Title MARIA NATIVIDAD VDA. DE TAN V.

VETERANS BACKPAY COMMISSION

G.R. No. L-12944, March 30, 1959
Ponente REYES, J.B.L., J.
Doctrine The Doctrine of Exhaustion of Administrative Remedies, which is based
on sound public policy and practical consideration, is not inflexible. One
of the instances when it may be dispensed with and judicial action may
be validly resorted to immediately, is when the administrative body is in
estoppel.
Facts  Petitioner, Maria Natividad Vda De Tan is of legal age, a widow and a
resident of the Philippines and that the respondent is a government
instrumentality or agency, duly vested with authority to implement
the provisions of Backpay Law, otherwise known as Republic Act No.
897, further amending Republic Act No. 304.
 She is also the widow of the late Lt. Tan Chiat Bee alias Tan Lian
Lay, a Chinese national, and bona fide member the 1st Regiment,
United State-Chinese Volunteers in the Philippines; died in a battle at
Rizal Province; and certified by the Armed Forces of the Philippines
as having rendered meritorious military services during the Japanese
occupation.
 As the widow of the said recognized deceased veteran, petitioner
filed an application for back pay. The Secretary and Chief of
Office Staff the Veterans Back Pay Commission sent a letter to
General Vicente Lopez of the United States-Chinese Volunteers in the
Philippines apprising the latter that the Commission has reaffirmed
its solution granting the backpay to alien members; the Armed
Forces of the Philippines certified that deceased veteran has
rendered service as a recognized guerrilla.
 After due deliberation respondent revoked its previous stands and
ruled that aliens are not entitled to back pay. On February 13, 1957,
the respondent Veterans Back Pay Commission, through its Secretary
& Chief of Office Staff, made a formal reply to the aforesaid claim of
the herein petitioner denying her request on the ground that aliens
are not entitled to backpay. Upon refusal of the Veterans Back Pay
Commission the petitioner brought the case direct to this Honorable
Court by way of mandamus.

Contentions Petitioner Respondent

As the widow of the said
recognized deceased veteran, she
is entitled to the payment of
backpay of her husband.
Issue W/N petitioner’s failure to exhaust her administrative remedies bars
subsequent action in courts.
Aliens are not entitled to back pay.
That the petitioner should have
first exhausted her administrative
remedies by appealing to the
President of the Philippines, and
that her failure to do so is a bar to
her action in court
SC Ruling ADMINISTRATIVE REMEDIES; RULE OF EXHAUSTION NOT TO BE
INVOKED IF PARTY IS IN ESTOPPEL.

The respondent Commission is in estoppel to invoke the rule on the

exhaustion of administrative remedies, considering that in its resolution,
it declared that the opinions of the Secretary of Justice were “advisory in
nature, which may either be accepted or ignored by the office seeking
the opinion, and any aggrieved party has the court for recourse”,
thereby leading the petitioner to conclude that only a final judicial ruling
in her favor would be accepted by the Commission.

Neither is there substance in the contention that the petition is, in effect,
a suit against the government without its consent. the relief prayed for is
simply "the recognition of the petitioner-appellee" under the provisions
of sections 1 and 2 of Republic Act No. 897, and consists in "directing an
agency of the government to perform an act . . . it is bound to perform."
Republic Act Nos. 304 and 897 necessarily embody state consent to an
action against the officers entrusted with the implementation of said Acts
in case of unjustified refusal to recognize the rights of proper applicants.

The decision appealed from should be, and hereby is, affirmed. No costs.

So ordered.