Case Digest (G.R. No. L-28138)
Facts:
Matalin Coconut Co., Inc. v. The Municipal Council of Malabang, Lanao del Sur, et al., G.R. No. L-28138, August 13, 1986, Supreme Court First Division, Yap, J., writing for the Court.On August 24, 1966 the Municipal Council of Malabang, Lanao del Sur enacted Ordinance No. 45-66, imposing a "police inspection fee" of P.30 per sack on cassava starch or flour "produced and shipped out of the Municipality of Malabang" and penalizing violations with fines and/or imprisonment. The ordinance required payment by the shipper before transport and purportedly empowered police inspection and escort functions.
Challenging the ordinance, Matalin Coconut Co., Inc. filed a petition for declaratory relief in the Court of First Instance of Lanao del Sur against the Municipal Council, the Municipal Mayor (Amir M. Balindong) and the Municipal Treasurer (Hadji Pangilamun Manalocon), alleging the ordinance was ultra vires under Republic Act No. 2264 (the Local Autonomy Act) and was unreasonable, oppressive and confiscatory; it sought declaration of nullity ab initio, refund of amounts paid, and a preliminary injunction. The trial court denied a preliminary injunction but ordered the treasurer to accept payments "under protest."
Purakan Plantation Company was allowed to intervene, alleging the ordinance hindered its transportation of cassava products through Malabang to the seashore for shipment despite its mill being in another municipality (Balabagan).
After trial the court a quo declared Ordinance No. 45-66 null and void, ordered the Municipal Treasurer to refund petitioner P25,500 (payments from Sept. 27, 1966 to May 2, 1967) and all subsequent payments, enjoined respondents from collecting the P.30 per bag tax (as to intervenor’s products), and issued a writ of preliminary mandatory injunction requiring deposit of paid amounts in the Philippine National Bank, Iligan Branch; that writ was later modified to limit deposits to amounts paid after the writ’s effectivity.
Respondents appealed to this Court. A motion to dismiss the appeal was denied (Oct. 31, 1967) and a separate motion to dissolve the preliminary mandatory injunc...(Subscriber-Only)
Issues:
- In an action for declaratory relief, could the trial court adjudicate and order the refund of amounts paid under protest, rather than require a separate ordinary action?
- Was Municipal Ordinance No. 45-66 (police inspection fee of P.30 per sack on cassava starch or flour shipped out of Malabang) valid under Section 2 of Repu...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)