Title
IN RE: Exemption of the National Power Corporation from Payment of Filing and Docket Fees
Case
A.M. No. 05-10-20-SC
Decision Date
Mar 10, 2010
NPC sought exemption from legal fees; SC ruled it is not exempt, citing exclusive rule-making power under the 1987 Constitution and NPC's status as a GOCC.

Case Summary (A.M. No. 05-10-20-SC)

Relevant Legislative Background

The case arises from earlier resolutions by the Court dated December 6, 2005, and October 27, 2009. In 2005, the Court resolved that the NPC was exempt from payment of filing fees based on Republic Act No. 6395, which revised the NPC's Charter. However, this ruling was challenged, leading to the Court's 2009 decision, which retracted the exemption, asserting that NPC’s claim violated constitutional principles regarding the rule-making powers of the Supreme Court.

Constitutional Principles Involved

The Court highlighted Section 5(5), Article VIII of the 1987 Philippine Constitution, which delineates the Supreme Court's exclusive authority to promulgate rules concerning pleading, practice, and procedure, including the authority to set legal fees. It was established that this power is no longer shared with Congress or the Executive Branch, thus affirming the independence of the judiciary in these matters.

Implications of Legal Exemptions

The Court referenced the specific provisions in Section 22 of Rule 141, which states that while the Republic of the Philippines and its agencies are generally exempted from legal fees, local government units and government-owned or controlled corporations do not enjoy the same exemption. This distinction further confirmed that the NPC, despite its status, is subject to the same procedural rules applicable to other entities.

Legislative Changes and Judicial Interpretation

The ruling emphasizes the evolution of the rule-making power of the Court as established through the different constitutions—specifically detailing how the 1987 Constitution removed the legislative power to alter judicial rules concerning pleading and practice. This historical context solidifies the Court’s position against any legislative attempt to exempt entities like NPC from legal fees.

Denial of Exemption Claim

Ultimately, the Supreme Court clarified that the NPC's request for exemption from payment of legal fees under Republic Act No. 6395, as amended by Presidential Decree No. 938, is

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