of Sinacaban is a legal
Misamis Occidental, in its Resolution No. 77, dated February 18, 1950, juridical entity, duly created in accordance with law; The RTC, inter alia, held that Sinacaban is a de
which fixed the common boundary of Sinacaban and Jimenez as facto corporation since it had completely organized itself even
follows: 4 B. If not, whether it is a de facto juridical entity; prior to the Pelaez case and exercised corporate powers for
forty years before its existence was questioned; that Jimenez
From a point at Cagayanon Beach follow C. Whether the validity of the existence of the did not have the legal standing to question the existence of
Macabayao Road until it intersects Tabangag Creek Municipality can be properly questioned in this Sinacaban, the same being reserved to the State as represented
at the back of the Macabayao Elementary School. action on certiorari; by the Office of the Solicitor General in a quo
Follow the Tabangag Creek until it intersect the warranto proceeding; that Jimenez was estopped from
Macabayao River at upper Adorable. Follow the questioning the legal existence of Sinacaban by entering into
Macabayao River such that the barrio of D. Whether the Municipality of Jimenez which had an agreement with it concerning their common boundary; and
Macabayao, Sitio Adorable and site will be a part of recognized the existence of the municipality for that any question as to the legal existence of Sinacaban had
Jimenez down and the sitios of San Vicente, Donan, more than 40 years is estopped to question its been rendered moot by §442(d) of the Local Government Code
Estrella, Mapula will be a part of Sinacaban. existence; of 1991 (R.A. No. 7160), which provides:
(Emphasis added)
E. Whether the existence of the municipality has Municipalities existing as of the date of the
In its decision dated October 11, 1989, 5 the Provincial Board declared been recognized by the laws of the land; and effectivity of this Code shall continue to exist and
the disputed area to be part of Sinacaban. It held that the previous operate as such. Existing municipal districts
resolution approving the agreement between the municipalities was void F. Whether the decision of the Provincial Board had organized pursuant to presidential issuances or
because the Board had no power to alter the boundaries of Sinacaban as acquired finality. executive orders and which have their respective set
fixed in E.O. No. 258, that power being vested in Congress pursuant to of elective municipal officials holding office at the
the Constitution and the Local Government Code of 1983 (B.P. Blg. On February 10, 1992, the RTC rendered its decision, the dispositive time of the effectivity of this Code shall henceforth
337), §134. 6 The Provincial Board denied in its Resolution No. 13-90 portion of which reads: be considered as regular municipalities.
dated January 30, 1990 the motion of Jimenez seeking reconsideration. 7
WHEREFORE, premises considered, it is the finding On March 17, 1990, petitioner moved for a reconsideration of the
On March 20, 1990, Jimenez filed a petition for certiorari, prohibition, of this Court that the petition must be denied and decision but its motion was denied by the RTC. Hence this petition
and mandamus in the Regional Trial Court of Oroquieta City, Branch 14. raising the following issues: (1) whether Sinacaban has legal personality
to file a claim, and (2) if it has, whether it is the boundary provided for in the time the act complained of was done or committed. On the contrary, E.O. No. 258 does not say that Sinacaban comprises only the barrios
E.O. No. 258 or in Resolution No. 77 of the Provincial Board of the State and even the Municipality of Jimenez itself have recognized (now called barangays) therein mentioned. What it says is that
Misamis Occidental which should be used as the basis for adjudicating Sinacaban's corporate existence. Under Administrative Order No. 33 "Sinacaban contains" those barrios, without saying they are the only
Sinacaban's territorial claim. dated June 13, 1978 of this Court, as reiterated by §31 of the Judiciary ones comprising it. The reason for this is that the technical description,
Reorganization Act of 1980 (B. P. Blg. 129), Sinacaban is constituted containing the metes and bounds of its territory, is controlling. The trial
First. The preliminary issue concerns the legal existence of Sinacaban. If part of a municipal circuit for purposes of the establishment of court correctly ordered a relocation survey as the only means of
Sinacaban legally exists, then it has standing to bring a claim in the Municipal Circuit Trial Courts in the country. For its part, Jimenez had determining the boundaries of the municipality and consequently the
Provincial Board. Otherwise, it cannot. earlier recognized Sinacaban in 1950 by entering into an agreement with question to which the municipality the barangays in question belong.
it regarding their common boundary. The agreement was embodied in
Resolution No. 77 of the Provincial Board of Misamis Occidental. Now, as already stated, in 1950 the two municipalities agreed that
The principal basis for the view that Sinacaban was not validly created
as a municipal corporation is the ruling in Pelaez v. Auditor General that certain barrios belonged to Jimenez, while certain other ones belonged to
the creation of municipal corporations is essentially a legislative matter Indeed Sinacaban has attained de jure status by virtue of the Ordinance Sinacaban. This agreement was subsequently approved by the Provincial
and therefore the President was without power to create by executive appended to the 1987 Constitution, apportioning legislative districts Board of Misamis Occidental. Whether this agreement conforms to E.O.
order the Municipality of Sinacaban. The ruling in this case has been throughout the country, which considered Sinacaban part of the Second No. 258 will be determined by the result of the survey. Jimenez
reiterated in a number of cases 9 later decided. However, we have since District of Misamis Occidental. Moreover, following the ruling contends, however, that regardless of its conformity to E.O. No. 258, the
held that where a municipality created as such by executive order is later in Municipality of San Narciso, Quezon v. Mendez, Sr., §442(d) of the agreement as embodied in Resolution No. 77 of the Provincial Board, is
impliedly recognized and its acts are accorded legal validity, its creation Local Government Code of 1991 must be deemed to have cured any binding on Sinacaban. This raises the question whether the Provincial
can no longer be questioned. In Municipality of San Narciso, Quezon defect in the creation of Sinacaban. This provision states: Board had authority to approve the agreement or, to put it in another
v. Mendez, Sr., 10 this Court considered the following factors as having way, whether it had the power to declare certain barrios part of one or
validated the creation of a municipal corporation, which, like the Municipalities existing as of the date of the the other municipality. We hold it did not if the effect would be to
Municipality of Sinacaban, was created by executive order of the effectivity of this Code shall continue to exist and amend the area as described in E.O. No. 258 creating the Municipality of
President before the ruling in Pelaez v. Auditor General: (1) the fact that operate as such. Existing municipal districts Sinacaban.
for nearly 30 years the validity of the creation of the municipality had organized pursuant to presidential issuances or
never been challenged; (2) the fact that following the ruling executive orders and which have their respective set At the time the Provincial Board passed Resolution No. 77 on February
in Pelaez no quo warranto suit was filed to question the validity of the of elective municipal officials holding office at the 18, 1950, the applicable law was §2167 of the Revised Administrative
executive order creating such municipality; and (3) the fact that the time of the effectivity of the Code shall henceforth Code of 1917 which provided:
municipality was later classified as a fifth class municipality, organized be considered as regular municipalities.
as part of a municipal circuit court and considered part of a legislative Sec. 2167. Municipal boundary disputes. — How
district in the Constitution apportioning the seats in the House of Second. Jimenez claims, however, that R.A. No. 7160, §442(d) is settled. — Disputes as to jurisdiction of municipal
Representatives. Above all, it was held that whatever doubt there might invalid, since it does not conform to the constitutional and statutory governments over places or barrios shall be decided
be as to the de jure character of the municipality must be deemed to requirements for the holding of plebiscites in the creation of new by the provincial boards of the provinces in which
have been put to rest by the Local Government Code of 1991 (R.A. No. municipalities. 11 such municipalities are situated, after an
7160), §442(d) of which provides that "municipal districts organized investigation at which the municipalities concerned
pursuant to presidential issuances or executive orders and which have shall be duly heard. From the decision of the
their respective sets of elective officials holding office at the time of the This contention will not bear analysis. Since, as previously explained,
Sinacaban had attained de facto status at the time the 1987 Constitution provincial board appeal may be taken by the
effectivity of this Code shall henceforth be considered as regular municipality aggrieved to the Secretary of the
municipalities." took effect on February 2, 1987, it is not subject to the plebiscite
requirement. This requirement applies only to new municipalities created Interior [now the Office of the Executive Secretary],
for the first time under the Constitution. Actually, the requirement of whose decision shall be final. Where the places or
Here, the same factors are present so as to confer on Sinacaban the status plebiscite was originally contained in Art. XI, §3 of the previous barrios in dispute are claimed by municipalities
of at least a de facto municipal corporation in the sense that its legal Constitution which took effect on January 17, 1973. It cannot, therefore, situated in different provinces, the provincial boards
existence has been recognized and acquiesced publicly and officially. be applied to municipal corporations created before, such as the of the provinces concerned shall come to an
Sinacaban had been in existence for sixteen years when Pelaez Municipality of Sinacaban in the case at bar. agreement if possible, but, in the event of their
v. Auditor General was decided on December 24, 1965. Yet the validity failing to agree, an appeal shall be had to the
of E.O. No. 258 creating it had never been questioned. Created in 1949, Secretary of Interior [Executive Secretary], whose
it was only 40 years later that its existence was questioned and only Third. Finally, Jimenez argues that the RTC erred in ordering a decision shall be final.
because it had laid claim to an area that apparently is desired for its relocation survey of the boundary of Sinacaban because the barangays
revenue. This fact must be underscored because under Rule 66, §16 of which Sinacaban are claiming are not enumerated in E.O. No. 258 and
that in any event in 1950 the parties entered into an agreement whereby As held in Pelaez v. Auditor General, 12 the power of provincial boards
the Rules of Court, a quo warranto suit against a corporation for to settle boundary disputes is "of an administrative nature — involving,
forfeiture of its charter must be commenced within five (5) years from the barangays in question were considered part of the territory of
Jimenez. as it does, the adoption of means and ways to carry into effect the law
creating said municipalities." It is a power "to fix common boundary, in LEAGUE OF CITIES OF THE PHILIPPINES (LCP) represented CITY OF GENERAL SANTOS, CITY OF ZAMBOANGA, CITY
order to avoid or settle conflicts of jurisdiction between adjoining by LCP National President JERRY P. TREÑAS, CITY OF ILOILO OF GINGOOG, CITY OF CAUAYAN, CITY OF PAGADIAN,
municipalities." It is thus limited to implementing the law creating a represented by MAYOR JERRY P. TREÑAS, CITY OF CITY OF SAN CARLOS, CITY OF SAN FERNANDO, CITY OF
municipality. It is obvious that any alteration of boundaries that is not in CALBAYOG represented by MAYOR MEL SENEN S. TACURONG, CITY OF TANGUB, CITY OF OROQUIETA, CITY
accordance with the law creating a municipality is not the carrying into SARMIENTO, and JERRY P. TREÑAS in his personal capacity as OF URDANETA, CITY OF VICTORIAS, CITY OF CALAPAN,
