Republic vs.


No. L-30671 . November 28, 1973 . SECOND DIVISION Fernando, J.:

Judge Villasor issued an order declaring the finality of a decision in an arbitration case involving the Republic of the Philippines (particularly AFP), a certain Gavino Unchuan and two corporations. He also directed the sheriffs concerned to execute the said decision. The said case was decided against the AFP. As a result, AFP was directed to pay Unchuan and the two corporations an amount of P1,712,396.40 as arbitration award. It must be noted that the funds of the AFP are public funds duly appropriated and allocated for the payment of pensions of retirees, pay and allowances of military and civilian personnel and for maintenance and operations of the AFP. The Republic of the Philippines is now challenging the validity of Judge Villasor’s order on the ground that the judge acted in excess of his jurisdiction, or at the very least, grave abuse of discretion. ISSUE: Whether or not Judge Villasor acted in excess of his jurisdiction OR Whether or not a judgment against the State can be enforced by execution HELD: Writs of certiorari and prohibition are GRANTED. The order declaring executory the decision not in favor of the AFP as well as the alias of execution issued thereunder are NULLIFIED and SET ASIDE. RATIO/DOCTRINE: -The State cannot be sued without its consent. -Judgment against the State cannot be enforced by execution. The universal rule that where the State gives its consent to be sued by private parties either by general or special law is limited “only up to the completion of proceedings anterior to the state of execution” and that the power of the Courts ends when the judgment is rendered, since government funds and properties may not be seized under writs of execution or garnishment to satisfy such judgments for obvious considerations of public policy. The functions and public services rendered by the State cannot be allowed to be paralyzed or disrupted by the diversion of public funds from their legitimate and specific objects, as appropriated by law.