ARTICLE VIII, SECTION 2 – Power of Legislative Apportion Jurisdiction

Mantruste Systems, Inc. vs Court of Appeals

G.R. Nos. 86540-41 November 6, 1989
Griño-Aquino, J.

POINT OF CASE:
The power to define, prescribe and apportion the jurisdiction of the various courts belongs to the
legislature but may not deprive the Supreme Court of its jurisdiction over cases enumerated in Section 5,
Article VIII of the Constitution.

FACTS OF CASE:
Mantruste Systems Inc. (MSI) entered into a 4 “interim lease agreement with the Development
Bank of the Philippines (DBP) to operate Bayview Plaza Hotel wherein it will operate the hotel for a
minimum of three (3) months or until such time that the said properties are sold to MSI or other third
parties of DBP. MSI allegedly advanced P12M to make the hotel operational.
In the exercise of her legislative power, President Aquino issued Proclamation No. 50 which
launched the privatization of certain government assets including the Bayview Plaza Hotel. The said hotel
was transferred from DBP to Asset Privatization Trust (APT) for disposition and was opened to public
bidding in which it was awarded to another. MSI sought a writ of preliminary injunction claiming that they
have a right to retention over the hotel which was granted by the RTC for the reason, among others that
Proclamation No. 50-A was unconstitutional as Sec.31 impinges the judicial power defined in Article VIII,
Section 1 of the Constitution.
Section 31 provides that “No court shall issue any injunction against the Trust in connection with
the disposition of assets transferred to it. Nor shall such be issued against any purchaser of asset sold by
the Trust.”
CA nullified the writ hence this petition.

ISSUE:
Whether or not Sec 31 impinge upon the judicial power of the court?

RULING:

NO. Sec 31 does not impinge any provisions of the Constitution. It does not impair the power of
the courts “to settle actual controversies which are legally demandable and enforceable and to determine
whether or not there has been a grave abuse of discretion amounting to lack or excess of jurisdiction on
the part of any branch or instrumentality of the government.”

Under Sec 2, Art VIII of the Constitution, the power to define, prescribe and apportion the
jurisdiction of the various courts belongs to the legislature. Hence, judicial power may be regulated and
defined by law, and the law in this particular case (Proc. No. 50-A) provides that judicial power may not
be exercised in the form of an injunction against the acts of the Trust.

Petition for review is dismissed.