effect of that law but its amendment. 13 If, therefore, Resolution No. 77 taxpayer, petitioners, CITY OF HIMAMAYLAN, CITY OF BATANGAS, CITY OF
of the Provincial Board of Misamis Occidental is contrary to the vs. BAIS, CITY OF CADIZ, and CITY OF TAGUM, petitioners-in-
technical description of the territory of Sinacaban, it cannot be used by COMMISSION ON ELECTIONS; MUNICIPALITY OF BAYBAY, intervention.
Jimenez as basis for opposing the claim of Sinacaban. PROVINCE OF LEYTE; MUNICIPALITY OF BOGO,
PROVINCE OF CEBU; MUNICIPALITY OF CATBALOGAN, x - - - - - - - - - - - - - - - - - - - - - - - - - - --x
Jimenez properly brought to the RTC for review the decision of October PROVINCE OF WESTERN SAMAR; MUNICIPALITY OF
11, 1989 and Resolution No. 13-90 of the Provincial Board. Its action is TANDAG, PROVINCE OF SURIGAO DEL SUR;
MUNICIPALITY OF BORONGAN, PROVINCE OF EASTERN G.R. No. 178056             November 18, 2008
in accordance with the Local Government Code of 1983, §79 of which
provides that in case no settlement of boundary disputes is made the SAMAR; and MUNICIPALITY OF TAYABAS, PROVINCE OF
dispute should be elevated to the RTC of the province. In 1989, when the QUEZON, respondents. LEAGUE OF CITIES OF THE PHILIPPINES (LCP) represented
action was brought by Jimenez, this Code was the governing law. The CITY OF TARLAC, CITY OF SANTIAGO, CITY OF IRIGA, by LCP National President JERRY P. TREÑAS, CITY OF ILOILO
governing law is now the Local Government Code of 1991 (R.A. No. CITY OF LIGAO, CITY OF LEGAZPI, CITY OF TAGAYTAY, represented by MAYOR JERRY P. TREÑAS, CITY OF
7160), §§118-119. CITY OF SURIGAO, CITY OF BAYAWAN, CITY OF SILAY, CALBAYOG represented by MAYOR MEL SENEN S.
CITY OF GENERAL SANTOS, CITY OF ZAMBOANGA, CITY SARMIENTO, and JERRY P. TREÑAS in his personal capacity as
OF GINGOOG, CITY OF CAUAYAN, CITY OF PAGADIAN, taxpayer, petitioners
Jimenez's contention that the RTC failed to decide the case "within one CITY OF SAN CARLOS, CITY OF SAN FERNANDO, CITY OF vs.
year from the start of proceedings" as required by §79 of the Local TACURONG, CITY OF TANGUB, CITY OF OROQUIETA, CITY COMMISSION ON ELECTIONS; MUNICIPALITY OF
Government Code of 1983 and the 90-day period provided for in Article OF URDANETA, CITY OF VICTORIAS, CITY OF CALAPAN, CABADBARAN, PROVINCE OF AGUSAN DEL NORTE;
VIII, §15 of the Constitution does not affect the validity of the decision CITY OF HIMAMAYLAN, CITY OF BATANGAS, CITY OF MUNICIPALITY OF CARCAR, PROVINCE OF CEBU; and
rendered. For even granting that the court failed to decide within the BAIS, CITY OF CADIZ, and CITY OF TAGUM, petitioners-in- MUNICIPALITY OF EL SALVADOR, MISAMIS
period prescribed by law, its failure did not divest it of its jurisdiction to intervention. ORIENTAL, respondents.
decide the case but only makes the judge thereof liable for possible CITY OF TARLAC, CITY OF SANTIAGO, CITY OF IRIGA,
administrative sanction. CITY OF LIGAO, CITY OF LEGAZPI, CITY OF TAGAYTAY,
x-----------------------------x
CITY OF SURIGAO, CITY OF BAYAWAN, CITY OF SILAY,
WHEREFORE, the petition is DENIED and the decisionof the Regional CITY OF GENERAL SANTOS, CITY OF ZAMBOANGA, CITY
Trial Court of Oroquieta City, Branch 14 is AFFIRMED. G.R. No. 177499             November 18, 2008 OF GINGOOG, CITY OF CAUAYAN, CITY OF PAGADIAN,
CITY OF SAN CARLOS, CITY OF SAN FERNANDO, CITY OF
SO ORDERED. LEAGUE OF CITIES OF THE PHILIPPINES (LCP) represented TACURONG, CITY OF TANGUB, CITY OF OROQUIETA, CITY
by LCP National President JERRY P. TREÑAS, CITY OF ILOILO OF URDANETA, CITY OF VICTORIAS, CITY OF CALAPAN,
represented by MAYOR JERRY P. TREÑAS, CITY OF CITY OF HIMAMAYLAN, CITY OF BATANGAS, CITY OF
CALBAYOG represented by MAYOR MEL SENEN S. BAIS, CITY OF CADIZ, and CITY OF TAGUM, petitioners-in-
SARMIENTO, and JERRY P. TREÑAS in his personal capacity as intervention.
taxpayer, petitioners,
vs. DECISION
COMMISSION ON ELECTIONS; MUNICIPALITY OF
LAMITAN, PROVINCE OF BASILAN; MUNICIPALITY OF
TABUK, PROVINCE OF KALINGA; MUNICIPALITY OF CARPIO, J.:
BAYUGAN, PROVINCE OF AGUSAN DEL SUR;
MUNICIPALITY OF BATAC, PROVINCE OF ILOCOS NORTE; The Case
MUNICIPALITY OF MATI, PROVINCE OF DAVAO
ORIENTAL; and MUNICIPALITY OF GUIHULNGAN, These are consolidated petitions for prohibition1 with prayer for the
PROVINCE OF NEGROS ORIENTAL, respondents. issuance of a writ of preliminary injunction or temporary restraining
G.R. No. 176951             November 18, 2008
CITY OF TARLAC, CITY OF SANTIAGO, CITY OF IRIGA, order filed by the League of Cities of the Philippines, City of Iloilo, City
CITY OF LIGAO, CITY OF LEGAZPI, CITY OF TAGAYTAY, of Calbayog, and Jerry P. Treñas2 assailing the constitutionality of the
CITY OF SURIGAO, CITY OF BAYAWAN, CITY OF SILAY, subject Cityhood Laws and enjoining the Commission on Elections
(COMELEC) and respondent municipalities from conducting plebiscites clause.12 Petitioners also lament that the wholesale conversion of Sixth, the deliberations of the 11th or 12th Congress on unapproved bills
pursuant to the Cityhood Laws. municipalities into cities will reduce the share of existing cities in the or resolutions are not extrinsic aids in interpreting a law passed in the
Internal Revenue Allotment because more cities will share the same 13th Congress.
The Facts amount of internal revenue set aside for all cities under Section 285 of
the Local Government Code.13 Seventh, even if the exemption in the Cityhood Laws were written in
th 3
During the 11  Congress,  Congress enacted into law 33 bills converting Section 450 of the Local Government Code, the exemption would still be
33 municipalities into cities. However, Congress did not act on bills The Issues unconstitutional for violation of the equal protection clause.
converting 24 other municipalities into cities.
The petitions raise the following fundamental issues: Preliminary Matters
During the 12th Congress,4 Congress enacted into law Republic Act No.
9009 (RA 9009),5 which took effect on 30 June 2001. RA 9009 amended 1. Whether the Cityhood Laws violate Section 10, Article X of Prohibition is the proper action for testing the constitutionality of laws
Section 450 of the Local Government Code by increasing the annual the Constitution; and administered by the COMELEC,14 like the Cityhood Laws, which direct
income requirement for conversion of a municipality into a city the COMELEC to hold plebiscites in implementation of the Cityhood
from P20 million to P100 million. The rationale for the amendment was 2. Whether the Cityhood Laws violate the equal protection Laws. Petitioner League of Cities of the Philippines has legal standing
to restrain, in the words of Senator Aquilino Pimentel, "the mad rush" of clause. because Section 499 of the Local Government Code tasks the League
municipalities to convert into cities solely to secure a larger share in the with the "primary purpose of ventilating, articulating and crystallizing
Internal Revenue Allotment despite the fact that they are incapable of issues affecting city government administration and securing, through
fiscal independence.6 The Ruling of the Court proper and legal means, solutions thereto."15 Petitioners-in-
intervention,16 which are existing cities, have legal standing because their
After the effectivity of RA 9009, the House of Representatives of the We grant the petitions. Internal Revenue Allotment will be reduced if the Cityhood Laws are
12th Congress7 adopted Joint Resolution No. 29,8 which sought to exempt declared constitutional. Mayor Jerry P. Treñas has legal standing
from the P100 million income requirement in RA 9009 the 24 The Cityhood Laws violate Sections 6 and 10, Article X of the because as Mayor of Iloilo City and as a taxpayer he has sufficient
municipalities whose cityhood bills were not approved in the Constitution, and are thus unconstitutional. interest to prevent the unlawful expenditure of public funds, like the
11th Congress. However, the 12th Congress ended without the Senate release of more Internal Revenue Allotment to political units than what
approving Joint Resolution No. 29. the law allows.
First, applying the P100 million income requirement in RA 9009 to the
present case is a prospective, not a retroactive application, because RA
During the 13th Congress,9 the House of Representatives re-adopted Joint 9009 took effect in 2001 while the cityhood bills became law more than Applying RA 9009 is a Prospective Application of the Law
Resolution No. 29 as Joint Resolution No. 1 and forwarded it to the five years later.
Senate for approval. However, the Senate again failed to approve the RA 9009 became effective on 30 June 2001 during the 11th Congress.
Joint Resolution. Following the advice of Senator Aquilino Pimentel, 16 Second, the Constitution requires that Congress shall prescribe all the This law specifically amended Section 450 of the Local Government
municipalities filed, through their respective sponsors, individual criteria for the creation of a city in the Local Government Code and not Code, which now provides:
cityhood bills. The 16 cityhood bills contained a common provision in any other law, including the Cityhood Laws.
exempting all the 16 municipalities from the P100 million income Section 450. Requisites for Creation. – (a) A municipality or a
requirement in RA 9009. cluster of barangays may be converted into a component city if
Third, the Cityhood Laws violate Section 6, Article X of the Constitution
because they prevent a fair and just distribution of the national taxes to it has a locally generated average annual income, as certified
On 22 December 2006, the House of Representatives approved the local government units. by the Department of Finance, of at least One hundred
cityhood bills. The Senate also approved the cityhood bills in February million pesos (P100,000,000.00) for the last two (2)
2007, except that of Naga, Cebu which was passed on 7 June 2007. The consecutive years based on 2000 constant prices, and if it
cityhood bills lapsed into law (Cityhood Laws10) on various dates from Fourth, the criteria prescribed in Section 450 of the Local Government has either of the following requisites:
March to July 2007 without the President's signature.11 Code, as amended by RA 9009, for converting a municipality into a city
are clear, plain and unambiguous, needing no resort to any statutory
construction. (i) a contiguous territory of at least one hundred
The Cityhood Laws direct the COMELEC to hold plebiscites to (100) square kilometers, as certified by the Land
determine whether the voters in each respondent municipality approve of Management Bureau; or
the conversion of their municipality into a city. Fifth, the intent of members of the 11th Congress to exempt certain
municipalities from the coverage of RA 9009 remained an intent and
was never written into Section 450 of the Local Government Code. (ii) a population of not less than one hundred fifty
Petitioners filed the present petitions to declare the Cityhood Laws thousand (150,000) inhabitants, as certified by the
unconstitutional for violation of Section 10, Article X of the National Statistics Office.
Constitution, as well as for violation of the equal protection
The creation thereof shall not reduce the land area, population Indisputably, Congress passed the Cityhood Laws long after the in Congress when Congress passed RA 9009. The Cityhood Laws, all
and income of the original unit or units at the time of said effectivity of RA 9009. RA 9009 became effective on 30 June 2001 or enacted after the effectivity of RA 9009, explicitly exempt respondent
creation to less than the minimum requirements prescribed during the 11th Congress. The 13th Congress passed in December municipalities from the increased income requirement in Section 450 of
herein. 2006 the cityhood bills which became law only in 2007. Thus, the Local Government Code, as amended by RA 9009. Such exemption
respondent municipalities cannot invoke the principle of non- clearly violates Section 10, Article X of the Constitution and is thus
(b) The territorial jurisdiction of a newly-created city shall be retroactivity of laws.17 This basic rule has no application because RA patently unconstitutional. To be valid, such exemption must be
properly identified by metes and bounds. The requirement on 9009, an earlier law to the Cityhood Laws, is not being applied written in the Local Government Code and not in any other law,
land area shall not apply where the city proposed to be created retroactively but prospectively. including the Cityhood Laws.
is composed of one (1) or more islands. The territory need not
be contiguous if it comprises two (2) or more islands. Congress Must Prescribe in the Local Government Code All Criteria Cityhood Laws Violate Section 6, Article X of the Constitution

