A.M. No. 05-10-20-SC - IN RE: Exemption of the National Power Corporation from Payment of Filing and Docket Fees

The National Power Corporation (NPC) sought clarification from the Supreme Court regarding its exemption from the payment of filing fees, appeal bonds, and supersedeas bonds.
The NPC based its claim on provisions in Republic Act No. 6395 (NPC Charter), which had been amended by Presidential Decree No. 938.

On December 6, 2005, the Court issued A.M. No. 05-10-20-SC, In re: Exemption of the National Power Corporation from the Payment of Filing/Docket Fees, declaring NPC exempt from paying filing fees, appeal bonds, and supersedeas bonds.
On October 27, 2009, the Court, through another resolution bearing the same A.M. No. 05-10-20-SC, reversed its earlier position by denying NPC’s request for the exemption to filing fees specifically, citing that such exemption runs counter to the rule-making powers expressly vested in the Supreme Court by the 1987 Constitution.

Section 13 of Republic Act No. 6395 was initially relied upon for the exemption.
Section 10 of RA 6395, as amended by Presidential Decree No. 938, was later examined in context.
Section 22 of Rule 141 was noted, which exempts the Republic of the Philippines, its agencies, and instrumentalities—but explicitly does not extend the exemption to local government units or government-owned or controlled corporations such as the NPC.
Section 70 of Republic Act No. 9136 (Electric Power Industry Reform Act of 2001) confirms that the NPC shall remain a national government-owned and controlled corporation, thereby not qualifying for the exemption under the aforementioned rule.

The Court’s subsequent reliance on precedents, including the case of Echegaray v. Secretary of Justice, emphasized the evolving nature of the rule-making powers of the Supreme Court.
The evolution of the rule-making power from the 1935 and 1973 Constitutions to the more expansive and independent authority under the 1987 Constitution was underscored.
The later promulgation of A.M. No. 08-2-01-0 in the GSIS case further fortified the Court’s position regarding its exclusive power in setting legal fees and other procedural rules.

Whether the NPC is entitled to an exemption from the payment of filing fees, appeal bonds, and supersedeas bonds on the basis of the statutory provision (Section 13 of Republic Act No. 6395) as amended by Presidential Decree No. 938.

Whether granting such an exemption would infringe upon the Supreme Court’s exclusive rule-making power over issues of pleading, practice, and procedure as vested by the 1987 Constitution.
Whether a legislative grant of exemption (if any) has any validity in light of the enhanced separation of powers that prohibits Congress or the Executive from modifying the procedural rules solely within the purview of the Supreme Court.

Whether the reasoning and precedent set in Echegaray v. Secretary of Justice and subsequent cases would prevent any departure from the established doctrine regarding the setting of legal fees.
How the existing rules, such as those found in Rule 141, impact the claim for exemption by NPC.