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G.R. No.

76118 March 30, 1993 actions of the Monetary Board which are consequences of a prior hearing: bank runs
THE CENTRAL BANK OF THE PHILIPPINES and tainted with arbitrariness and bad faith. would be the order of the day, resulting in
RAMON V. TIAOQUI, petitioners, vs. COURT panic and hysteria. In the process, fortunes
OF APPEALS and TRIUMPH SAVINGS BANK, Contrary to the notion of private respondent, may be wiped out and disillusionment will
respondents. Sec. 29 does not contemplate prior notice run the gamut of the entire banking
and hearing before a bank may be directed to community.
The first issue raised before Us is whether stop operations and placed under
absence of prior notice and hearing may be receivership. When par. 4 (now par. 5, as We stressed in Central Bank of the
considered acts of arbitrariness and bad amended by E.O. 289) provides for the filing Philippines v. Court of Appeals that
faith sufficient to annul a Monetary Board of a case within ten (10) days after the
resolution enjoining a bank from doing receiver takes charge of the assets of the . . . the banking business is properly subject
business and placing it under receivership. bank, it is unmistakable that the assailed to reasonable regulation under the police
actions should precede the filing of the case. power of the state because of its nature and
Otherwise stated, is absence of prior notice Plainly, the legislature could not have relation to the fiscal affairs of the people and
and hearing constitutive of acts of intended to authorize "no prior notice and the revenues of the state (9 CJS 32). Banks
arbitrariness and bad faith? hearing" in the closure of the bank and at the are affected with public interest because they
same time allow a suit to annul it on the basis receive funds from the general public in the
Under Sec. 29 of R.A. 265, the Central Bank, of absence thereof. form of deposits. Due to the nature of their
through the Monetary Board, is vested with transactions and functions, a fiduciary
exclusive authority to assess, evaluate and This "close now and hear later" scheme is relationship is created between the banking
determine the condition of any bank, and grounded on practical and legal institutions and their depositors. Therefore,
finding such condition to be one of considerations to prevent unwarranted banks are under the obligation to treat with
insolvency, or that its continuance in dissipation of the bank's assets and as a valid meticulous care and utmost fidelity the
business would involve probable loss to its exercise of police power to protect the accounts of those who have reposed their
depositors or creditors, forbid the bank or depositors, creditors, stockholders and the trust and confidence in them (Simex
non-bank financial institution to do business general public. International [Manila], Inc., v. Court of
in the Philippines; and shall designate an Appeals, 183 SCRA 360 [1990]).
official of the CB or other competent person In Rural Bank of Buhi, Inc. v. Court of
as receiver to immediately take charge of its Appeals, We stated that It is then the Government's responsibility to
assets and liabilities. see to it that the financial interests of those
. . . due process does not necessarily require who deal with the banks and banking
The fourth paragraph, which was then in a prior hearing; a hearing or an opportunity institutions, as depositors or otherwise, are
effect at the time the action was commenced, to be heard may be subsequent to the protected. In this country, that task is
allows the filing of a case to set aside the closure. One can just imagine the dire delegated to the Central Bank which,
pursuant to its Charter (R.A. 265, as while the assets of a bank are being depleted Board in the exercise of its quasi-judicial
amended, and at present RA7653 [The New through mismanagement or irregularities. It powers or functions.
Central Bank Act]), is authorized to is the duty of the Central Bank in such an
administer the monetary, banking and credit event to step in and salvage the remaining The authority of the petitioners to issue the
system of the Philippines. Under both the resources of the bank so that they may not questioned MB Resolution emanated from its
1973 and 1987 Constitutions, the Central continue to be dissipated or plundered by powers under Section 3711 of RA No. 765312
Bank is tasked with providing policy those entrusted with their management. and Section 6613 of RA No. 879114 to
direction in the areas of money, banking and impose, at its discretion, administrative
credit; corollarily, it shall have supervision G.R. No. 189571, January 21, 2015 sanctions, upon any bank for violation of any
over the operations of banks (Sec. 14, Art. XV, THE HONORABLE MONETARY BOARD AND banking law.
