ARCEGA vs.

COURT OF APPEALS
ALICIA O. ARCEGA, assisted by her husband RAF. L. ARCEGA,
doing business under the firm name of FAIRMONT ICE CREAM
CO., petitioner,
Vs.THE COURT OF APPEALS, THE CENTRAL BANK OF THE
PHILIPPINES,
and
THE
PHILIPPINE
NATIONAL
BANK,
respondents.
Facts:
The petitioner Alicia O. Arcega, doing business under the firm name
Fairmont Ice Cream Company, filed a complaint with the Court of
First Instance of Manila, Branch I, against the respondents Central Bank
of the Philippines and Philippine National Bank, for the refund from
allegedly unauthorized payments made by her in the concept of the
17% special excise tax on foreign exchange. The refund prayed for
involves purchases of foreign exchange from the Philippine National
Bank to cover the costs and transportation and other charges incident
to the importation into the Philippines. The Central Bank moved to
dismiss the complaint on the grounds, among others, that the trial
court has no jurisdiction over the subject-matter of the action, because
the judgment sought will constitute a financial charge against the
Government, and therefore the suit is one against the Government,
which cannot prosper without its consent, and in this case no such
consent has been given.
The petitioner Arcega filed a motion for reconsideration of the
resolution to which an opposition was filed by the Central Bank. Then,
the Central Banks Chief Accountant submitted a certification that the
balance of the collected special excise tax on sales of foreign exchange
was turned over to the Treasurer of the Philippines. The court denied
the petitioners motion for reconsideration. As a result, Arcega
appealed to the Court of Appeals.
Holding that the suit is indirectly against the Republic of the
Philippines, which cannot be sued without its consent, the Court of
Appeals affirmed the dismissal of the complaint.
The petitioner interposed the present appeal by certiorari.
Issue:
Whether a suit against the Central Bank a suit against the State.
Held:

The suit is brought against the Central Bank of the Philippines, an

entity authorized by its charter to sue and be sued. The consent of the
State to thus be sued, therefore, has been given.

Notes:
Suability of Central Bank in civil cases only
- The Central Bank is a government corporation created principally to
administer the monetary and banking system of the Republic. It is not
a prosecution agency like the fiscals office. The Central Bank is limited
to its statutory powers. Its power to sue and be sued refers to civil
cases only.