Sebastian, Ethan Joshua S.

Social Security Act of 2018

Agrarian Laws and Social Legislation Social Security Act of 2018
Case Digest SSS v Atlantic Gulf and Pacific Company…

SSS vs. Atlantic Gulf and Pacific Company of Manila, Inc. and Semirara Coal Corp.,
G.R. No. 175952 (2008)

Facts:

Private respondents informed the SSS in writing of its premiums and loan amortization
delinquencies covering the period from January 2000 to May 2000 amounting to P7.3 Million.
They promise to pay such obligation through dacion en pago to which SSS agreed. The
agreement resulted to the restoration of the benefits of the Private respondents’ employees.
When the private respondents send to SSS the revised copy of deed of assignment, they were
shocked when found-out that their Obligation ballooned allegedly because of the additional
interest and penalty charges. The respondents argued that such interest are unreasonable
since the delay in the conveyance of the property is the fault of SSS. Even though the
respondents are willing to pay the principal obligation, SSS refused the payment since they also
want them to pay the interest and penalties.

A case for specific performance was then filed with the RTC by the respondents. SSS claimed
however that the court has no jurisdiction concerning the case. RTC ruled in favor of SSS but
was later reversed by the CA

Issue:
WON RTC has jurisdiction

Ruling:

Yes, The court ruled that:

The pertinent provision of law detailing the jurisdiction of the Commission is Section 5(a) of R.A.
No. 1161, as amended by R.A. No. 8282, otherwise known as the Social Security Act of 1997,
to wit:
“SEC. 5. Settlement of Disputes.– (a) Any dispute arising under this Act with respect to
coverage, benefits, contributions and penalties thereon or any other matter related
thereto, shall be cognizable by the Commission, and any case filed with respect thereto
shall be heard by the Commission, or any of its members, or by hearing officers duly
authorized by the Commission and decided within the mandatory period of twenty (20)
days after the submission of the evidence. The filing, determination and settlement of
disputes shall be governed by the rules and regulations promulgated by the
Commission.”
It is clear that the Commission has the jurisdiction over cases involving the act. In this case
however the controversy does not originate from the respondents accountability with SSS rather
the controversy arises from the non-implementation of the agreed dacion en pago on the part of
SSS.

Disposition:

WHEREFORE, the petition is DENIED. The Decision dated 31 August 2006 of the Court of
Appeals Eleventh Division in CA-G.R. CV No. 83775 AFFIRMED.
Sebastian, Ethan Joshua S. Social Security Act of 2018
Agrarian Laws and Social Legislation Social Security Act of 2018
Case Digest SSS v Atlantic Gulf and Pacific Company…