1973 Constitution, and Sec. 20, Art. XII, 1987 GAIL U. FULE, DIRECTOR, SUPERVISION AND
Constitution). Under its charter, the CB is EXAMINATION DEPARTMENT II, AND The nature of the BSP Monetary Board as a
further authorized to take the necessary BANGKO SENTRAL NG PILIPINAS, quasi-judicial agency, and the character of its
steps against any banking institution if its Petitioners, v. PHILIPPINE VETERANS BANK, determination of whether or not appropriate
continued operation would cause prejudice Respondent. sanctions may be imposed upon erring banks,
to its depositors, creditors and the general PERALTA, J. as an exercise of quasi-judicial function, have
public as well. been recognized by this Court in the case of
Ergo, the Court, in CJH Development United Coconut Planters Bank v. E. Ganzon,
This power has been expressly recognized by Corporation v. Bureau of Internal Revenue,10 Inc.,15 to wit:
this Court. In Philippine Veterans Bank held that in the same manner that court
Employees Union-NUBE v. Philippine decisions cannot be the proper subjects of a A perusal of Section 9(3) of Batas Pambansa
Veterans Banks (189 SCRA 14 [1990], this petition for declaratory relief, decisions of Blg. 129, as amended, and Section 1, Rule 43
Court held that: quasi-judicial agencies cannot be subjects of of the 1997 Rules of Civil Procedure reveals
a petition for declaratory relief for the simple that the BSP Monetary Board is not included
. . . [u]nless adequate and determined reason that if a party is not agreeable to a among the quasi-judicial agencies explicitly
efforts are taken by the government against decision either on questions of law or of fact, named therein, whose final judgments,
distressed and mismanaged banks, public it may avail of the various remedies provided orders, resolutions or awards are appealable
faith in the banking system is certain to by the Rules of Court. to the Court of Appeals. Such omission,
deteriorate to the prejudice of the national however, does not necessarily mean that the
economy itself, not to mention the losses In view of the foregoing, the decision of the Court of Appeals has no appellate jurisdiction
suffered by the bank depositors, creditors, BSP Monetary Board cannot be a proper over the judgments, orders, resolutions, or
and stockholders, who all deserve the subject matter for a petition for declaratory awards of the BSP Monetary Board.
protection of the government. The relief since it was issued by the BSP Monetary
government cannot simply cross its arms
It bears stressing that Section 9(3) of Batas than a legislature, which affects the rights of others, needed in its examination, to impose
Pambansa Blg. 129, as amended, on the private parties through either adjudication or fines and other sanctions and to issue cease
appellate jurisdiction of the Court of Appeals, rule-making. The very definition of an and desist order. Section 37 of Republic Act
generally refers to quasi-judicial agencies, administrative agency includes its being No. 7653, in particular, explicitly provides
instrumentalities, boards or commissions. vested with quasi-judicial powers. The ever that the BSP Monetary Board shall exercise its
The use of the word including in the said increasing variety of powers and functions discretion in determining whether
provision, prior to the naming of several given to administrative agencies recognizes administrative sanctions should be imposed
quasi-judicial agencies, necessarily conveys the need for the active intervention of on banks and quasi-banks, which necessarily
the very idea of non-exclusivity of the administrative agencies in matters calling for implies that the BSP Monetary Board must
enumeration. The principle of expressio unius technical knowledge and speed in countless conduct some form of investigation or
est exclusio alterius does not apply where controversies which cannot possibly be hearing regarding the same.16
other circumstances indicate that the handled by regular courts. A quasi-judicial
enumeration was not intended to be function is a term which applies to the
exclusive, or where the enumeration is by action, discretion, etc. of public
way of example only. administrative officers or bodies, who are
required to investigate facts, or ascertain the
Similarly, Section 1, Rule 43 of the 1997 existence of facts, hold hearings, and draw
Revised Rules of Civil Procedure merely conclusions from them, as a basis for their
mentions several quasi-judicial agencies official action and to exercise discretion of a
without exclusivity in the phraseology. The judicial nature.
enumeration of the agencies therein
mentioned is not exclusive. The introductory Undoubtedly, the BSP Monetary Board is a
phrase [a]mong these agencies are quasi-judicial agency exercising quasi-judicial
preceding the enumeration of specific quasi- powers or functions. As aptly observed by the
judicial agencies only highlights the fact that Court of Appeals, the BSP Monetary Board is
the list is not meant to be exclusive or an independent central monetary authority
conclusive. Further, the overture stresses and and a body corporate with fiscal and
acknowledges the existence of other quasi- administrative autonomy, mandated to
judicial agencies not included in the provide policy directions in the areas of
enumeration but should be deemed money, banking, and credit. It has the power
included. to issue subpoena, to sue for contempt those
refusing to obey the subpoena without
A quasi-judicial agency or body is an organ of justifiable reason, to administer oaths and
government other than a court and other compel presentation of books, records and