PNB vs PABALAN
G.R.
No. L-33112 June 15, 1978
Facts:
Private respondent
Judge Pabalan rendered a Decision against Philippine Virginia Tobacco
Administration. Accordingly, a writ of execution and a notice of garnishment was
issued. Petitioner Philippine National Bank, however, filed a petition for
certiorari and prohibition against Judge Pabalan, invoking the doctrine of
non-suability of a state, it being alleged that such funds are public in
character.
Issue:
WON the funds of PVTA
deposited with the PNB exempt from garnishment
Held:
No. Under the present
Constitution, what was formerly implicit as a fundamental doctrine in
constitutional law has been set forth in express terms: “The State may not be sued without its consent.” If the
funds appertained to one of the regular departments or offices in the
government, then, certainly, such a provision would be a bar to garnishment. But
funds of public corporations which can sue and be sued are not exempt from
garnishment. As respondent Philippine Virginia Tobacco Administration is
likewise a public corporation possessed of the same attributes, its funds that
are deposited with PNB are not exempt from garnishment.
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