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A.M. NO. 05-10-20-SC

RepublicofthePhilippines
SupremeCourt
Manila

ENBANC

INRE:EXEMPTIONOF
THE NATIONAL POWER
CORPORATION
FROM
PAYMENT
OF
FILING/
DOCKETFEES

A.M.NO.051020SC

Present:

PUNO,CJ.,
CARPIO,
CORONA,
CARPIOMORALES,
VELASCO,JR.,
NACHURA,
LEONARDODECASTRO,
BRION,
PERALTA,
BERSAMIN,
DELCASTILLO,
ABAD,
VILLARAMA,JR.,
PEREZ,and
MENDOZA,JJ.

Promulgated:

March10,2010

xx

RESOLUTION

MENDOZA,J.:

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The National Power Corporation (NPC) seeks clarification from the Court on whether or not it is
exemptfromthepaymentoffilingfees,appealbondsandsupersedeasbonds.

On December 6, 2005, the Court issued A.M. No. 051020SC, In re: Exemption of the National
Power Corporation from the Payment of Filing/Docket Fees, on the basis of Section 13, Republic Act No.
6395(AnActRevisingtheCharteroftheNationalPowerCorporation).Itreads:
TheCourtResolved,upontherecommendationoftheOfficeoftheCourtAdministrator,toDECLARE
that the National Power Corporation (NPC) is still exempt from the payment of filing fees, appeals bond, and
supersedeasbonds.

OnOctober27,2009,however,theCourtissuedA.M.No.051020SCstatingthat:

TheCourtResolved,uponrecommendationoftheCommitteeontheRevisionoftheRulesofCourt,to
DENY the request of the National Power Corporation (NPC) for exemption from the payment of filing fees
pursuanttoSection10ofRepublicActNo.6395,asamendedbySection13ofPresidentialDecreeNo.938.The
requestappearstoruncountertoSection5(5),ArticleVIIIoftheConstitution,intherulemakingpowerofthe
SupremeCourtovertherulesonpleading,practiceandprocedureinallcourts,whichincludesthesolepowerto
fixthefilingfeesofcasesincourts.

Hence,thesubjectletterofNPCforclarificationastoitsexemptionfromthepaymentoffilingfeesand
courtfees.

Section22ofRule141reads:

Sec. 22. Government exempt. The Republic of the Philippines, its agencies and instrumentalities are
exempt from paying the legal fees provided in this rule. Local government units and governmentowned or
controlledcorporationswithorwithoutindependentchartersarenotexempt from paying such fees. (emphasis
supplied)

Section70ofRepublicActNo.9136(ElectricPowerIndustryReformActof2001),onprivatizationofNPC
assets,expresslystatesthattheNPCshallremainasanationalgovernmentownedandcontrolledcorporation.
Thus,NPCisnotexemptfrompaymentoffilingfees.

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ThenonexemptionofNPCisfurtherfortifiedbythepromulgationonFebruary11,2010ofA.M.No.
082010, In re: Petition for Recognition of the Exemption of the Government Service Insurance System
[1]
(GSIS) from Payment of Legal Fees. In said case, the Court, citing Echegaray v. Secretary of Justice,
stressed that the 1987 Constitution took away the power of Congress to repeal, alter or supplement rules
concerningpleading,practice,andprocedureandthatthepowertopromulgatetheserulesisnolongershared
bytheCourtwithCongressandtheExecutive,thus:

SincethepaymentoflegalfeesisavitalcomponentoftherulespromulgatedbythisCourtconcerningpleading,
practiceandprocedure,itcannotbevalidlyannulled,changedormodifiedbyCongress.Asoneofthesafeguards
of this Courts institutional independence, the power to promulgate rules of pleading, practice and procedure is
nowtheCourtsexclusivedomain.That power is no longer shared by this Court with Congress, much less the
Executive.

SpeakingfortheCourt,thenAssociateJustice(nowChiefJustice)ReynatoS.Punotracedthehistoryoftherule
makingpowerofthisCourtandhighlighteditsevolutionanddevelopmentinEchegarayv.SecretaryofJustice:

Under the 1935 Constitution, the power of this Court to promulgate rules concerning pleading,
practiceandprocedurewasgrantedbutitappearedtobecoexistentwithlegislativepowerforit
wassubjecttothepowerofCongresstorepeal,alterorsupplement.Thus,itsSection13,Article
VIIIprovides:

