G.R. No. 156208 ; September 26, 2006
NPC Drivers and Mechanics Association (NPC DAMA), et al. vs. The National Power Corporation (NPC), et al.

FACTS

Petitioners, NPC employee associations and individual employees, filed a special civil action for injunction to enjoin respondents from implementing NPB Resolutions No. 2002-124 and No. 2002-125. These resolutions, issued pursuant to the Electric Power Industry Reform Act of 2001 (EPIRA), directed the termination of all NPC employees on 31 January 2003 as part of the corporation’s restructuring and privatization, with entitlement to separation benefits. The petitioners contended the resolutions were void, arguing they were passed by an improperly constituted National Power Board. They claimed that during the meeting, only three of the statutory members (the Secretaries of Energy, Budget and Management, and the NPC President) were physically present, while four other attendees were merely designated alternates of the secretaries named under the EPIRA law. Petitioners invoked the principle that delegated power cannot be further delegated.

ISSUE

Whether the National Power Board Resolutions No. 2002-124 and No. 2002-125 are invalid for having been passed by a board composed of unauthorized representatives or alternates instead of the specific department secretaries mandated by the EPIRA law.

RULING

The Supreme Court dismissed the petition and upheld the validity of the assailed NPB Resolutions. The legal logic rests on the distinction between the power to appoint a representative to perform ministerial or administrative duties and the power to delegate discretionary or judicial functions. The Court ruled that the act of attending board meetings and voting on corporate matters, such as the approval of the restructuring plan and separation guidelines, is a ministerial or administrative function. The department secretaries, as ex-officio members of the NPB, hold primary responsibilities within their respective departments. It is legally permissible and practically necessary for them to designate alternates to attend board meetings and vote in their stead to ensure the NPB’s continuous and efficient operation. This does not constitute an invalid delegation of discretionary power but a valid assignment of administrative tasks. Consequently, the presence and participation of the duly designated alternates rendered the board meeting and the resulting resolutions validly constituted and legally effective. The Court found no violation of the principle delegata potestas non potest delegari (delegated power cannot be further delegated) under the circumstances.