AM 05 10 20 SC; (March, 2010) (Digest)
A.M. No. 05-10-20-SC March 10, 2010
IN RE: EXEMPTION OF THE NATIONAL POWER CORPORATION FROM PAYMENT OF FILING/ DOCKET FEES
FACTS
The National Power Corporation (NPC) sought clarification from the Supreme Court regarding its exemption from the payment of filing fees, appeal bonds, and supersedeas bonds. The Court had previously issued a resolution on December 6, 2005, declaring NPC exempt based on Section 13 of Republic Act No. 6395 (the NPC Charter). However, on October 27, 2009, the Court issued another resolution denying NPC’s request for exemption, finding it to run counter to Section 5(5), Article VIII of the Constitution, which vests the rule-making power, including the power to fix filing fees, exclusively in the Supreme Court. This prompted NPC’s letter for clarification.
ISSUE
Whether or not the National Power Corporation (NPC) is exempt from the payment of legal fees (filing fees, appeal bonds, and supersedeas bonds).
RULING
The Supreme Court CLARIFIED that the National Power Corporation is NOT EXEMPT from the payment of legal fees. The ruling is based on two primary grounds:
1. Application of the Rules of Court: Section 22 of Rule 141 explicitly states that while the Republic of the Philippines, its agencies, and instrumentalities are exempt, local government units and government-owned or controlled corporations (GOCCs), with or without independent charters, are not exempt. Since Republic Act No. 9136 (EPIRA Law) expressly states that NPC “shall remain as a national government-owned and controlled corporation,” it falls under the non-exempt category under Rule 141.
2. Constitutional Rule-Making Power: The Court, citing its precedent in Echegaray v. Secretary of Justice, emphasized that under the 1987 Constitution, the power to promulgate rules concerning pleading, practice, and procedure—which includes the payment of legal fees—is the exclusive domain of the Supreme Court. This power is no longer shared with Congress or the Executive. Therefore, any legislative grant of exemption (such as that in the NPC Charter, as amended) cannot validly annul, change, or modify the rules promulgated by the Court. The separation of powers precludes other branches from trespassing on this prerogative. Consequently, NPC can no longer invoke Republic Act No. 6395 as a basis for exemption.