G.R. No. 221709 , October 16, 2019
National Power Corporation, Petitioner, vs. Delta P, Inc., Respondent.

FACTS

Respondent Delta P, Inc. (Delta P), an independent power producer, took over the operations of a generating plant in Puerto Princesa City owned by Paragua Power Corporation (PPC), which had a Power Purchase Agreement (PPA) with petitioner National Power Corporation (NAPOCOR). NAPOCOR refused to pay Delta P directly, citing the PPA was with PPC. Delta P advised it could no longer operate due to lack of funds. To address an imminent power shortage, NAPOCOR’s Vice-President sought and obtained approval to supply fuel and pay manpower salaries for the plant, informing Delta P’s Plant Manager via letter dated March 7, 2003. Delta P filed a collection case (Civil Case No. 3766) against NAPOCOR. On July 15, 2003, the RTC ruled in favor of Delta P under the doctrines of accion in rem verso and unjust enrichment, ordering NAPOCOR to pay P87,944,215.67 for electricity off-taken from December 2002 to June 2003. This judgment became final and was executed.
On July 30, 2003, NAPOCOR sent a Notice of Termination for the fuel supply, but the parties later agreed for Delta P to continue operations with NAPOCOR paying monthly invoices. Subsequently, on December 4, 2003, NAPOCOR issued a Debit Memo deducting P24,449,247.36 from Delta P’s account for the alleged incremental costs of fuel supplied from February 25 to June 25, 2003. Delta P filed a sum of money case assailing the Debit Memo. The RTC ruled the debit was void and illegal, ordering NAPOCOR to pay Delta P the debited amount plus interest and attorney’s fees. The CA affirmed the RTC decision. NAPOCOR appealed to the Supreme Court.

ISSUE

1. Whether NAPOCOR’s supply of fuel to Delta P was gratuitous and in the nature of a donation.
2. Whether Delta P is liable to reimburse NAPOCOR for the fuel costs, considering NAPOCOR’s post-audit and the final judgment in Civil Case No. 3766.

RULING

The Supreme Court partly granted NAPOCOR’s petition. It held that the unilateral debit by NAPOCOR was invalid. The supply of fuel was a gratuitous act, not a donation, as there was no clear intent to donate and the fuel was supplied to address a public power shortage. The Court found that the fuel supply constituted “officious management” or negotiorum gestio under Article 2144 of the Civil Code, as NAPOCOR voluntarily managed Delta P’s affairs (fuel supply) without authority but with the intent to benefit Delta P and prevent a public power crisis. Consequently, Delta P, as the owner of the property benefited, is liable to reimburse NAPOCOR for the necessary and useful expenses incurred, which include the cost of the fuel supplied. The case was remanded to the trial court to ascertain the exact amount Delta P must pay NAPOCOR for the fuel received from February 25 to June 25, 2003. All other claims by NAPOCOR were denied.