National Power Corporation (Petitioner)

Versus

Pinatubo Commercial (Respondent)

GR No. 176006 March 26, 2010

Facts:

NPC Circular No. 99-75 was issued on October 8, 1999 and sets the guidelines for the disposal of
scrap Aluminum Conductor Steel-Reinforced (ACSRs, for brevity) in order to decongest and maintain
good housekeeping in NPC Installations.

Section 3 (3.1) provides:

“3.1. Qualified Bidders envisioned in this Circular are partnerships or corporations that directly
used Aluminum as the raw material in producing finished products either purely or partly made out of
aluminum, or their duly authorized representatives. These bidders may be based locally or oversees.”
 Sometime in April 2003, the NPC published an invitation for pre-qualification of bidders, and this
is when the respondent, Pinatubo Commercial submitted its application. However, thru a letter dated
April 29, 2003, it received notice that said application was denied. Aggrieved, the respondent filed a
motion for reconsideration, which was ultimately likewise denied.

The respondent then filed a petition for the annulment of NPC Circular No. 99-75, alleging the
unconstitutionality of the said circular as it violated due process and equal protection clause of
constitution. The RTC rendered its decision, providing for the unconstitutionality of the circular,
reasoning that while it created rights for third parties, the same had not been published.

Hence, thru a petition before the Supreme Court, the National Power Corporation (NPC, for brevity)
questions the “Order” of RTC of Mandaluyong City dated June 30, 2006, which declared NPC Circular No.
99-75 as unconstitutional.

Issue:

Whether or not NPC Circular No. 99-75 must be published.

Ruling:

No, the court held that the publication requirement as enshrined under Article 2 of the Civil
Code does not cover issuances of regulations which in nature are merely for internal use, including
issuances regulating personnel of the administrative agency and not the public. Neither are letters of
instructions issued by executives concerning rules and guidelines to be followed by their subordinates in
the performance of their duties.

Hence, as NPC Circular No. 99-75 did not have to be published since it was merely an internal
rule or regulation, the petition of NPC was granted and the Order of the RTC was reversed and set side.