G.R. No. L-30671 - Republic vs. Villasor

On July 3, 1961, Special Proceedings No. 2156-R resulted in a decision confirming an arbitration award in favor of P. J. Kiener Co., Ltd., Gavino Unchuan, and International Construction Corporation, against the Republic of the Philippines, for the amount of ₱1,712,396.40 (later claimed as ₱2,372,331.40).
No appeal or annulment proceedings were instituted by the Republic following the 1961 decision.

On June 24, 1969, Judge Guillermo P. Villasor of the Court of First Instance of Cebu, Branch I, issued an order declaring the July 3, 1961 decision final and executory.
Pursuant to that order, an alias writ of execution was issued on June 26, 1969, directed to the Sheriffs of Rizal Province, Quezon City, and Manila.
On June 28 and 30, 1969, the Provincial Sheriff of Rizal and the Philippine Veterans Bank, respectively, served garnishment notices on banks holding funds of the Armed Forces of the Philippines (AFP).
The AFP Comptroller certified (July 3, 1969) that the garnished funds were public moneys appropriated for pensions, pay and allowances, and operations of the AFP.

On July 7, 1969, the Republic filed a petition for certiorari and prohibition, alleging that the judge acted in excess of jurisdiction or with grave abuse of discretion in issuing the order and alias writ against public funds.
Respondents admitted the material facts, only adjusting the total award amount.

Whether Judge Villasor had jurisdiction to declare final and executory the 1961 decision after lapse of time and without the Republic’s consent.
Whether, assuming consent, the court may order execution against public funds.

Whether the AFP’s bank deposits—being public funds—are subject to garnishment or execution under Philippine law and the Constitution.