G.R. No. L-10405 - Pascual vs. Secretary of Public Works and Communications

On August 31, 1954, Governor Wenceslao Pascual filed an action for declaratory relief and preliminary injunction to annul the P85,000 appropriation in Republic Act No. 920, Sec. 1-C(a)(43 h), for “Pasig feeder road terminals.”
The funds were earmarked “for the construction, reconstruction, repair, extension and improvement” of feeder roads alleged to connect various barrios to Highway 54.

The “feeder roads” were unbuilt subdivision streets within the privately owned Antonio Subdivision in Pasig, Rizal, property of Senator José C. Zulueta at the time RA 920 was enacted.
Zulueta offered the roads to Pasig municipality (accepted conditionally), then on December 12, 1953 executed a deed of donation to the Republic—accepted by the Executive Secretary—subject to an onerous reversionary condition.

Respondents moved to dismiss, arguing: the Governor lacked capacity (the Provincial Fiscal should sue); no cause of action; the appropriation was lawful; the donation was a pure gift, not a prohibited contract.
The Court of First Instance dismissed the petition, dissolved the injunction, upheld the appropriation as public, deemed the donation a forbidden contract but held the Governor had no direct interest to challenge it.

Whether the P85,000 appropriation in RA 920 for construction of private subdivision roads violated the constitutional requirement that public funds be used only for a public purpose.
Whether Zulueta’s post-enactment donation—made while a Senator and subject to reversion—cured any constitutional defect or itself amounted to a prohibited contract.
Whether Governor Pascual, as a taxpayer and provincial representative, had legal capacity/standing to challenge the constitutionality of the appropriation and to enjoin disbursement.