PELAEZ V AUDITOR GENERAL

GR No. L-23825 - Dec 24, 1965 – Concepcion, J.

DOCTRINE: POWER OF PRESIDENT TO CREATE MUNICIPALITIES – Since January 1, 1960 when R.A. 2370
became effective, barrios may “not be created or their boundaries altered nor their names changed”
except by Act of Congress or of the corresponding provincial board “upon petition of a majority of the
voters in the areas affected” and the “recommendation of the council of the municipality or
municipalities in which the proposed barrio is situated.” This statutory denial of the presidential
authority to create a new barrio implies a negation of the bigger power to create municipalities, each of
which consists of several barrios.

NATURE OF POWER TO CREATE MUNICIPALITIES – Whereas the power to fix a common boundary, in
order to avoid or to settle conflicts of jurisdiction between adjoining municipalities, may partake of an
administrative nature – involving, as it does, the adoption of means and ways to carry into effect the law
creating said municipalities – the authority to create municipal corporations is essentially legislative in
nature.

FACTS: During the period from September 4 to October 29. 1964, the President issued Executive Orders
93 to 121, 124, and 126 to 129, all based on section 68 of the Revised Administrative Code, creating 33
municipalities. On November 10, 1964 Vice-President Emmanuel Pelaez instituted an action for a writ of
prohibition with preliminary injunction against the Auditor General to restrain him from passing in audit
any expenditure of public funds in implementation of said executive orders and/or any disbursement by
said municipalities, alleging that said Eos are null and void as it constitutes an undue delegation of
legislative power. Pelaez cites the 3rd paragraph of Sec.3 RA2370 which prohibited the creation of
barrios except under provisions of the Act or by Act of Congress and argues that "If the President, under
this new law, cannot even create a barrio, can he create a municipality which is composed of several
barrios, since barrios are units of municipalities?"

ISSUE: Whether or not the Executive Orders are valid

RULING: No, the Court declared the Executive Orders in question as null and void ab initio.

Although Congress may delegate to another branch of the Government the power to fill in the details in
the execution, enforcement or administration of a law, it is essential, to forestall a violation of the
principle of separation of powers, that said law: (a) be complete in itself — it must set forth therein the
policy to be executed, carried out or implemented by the delegate — and (b) fix a standard — the limits
of which are sufficiently determinate or determinable — to which the delegate must conform in the
performance of his functions. Indeed, without a statutory declaration of policy, the delegate would in
effect, make or formulate such policy, which is the essence of every law; and, without the
aforementioned standard, there would be no means to determine, with reasonable certainty, whether
the delegate has acted within or beyond the scope of his authority. Section 68 of the Revised
Administrative Code does not meet these well settled requirements for a valid delegation of the power
to fix the details in the enforcement of a law. It does not enunciate any policy to be carried out or
implemented by the President. Neither does it give a standard sufficiently precise to avoid the evil
effects above referred to.

In this connection, what must not be overlooked is the fact that, under the last clause of the first
sentence of Section 68, the President “... may change the seat of the government within any subdivision
to such place therein as the public welfare may require”. It is apparent, however, from the language of
this clause, that the phrase "as the public welfare may require" qualified only the place to which the seat
of the government may be transferred. The creation of municipalities is not an administrative function,
but one which is essentially and eminently legislative in character. The question of whether or not
"public interest" demands the exercise of such power is not one of fact. it is purely a legislative question
or a political question. The power of control of the President only covers the authority to assume
directly the functions thereof or to interfere in the exercise of discretion by its officials. It does not
include the authority either to abolish an executive department or bureau or to create a new one.
Therefore, Section 68 of the Revised Administrative Code entails an undue delegation of legislative
powers to the President insofar as confers more power to the President over municipal corporations
and the questioned Executive Orders, which are issued pursuant to Sec 68 of the Revised Administrative
Code, are all null and void ab initio.