Adm. Case No. 1117 - Director of Religious Affairs vs. Bayot

Titan-Ikeda Construction and Development Corporation (Titan) filed Civil Case No. 98-0814 before RTC, Pasay City, Branch 119, for unpaid claims against Uniwide Sales Realty and Resources Corporation (Uniwide) arising from three construction projects.
Uniwide moved to suspend proceedings in favor of arbitration; Titan agreed. The case was stayed pending arbitration under Executive Order No. 1008.

Written contract dated May 1991 for ₱120,936,591.50, completion by 30 November 1991; actual completion on 15 February 1992 and turnover to Uniwide.
Dispute over ₱5,823,481.75 claimed by Titan for “additional works” allegedly without written authorization.

No written contract; parties proceeded on drawings, specs and cost estimate of ₱21,301,075.77 (inclusive of 20% mark-up). Titan admitted receipt of ₱15,000,000.00. Completed in late October 1992.
Uniwide counterclaimed for alleged overpricing, defective work and sought refund.

Written contract dated May 1992 for ₱118,000,000.00, completion by 28 February 1993; actual turnover in June 1993.
Dispute over unpaid balance of ₱5,158,364.63 and VAT liability.

Arbitral Tribunal formed; Parties signed Terms of Reference (TOR). Ocular inspection, hearings, affidavits with cross-examination, memoranda.
Decision dated 17 April 1995 absolved Uniwide on Project 1 claims; held Uniwide liable for unpaid balances on Projects 2 and 3 with 12% interest; allocated VAT liabilities. Motion for reconsideration denied on 6 July 1995.

Uniwide’s petition for review filed in CA, CA-G.R. SP No. 37957.
CA Decision dated 21 February 1996 modified CIAC ruling: reduced interest to 6%, denied direct BIR liability of Uniwide for Project 3 VAT, and made denial of liquidated damages “without prejudice.” Reconsideration denied on 30 September 1996.

Uniwide filed petition for review under Rule 45 (G.R. No. 126619), raising four issues: mistaken payment for Project 1, VAT liability on Project 1, entitlement to liquidated damages for Projects 1 and 3, and liability for defects in Project 2.

Whether Uniwide is entitled to reimbursement of ₱5,823,481.75 paid for unauthorized additional works on Project 1.
Whether Uniwide is liable for the Value-Added Tax (VAT) on Project 1 in the absence of a contractual stipulation.
Whether Uniwide may recover liquidated damages for delay in Projects 1 and 3.
Whether Uniwide is liable for the ₱6,301,075.77 unpaid balance on Project 2 and whether Titan can be held liable for alleged defective construction.