Sec.13. The Supreme Court shall have the power to promulgate rules concerning
pleading,practiceandprocedureinallcourts,andtheadmissiontothepracticeof
law. Said rules shall be uniform for all courts of the same grade and shall not
diminish, increase, or modify substantive rights. The existing laws on pleading,
practice,andprocedureareherebyrepealedasstatutes,andaredeclaredRulesof
Court,subjecttothepoweroftheSupremeCourttoalterandmodifythesame.The
Congressshallhavethepowertorepeal,alterorsupplementtherulesconcerning
pleading, practice and procedure, and the admission to the practice of law in the
Philippines.

xxxxxxxxx

[T]he 1973 Constitution reiterated the power of this Court to promulgate rules concerning
pleading,practice,andprocedureinallcourts,xxxwhich,however,mayberepealed,alteredor
supplementedbytheBatasangPambansaxxx.Morecompletely,Section5(2)[sic]5ofitsArticle
Xprovided:

xxxxxxxxx

Sec.5.TheSupremeCourtshallhavethefollowingpowers.

xxxxxxxxx

(5) Promulgate rules concerning pleading, practice, and procedure in all

courts,theadmissiontothepracticeoflaw,andtheintegrationoftheBar,which,
however, may be repealed, altered, or supplemented by the Batasang Pambansa.
Such rules shall provide a simplified and inexpensive procedure for the speedy
dispositionofcase,shallbeuniformforallcourtsofthesamegrade,andshallnot
diminish,increase,ormodifysubstantiverights.

xxxxxxxxx

The 1987 Constitution molded an even stronger and more independent judiciary.
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Amongothers,itenhancedtherulemakingpowerofthisCourt.ItsSection5(5),ArticleVIII
provides:

xxxxxxxxx

Section5.TheSupremeCourtshallhavethefollowingpowers.

xxxxxxxxx

(5) Promulgate rules concerning the protection and enforcement of

constitutionalrights,pleading,practice,andprocedureinallcourts,theadmission
to the practice of law, the Integrated Bar, and legal assistance to the
underprivileged. Such rules shall provide a simplified and inexpensive procedure
for the speedy disposition of cases, shall be uniform for all courts of the same
grade, and shall not diminish, increase, or modify substantive rights. Rules of
procedure of special courts and quasijudicial bodies shall remain effective
unlessdisapprovedbytheSupremeCourt.

TherulemakingpowerofthisCourtwasexpanded.ThisCourtforthefirsttimewasgiventhepower
to promulgate rules concerning the protection and enforcement of constitutional rights. The Court was
also granted for the firsttimethe power to disapprove rules of procedure of special courts and quasi
judicial bodies. But most importantly, the 1987 Constitution took away the power of Congress to
repeal,alter,orsupplementrulesconcerningpleading,practiceandprocedure.Infine,thepowerto
promulgate rules of pleading, practice and procedure is no longer shared by this Court with Congress,
moresowiththeExecutive.

The separation of powers among the three coequal branches of our government has erected an
impregnablewallthatkeepsthepowertopromulgaterulesofpleading,practiceandprocedurewithinthe
soleprovinceofthisCourt.Theotherbranchestrespassuponthisprerogativeiftheyenactlawsorissue
orders that effectively repeal, alter or modify any of the procedural rules promulgated by this Court.
Viewed from this perspective, the claim of a legislative grant of exemption from the payment of legal
feesunderSection39ofRA8291necessarilyfails.

WiththeforegoingcategoricalpronouncementoftheCourt,itisclearthatNPCcannolongerinvoke
RepublicActNo.6395(NPCCharter),asamendedbyPresidentialDecreeNo.938,asitsbasisforexemption
fromthepaymentoflegalfees.

WHEREFORE,itisherebyCLARIFIEDthattheNationalPowerCorporationisnotexemptfromthe
paymentoflegalfees.
SOORDERED.

JOSECATRALMENDOZA
AssociateJustice
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WECONCUR:

REYNATOS.PUNO
ChiefJustice

ANTONIOT.CARPIORENATOC.CORONA
AssociateJusticeAssociateJustice

CONCHITACARPIOMORALESPRESBITEROJ.VELASCO,JR.
AssociateJusticeAssociateJustice

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ANTONIOEDUARDOB.NACHURATERESITAJ.LEONARDODECASTRO
AssociateJusticeAssociateJustice

ARTUROD.BRIONDIOSDADOM.PERALTA
AssociateJusticeAssociateJustice

LUCASP.BERSAMINMARIANOC.DELCASTILLO
AssociateJusticeAssociateJustice

ROBERTOA.ABADMARTINS.VILLARAMA,JR.
AssociateJusticeAssociateJustice

JOSEPORTUGALPEREZ
AssociateJustice

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[1]
361Phil.76(1999).

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