THIRD DIVISION
G.R. No. 189571, January 21, 2015
THE HONORABLE MONETARY BOARD AND GAIL U. FULE, DIRECTOR, SUPERVISION AND EXAMINATION DEPARTMENT II, AND BANGKO SENTRAL NG PILIPINAS, Petitioners, v. PHILIPPINE VETERANS BANK, Respondent.
D E C I S I O N
PERALTA, J.:
Upon a thorough analysis of the allegations of the petition and the documents attached thereto as annexes, the arguments of both parties in support of their respective position on the incident up for resolution, the Court finds that an ordinary civil action or other else but certainly not the present action for declaratory relief, is the proper remedy.
Clearly, as gleaned from the very documents attached to the petition, and as correctly pointed out by the [petitioners], [respondent], as found by the BSP examiners and confirmed by the Monetary Board, violated Section 54 of RA No. 8791, subject matter of the instant case, by engaging in an insurance activity which is prohibited by such law. To be precise, the law so provides thus:
“SEC. 54. Prohibition to Act as Insurer. A bank shall not directly engaged (sic) in the business as the insurer.”
Hence, the issue of whether or not petitioner violated the foregoing law can only be fittingly resolved thru an ordinary action. For which reason, the Court has no recourse but to put an end to this case.
In view of the foregoing, the Court deems it unnecessary to tackle the other grounds relied upon by [petitioners] in their motion to dismiss.
WHEREFORE, for reasons afore-stated, the petition is hereby DISMISSED.
SO ORDERED.
WHEREFORE, premises considered, it is hereby DECLARED that [respondent], when it collected additional fees known as “Credit Redemption Fund (CRF)” from its loan borrowers was not directly engaged in insurance business as insurer; hence, it did not violate Sec. 54, R.A. 8791, otherwise known as the “General Banking Law of 2000.”
The Monetary Board Resolution No. 1139 dated August 26, 2005 is hereby DECLARED null and void.
SO ORDERED.7
I.
THE COURT A QUO GRIEVOUSLY ERRED IN TAKING COGNIZANCE OF THE PETITION FOR DECLARATORY RELIEF DESPITE:chanroblesvirtuallawlibrary
(i) THE FINALITY OF THE BSP MB RESOLUTION: (a) DECLARING RESPONDENT VETERANS BANK’S CRF SCHEME AS VIOLATIVE OF SECTION 54 OF RA 8791; and (b) DIRECTING RESPONDENT TO RETURN THE ILLEGAL PROCEEDS THEREOF TO ITS BORROWERS; and (ii) THE BLATANT IMPROPRIETY OF RESORTING TO SUCH PETITION FOR DECLARATORY RELIEF, CONSIDERING RESPONDENT VETERANS BANK’S PRIOR BREACH OF THE MONETARY BOARD RESOLUTION SUBJECT THEREOF [ASSUMING ARGUENDO THAT THE SUBJECT BSP RESOLUTION HAS NOT BECOME FINAL];II.
THE COURT A QUO’S ORDER, DISMISSING THE PETITION FOR DECLARATORY RELIEF HAS LONG BECOME FINAL AND EXECUTORY AND MAY NO LONGER BE DISTURBED.cralawredIII.
PETITIONERS’ FINDING, THAT RESPONDENT VETERANS BANK IS ENGAGED IN “INSURANCE BUSINESS,” IS IN ACCORD WITH LAW.8
SECTION 1. Who may file petition. – Any person interested under a deed, will, contract or other written instrument, whose rights are affected by a statute, executive order or regulation, ordinance, or any other governmental regulation may, before breach or violation thereof, bring an action in the appropriate Regional Trial Court to determine any question of construction or validity arising, and for a declaration of his rights or duties, thereunder.
A perusal of Section 9(3) of Batas Pambansa Blg. 129, as amended, and Section 1, Rule 43 of the 1997 Rules of Civil Procedure reveals that the BSP Monetary Board is not included among the quasi-judicial agencies explicitly named therein, whose final judgments, orders, resolutions or awards are appealable to the Court of Appeals. Such omission, however, does not necessarily mean that the Court of Appeals has no appellate jurisdiction over the judgments, orders, resolutions, or awards of the BSP Monetary Board.
It bears stressing that Section 9(3) of Batas Pambansa Blg. 129, as amended, on the appellate jurisdiction of the Court of Appeals, generally refers to quasi-judicial agencies, instrumentalities, boards or commissions. The use of the word “including” in the said provision, prior to the naming of several quasi-judicial agencies, necessarily conveys the very idea of non-exclusivity of the enumeration. The principle of expressio unius est exclusio alterius does not apply where other circumstances indicate that the enumeration was not intended to be exclusive, or where the enumeration is by way of example only.
Similarly, Section 1, Rule 43 of the 1997 Revised Rules of Civil Procedure merely mentions several quasi-judicial agencies without exclusivity in the phraseology. The enumeration of the agencies therein mentioned is not exclusive. The introductory phrase “[a]mong these agencies are” preceding the enumeration of specific quasi-judicial agencies only highlights the fact that the list is not meant to be exclusive or conclusive. Further, the overture stresses and acknowledges the existence of other quasi-judicial agencies not included in the enumeration but should be deemed included.
A quasi-judicial agency or body is an organ of government other than a court and other than a legislature, which affects the rights of private parties through either adjudication or rule-making. The very definition of an administrative agency includes its being vested with quasi-judicial powers. The ever increasing variety of powers and functions given to administrative agencies recognizes the need for the active intervention of administrative agencies in matters calling for technical knowledge and speed in countless controversies which cannot possibly be handled by regular courts. A “quasi-judicial function” is a term which applies to the action, discretion, etc. of public administrative officers or bodies, who are required to investigate facts, or ascertain the existence of facts, hold hearings, and draw conclusions from them, as a basis for their official action and to exercise discretion of a judicial nature.