(c) The average annual income shall include the income Section 10, Article X of the 1987 Constitution provides: Uniform and non-discriminatory criteria as prescribed in the Local
accruing to the general fund, exclusive of special funds, Government Code are essential to implement a fair and equitable
transfers, and non-recurring income. (Emphasis supplied) No province, city, municipality, or barangay shall be created, distribution of national taxes to all local government units. Section 6,
divided, merged, abolished or its boundary substantially Article X of the Constitution provides:
Thus, RA 9009 increased the income requirement for conversion of a altered, except in accordance with the criteria established in
municipality into a city from P20 million to P100 million. Section 450 of the local government code and subject to approval by a Local government units shall have a just share, as determined
the Local Government Code, as amended by RA 9009, does not provide majority of the votes cast in a plebiscite in the political units by law, in the national taxes which shall be automatically
any exemption from the increased income requirement. directly affected. (Emphasis supplied) released to them. (Emphasis supplied)

Prior to the enactment of RA 9009, a total of 57 municipalities had The Constitution is clear. The creation of local government units must If the criteria in creating local government units are not uniform and
cityhood bills pending in Congress. Thirty-three cityhood bills became follow the criteria established in the Local Government Code and not discriminatory, there can be no fair and just distribution of the national
law before the enactment of RA 9009. Congress did not act on 24 in any other law. There is only one Local Government Code.18 The taxes to local government units.
cityhood bills during the 11th Congress. Constitution requires Congress to stipulate in the Local Government
Code all the criteria necessary for the creation of a city, including the A city with an annual income of only P20 million, all other criteria being
During the 12th Congress, the House of Representatives adopted Joint conversion of a municipality into a city. Congress cannot write such equal, should not receive the same share in national taxes as a city with
Resolution No. 29, exempting from the income requirement of P100 criteria in any other law, like the Cityhood Laws. an annual income of P100 million or more. The criteria of land area,
million in RA 9009 the 24 municipalities whose cityhood bills were not population and income, as prescribed in Section 450 of the Local
acted upon during the 11th Congress. This Resolution reached the The criteria prescribed in the Local Government Code govern Government Code, must be strictly followed because such criteria,
Senate. However, the 12th Congress adjourned without the Senate exclusively the creation of a city. No other law, not even the charter of prescribed by law, are material in determining the "just share" of local
approving Joint Resolution No. 29. the city, can govern such creation. The clear intent of the Constitution is government units in national taxes. Since the Cityhood Laws do not
to insure that the creation of cities and other political units must follow follow the income criterion in Section 450 of the Local Government
During the 13th Congress, 16 of the 24 municipalities mentioned in the the same uniform, non-discriminatory criteria found solely in the Code, they prevent the fair and just distribution of the Internal Revenue
unapproved Joint Resolution No. 29 filed between November and Local Government Code. Any derogation or deviation from the criteria Allotment in violation of Section 6, Article X of the Constitution.
December of 2006, through their respective sponsors in Congress, prescribed in the Local Government Code violates Section 10, Article X
individual cityhood bills containing a common provision, as follows: of the Constitution. Section 450 of the Local Government Code is Clear,
Plain and Unambiguous
Exemption from Republic Act No. 9009. - The City of x x x RA 9009 amended Section 450 of the Local Government Code to
shall be exempted from the income requirement prescribed increase the income requirement from P20 million to P100 million for There can be no resort to extrinsic aids – like deliberations of Congress –
under Republic Act No. 9009. the creation of a city. This took effect on 30 June 2001. Hence, from if the language of the law is plain, clear and unambiguous. Courts
that moment the Local Government Code required that any determine the intent of the law from the literal language of the law,
municipality desiring to become a city must satisfy the P100 million within the law's four corners.19 If the language of the law is plain, clear
This common provision exempted each of the 16 municipalities from income requirement. Section 450 of the Local Government Code, as
the income requirement of P100 million prescribed in Section 450 of and unambiguous, courts simply apply the law according to its express
amended by RA 9009, does not contain any exemption from this income terms. If a literal application of the law results in absurdity, impossibility
the Local Government Code, as amended by RA 9009. These requirement.
cityhood bills lapsed into law on various dates from March to July 2007 or injustice, then courts may resort to extrinsic aids of statutory
after President Gloria Macapagal-Arroyo failed to sign them. construction like the legislative history of the law.20
In enacting RA 9009, Congress did not grant any exemption to
respondent municipalities, even though their cityhood bills were pending
Congress, in enacting RA 9009 to amend Section 450 of the Local Congress is not a continuing body.22 The unapproved cityhood bills If Section 450 of the Local Government Code, as amended by RA 9009,
Government Code, did not provide any exemption from the increased filed during the 11th Congress became mere scraps of paper upon the contained an exemption to the P100 million annual income requirement,
income requirement, not even to respondent municipalities whose adjournment of the 11th Congress. All the hearings and deliberations the criteria for such exemption could be scrutinized for possible violation
cityhood bills were then pending when Congress passed RA 9009. conducted during the 11th Congress on unapproved bills also became of the equal protection clause. Thus, the criteria for the exemption, if
Section 450 of the Local Government Code, as amended by RA 9009, worthless upon the adjournment of the 11th Congress. These hearings found in the Local Government Code, could be assailed on the ground of
contains no exemption whatsoever. Since the law is clear, plain and and deliberations cannot be used to interpret bills enacted into law absence of a valid classification. However, Section 450 of the Local
unambiguous that any municipality desiring to convert into a city must in the 13th or subsequent Congresses. Government Code, as amended by RA 9009, does not contain any
meet the increased income requirement, there is no reason to go beyond exemption. The exemption is contained in the Cityhood Laws, which are
the letter of the law in applying Section 450 of the Local Government The members and officers of each Congress are different. All unconstitutional because such exemption must be prescribed in the Local
Code, as amended by RA 9009. unapproved bills filed in one Congress become functus officio upon Government Code as mandated in Section 10, Article X of the
adjournment of that Congress and must be re-filed anew in order to be Constitution.
The 11th Congress' Intent was not Written into the Local Government taken up in the next Congress. When their respective authors re-filed the
Code cityhood bills in 2006 during the 13th Congress, the bills had to start Even if the exemption provision in the Cityhood Laws were written in
from square one again, going through the legislative mill just like bills Section 450 of the Local Government Code, as amended by RA 9009,
True, members of Congress discussed exempting respondent taken up for the first time, from the filing to the approval. Section 123, such exemption would still be unconstitutional for violation of the equal
municipalities from RA 9009, as shown by the various deliberations on Rule XLIV of the Rules of the Senate, on Unfinished Business, provides: protection clause. The exemption provision merely states, "Exemption
the matter during the 11th Congress. However, Congress did not write from Republic Act No. 9009 ─ The City of x x x shall be exempted
this intended exemption into law. Congress could have easily included Sec. 123. x x x from the income requirement prescribed under Republic Act No.
such exemption in RA 9009 but Congress did not. This is fatal to the 9009." This one sentence exemption provision contains no classification
cause of respondent municipalities because such exemption must appear standards or guidelines differentiating the exempted municipalities from
All pending matters and proceedings shall terminate upon those that are not exempted.
in RA 9009 as an amendment to Section 450 of the Local Government the expiration of one (1) Congress, but may be taken by the
Code. The Constitution requires that the criteria for the conversion of a succeeding Congress as if presented for the first time.
municipality into a city, including any exemption from such criteria, (Emphasis supplied) Even if we take into account the deliberations in the 11th Congress that
must all be written in the Local Government Code. Congress cannot municipalities with pending cityhood bills should be exempt from
prescribe such criteria or exemption from such criteria in any other the P100 million income requirement, there is still no valid classification
law. In short, Congress cannot create a city through a law that does Similarly, Section 78 of the Rules of the House of Representatives, on to satisfy the equal protection clause. The exemption will be based
not comply with the criteria or exemption found in the Local Unfinished Business, states: solely on the fact that the 16 municipalities had cityhood bills
Government Code. pending in the 11th Congress when RA 9009 was enacted. This is not
Section 78. Calendar of Business. The Calendar of Business a valid classification between those entitled and those not entitled to
Section 10 of Article X is similar to Section 16, Article XII of the shall consist of the following: exemption from the P100 million income requirement.
Constitution prohibiting Congress from creating private corporations
except by a general law. Section 16 of Article XII provides: a. Unfinished Business. This is business being To be valid, the classification in the present case must be based on
considered by the House at the time of its last substantial distinctions, rationally related to a legitimate government
The Congress shall not, except by general law, provide for adjournment. Its consideration shall be resumed until objective which is the purpose of the law,23 not limited to existing
the formation, organization, or regulation of private it is disposed of. The Unfinished Business at the end conditions only, and applicable to all similarly situated. Thus, this Court
corporations. Government-owned or controlled corporations of a session shall be resumed at the commencement has ruled:
may be created or established by special charters in the interest of the next session as if no adjournment has taken
of the common good and subject to the test of economic place. At the end of the term of a Congress, all The equal protection clause of the 1987 Constitution permits a
viability. (Emphasis supplied) Unfinished Business are deemed valid classification under the following conditions:
terminated. (Emphasis supplied)
Thus, Congress must prescribe all the criteria for the "formation, 1. The classification must rest on substantial distinctions;
organization, or regulation" of private corporations in a general law Thus, the deliberations during the 11th Congress on the unapproved
applicable to all without discrimination.21 Congress cannot create a cityhood bills, as well as the deliberations during the 12th and
13th Congresses on the unapproved resolution exempting from RA 9009 2. The classification must be germane to the purpose of the
private corporation through a special law or charter. law;
certain municipalities, have no legal significance. They do not qualify as
extrinsic aids in construing laws passed by subsequent Congresses.
Deliberations of the 11th Congress on Unapproved Bills Inapplicable 3. The classification must not be limited to existing conditions
Applicability of Equal Protection Clause only; and
4. The classification must apply equally to all members of the the classification bears any relation to the public health or
same class.24 welfare generally; that the provision will discourage
monopoly; or that it was aimed at any abuse, cognizable by
There is no substantial distinction between municipalities with pending law, in the milk business. In the absence of any such showing,
cityhood bills in the 11th Congress and municipalities that did not have we have no right to conjure up possible situations which might
pending bills. The mere pendency of a cityhood bill in the 11th Congress justify the discrimination. The classification is arbitrary and
is not a material difference to distinguish one municipality from another unreasonable and denies the appellant the equal protection of
for the purpose of the income requirement. The pendency of a cityhood the law. (Emphasis supplied)
bill in the 11th Congress does not affect or determine the level of income
of a municipality. Municipalities with pending cityhood bills in the In the same vein, the exemption provision in the Cityhood Laws gives
11th Congress might even have lower annual income than municipalities the 16 municipalities a unique advantage based on an arbitrary date − the
that did not have pending cityhood bills. In short, the classification filing of their cityhood bills before the end of the 11th Congress - as
criterion − mere pendency of a cityhood bill in the 11th Congress − is not against all other municipalities that want to convert into cities after the
rationally related to the purpose of the law which is to prevent fiscally effectivity of RA 9009.
non-viable municipalities from converting into cities.
Furthermore, limiting the exemption only to the 16 municipalities
Municipalities that did not have pending cityhood bills were not violates the requirement that the classification must apply to all similarly
informed that a pending cityhood bill in the 11th Congress would be a situated. Municipalities with the same income as the 16 respondent
condition for exemption from the increased P100 million income municipalities cannot convert into cities, while the 16 respondent
requirement. Had they been informed, many municipalities would have municipalities can. Clearly, as worded the exemption provision found in
caused the filing of their own cityhood bills. These municipalities, even the Cityhood Laws, even if it were written in Section 450 of the Local
if they have bigger annual income than the 16 respondent municipalities, Government Code, would still be unconstitutional for violation of the
cannot now convert into cities if their income is less than P100 million. equal protection clause.

