PNB VS PABALAN (G.R. No. L-33112) Constitutional Law

PHILIPPINE NATIONAL BANK, petitioner,

vs.

HON. JUDGE JAVIER PABALAN, Judge of the Court of First Instance, Branch III, La Union, AGOO TOBACCO PLANTERS ASSOCIATION, INC., PHILIPPINE VIRGINIA TOBACCO ADMINISTRATION, and PANFILO P. JIMENEZ, Deputy Sheriff, La Union, respondents.

Ponente:

FERNANDO, Acting C.J.

Action: Petition for certiorari and prohibition

Facts:

The case was filed by petitioner requesting for certiorari against the writ of execution authorized by the Hon Judge Pabalan regarding the transfer of funds amounting to P12,724.66 belonging to Philippine Virginia Tobacco Administration (PVTA).

Philippine National Bank (PNB) of La Union filed an administrative complaint against Judge Pabalan for grave abuse of discretion, alleging that the latter failed to recognize that the questioned funds are of public character and therefore may not be garnished, attached or levied upon. The PNB La Union Branch invoked the doctrine of non-suability, putting a bar on the notice of garnishment.

Issues:

1. Whether or not Philippine National Bank can be sued.

2. Whether or not the notice of garnishment of funds of Philippine Virginia Tobacco deposited with the petitioner bank is valid.

Ruling:

WHEREFORE, this petition for certiorari and prohibition is dismissed.

Ratio Decidendi:

PVTA is also a public corporation with the same attributes, a similar outcome is attributed. The government has entered with them into a commercial business hence it has abandoned its sovereign capacity and has stepped down to the level of a corporation. Therefore, it is subject to rules governing ordinary corporations and in effect can be sued. Therefore, the petition of PNB La Union is denied.

The Supreme Court ruled that the funds held by PNB is subject for garnishment. Funds of public corporations which can sue and be sued are not exempt from garnishment. Thus, the writ of execution be imposed immediately.