Manila Prince Hotel v. GSIS, GR No.

122156, Feb 3, 1992

FACTS:

The Government Service Insurance System (GSIS), pursuant to the privatization program of the
Philippine Government under Proclamation 50 dated 8 December 1986, decided to sell through public
bidding 30% to 51% of the issued and outstanding shares of the Manila Hotel (MHC).

During the closed bidding only two bidders participated: Manila Prince Hotel Corporation, a
Filipino corporation, which offered to buy 51% of the MHC or 15,300,000 shares at P41.58 per share,
and Renong Berhad, a Malaysian firm, with ITT-Sheraton as its hotel operator, which bid for the same
number of shares at P44.00 per share, or P2.42 more than the bid of petitioner.

Pending the declaration of Renong Berhard as the winning bidder/strategic partner and the execution of
the necessary contracts, the Manila Prince Hotel matched the bid price of P44.00 per share tendered by
Renong Berhad in a letter to GSIS dated 28 September 1995. Manila Prince Hotel sent a manager’s check
to the GSIS in a subsequent letter, but which GSIS refused to accept. On 17 October 1995, perhaps
apprehensive that GSIS has disregarded the tender of the matching bid and that the sale of 51% of the
MHC may be hastened by GSIS and consummated with Renong Berhad, Manila Prince Hotel came to the
Court on prohibition and mandamus.

Petitioner invokes Sec. 10, second par., Art. XII, of the 1987 Constitution and submits that the Manila
Hotel has been identified with the Filipino nation and has practically become a historical monument
which reflects the vibrancy of Philippine heritage and culture. Opposing, respondents maintain that the
provision is not self-executing but requires an implementing legislation for its enforcement.

ISSUE:

Whether or not the provisions of the Constitution, particularly Article XII Section 10, are self-executing.

RULING:

YES. A provision which lays down a general principle, such as those found in Article II of the 1987
Constitution, is usually not self-executing. But a provision which is complete in itself and becomes
operative without the aid of supplementary or enabling legislation, or that which supplies sufficient rule
by means of which the right it grants may be enjoyed or protected, is self-executing.

Hence, unless it is expressly provided that a legislative act is necessary to enforce a constitutional
mandate, the presumption now is that all provisions of the constitution are self-executing. If the
constitutional provisions are treated as requiring legislation instead of self-executing, the legislature
would have the power to ignore and practically nullify the mandate of the fundamental law.