The fact of pendency of a cityhood bill in the 11th Congress limits the WHEREFORE, we GRANT the petitions and
exemption to a specific condition existing at the time of passage of RA declare UNCONSTITUTIONAL the Cityhood Laws, namely: Republic
9009. That specific condition will never happen again. This violates the Act Nos. 9389, 9390, 9391, 9392, 9393, 9394, 9398, 9404, 9405, 9407,
requirement that a valid classification must not be limited to existing 9408, 9409, 9434, 9435, 9436, and 9491.
conditions only. This requirement is illustrated in Mayflower Farms, Inc.
v. Ten Eyck,25 where the challenged law allowed milk dealers engaged in SO ORDERED.
business prior to a fixed date to sell at a price lower than that allowed to
newcomers in the same business. In Mayflower, the U.S. Supreme Court
held:

We are referred to a host of decisions to the effect that a


regulatory law may be prospective in operation and may
except from its sweep those presently engaged in the calling or
activity to which it is directed. Examples are statutes licensing
physicians and dentists, which apply only to those entering the
profession subsequent to the passage of the act and exempt
those then in practice, or zoning laws which exempt existing
buildings, or laws forbidding slaughterhouses within certain
areas, but excepting existing establishments. The challenged
provision is unlike such laws, since, on its face, it is not a
regulation of a business or an activity in the interest of, or
for the protection of, the public, but an attempt to give an
economic advantage to those engaged in a given business at
an arbitrary date as against all those who enter the
industry after that date. The appellees do not intimate that
autonomous in the sense that it is given more powers, authority,
responsibilities and resources.

2. ID.; ID.; INCOME DEFINED. — Income is defined in the Local


Government Code to be all revenues and receipts collected or received
forming the gross accretions of funds of the local government unit.

3. ID.; ID.; INTERNAL REVENUE ALLOTMENT (IRA) ARE ITEMS


OF INCOME. — The IRAs are items of income because they form part
of the gross accretion of the funds of the local government unit. The
IRAs regularly and automatically accrue to the local treasury without
need of any further action on the part of the local government unit. They
thus constitute income which the local government can invariably rely
upon as the source of much needed funds.

4. ID.; ID.; ANNUAL INCOME DEFINED. — Department of Finance


Order No. 35-93 correctly encapsulizes the full import of the above
[G.R. No. 118303. January 31, 1996.]
disquisition when it defined ANNUAL INCOME to be "revenues and
receipts realized by provinces, cities and municipalities from regular
SENATOR HEHERSON T. ALVAREZ, SENATOR JOSE D.
sources of the Local General Fund including the internal revenue
LINA, JR., MR. NICASIO B. BAUTISTA, MR. JESUS P.
allotment and other shares provided for in Sections 284, 290 and 291 of
GONZAGA, MR. SOLOMON D. MAYLEM, LEONORA C.
the Code, but exclusive of n.on.-recurring receipts, such as other national
MEDINA, CASIANO S. ALIPON, Petitioners, v. HON. TEOFISTO
aids, grants, financial assistance, loan proceeds, sales of fixed assets, and
T. GUINGONA, JR., in his capacity as Executive Secretary, HON.
similar others" (Emphasis ours).
RAFAEL ALUNAN, in his capacity as Secretary of Local
Government, HON. SALVADOR ENRIQUEZ, in his capacity as
5. STATUTORY CONSTRUCTION; ORDER CONSTITUTING
Secretary of Budget, THE COMMISSION ON AUDIT, HON. JOSE
EXECUTIVE OR CONTEMPORANEOUS CONSTRUCTION OF A
MIRANDA, in his capacity as Municipal Mayor of Santiago and
STATUTE BY ADMINISTRATIVE AGENCY CHARGED WITH
HON. CHARITO MANUBAY, HON. VICTORINO MIRANDA,
THE TASK OF INTERPRETING THE SAME, ENTITLED TO FULL
JR., HON. ARTEMIO ALVAREZ, HON. DANILO VERGARA,
RESPECT. — Such order, constituting executive or contemporaneous
HON. PETER DE JESUS, HON. NELIA NATIVIDAD, HON.
construction of a statute by an administrative agency charged with the
CELSO CALEON and HON. ABEL MUSNGI, in their capacity as
task of interpreting and applying the same, is entitled to full respect and
SANGGUNIANG BAYAN MEMBERS, MR. RODRIGO L.
should be accorded great weight by the courts, unless such construction
SANTOS, in his capacity as Municipal Treasurer, and ATTY.
is clearly shown to be in sharp conflict with the Constitution, the
ALFREDO S. DIRIGE, in his capacity as Municipal
governing statute, or other laws.
Administrator, Respondents.
6. CONSTITUTIONAL LAW; LEGISLATIVE; BILL CONVERTING
Belo, Gozon, Elma, Parel, Asuncion & Lucila, for Petitioners.
MUNICIPALITY TO CITY MUST ORIGINATE FROM THE HOUSE;
PASSING OF SUBSEQUENT BILL COVERING THE SAME
Rene P. Pine, for Private Respondents.
MUNICIPALITY, NO ADVERSE EFFECT. — Although a bill of local
application like HB No. 8817 should, by constitutional prescription,
originate exclusively in the House of Representatives, the claim of
SYLLABUS petitioners that Republic Act No. 7720 did not originate exclusively in
the House of Representatives because a bill of the same import, SB No.
1243, was passed in the Senate, is untenable because it cannot be denied
1. ADMINISTRATIVE LAW; LOCAL GOVERNMENT CODE; that HB No. 8817 was filed in the House of Representatives first before
LOCAL GOVERNMENT, CONSTRUED. — A local Government Unit SB No. 1243 was filed in the Senate. Petitioners themselves cannot
is a political subdivision of the State which is constituted by law and disavow their own admission that HB No. 8817 was filed on April 18,
possessed of substantial control over its own affairs. Remaining to be an 1993 while SB No. 1243 was filed on May 19, 1993. The filing of HB
intra sovereign subdivision of one sovereign nation, but not intended, No. 8817 was thus precursive not only of the said Act in question but
however, to be an emperium in emperia, the local government unit is
also of SB No. 1243. Thus, HB No. 8817, was the bill that initiated the Of main concern to the petitioners is whether Republic Act No. 7720, Government conducted public hearings on SB No. 1243. On March 1,
legislative process that culminated in the enactment of Republic Act No. just recently passed by Congress and signed by the President into law, is 1994, the said committee submitted Committee Report No. 378 on HB
7720. No violation of Section 24, Article VI, of the 1987 Constitution is constitutionally infirm. No. 8817, with the recommendation that it be approved without
perceptible under the circumstances attending the instant controversy. amendment, taking into consideration the reality that H.B. No. 8817 was
Indeed, in this Petition for Prohibition with prayer for Temporary on all fours with SB No. 1243. Senator Heherson T. Alvarez, one of the
7. ID.; ID.; FILING IN THE SENATE OF A SUBSTITUTE BILL IN Restraining Order and Preliminary Prohibitory Injunction, petitioners herein petitioners, indicated his approval thereto by signing said report
ANTICIPATION OF ITS RECEIPT OF THE HOUSE BILL assail the validity of Republic Act No. 7720, entitled, "An Act as member of the Committee on Local Government.
WITHOUT ACTING THEREON DOES NOT CONTRAVENE Converting the Municipality of Santiago, Isabela into an Independent
CONSTITUTIONAL REQUIREMENT. — Petitioners themselves Component City to be known as the City of Santiago," mainly because On March 3, 1994, Committee Report No. 378 was passed by the Senate
acknowledge that HB No. 8817 was already approved on Third Reading the Act allegedly did not originate exclusively in the House of on Second Reading and was approved on Third Reading on March 14,
and duly transmitted to the Senate when the Senate Committee on Local Representatives as mandated by Section 24, Article VI of the 1987 1994. On March 22, 1994, the House of Representatives, upon being
Government conducted its public hearing on HB No. 8817. HB No. 8817 Constitution.chanroblesvirtuallawlibrary apprised of the action of the Senate, approved the amendments proposed
was approved on the Third Reading on December 17, 1993 and by the Senate.
transmitted to the Senate on January 28, 1994; a little less than a month Also, petitioners claim that the Municipality of Santiago has not met the
thereafter, or on February 23, 1994, the Senate Committee on Local minimum average annual income required under Section 450 of the The enrolled bill, submitted to the President on April 12, 1994, was
Government conducted public hearings on SB No. 1243. Clearly, the Local Government Code of 1991 in order to be converted into a signed by the Chief Executive on May 5, 1994 as Republic Act No.
Senate held in abeyance any action on SB No. 1243 until it received HB component city. 7720. When a plebiscite on the Act was held on July 13, 1994, a great
No. 8817, already approved on the Third Reading, from the House of majority of the registered voters of Santiago voted in favor of the
Representatives. The filing in the Senate of a substitute bill in Undisputed is the following chronicle of the metamorphosis of House conversion of Santiago into a city.chanroblesvirtuallawlibrary
anticipation of its receipt of the bill from the House, does not contravene Bill No. 8817 into Republic Act No. 7720:chanrob1es virtual 1aw library
the constitutional requirement that a bill of local application should The question as to the validity of Republic Act No. 7720 hinges on the
originate in the House of Representatives, for as long as the Senate does On April 18, 1993, HB No. 8817, entitled "An Act Converting the following twin issues: (I) Whether or not the Internal Revenue
not act thereupon until it receives the House bill. Municipality of Santiago into an Independent Component City to be Allotments (IRAs) are to included in the computation of the average
known as the City of Santiago," was filed in the House of annual income of a municipality for purposes of its conversion into an
8. REMEDIAL LAW; EVIDENCE; PRESUMPTIONS; EVERY LAW Representatives with Representative Antonio Abaya as principal author. independent component city, and (II) Whether or not, considering that
IS PRESUMED CONSTITUTIONAL; CONSTITUTIONALITY OF Other sponsors included Representatives Ciriaco Alfelor, Rodolfo the Senate passed SB No. 1243, its own version of HB No. 8817,
R.A. 7720 NOT OVERCOME IN CASE AT BAR. — It is a well- Albano, Santiago Respicio and Faustino Dy. The bill was referred to the Republic Act No. 7720 can be said to have originated in the House of
entrenched jurisprudential rule that on the side of every law lies the House Committee on Local Government and the House Committee on Representatives.
presumption of constitutionality. Consequently, for RA No. 7720 to be Appropriations on May 5, 1993.chanroblesvirtuallawlibrary
nullified, it must be shown that there is a clear and unequivocal breach of I. The annual income of a local government unit includes the IRAs.
the Constitution, not merely a doubtful and equivocal one; in other On May 19, 1993, June 1, 1993, November 28, 1993, and December 1,
words, the grounds for nullity must be clear and beyond reasonable 1993, public hearings on HB No. 8817 were conducted by the House Petitioners claim that Santiago could not qualify into a component city
doubt. Those who petition this court to declare a law to be Committee on Local Government. The committee submitted to the because its average annual last two (2) consecutive years based on 1991
unconstitutional must clearly and fully establish the basis that will justify House a favorable report, with amendments, on December 9, 1993. constant prices falls below the required annual income of Pesos
such a declaration; otherwise, their petition must fail. Taking into (P20,000,000.00) for its conversion into a city, petitioners having
consideration the justification of our stand on the immediately preceding On December 13, 1993, HB No. 8817 was passed by the House of computed Santiago’s average annual income in the following manner:
ground raised by petitioners to challenge the constitutionality of RA No. Representatives on Second Reading and was approved on Third Reading
7720, the Court stands on the holding that petitioners have failed to on December 17, 1993. On January 28, 1994, HB No. 8817 was Total income (at 1991 constant prices) for 1991 P20,379,057.07
overcome the presumption. The dismissal of this petition is, therefore, transmitted to the Senate.
inevitable. Total income (at 1991 constant prices) for 1992 P21,570,106.87
Meanwhile, a counterpart of HB No. 8817, Senate Bill No. 1243,
entitled, "An Act Converting the Municipality of Santiago into an ——————
Independent Component City to be Known as the City of Santiago," was
DECISION filed in the Senate. It was introduced by Senator Vicente Sotto III, as Total income for 1991 and 1992 P41,949,163.94
principal sponsor, on May 19, 1993. This was just after the House of
Representatives had conducted its first public hearing on HB No.
8817.chanroblesvirtuallawlibrary Minus:
HERMOSISIMA. JR., J.:
On February 23, 1994, or a little less than a month after HB No. 8817 IRAs for 1991 and 1992 P15,730,043.00
was transmitted to the Senate, the Senate Committee on Local
—————— and assets. 6 since IRAs have a technical definition and meaning all its own as used in
the Local Government Code that unequivocally makes it distinct from
Total income for 1991 and 1992 P26,219,120.94 The practical side to development through a decentralized local special funds or transfers referred to when the Code speaks of "funding
government system certainly concerns the matter of financial resources. support from the national government, its instrumentalities and
Average Annual Income P13,109,560.47 With its broadened powers and increased responsibilities, a local government-owned- or -controlled corporations." 12
government unit must now operate on a much wider scale. More
==================================== extensive operations, in turn, entail more expenses. Understandably, the Thus, Department of Finance Order No. 35-93 13 correctly encapsulizes
vesting of duty, responsibility and accountability in every local the full import of the above disquisition when it defined ANNUAL
By dividing the total income of Santiago for calendar years 1991 and government unit is accompanied with a provision for reasonably INCOME to be "revenues and receipts realized by provinces cities and
1992, after deducting the IRAs, the average annual income arrived at adequate resources to discharge its powers and effectively carry out its municipalities from regular sources of the Local General Fund including
would only be P13,109,560.47 based on the 1991 constant prices. Thus, functions. 7 Availment of such resources is effectuated through the the internal revenue allotment and other shares provided for in Sections
petitioners claim that Santiago’s income is far below the aforesaid vesting in every local government unit of (1) the right to create and 284, 290 and 291 of the Code, but exclusive of non-recurring receipts,
Twenty Million Pesos average annual income requirement. broaden its own source of revenue; (2) the right to be allocated a just such as other national aids, grants, financial assistance, loan proceeds,
share in national taxes such share being in the form of internal revenue sales of fixed assets, and similar others" (Underscoring ours). 14 Such
The certification issued by the Bureau of Local Government Finance of allotments (IRAs); and (3) the right to be given its equitable share in the order, constituting executive or contemporaneous construction of a
the Department of Finance, which indicates Santiago’s average annual proceeds of the utilization and development of the national wealth, if statute by an administrative agency charged with the task of interpreting
income to be P20,974,581.97, is allegedly not accurate as the Internal any, within its territorial boundaries. 8 and applying the same, is entitled to full respect and should be accorded
Revenue Allotments were not excluded from the computation. great weight by the courts, unless such construction is clearly shown to
Petitioners asseverate that the IRAs are not actually income but transfers The funds generated from local taxes, IRAs and national wealth be in sharp conflict with the Constitution, the governing statute, or other
and/or budgetary aid from the national government and that they utilization proceeds accrue to the general fund of the local government laws. 15
fluctuate, increase or decrease, depending on factors like population, and are used to finance its operations subject to specified modes of
land and equal sharing. spending the same as provided for in the Local Government Code and its II. In the enactment of RA No. 7720, there was compliance with Section
implementing rules and regulations. For instance, not less than twenty 24, Article VI of the 1987 Constitution.
In this regard, we hold that petitioners’ asseverations are untenable percent (20%) of the IRAs must be set aside for local development
because Internal Revenue Allotments form part of the income of Local projects. 9 As such, for purposes of budget preparation, which budget Although a bill of local application like HB No. 8817 should, by
Government Units.chanroblesvirtuallawlibrary should reflect the estimates of the income of the local government unit, constitutional prescription, 16 originate exclusively in the House of
among others, the IRAs and the share in the national wealth utilization Representatives, the claim of petitioners that Republic Act No. 7720 did
It is true that for a municipality to be converted into a component city, it proceeds are considered items of income. This is as it should be, since not originate exclusively in the House of Representatives because a bill
must, among others, have an average annual income of at least Twenty income is defined in the Local Government Code to be all revenues and of the same import, SB No. 1243, was passed in the Senate, is untenable
Million Pesos for the last two (2) consecutive years based on 1991 receipts collected or received forming the gross accretions of funds of because it cannot be denied that HB No. 8817 was filed in the House of
constant prices. 1 Such income must be duly certified by the Department the local government unit. 10 Representatives first before SB No. 1243 was filed in the Senate.
of Finance. 2 Petitioners themselves cannot disavow their own admission that HB No.
The IRAs are items of income because they form part of the gross 8817 was filed on April 18, 1993 while SB No. 1243 was filed on May
Resolution of the controversy regarding compliance by the Municipality accretion of the funds of the local government unit. The IRAs regularly 19, 1993. The filing of HB No. 8817 was thus precursive not only of the
of Santiago with the aforecited income requirement hinges on a and automatically accrue to the local treasury without need of any said Act in question but also of SB No. 1243. Thus, HB No. 8817, was
correlative and contextual explication of the meaning of internal revenue further action on the part of the local government unit. 11 They thus the bill that initiated the legislative process that culminated in the
allotments (IRAs) vis-a-vis the notion of income of a local government constitute income which the local government can invariably rely upon enactment of Republic Act No. 7720. No violation of Section 24, Article
unit and the principles of local autonomy and decentralization as the source of much needed funds. For purposes of converting the VI, of the 1987 Constitution is perceptible under the circumstances
underlying the institutionalization and intensified empowerment of the Municipality of Santiago into a city, the Department of Finance certified, attending the instant controversy.chanroblesvirtuallawlibrary
local government system. among others, that the municipality had an average annual income of at
least Twenty Million Pesos for the last two (2) consecutive years based Furthermore, petitioners themselves acknowledge that HB No. 8817 was
A Local Government Unit is a political subdivision of the State which is on 1991 constant prices. This, the Department of Finance did after already approved on Third Reading and duly transmitted to the Senate
constituted by law and possessed of substantial control over its own including the IRAs in its computation of said average annual when the Senate Committee on Local Government conducted its public
affairs. 3 Remaining to be an intra sovereign subdivision of one income.chanroblesvirtuallawlibrary hearing on HB No. 8817. HB No. 8817 was approved on the Third
sovereign nation, but not intended, however, to be an imperium in Reading on December 17, 1993 and transmitted to the Senate on January
imperio, 4 the local government unit is autonomous in the sense that it is Furthermore, Section 450 (c) of the Local Government Code provides 28, 1994; a little less than a month thereafter or on February 23, 1994,
given more powers, authority, responsibilities and resources. 5 Power that "the average annual income shall include the income accruing to the the Senate Committee on Local Government conducted public hearings
which used to be highly centralized in Manila, is thereby deconcentrated, general fund, exclusive of special funds, transfers, and non-recurring on SB No. 1243. Clearly, the Senate held in abeyance any action on SB
enabling especially the peripheral local government units to develop not income.’’ To reiterate, IRAs are a regular, recurring item of income; nil No. 1243 until it received HB No. 8817, already approved on the Third
only at their own pace and discretion but also with their own resources is there a basis, too, to classify the same as a special fund or transfer, Reading, from the House of Representatives. The filing in the Senate of
a substitute bill in anticipation of its receipt of the bill from the House, Bill. . . ." 18
does not contravene the constitutional requirement that a bill of local
application should originate in the House of Representatives, for as long III. Every law, including RA No. 7720, has in its favor the presumption PUNO, J.:
as the Senate does not act thereupon until it receives the House bill. of constitutionality.

