Manila International Airport Authority vs.

CA

Facts: Manila International Airport Authority (MIAA) is the operator of the Ninoy International Airport
located at Paranaque City. The Officers of Paranaque City sent notices to MIAA due to real estate tax
delinquency. MIAA then settled some of the amount. When MIAA failed to settle the entire amount, the
officers of Paranaque city threatened to levy and subject to auction the land and buildings of MIAA,
which they did. MIAA sought for a Temporary Restraining Order from the CA but failed to do so within
the 60 days reglementary period, so the petition was dismissed. MIAA then sought for the TRO with the
Supreme Court a day before the public auction, MIAA was granted with the TRO but unfortunately the
TRO was received by the Paranaque City officers 3 hours after the public auction.

MIAA claims that although the charter provides that the title of the land and building are with MIAA still
the ownership is with the Republic of the Philippines. MIAA also contends that it is an instrumentality of
the government and as such exempted from real estate tax. That the land and buildings of MIAA are of
public dominion therefore cannot be subjected to levy and auction sale. On the other hand, the officers
of Paranaque City claim that MIAA is a government owned and controlled corporation therefore not
exempted to real estate tax.
Issue: Whether or not Petitioner is a government instrumentality.

Ruling: Yes. MIAA is a government instrumentality vested with corporate powers to perform efficiently
its governmental functions. MIAA is like any other government instrumentality, the only difference is
that MIAA is vested with corporate powers.

When the law vests in a government instrumentality corporate powers, the instrumentality does not
become a corporation. Unless the government instrumentality is organized as a stock or non-stock
corporation, it remains a government instrumentality exercising not only governmental but also
corporate powers. Thus, MIAA exercises the governmental powers of eminent domain, police authority
and the surging of fees and charges. At the same time, MIAA exercises all the powers of a corporation
under the corporation law, in so far as these powers are not inconsistent with the provisions of this
executive order.