7. Republic v.

CFI Judge of Rizal

TITLE Republic of the Philippines, petitioner, vs Judge of CFI of
Rizal, respondent

GR NUMBER G.R. No. L-35919

DATE September 11, 1980

PONENTE DE CASTRO, J.

NATURE/ Special civil action of certiorari and mandamus with

KEYWORDS preliminary injunction

FACTS  April 11, 1970, Respondent Sison filed a complaint

against Rice & Corn Administration (RCA) for a sum of
money with the Court of First Instance, presided by
the respondent Judge.
 The RCA filed a motion to dismiss the said complaint
on the ground of non-sustainability of the RCA as a
mere governmental agency but it was denied by the
respondent Judge
 May 10, 1972, after trial, the respondent Judge ruled
in favor of Sison and ordered the RCA to pay the corn
grains it purchased from Sison (P1,628,451.54) and
the attorney's fees (P250,000.00) and the costs of the
suit.
 May 24, 1972, RCA filed a notice of appeal as well as
a motion for extension (30 days from June 16, 1972)
within which to file the record on appeal (granted)
 Before expiration of original period to file the record,
RCA files its appeal on June 15, 1972
 Sison filed a motion to dismiss the appeal for the
RCA's failure to post an appeal bond and the RCA,
represented by the office of the Solicitor General, filed
an opposition to Sison's motion to dismiss the appeal.
 The record on appeal filed by the RCA was approved
by the respondent Judge but the RCA's exemption
from the payment of legal fees and from posting of
the appeal bond was denied.
 The respondent Judge issued an order giving the RCA
5 days within which to post an appeal bond. The RCA
filed a motion for reconsideration, alleging that they
are exempt from posting an appeal bond.
 Sison filed a motion to dismiss the appeal on the
 ground of petitioner's refusal to file the appeal bond.
 The respondent Judge dismissed the RCA's appeal and
ruled that the RCA, being a mere instrumentality of
the Government of the Philippines, is not exempt from
the payment of legal fees and from posting of an
appeal bond.

ISSUE(S) Whether or not the petitioner RCA (Rice and Corn

Administration) is exempt from paying legal fees and from
posting an appeal bond

RULING(S) Yes. RCA is a governmental agency of Republic of the

Philippines without a separate, distinct and independent
legal personality from the latter thus exempt from the
payment of legal fees as well as the posting of an appeal
bond. (Legal basis: Under the decisional laws which form
part of the legal system of the PH, the Republic of the PH is
exempted; practically a matter of public knowledge and
matter of judicial notice on the part of the courts)

The legal character of RCA was passed upon in the case

Ramos vs. Court of Industrial Relations.
In that cited case, the court held:
Congress, by said RA 3452, approved June 14, 1962,
created RCA in pursuance of its declared policy
- That in order to stabilize the price of palay, rice and
corn, it shall engage in the purchase of these basic foods
directly from those farmers in the Philippines who wish to
dispose their produce at a price that will afford them a fair
and just return for their labor and capital investment.

Therefore, RCA is a governmental machinery to carry out a

declared government policy, and not for profit. It is not
possessed of a separate & distinct corporate existence. It is
an office directly under the Office of the President of the
Philippines.

CONCLUSION WHEREFORE, the order of the dismissal of the RCA's appeal

by the respondent Judge is hereby set aside and the latter
is heretofore directed to allow and give due course to the
aforesaid appeal without the posting of an appeal bond. No
pronouncement as to costs. SO ORDERED.