We have already addressed this issue in the case of Tolentino v. It is a well-entrenched jurisprudential rule that on the side of every law At bench are two (2) petitions assailing certain provisions of Republic
Secretary of Finance. 17 There, on the matter of the Expanded Value lies the presumption of constitutionality. 19 Consequently, for RA No. Act No. 7854 as unconstitutional. R.A. No. 7854 as unconstitutional.
Added Tax (EVAT) Law, which, as a revenue bill, is nonetheless 7720 to be nullified it must be shown that there is a clear and R.A. No. 7854 is entitled, "An Act Converting the Municipality of
constitutionally required to originate exclusively in the House of unequivocal breach of the Constitution, not merely a doubtful and Makati Into a Highly Urbanized City to be known as the City of
Representatives, we explained:jgc:chanrobles.com.ph equivocal one; in other words, the grounds for nullity must be clear and Makati."1
beyond reasonable doubt. 20 Those who petition this court to declare a
". . . To begin with, it is not the law — but the revenue bill — which is law to be unconstitutional must clearly and fully establish the basis that G.R. No. 118577 involves a petition for prohibition and declaratory
required by the Constitution to ‘originate exclusively’ in the House of will justify such a declaration; otherwise, their petition must fail. Taking relief. It was filed by petitioners Juanito Mariano, Jr., Ligaya S. Bautista,
Representatives. It is important to emphasize this, because a bill into consideration the justification of our stand on the immediately Teresita Tibay, Camilo Santos, Frankie Cruz, Ricardo Pascual, Teresita
originating in the House may undergo such extensive changes in the preceding ground raised by petitioners to challenge the constitutionality Abang, Valentina Pitalvero, Rufino Caldoza, Florante Alba, and Perfecto
Senate that the result may be a rewriting of the whole as a result of the of RA No. 7720, the Court stands on the holding that petitioners have Alba. Of the petitioners, only Mariano, Jr., is a resident of Makati. The
Senate action, a distinct bill may be produced. To insist that a revenue failed to overcome the presumption. The dismissal of this petition is, others are residents of Ibayo Ususan, Taguig, Metro Manila. Suing as
statute — and not only the bill which initiated the legislative process therefore, inevitable. taxpayers, they assail as unconstitutional sections 2, 51, and 52 of R.A.
culminating in the enactment of the law — must substantially be the No. 7854 on the following grounds:
same as the House bill would be to deny the Senate’s power not only to WHEREFORE, the instant petition is DISMISSED for lack of merit with
‘concur with amendments’ but also to ‘propose amendments.’ It would costs against petitioners. 1. Section 2 of R.A. No. 7854 did not properly
be to violate the co-equality of legislative power of the two houses of identify the land area or territorial jurisdiction of
Congress and in fact make the House superior to the Senate. SO ORDERED. Makati by metes and bounds, with technical
descriptions, in violation of Section 10, Article X of
x       x       x the Constitution, in relation to Sections 7 and 450 of
the Local Government Code;

