Title
Drilon vs. Lim
Case
G.R. No. 112497
Decision Date
Aug 4, 1994
Supreme Court upheld Section 187 of the Local Government Code as constitutional, affirming the Secretary of Justice's supervisory role over local tax ordinances, while ruling Manila complied with procedural requirements for its revenue code.

Case Digest (G.R. No. 112497)
Expanded Legal Reasoning Model

Facts:

  • Statutory Provision
    • Section 187, Local Government Code (LGC)
      • Requires public hearings prior to enactment of local tax ordinances and revenue measures.
      • Allows aggrieved parties to appeal within 30 days from effectivity to the Secretary of Justice, who must decide within 60 days without suspending effectivity.
      • Provides right to judicial proceedings 30 days after Secretary’s decision or lapse of the 60-day period.
    • Implementing Rules (Art. 276 LGC; Sec. 511; Sec. 59)
      • Written notices and minutes of hearings.
      • Publication in three successive issues of a newspaper of general circulation.
      • Posting of approved ordinances and translation requirements (where applicable).
  • Administrative Proceedings
    • Appeal by four oil companies and a taxpayer against Manila Ordinance No. 7794 (Manila Revenue Code).
    • Secretary of Justice Drilon declared the ordinance null and void for:
      • Non-compliance with procedural requirements.
      • Inclusion of provisions ultra vires or contrary to law and public policy.
  • Trial Court Proceedings (RTC Manila)
    • City of Manila filed certiorari to annul Sec. Drilon’s resolution.
    • RTC held that:
      • Procedural requirements had been observed.
      • Section 187 LGC was unconstitutional—vested “control” power in the Secretary of Justice, infringing local autonomy and exceeding presidential “supervision” power under the Constitution.
  • Supreme Court Proceedings
    • Petition for review filed by Secretary of Justice after reinstatement of petition.
    • SC emphasized:
      • Jurisdiction of lower courts to test constitutionality.
      • Presumption of constitutionality and deference to legislative and executive judgments.
    • SC took judicial notice of exhibits submitted below to determine compliance with procedural requirements.

Issues:

  • Whether Section 187 of the Local Government Code is constitutional or impermissibly vests the Secretary of Justice with “control” over local governments in violation of local autonomy.
  • Whether the City of Manila complied with the procedural requirements for enactment of the Manila Revenue Code (Ordinance No. 7794).

Ruling:

  • (Subscriber-Only)

Ratio:

  • (Subscriber-Only)

Doctrine:

  • (Subscriber-Only)

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