G.R. No.

156208
NPC DRIVERS AND MECHANICS ASSOCIATION (NPC DAMA), Petitioners
Vs
THE NATIONAL POWER CORPORATION (NPC), Respondents

FACTS U:
Due to the enactment of the Electric Power Industry Reform Act (EPIRA), the law
created the National Power Board and the National Power Commission (NPC) was
privatized and restructured. This resulted to the termination of all NPC employees
effective January 31, 2003. The Court issued an award for the employees, but the
NPB/NPC failed to comply with the SC decisions. The petitioners insisted in the
garnishment and levy of NPC’S assets including those of Power Sector Assets and
Liabilities Management Corporation (PSALM), for the satisfaction of the judgment.
The Court ruled that the petitioners were actually illegally dismissed, and that NPC is
liable for separation pay where the RTC Clerk of Court and Ex-Officio Sheriff issued a
Demand for Immediate Payment dated July 28, 2014 and served the same upon the
NPC and PSALM.

ISSUE:
WON the PSALM is liable for not complying directly with the Demand of
Immediate Payment to the petitioners.

RULING:
No, PSALM is not liable for not complying immediately with the Demand of
Immediate Payment. While PSALM is directly liable for the payment of the petitioners'
entitlement, The Supreme Court (SC) direct the petitioners to follow the proper
procedure to enforce a judgment award against the government. SC have consistently
ruled that the back payment of any compensation to public officers and employees
cannot be done through a writ of execution. The COA has exclusive jurisdiction to settle
"all debts and claims of any sort due from or owing to the Government or any of its
subdivisions, agencies, and instrumentalities." The proper procedure to enforce a
judgment award against the government is to file a separate action before the COA for
its satisfaction. Thus, the COA is responsible in determining the exact amount of the
respondents’ liabilities.

FALLO:
WHEREFORE, the Court resolves to GRANT PSALM's prayer to lift and quash the Demand
for Immediate Payment and the Notices of Garnishment issued against it and the NPC.