It is insisted, however, that S. No. 1630 was passed not in substitution of


H. No. 11197 but of another Senate bill (S. No. 1129) earlier filed and 2. Section 51 of R.A. No. 7854 attempts to alter or
that what the Senate did was merely to ‘take [H. No. 11197] into restart the "three consecutive term" limit for local
consideration’ in enacting S. No. 1630. There is really no difference elective officials, in violation of Section 8, Article X
between the Senate preserving H. No. 11197 up to the enacting clause and Section 7, Article VI of the Constitution.
and then writing its own version following the enacting clause (which, it G.R. No. 118577 March 7, 1995
would seem petitioners admit is an amendment by substitution), and, on 3. Section 52 of R.A. No. 7854 is unconstitutional
the other hand, separately presenting a bill of its own on the same subject for:
matter. In either case the result are two bills on the same subject. JUANITO MARIANO, JR. et al., petitioners,
vs.
THE COMMISSION ON ELECTIONS, THE MUNICIPALITY OF (a) it increased the legislative
Indeed, what the Constitution simply means is that the initiative for district of Makati only by special
filing revenue, tariff, or tax bills, bills authorizing an increase of the MAKATI, HON. JEJOMAR BINAY, THE MUNICIPAL
TREASURER, AND SANGGUNIANG BAYAN OF law (the Charter in violation of
public debt, private bills and bills of local application must come from the constitutional provision
the House of Representatives on the theory that, elected as they are from MAKATI, respondents.
requiring a general
the districts, the members of the House can be expected to be more reapportionment law to be
sensitive to the local needs and problems. On the other hand, the G.R. No. 118627 March 7, 1995 passed by Congress within three
senators, who are elected at large, are expected to approach the same (3) years following the return of
problems from the national perspective. Both views are thereby made to JOHN R. OSMEÑA, petitioner, every census;
bear n the enactment of such laws. vs.
THE COMMISSION ON ELECTIONS, THE MUNICIPALITY OF (b) the increase in legislative
Nor does the Constitution prohibit the filing in the Senate of a substitute MAKATI, HON. JEJOMAR BINAY, MUNICIPAL TREASURER,
bill in anticipation of its receipt of the bill from the House, so long as district was not expressed in the
AND SANGGUNIANG BAYAN OF MAKATI, respondents. title of the bill; and
action by the Senate as a body is withheld pending receipt of the House
(c) the addition of another local government unit. It can legitimately exercise powers of government technical descriptions" — was made in order to
legislative district in Makati is only within the limits, its acts are ultra vires. Needless to state, any provide a means by which the area of said cities may
not in accord with Section 5 (3), uncertainty in the boundaries of local government units will sow costly be reasonably ascertained. In other words, the
Article VI of the Constitution for conflicts in the exercise of governmental powers which ultimately will requirement on metes and bounds was meant merely
as of the latest survey (1990 prejudice the people's welfare. This is the evil sought to avoided by the as tool in the establishment of local government
census), the population of Local Government Code in requiring that the land area of a local units. It is not an end in itself. Ergo, so long as the
Makati stands at only 450,000. government unit must be spelled out in metes and bounds, with technical territorial jurisdiction of a city may be reasonably
descriptions. ascertained, i.e., by referring to common boundaries
G.R. No. 118627 was filed by the petitioner John H. Osmeña as senator, with neighboring municipalities, as in this case, then,
taxpayer, and concerned citizen. Petitioner assails section 52 of R.A. No. Given the facts of the cases at bench, we cannot perceive how this evil it may be concluded that the legislative intent behind
7854 as unconstitutional on the same grounds as aforestated. can be brought about by the description made in section 2 of R.A. No. the law has been sufficiently served.
7854, Petitioners have not demonstrated that the delineation of the land
We find no merit in the petitions. area of the proposed City of Makati will cause confusion as to its Certainly, Congress did not intends that laws
boundaries. We note that said delineation did not change even by an inch creating new cities must contain therein detailed
the land area previously covered by Makati as a municipality. Section 2 technical descriptions similar to those appearing in
I did not add, subtract, divide, or multiply the established land area of Torrens titles, as petitioners seem to imply. To
Makati. In language that cannot be any clearer, section 2 stated that, the require such description in the law as a
Section 2, Article I of R.A. No. 7854 delineated the land areas of the city's land area "shall comprise the present territory of the municipality." condition sine qua non for its validity would be to
proposed city of Makati, thus: defeat the very purpose which the Local Government
The deliberations of Congress will reveal that there is a legitimate reason Code to seeks to serve. The manifest intent of the
Sec. 2. The City of Makati. — The Municipality of why the land area of the proposed City of Makati was not defined by Code is to empower local government units and to
Makati shall be converted into a highly urbanized metes and bounds, with technical descriptions. At the time of the give them their rightful due. It seeks to make local
city to be known as the City of Makati, hereinafter consideration of R.A. No. 7854, the territorial dispute between the governments more responsive to the needs of their
referred to as the City, which shall comprise the municipalities of Makati and Taguig over Fort Bonifacio was under constituents while at the same time serving as a vital
present territory of the Municipality of Makati in court litigation. Out of a becoming sense of respect to co-equal cog in national development. To invalidate R.A. No.
Metropolitan Manila Area over which it has department of government, legislators felt that the dispute should be left 7854 on the mere ground that no cadastral type of
jurisdiction bounded on the northeast by Pasig River to the courts to decide. They did not want to foreclose the dispute by description was used in the law would serve the
and beyond by the City of Mandaluyong and the making a legislative finding of fact which could decide the issue. This letter but defeat the spirit of the Code. It then
Municipality of Pasig; on the southeast by the would have ensued if they defined the land area of the proposed city by becomes a case of the master serving the slave,
municipalities of Pateros and Taguig; on the its exact metes and bounds, with technical descriptions.3 We take judicial instead of the other way around. This could not be
southwest by the City of Pasay and the Municipality notice of the fact that Congress has also refrained from using the metes the intendment of the law.
of Taguig; and, on the northwest, by the City of and bounds description of land areas of other local government units
Manila. with unsettled boundary disputes.4 Too well settled is the rule that laws must be
enforced when ascertained, although it may not be
The foregoing provision shall be without prejudice We hold that the existence of a boundary dispute does not per se present consistent with the strict letter of the statute. Courts
to the resolution by the appropriate agency or forum an insurmountable difficulty which will prevent Congress from defining will not follow the letter of the statute when to do so
of existing boundary disputes or cases involving with reasonable certitude the territorial jurisdiction of a local would depart from the true intent of the legislature or
questions of territorial jurisdiction between the City government unit. In the cases at bench, Congress maintained the existing would otherwise yield conclusions inconsistent with
of Makati and the adjoining local government units. boundaries of the proposed City of Makati but as an act of fairness, made the general purpose of the act. (Torres v. Limjap, 56
(Emphasis supplied) them subject to the ultimate resolution by the courts. Considering these Phil., 141; Tañada v. Cuenco, 103 Phil. 1051;
peculiar circumstances, we are not prepared to hold that section 2 of Hidalgo v. Hidalgo, 33 SCRA 1105). Legislation is
R.A. No. 7854 is unconstitutional. We sustain the submission of the an active instrument of government, which, for
In G.R. No. 118577, petitioners claim that this delineation violates purposes of interpretation, means that laws have
sections 7 and 450 of the Local Government Code which require that the Solicitor General in this regard, viz.:
ends to achieve, and statutes should be so construed
area of a local government unit should be made by metes and bounds as not to defeat but to carry out such ends and
with technical descriptions.2 Going now to Sections 7 and 450 of the Local purposes (Bocolbo v. Estanislao, 72 SCRA 520).
Government Code, it is beyond cavil that the The same rule must indubitably apply to the case at
The importance of drawing with precise strokes the territorial boundaries requirement stated therein, viz.: "the territorial bar.
of a local unit of government cannot be overemphasized. The boundaries jurisdiction of newly created or converted cities
must be clear for they define the limits of the territorial jurisdiction of a should be described by meted and bounds, with
II three (3) consecutive terms. They argue that by providing that the new Forbes shall be with the first district, in lieu of
city shall acquire a new corporate existence, section 51 of R.A. No. 7854 Barangay Guadalupe-Viejo which shall form part of
Petitioners in G.R. No. 118577 also assail the constitutionality of section restarts the term of the present municipal elective officials of Makati and the second district. (emphasis supplied)
51, Article X of R.A. No. 7854. Section 51 states: disregards the terms previously served by them. In particular, petitioners
point that section 51 favors the incumbent Makati Mayor, respondent They contend. that the addition of another legislative district in Makati is
Jejomar Binay, who has already served for two (2) consecutive terms. unconstitutional for: (1) reapportionment6 cannot made by a special law,
Sec. 51. Officials of the City of Makati. — The They further argue that should Mayor Binay decide to run and eventually
represent elective officials of the Municipality of (2) the addition of a legislative district is not expressed in the title of the
win as city mayor in the coming elections, he can still run for the same bill7 and (3) Makati's population, as per the 1990 census, stands at only
Makati shall continue as the officials of the City of position in 1998 and seek another three-year consecutive term since his
Makati and shall exercise their powers and functions four hundred fifty thousand (450,000).
previous three-year consecutive term as municipal mayor would not be
until such time that a new election is held and the counted. Thus, petitioners conclude that said section 51 has been
duly elected officials shall have already qualified conveniently crafted to suit the political ambitions of respondent Mayor These issues have been laid to rest in the recent case of Tobias
and assume their offices: Provided, The new city will Binay. v. Abalos.8 In said case, we ruled that reapportionment of legislative
acquire a new corporate existence. The appointive districts may be made through a special law, such as in the charter of a
officials and employees of the City shall likewise new city. The Constitution9 clearly provides that Congress shall be
continues exercising their functions and duties and We cannot entertain this challenge to the constitutionality of section 51. composed of not more than two hundred fifty (250) members, unless
they shall be automatically absorbed by the city The requirements before a litigant can challenge the constitutionality of a otherwise fixed by law. As thus worded, the Constitution did not
government of the City of Makati. law are well delineated. They are: 1) there must be an actual case or preclude Congress from increasing its membership by passing a law,
controversy; (2) the question of constitutionality must be raised by the other than a general reapportionment of the law. This is its exactly what
proper party; (3) the constitutional question must be raised at the earliest was done by Congress in enacting R.A. No. 7854 and providing for an
They contend that this section collides with section 8, Article X and possible opportunity; and (4) the decision on the constitutional question
section 7, Article VI of the Constitution which provide: increase in Makati's legislative district. Moreover, to hold that
must be necessary to the determination of the case itself.5 reapportionment can only be made through a general apportionment law,
with a review of all the legislative districts allotted to each local
Sec. 8. The term of office of elective local officials, Petitioners have far from complied with these requirements. The petition government unit nationwide, would create an inequitable situation where
except barangay officials, which shall be determined is premised on the occurrence of many contingent events, i.e., that a new city or province created by Congress will be denied legislative
by law, shall be three years and no such official shall Mayor Binay will run again in this coming mayoralty elections; that he representation for an indeterminate period of time. 10 The intolerable
serve for more than three consecutive terms. would be re-elected in said elections; and that he would seek re-election situations will deprive the people of a new city or province a particle of
Voluntary renunciation of the office for any length for the same position in the 1998 elections. Considering that these their sovereignty. 11 Sovereignty cannot admit of any kind of subtraction.
of time shall not be considered as an interruption in contingencies may or may not happen, petitioners merely pose a It is indivisible. It must be forever whole or it is not sovereignty.
the continuity of his service for the full term for hypothetical issue which has yet to ripen to an actual case or
which he was elected. controversy. Petitioners who are residents of Taguig (except Mariano) Petitioners cannot insist that the addition of another legislative district in
are not also the proper parties to raise this abstract issue. Worse, they Makati is not in accord with section 5(3), Article VI 12 of the
xxx xxx xxx hoist this futuristic issue in a petition for declaratory relief over which Constitution for as of the latest survey (1990 census), the population of
this Court has no jurisdiction. Makati stands at only four hundred fifty thousand (450,000). 13 Said
Sec. 7. The Members of the House of section provides, inter alia, that a city with a population of at least two
Representatives shall be elected for a term of three III hundred fifty thousand (250,000) shall have at least one representative.
years which shall begin, unless otherwise provided Even granting that the population of Makati as of the 1990 census stood
by law, at noon on the thirtieth day of June next Finally, petitioners in the two (2) cases at bench assail the at four hundred fifty thousand (450,000), its legislative district may still
following their election. constitutionality of section 52, Article X of R.A. No. 7854. Section 52 of be increased since it has met the minimum population requirement of
the Charter provides: two hundred fifty thousand (250,000). In fact, section 3 of the Ordinance
No Member of the House of Representatives shall appended to the Constitution provides that a city whose population
serve for more than three consecutive terms. has increased to more than two hundred fifty thousand (250,000) shall
Sec. 52. Legislative Districts. — Upon its conversion be entitled to at least one congressional representative. 14
Voluntary renunciation of the office for any length into a highly-urbanized city, Makati shall thereafter
of time shall not be considered as an interruption in have at least two (2) legislative districts that shall
the continuity of his service for the full term for initially correspond to the two (2) existing districts Finally, we do not find merit in petitioners' contention that the creation
which he was elected. created under Section 3(a) of Republic Act. No. of an additional legislative district in Makati should have been expressly
7166 as implemented by the Commission on stated in the title of the bill. In the same case of Tobias v. Abalos, op cit.,
Petitioners stress that under these provisions, elective local officials, Elections to commence at the next national elections we reiterated the policy of the Court favoring a liberal construction of
including Members of the House of Representative, have a term of to be held after the effectivity of this Act. the "one title-one subject" rule so as not to impede legislation. To be
three (3) years and are prohibited from serving for more than Henceforth, barangays Magallanes, Dasmariñas and sure, with Constitution does not command that the title of a law should
exactly mirror, fully index, or completely catalogue all its details. Hence, G.R. No. 146342            October 26, 2001
we ruled that "it should be sufficient compliance if the title expresses the
general subject and all the provisions are germane to such general BENJAMIN E. CAWALING, JR., petitioner,
subject." vs.
THE EXECUTIVE SECRETARY TO THE PRESIDENT OF THE
WHEREFORE, the petitions are hereby DISMISSED for lack of merit REPUBLIC OF THE PHILIPPINES, SECRETARY OF THE
No costs. INTERIOR AND LOCAL GOVERNMENT, SECRETARY OF
THE DEPARTMENT OF BUDGET AND MANAGEMENT,
SO ORDERED. SOLICITOR GENERAL, PROVINCE OF SORSOGON,
MUNICIPALITY OF SORSOGON, MUNICIPALITY OF
BACON, respondents.

