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NPC Drivers and Mechanics Association v. NPC-DAMA v.

26 September 2006

Justice Chico-Nazario

 The case is a special civil action for Injunction seeking to enjoin public
respondents from implementing National Power Board Resolutions No. 2002-124
and 2002-125, directing, among other things the termination of all employees of
the NPC in line with the restructuring of the NPC.
 In 2001, the EPIRA was approved. Under the EPIRA, a new National power
Board of Directors was constituted. Pursuant to the EPIRA and its IRR, the NBP
passed the assailed resolutions. Said resolutions provided for Guidelines on the
Separation Program of the NPC and the Selection and Placement of Personnel in
the NPC Table of Organization (legal termination and separation benefits).
 Petitioners claim that the assailed resolutions are void since they were not issued
by a majority of the members of the duly constituted Board of Directors since
only three of its members were present. According to petitioners, the other four
were merely representatives of those named under the EPIRA law.
 Petitioners claim that this was a violation of the principle that delegated power
cannot be further delegated. Even assuming there was a quorum, petitioners
argue that the resolutions did not comply with the mandatory requirement of
endorsement by the Joint Congressional Power Commission and approval of the

Issue: WON the assailed resolutions were validly issued

Held: No.

 The department secretaries composing the National Power Board of Directors
(NPB) cannot delegate their duties as members of the NPB, much less their
power to vote and approve board resolutions, because it is their personal
judgment that must be exercised in the fulfillment of such responsibility.
 The rule that requires an administrative officer to exercise his own judgment and
discretion does not preclude him from utilizing, as a matter of practical
administrative procedure, the aid of subordinates, so long as it is the legally
authorized official who makes the final decision through the use of his own
personal judgment.
 Where it is the representatives of the secretaries of the different executive
departments and not the secretaries themselves who exercised judgment in
passing the assailed Resolution, this violated the duty imposed upon the
specifically enumerated department heads to employ their own sound discretion
in exercising the corporate powers of the National Power Corporation.