Undoubtedly, the BSP Monetary Board is a quasi-judicial agency exercising quasi-judicial powers or functions. As aptly observed by the Court of Appeals, the BSP Monetary Board is an independent central monetary authority and a body corporate with fiscal and administrative autonomy, mandated to provide policy directions in the areas of money, banking, and credit. It has the power to issue subpoena, to sue for contempt those refusing to obey the subpoena without justifiable reason, to administer oaths and compel presentation of books, records and others, needed in its examination, to impose fines and other sanctions and to issue cease and desist order. Section 37 of Republic Act No. 7653, in particular, explicitly provides that the BSP Monetary Board shall exercise its discretion in determining whether administrative sanctions should be imposed on banks and quasi-banks, which necessarily implies that the BSP Monetary Board must conduct some form of investigation or hearing regarding the same.16
Endnotes:
1 Penned by Judge Reynaldo M. Laigo, rollo, pp. 53-55.
2 Id. at 56.
3 AN ACT CREATING THE PHILIPPINE VETERANS BANK, AND FOR OTHER PURPOSES.
4 AN ACT TO REHABILITATE THE PHILIPPINE VETERANS BANK CREATED UNDER REPUBLIC ACT NO. 3518, PROVIDING THE MECHANISMS THEREFOR, AND FOR OTHER PURPOSES.
5 AN ACT PROVIDING FOR THE REGULATION OF THE ORGANIZATION AND OPERATIONS OF BANKS, QUASI-BANKS, TRUST ENTITIES AND FOR OTHER PURPOSES.
6Rollo, pp. 127-128.
7 Id. at 55.
8 Id. at 24-25.
9Province of Camarines Sur v. Court of Appeals, 616 Phil. 541, 556 (2009).
10 595 Phil. 1051, 1058 (2008).
11 SECTION 37. Administrative Sanction on Banks and Quasi-Banks. – Without prejudice to the criminal sanctions against the culpable persons provided in Section 34, 35, and 36 of this Act, the Monetary Board may, at its discretion, impose upon any bank or quasi-bank, their directors and/or officers, for any willful violation of its charter or by-laws, willful delay in the submission of reports or publications thereof as required by law, rules and regulations; any refusal to permit examination into the affairs of the institution; any willful making of a false or misleading statement to the Board or the appropriate supervising and examining department or its examiners; any willful failure or refusal to comply with, or violation of, any banking law or any order, instruction or regulation issued by the Monetary Board, or any order, instruction or ruling by the Governor; or any commission or irregularities, and/or conducting business in an unsafe or unsound manner as may be determined by the Monetary Board, the following administrative sanctions, whenever applicable:chanroblesvirtuallawlibrary(a) Fines in amounts as may be determined by the Monetary Board to be appropriate, but in no case to exceed Thirty thousand pesos (P30,000) a day for each violation, taking into consideration the attendant circumstances, such as the nature and gravity of the violation or irregularity and the size of the bank or quasi-bank;
(b) Suspension or rediscounting privileges or access to Bangko Sentral credit facilities;
(c) Suspension of lending or foreign exchange operations or authority to accept new deposits or make new investments;
(d) Suspension of interbank clearing privileges; and/or
(e) Revocation of quasi-banking license.
Resignation or termination from office shall not exempt such director or officer from administrative or criminal sanctions.
The Monetary Board may, whenever warranted by circumstances, preventively suspend any director or officer of a bank or quasi-bank pending an investigation: Provided, That should the case be not finally decided by the Bangko Sentral within a period of one hundred twenty (120) days after the date of suspension, said director or officer shall be reinstated in his position; Provided, further, That when the delay in the disposition of the case is due to the fault, negligence or petition of the director or officer, the period of delay shall not be counted in computing the period of suspension herein provided.
The above administrative sanctions need not be applied in the order of their severity.
Whether or not there is an administrative proceeding, if the institution and/or directors and/or officers concerned continue with or otherwise persist in the commission of the indicated practice or violation, the Monetary Board may issue an order requiring the institution and/or directors and/or officers concerned to cease and desist from the indicated practice or violation. The cease and desist order shall be immediately effective upon service on the respondents.
The respondents shall be afforded an opportunity to defend their action in a hearing before the Monetary Board or any committee chaired by any Monetary Board member created for the purpose, upon request made by the respondents within five (5) days from their receipt of the order. If no such hearing is requested within said period, the order shall be final. If a hearing is conducted, all issues shall be determined on the basis of records, after which the Monetary Board may either reconsider or make final its order.
The Governor is hereby authorized, at his discretion, to impose upon banking institutions, for any failure to comply with the requirements of the law, Monetary Board regulations and policies, and/or instructions issued by the Monetary Board or by the Governor, fines not in excess of Ten thousand pesos (P10,000) a day for each violation, the imposition of which shall be final and executory until reversed, modified or lifted by the Monetary Board on appeal.
12 The New Central Bank Act.
13 SECTION 66. Penalty for Violation of this Act. – Unless otherwise herein provided, the violation of any of the provisions of this Act shall be subject to Sections 34, 35, 36 and 37 of the New Central Bank Act. If the offender is a director or officer of a bank, quasi-bank or trust entity, the Monetary Board may also suspend or remove such director or officer. If the violation is committed by a corporation, such corporation may be dissolved by quo warranto proceedings instituted by the Solicitor General.
14 An Act Providing for the Regulation of the Organization and Operations of Banks, Quasi-banks, Trust Entities and for other Purposes.
15 609 Phil. 104 (2009).
16United Coconut Planters Bank v. E. Ganzon, Inc., supra, at 121-124. (Emphasis ours).