SANDOVAL-GUTIERREZ, J.:

Before us are two (2) separate petitions challenging the constitutionality


of Republic Act No. 8806 which created the City of Sorsogon and the
validity of the plebiscite conducted pursuant thereto.

On August 16, 2000, former President Joseph E. Estrada signed into law
R.A. No. 8806, an "Act Creating The City Of Sorsogon By Merging The
Municipalities Of Bacon And Sorsogon In The Province Of Sorsogon,
And Appropriating Funds Therefor."1

Pursuant to Section 10, Article X of the Constitution,2 the Commission


on Elections (COMELEC), on December 16, 2000, conducted a
plebiscite in the Municipalities of Bacon and Sorsogon and submitted the
matter for ratification.

On December 17, 2000, the Plebiscite City Board of Canvassers (PCBC)


proclaimed3 the creation of the City of Sorsogon as having been ratified
and approved by the majority of the votes cast in the plebiscite.4

Invoking his right as a resident and taxpayer of the former Municipality


of Sorsogon, Benjamin E. Cawaling, Jr. filed on January 2, 2001 the
present petition for certiorari (G.R. No. 146319) seeking the annulment
of the plebiscite on the following grounds:

G.R. No. 146319            October 26, 2001 A. The December 16, 2000 plebiscite was conducted beyond
the required 120-day period from the approval of R.A. 8806, in
violation of Section 54 thereof; and
BENJAMIN E. CAWALING, JR., petitioner,
vs.
THE COMMISSION ON ELECTIONS, and Rep. Francis Joseph G. B. Respondent COMELEC failed to observe the legal
Escudero, respondents. requirement of twenty (20) day extensive information
campaign in the Municipalities of Bacon and Sorsogon before
conducting the plebiscite.
x---------------------------------------------------------x
Two days after filing the said action, or on January 4, 2001, petitioner approval by a majority of the votes cast in a plebiscite in the Petitioner's constricted reading of Section 450(a) of the Code is
instituted another petition (G.R. No. 146342), this time for prohibition political units directly affected." (Emphasis ours) erroneous. The phrase "A municipality or a cluster of barangays may
seeking to enjoin the further implementation of R.A. No. 8806 for being be converted into a component city" is not a criterion but simply one of
unconstitutional, contending, in essence, that: The criteria for the creation of a city is prescribed in Section 450 of the the modes by which a city may be created. Section 10, Article X of the
Local Government Code of 1991 (the Code), thus: Constitution, quoted earlier and which petitioner cited in support of his
1. The creation of Sorsogon City by merging two posture, allows the merger of local government units to create a province
municipalities violates Section 450(a) of the Local city, municipality or barangay in accordance with the criteria established
"SECTION 450. Requisites for Creation. — (a) A by the Code. Thus, Section 8 of the Code distinctly provides:
Government Code of 1991 (in relation to Section 10, Article X municipality or a cluster of barangays may be converted into a
of the Constitution) which requires that only "a municipality or component city if it has an average annual income, as certified
a cluster of barangays may be converted into a component by the Department of Finance, of at least Twenty million "SECTION 8. Division and Merger. — Division and merger
city"; and (P20,000,000.00) for the last two (2) consecutive years based of existing local government units shall comply with the same
on 1991 constant prices, and if it has either of the following requirements herein prescribed for their creation: Provided,
2. R.A. No. 8806 contains two (2) subjects, namely, the (a) requisites: however, That such division shall not reduce the income,
creation of the City of Sorsogon and the (b) abolition of the population, or land area of the local government unit or units
Municipalities of Bacon and Sorsogon, thereby violating the concerned to less than the minimum requirements prescribed
(i) a contiguous territory of at least one hundred in this Code: Provided, further, That the income classification
"one subject-one bill" rule prescribed by Section 26(1), Article (100) square kilometers, as certified by the Lands
VI of the Constitution. of the original local government unit or units shall not fall
Management Bureau; or below its current income classification prior to such
division. . . . ." (Emphasis ours)
Hence, the present petitions which were later consolidated.5 (ii) a population of not less than one hundred fifty
thousand (150,000) inhabitants, as certified by the Verily, the creation of an entirely new local government unit through
Significantly, during the pendency of these cases, specifically during the National Statistics Office: a division or a merger of existing local government units
May 14, 2001 elections, the newly-created Sorsogon City had the first is recognized under the Constitution, provided that such merger or
election of its officials. Since then, the City Government of Sorsogon has Provided, That, the creation thereof shall not reduce the land division shall comply with the requirements prescribed by the Code.
been regularly discharging its corporate and political powers pursuant to area, population, and income of the original unit or units at the
its charter, R.A. No. 8806. time of said creation to less than the minimum requirements Petitioner further submits that, in any case, there is no "compelling"
prescribed herein. reason for merging the Municipalities of Bacon and Sorsogon in order to
We shall first delve on petitioner's constitutional challenge against R.A. create the City of Sorsogon considering that the Municipality of
No. 8806 in G.R No. 146342. (b) The territorial jurisdiction of a newly-created city shall be Sorsogon alone already qualifies to be upgraded to a component city.
properly identified by metes and bounds. The requirement on This argument goes into the wisdom of R.A. No. 8806, a matter which
Every statute has in its favor the presumption of constitutionality.6 This land area shall not apply where the city proposed to be created we are not competent to rule. In Angara v. Electoral Commission,12 this
presumption is rooted in the doctrine of separation of powers which is composed of one (1) or more islands. The territory need not Court, through Justice Jose P. Laurel, made it clear that "the judiciary
enjoins upon the three coordinate departments of the Government a be contiguous if it comprises two (2) or more islands. does not pass upon questions of wisdom, justice or expediency of
becoming courtesy for each other's acts.7 The theory is that every law, legislation." In the exercise of judicial power, we are allowed only "to
being the joint act of the Legislature and the Executive, has passed (c) The average annual income shall include the income settle actual controversies involving rights which are legally demandable
careful scrutiny to ensure that it is in accord with the fundamental accruing to the general fund, exclusive of specific funds, and enforceable,"13 and "may not annul an act of the political
law.8 This Court, however, may declare a law, or portions thereof, transfers, and non-recurring income." (Emphasis ours) departments simply because we feel it is unwise or impractical. "14
unconstitutional where a petitioner has shown a clear and unequivocal
breach of the Constitution, not merely a doubtful or argumentative Next, petitioner assails R.A. No. 8806 since it contravenes the "one
one.9 In other words the grounds for nullity must be beyond reasonable Petitioner is not concerned whether the creation of Sorsogon City
through R.A. No. 8806 complied with the criteria set by the Code as to subject-one bill" rule enunciated in Section 26 (1), Article VI of the
doubt,10 for to doubt is to sustain.11 Constitution, to wit:
income, population and land area. What he is assailing is its mode of
creation. He contends that under Section 450(a) of the Code, a
Petitioner initially reject R.A. No. 8806 because it violates Section 10, component city may be created only by converting "a municipality or a "SECTION 26 (1). Every bill passed by the Congress shall
Article X of the Constitution which provides, inter alia: cluster of barangays," not by merging two municipalities, as what R.A. embrace only one subject which shall be expressed in the title
No. 8806 has done. thereof." (Emphasis ours)
"SECTION 10. No province, city, municipality, or barangay
may be created, divided, merged, abolished, or its boundary This contention is devoid of merit. Petitioner contends that R.A. No. 8806 actually embraces two principal
substantially altered, except in accordance with the criteria subjects which are: (1) the creation of the City of Sorsogon, and (2)
established in the local government code and subject to
the abolition of the Municipalities of Bacon and Sorsogon. While the The Act was approved on August 16, 2000 by former President Joseph ordinance to fix "another date" for conducting a plebiscite, still such date
title of the Act sufficiently informs the public about the creation of E. Estrada. Thus, petitioner claims, the December 16, 2000 plebiscite must be reckoned from the date of the effectivity of the law.
Sorsogon City, petitioner claims that no such information has been was conducted one (1) day late from the expiration of the 120-day period
provided on the abolition of the Municipalities of Bacon and Sorsogon. after the approval of the Act. This 120-day period having expired Consequently, the word "approval" in Section 54 of R.A. No. 8806,
without a plebiscite being conducted, the Act itself expired and could no which should be read together with Section 65 (effectivity of the Act)
The argument is far from persuasive. Contrary to petitioner's assertion, longer be ratified and approved in the plebiscite held on December 16, thereof, could only mean "effectivity" as used and contemplated in
there is only one subject embraced in the title of the law, that is, the 2000. Section 10 of the Code. This construction is in accord with the
creation of the City of Sorsogon. The abolition/cessation of the corporate fundamental rule that all provisions of the laws relating to the same
existence of the Municipalities of Bacon and Sorsogon due to their In its comment, the COMELEC asserts that it scheduled the plebiscite on subject should be read together and reconciled to avoid inconsistency or
merger is not a subject separate and distinct from the creation of December 16, 2000 based on the date of the effectivity of the Act. repugnancy to established jurisprudence. As we stated in Tañada:
Sorsogon City. Such abolition/cessation was but the logical, natural and Section 65 of the Act states:
inevitable consequence of the merger. Otherwise put, it is the necessary "ARTICLE 2. Laws shall take effect after fifteen days
means by which the City of Sorsogon was created. Hence, the title of the "SECTION 65. Effectivity. — This Act shall take effect upon following the completion of their publication in the Official
law, "An Act Creating the City of Sorsogon by Merging the its publication in at least two (2) newspapers of general and Gazette, unless it is otherwise provided. This Code shall take
Municipalities of Bacon and Sorsogon in the Province of Sorsogon, and local circulation." effect one year after such publication.
Appropriating Funds Therefor," cannot be said to exclude the incidental
effect of abolishing the two municipalities, nor can it be considered to
have deprived the public of fair information on this consequence. The law was first published in the August 25, 2000 issue of TODAY a After a careful study of this provision and of the arguments of
newspaper of general circulation. Then on September 01, 2000, it was the parties, both on the original petition and on the instant
published in a newspaper of local circulation in the Province of motion, we have come to the conclusion, and so hold, that the
It is well-settled that the "one title-one subject" rule does not require the Sorsogon. Thus, the publication of the law was completed on September clause 'unless it is otherwise provided' refers to the date of
Congress to employ in the title of the enactment language of such 1, 2000, which date, according to the COMELEC, should be the effectivity and not to the requirement of publication itself,
precision as to mirror, fully index or catalogue all the contents and the reckoning point in determining the 120-day period within which to which cannot in any event be omitted. This clause does not
minute details therein.15 The rule is sufficiently complied with if the title conduct the plebiscite, not from the date of its approval (August 16, mean that the legislature may make the law effective
is comprehensive enough as to include the general object which the 2000) when the law had not yet been published. The COMELEC argues immediately upon approval, or on any other date, without its
statute seeks to effect,16 and where, as here, the persons interested are that since publication is indispensable for the effectivity of a law, citing previous publication." (Emphasis supplied)
informed of the nature, scope and consequences of the proposed law and the landmark case of Tañada vs. Tuvera,19 it could only schedule the
its operation.17 Moreover, this Court has invariably adopted a liberal plebiscite after the Act took effect. Thus, the COMELEC concludes, the
rather than technical construction of the rule "so as not to cripple or To give Section 54 a literal and strict interpretation would in effect make
December 16, 2000 plebiscite was well within the 120-day period from the Act effective even before its publication, which scenario is precisely
impede legislation."18 the effectivity of the law on September 1, 2000. abhorred in Tañada.
Consequently, we hold that petitioner has failed to present clear and The COMELEC is correct.
convincing proof to defeat the presumption of constitutionality of R.A. Lastly, petitioner alleges that the COMELEC failed to conduct an
No. 8806. extensive information campaign on the proposed Sorsogon cityhood 20
In addition, Section 10 of the Code provides: days prior to the scheduled plebiscite as required by Article 11 (b.4.ii),
Rule II of the Rules and Regulations Implementing the Code. However,
We now turn to G.R. No. 146319 wherein petitioner assails the validity no proof whatsoever was presented by petitioner to substantiate his
of the plebiscite conducted by the COMELEC for the ratification of the "SECTION 10. Plebiscite Requirement. — No creation,
division, merger, abolition, or substantial alteration of allegation. Consequently, we sustain the presumption20 that the
creation of Sorsogon City. COMELEC regularly performed or complied with its duty under the law
boundaries of local government units shall take effect unless
approved by a majority of the votes cast in a plebiscite called in conducting the plebiscite.
Petitioner asserts that the plebiscite required by R.A. No. 8806 should be for the purpose in the political unit or units directly affected.
conducted within 120 days from the "approval" of said Act per express Such plebiscite shall be conducted by the Commission on WHEREFORE, the instant petitions are DISMISSED for lack of merit.
provision of its Section 54, viz: Elections within one hundred twenty (120) days from the date Costs against petitioner.
of the effectivity of the law or ordinance affecting such
"SECTION 54. Plebiscite. — The City of Sorsogon shall action, unless said law or ordinance fixes another date." SO ORDERED.
acquire corporate existence upon the ratification of its creation (Emphasis ours)
by a majority of the votes cast by the qualified voters in a
plebiscite to be conducted in the present municipalities of Quite plainly, the last sentence of Section 10 mandates that the plebiscite
Bacon and Sorsogon within one hundred twenty (120) shall be conducted within 120 days from the date of the effectivity of the
days from the approval of this Act. x x x ." (Emphasis ours) law, not from its approval. While the same provision allows a law or
COMMISSION ON ELECTION and THE MUNICIPALITY OF
CAINTA, PROVINCE OF RIZAL, Respondents.

