Dee, Manuel Jr.

2021400127

Bacani v. Nacoco, G.R. No. L-9657, November 29, 1956

Doctrine:
The case provides a discussion as to what constitutes the Government of the
Philippines.

Facts:
Petitioners are court stenographers who were requested to submit their notes
which they have taken during a Civil Case where the respondent corporation is
involved. The former had charged the respondent for the copies and were paid
accordingly. However, the payment of the charge was later disallowed by the
Auditor General and sought for its recovery as the National Coconut Corporation,
being a governmental entity was exempt from such payment. An action was
instituted by the petitioners in the CFI of Manila to prevent the deduction of their
salaries as well as secure a judicial ruling that the National Coconut Corporation is
not a governmental entity.

Issue:
Whether or not the National Coconut Corporation is a governmental entity.

Supreme Court Ruling:

No. The term “Government of the Republic of the Philippines” refers to a
government entity through which the functions of government are exercised. Such
an entity refers to the three Constitutionally established departments of executive,
legislative, and judiciary. These three branches exercise the powers and functions
of government. Such functions can be subdivided into two: (1) constitute which
constitute the very bonds of society and are compulsory in nature; and (2)
ministrant which are undertaken only by way of advancing the general interests of
society and are merely optional. Thus, there are those functions which our
government is required to exercise in compliance with the Constitution and there
are also those which are exercised merely to promote the welfare, progress, and
prosperity of the people. The National Coconut Corporation belongs to the latter. It
does not acquire the status of being a part of the Government of the Philippines as
they do not come under the classification of municipal or public corporation, but
rather, it was merely given corporate power which is separate and distinct from the
Government and thus, can sue and may be sued just like any other private
corporations. The phrase municipal corporations on the other hand, refer only to
organized cities and towns, and like organizations, created by government for
political purposes.