G.R. No. 144169 - Khe Hong Cheng vs. Court of Appeals

On April 1, 1989 and May 1, 1990, the Department of Agriculture (DOA) contracted Sultan Security Agency for security services, with standard terms and a revised monthly rate of guards.
Guards were deployed across DOA premises under those contracts.

On September 13, 1990, several guards filed NLRC Case No. 10-09-00455-90 before Regional Arbitration Branch X, alleging underpayment of wages, 13th-month pay, allowances, night differential, holiday pay, overtime pay and damages.
On May 31, 1991, the Executive Labor Arbiter found DOA and Sultan Security jointly and severally liable for ₱266,483.91; the decision became final for lack of appeal.

On July 18, 1991, the Arbiter issued a writ of execution directing the City Sheriff to levy DOA properties; vehicles (Toyota Hi-Ace, Mini Cruiser, Crown) were seized on July 19, 1991.
DOA filed a petition for injunction, prohibition and mandamus with the NLRC, arguing (a) lack of jurisdiction over the State, (b) non-suability doctrine, and (c) impairment of governmental functions.

On November 27, 1991, NLRC Fifth Division: (a) suspended execution for two months, (b) required DOA to deposit sums or post a 50% supersedeas bond, (c) ordered release of seized properties upon bond, (d) dismissed the injunction petition, and (e) issued a temporary stay of execution.
DOA filed a certiorari petition with the Supreme Court alleging grave abuse of discretion, improper jurisdiction, and violation of sovereign immunity; private respondents contended DOA impliedly waived immunity by contracting.

Whether the NLRC had jurisdiction over money claims against the DOA given the Commission on Audit’s exclusive competence under Commonwealth Act No. 327 (as amended).

Whether the NLRC violated the non-suability of the State by issuing and enforcing the writ of execution.

Whether DOA’s entry into a security services contract constituted implied consent to suit and execution.