NPC Drivers and Mechanics Association v. NPC - DIGEST

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D06. NPC DRIVERS AND MECHANICS ASSOCIATION v.

NPC
G.R. 156208 | September 26, 2006 | Chico-Nazario, J.
Migs | Topic: Separation of Powers and Delegation of power
Case Summary: Petitioners question the validity of NPB Resolutions that would implement the
Separation Program for employees as part of the privatization efforts of NPC. NPB Directors who
promulgated the assailed resolutions assigned alternates to sign the resolution. SC ruled that the
powers of the NPB Directors are vested by the legislature and can no longer be further delegated.

Doctrine: An officer to whom a discretion is entrusted cannot delegate it to another, the


presumption being that he was chosen because he was deemed fit and competent to exercise
that judgment and discretion, and unless the power to substitute another in his place has been
given to him, he cannot delegate his duties to another.
Petitioner: NPC DRIVERS AND MECHANICS ASSOCIATION
Respondent: NPC

Facts:
- On 8 June 2001, Republic Act No. 9136, otherwise known as the "Electric Power Industry
Reform Act of 2001" (EPIRA Law), which provides for the “orderly and transparent
privatization of the assets and liabilities of the National Power Corporation (NPC)”. A
National Power Board (NPB) was also constituted under this law.
- NPB promulgated Resolution No. 2002-124 which provided for the Guidelines on the
Separation Program of the NPC, and Resolution No. 2002-125 constituting the Transition
Team to implement the Separation Program.
- Petitioners filed a petition to restrain NPC from implementing Resolution Nos. 2002-124 and
2002-125 arguing that they are void and without force and effect.
- Petitioners argued that promulgation of the resolutions were only officially approved by three
(3) official members of the board, while the other four (4) attendees of the said board
meeting were only representatives or alternates of those officially designated officers under
the EPIRA Law. Petitioners claim that the acts of these representatives are violative of the
well-settled principle that "delegated power cannot be further delegated." Thus,
petitioners conclude that the questioned Resolutions have been illegally issued as it were not
issued by a duly constituted board since no quorum existed because only three of the nine
members, as provided under Section 48 of the EPIRA Law, were present and qualified to sit
and vote.
- Respondents claim that the validity of such administrative practice whereby an authority is
exercised by persons or subordinates appointed by the responsible official has long been
settled. Respondents further contend that Section 48 of the EPIRA Law does not in any way
prohibit any member of the NPB from authorizing his representative to sign resolutions
adopted by the Board.

Issue/s: Whether NPB Resolutions No. 2002-124 and No. 2002-125 were validly
enacted.

Holding: SC Ruled in favor of the petitioners that the powers of the NPB Directors were vested to
them by the legislature. It is to be presumed that in naming the respective department heads as
members of the board of directors, the legislature chose these secretaries of the various executive
departments on the basis of their personal qualifications and acumen which made them eligible to
occupy their present positions as department heads. Thus, the department secretaries cannot
delegate their duties as members of the NPB, much less their power to vote and approve board
resolutions, because it is their personal judgment that must be exercised in the fulfillment of such
responsibility.
Evidently, the votes cast by these mere representatives in favor of the adoption of the said
Resolutions must not be considered in determining whether or not the necessary number of votes
was garnered in order that the assailed Resolutions may be validly enacted. Hence, there being only
three valid votes cast out of the nine board members, the assailed Resolutions are void and are of
no legal effect.

Ruling:
National Power Board Resolutions No. 2002-124 and No. 2002-125 are hereby declared VOID and
WITHOUT LEGAL EFFECT. The Petition for Injunction is hereby GRANTED and respondents are
hereby ENJOINED from implementing said NPB Resolutions No. 2002-124 and No. 2002-125.

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