[G.R. No. 128663. September 10, 1999.]

MUNICIPALITY OF CAINTA, PROVINCE OF RIZAL, Petitioner,


v. COMMISSION ON ELECTIONS CITY OF PASIG, Respondent.

DECISION

YNARES-SANTIAGO, J.:

Before us are two (2) petitions which both question the propriety of the
suspension of plebiscite proceedings pending the resolution of the issue
of boundary disputes between the Municipality of Cainta and the City of
Pasig.chanrobles virtualawlibrary chanrobles.com:chanrobles.com.ph

G.R. No. 125646 involves the proposed Barangay Karangalan while


G.R. No. 128663 involves the proposed Barangay Napico. The City of
Pasig claims these areas as part of its jurisdiction/territory while the
Municipality of Cainta claims that these proposed barangays encroached
upon areas within its own jurisdiction/territory.

The antecedent facts are as follows:chanrob1es virtual 1aw library

On April 22, 1996, upon petition of the residents of Karangalan Village


that they be segregated from its mother Barangays Manggahan and Dela
Paz, City of Pasig, and to be converted and separated into a distinct
barangay to be known as Barangay Karangalan, the City Council of
Pasig passed and approved Ordinance No. 21, Series of 1996, creating
Barangay Karangalan in Pasig City. 1 Plebiscite on the creation of said
barangay was thereafter set for June 22, 1996.

Meanwhile, on September 9, 1996, the City of Pasig similarly issued


Ordinance No. 52, Series of 1996, creating Barangay Napico in Pasig
City. 2 Plebiscite for this purpose was set for March 15, 1997.

Immediately upon learning of such Ordinances, the Municipality of


Cainta moved to suspend or cancel the respective plebiscites scheduled,
and filed Petitions with the Commission on Elections (hereinafter
referred to as COMELEC) on June 19, 1996 (UND No. 96-016) 3 and
March 12, 1997 (UND No. 97-002), respectively. In both Petitions, the
Municipality of Cainta called the attention of the COMELEC to a
[G.R. No. 125646. September 10, 1999.] pending case before the Regional Trial Court of Antipolo, Rizal, Branch
74, for settlement of boundary dispute. 4 According to the Municipality
CITY OF PASIG, Petitioner, v. THE HONORABLE of Cainta, the proposed barangays involve areas included in the
boundary dispute subject of said pending case; hence, the scheduled exercise in futility. Not only that, we would be paving the way for entertaining future challenges to their acts if they manage to bring about
plebiscites should be suspended or cancelled until after the said case potentially ultra vires acts of such barangays. Indeed, in Mariano, Jr. v. a fait accompli." chanrobles virtual lawlibrary
shall have been finally decided by the court.chanrobles law library Commission on Elections, 9 we held that —
Therefore, the plebiscite on the creation of Barangay Karangalan should
In UND No. 96-016, the COMELEC accepted the position of the "The importance of drawing with precise strokes the territorial be held in abeyance pending final resolution of the boundary dispute
Municipality of Cainta and ordered the plebiscite on the creation of boundaries of a local unit of government cannot be overemphasized. The between the City of Pasig and the Municipality of Cainta by the
Barangay Karangalan to be held in abeyance until after the court has boundaries must be clear for they define the limits of the territorial Regional Trial Court of Antipolo City. In the same vein, the plebiscite
settled with finality the boundary dispute involving the two jurisdiction of a local government unit. It can legitimately exercise held on March 15, 1997 to ratify the creation of Barangay Napico, Pasig
municipalities. 5 Hence, the filing of G.R. No. 125646 by the City of powers of government only within the limits of its territorial jurisdiction. City, should be annulled and set aside.
Pasig. Beyond these limits, its acts are ultra vires. Needless to state, any
uncertainty in the boundaries of local government units will sow costly WHEREFORE, premises considered,
The COMELEC, however, ruled differently in UND No. 97-002, conflicts in the exercise of governmental powers which ultimately will
dismissing the Petition for being moot in view of the holding of the prejudice the people’s welfare. 1. The Petition of the City of Pasig in G.R. No. 125646 is DISMISSED
plebiscite as scheduled on March 15, 1997 where the creation of for lack of merit; while
Barangay Napico was ratified and approved by the majority of the votes Moreover, considering the expenses entailed in the holding of
cast therein. 6 Hence, the filing of G.R. No. 128663 by the Municipality plebiscites, it is far more prudent to hold in abeyance the conduct of the 2. The Petition of the Municipality of Cainta in G.R. No. 128663 is
of Cainta.chanrobles lawlibrary : rednad same, pending final determination of whether or not the entire area of the GRANTED. The COMELEC Order in UND No. 97-002, dated March
proposed barangays are truly within the territorial jurisdiction of the City 21, 1997, is SET ASIDE and the plebiscite held on March 15, 1997 to
The issue before us is whether or not the plebiscites scheduled for the of Pasig.chanrobles.com.ph : virtual law library ratify the creation of Barangay Napico in the City of Pasig is declared
creation of Barangays Karangalan and Napico should be suspended or null and void. Plebiscite on the same is ordered held in abeyance until
cancelled in view of the pending boundary dispute between the two local Neither do we agree that merely because a plebiscite had already been after the courts settle with finality the boundary dispute between the City
governments. held in the case of the proposed Barangay Napico, the petition of the of Pasig and the Municipality of Cainta, in Civil Case No. 94-
Municipality of Cainta has already been rendered moot and academic. 300.chanrobles.com.ph : virtual law library
To begin with, we agree with the position of the COMELEC that Civil The issues raised by the Municipality of Cainta in its petition before the
Case No. 94-3006 involving the boundary dispute between the COMELEC against the holding of the plebiscite for the creation of No pronouncement as to costs.
Municipality of Cainta and the City of Pasig presents a prejudicial Barangay Napico are still pending determination before the Antipolo
question which must first be decided before plebiscites for the creation Regional Trial Court. SO ORDERED.
of the proposed barangays may be held.
In Tan v. Commission on Elections, 10 we struck down the moot and Bellosillo, Melo, Puno, Vitug, Kapunan, Mendoza, Quisumbing
The City of Pasig argues that there is no prejudicial question since the academic argument as follows — Purisima, Buena and Gonzaga-Reyes, JJ., concur.
same contemplates a civil and criminal action and does not come into
play where both cases are civil, as in the instant case. While this may be "Considering that the legality of the plebiscite itself is challenged for Davide, Jr., C.J. and Panganiban, J., are on official leave.
the general rule, this Court has held in Vidad v. RTC of Negros Oriental, non-compliance with constitutional requisites, the fact that such
Br. 42, 7 that, in the interest of good order, we can very well suspend plebiscite had been held and a new province proclaimed and its officials Pardo, J., took no part; was COMELEC Chair.
action on one case pending the final outcome of another case closely appointed, the case before Us cannot truly be viewed as already moot
interrelated or linked to the first.chanroblesvirtuallawlibrary and academic. Continuation of the existence of this newly proclaimed
province which petitioners strongly profess to have been illegally born,
In the case at bar, while the City of Pasig vigorously claims that the deserves to be inquired into by this Tribunal so that, if indeed, illegality
areas covered by the proposed Barangays Karangalan and Napico are attaches to its creation, the commission of that error should not provide
within its territory, it can not deny that portions of the same area are the very excuse for perpetration of such wrong. For this Court to yield to
included in the boundary dispute case pending before the Regional Trial the respondents’ urging that, as there has been fait accompli, then this
Court of Antipolo. Surely, whether the areas in controversy shall be Court should passively accept and accede to the prevailing situation is an
decided as within the territorial jurisdiction of the Municipality of Cainta unacceptable suggestion. Dismissal of the instant petition, as respondents
or the City of Pasig has material bearing to the creation of the proposed so propose is a proposition fraught with mischief. Respondents’
Barangays Karangalan and Napico. Indeed, a requisite for the creation of submission will create a dangerous precedent. Should this Court decline
a barangay is for its territorial jurisdiction to be properly identified by now to perform its duty of interpreting and indicating what the law is
metes and bounds or by more or less permanent natural boundaries. 8 and should be, this might tempt again those who strut about in the
Precisely because territorial jurisdiction is an issue raised in the pending corridors of power to recklessly and with ulterior motives, create, merge,
civil case, until and unless such issue is resolved with finality, to define divide and/or alter the boundaries of political subdivisions, either
the territorial jurisdiction of the proposed barangays would only be an brazenly or stealthily, confident that this Court will abstain from

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