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Leopoldo T. Bacani & Mateo A. Matoto vs. National Coconut Corporation et.

G.R. No. L-9657, November 29, 1956

Facts. This case is a petition from the plaintiffs Bacani & Matoto against the National Coconut
Corporation who claims to be exempted from paying the two stenographers’ fee from the
stenographic notes requested from them.

Bacani & Matoto are both Stenographers assigned in Branch VI of the Court of First Instance
Manila. During the pendency of a civil case in the said court, Francisco Sycip vs. National Coconut
Corporation, Asst. Corpoarte Counsel Federico Alikpala, counsel for defendant requested the
said stenographers for copies of the stenographic notes taken by them during the hearing. The
Plaintiffs complied and delivered the needed transcript to counsel Alikpala containing 714 pages
and thereafter submitted to him their bills for the payment of their fees.

The National Coconut Corporation paid the amount of PhP 564 to Leopoldo T. Bacani and PhP
150 to Mateo A. Matoto for the transcript at a rate of PhP 1 per page. But the Auditor General
required the Plaintiffs to reimburse the said amounts by virtue of a Department of Justice circular
w/c stated that Nacoco, being a government entity, was exempt from the fees in question. They
ordered that the amount of PhP 25 per payday be deducted from the salary of Bacani and PhP
10 from the salary of Matoto for reimbursement to take place.

The Plaintiffs filed an action in court countering that NACOCO is not a government entity within
the purview of section 16, Rule 130 of the Rules of Court. NACOCO however says otherwise,
citing the section 2 of the Revised Administrative Code of 1917.

Issues. Whether or not National Coconut Corporation, which performs certain functions of
government, make them part of the government of the Philippines.

Ruling. No. NACOCO do not acquire the status for the simple reason that they do not come under
the classification of municipal or public corporation.

NACOCO has functions w/c our government has chosen to exercise to promote the coconut
industry and this was the reason on why it was organized. However, it was given corporate power
separate and distinct from the government, as it was made subject to the provisions of corporate
law in so far as the corporate existence and the powers that it may exercise is concerned (as
indicated in Sections 2 & 4, Commonwealth Act No. 518). It may sue and be sued in the same
manner as any other private corporations and in this sense, it is an entity different from the