G.R. No.

L-61744 June 25, 1984

MUNICIPALITY OF SAN MIGUEL, BULACAN, petitioner,

vs.
HONORABLE OSCAR C. FERNANDEZ, in his capacity as the Presiding Judge, Branch IV,
Baliuag, Bulacan, The PROVINCIAL SHERIFF of Bulacan, MARGARITA D. VDA. DE IMPERIO,
ADORACION IMPERIO, RODOLFO IMPERIO, CONRADO IMPERIO, ERNESTO IMPERIO,
ALFREDO IMPERIO, CARLOS IMPERIO, JR., JUAN IMPERIO and SPOUSES MARCELO
PINEDA and LUCILA PONGCO, respondents.

FACTS:

In Civil Case No. 604-B, the lower court held the petitioner municipality liable to Mrs. Imperio for
rentals paid by the occupants of subdivision lots donated by the deceased Mr. Imperio in favor of the
municipality, and the partial revocation of the Deed of Donation as well as the restoration of
ownership and possession over the said lots in favor of Mrs. Imperio. The respondent judge then
issued a writ of execution to the municipality after the lower court's decision became final for its
failure to file an appeal on time. Herein petitioner filed this review for certiorari arguing that property
or funds belonging to the municipality are all public funds exempt from execution and cannot be
subject to levy.

ISSUE:

Whether the funds of the petitioner Municipality of San Miguel in the hands of the provincial and
municipal treasurers of Bulacan and San Miguel, respectively, are public funds which are exempt
from execution for the satisfaction of the money judgment for payment of unpaid rentals.

RULING:

The court held that properties of municipal corporations are exempt as they are held in trust for the
people, intended and used for the accomplishment of the purposes for which municipal corporations
are created (although it is an incorporated agency whose charter provides that it can sue and be
sued). Also, Presidential Decree No. 477: "No money shall be paid out of the treasury except in
pursuance of a lawful appropriation or other specific statutory authority". As such, there must be a
corresponding appropriation in the form of an ordinance duly passed by the Sangguniang Bayan
before any money of the municipality may be paid out. In the case at bar, it has not been shown that
the Sangguniang Bayan has passed an ordinance to this effect.