G.R. No. 86963 , August 6, 1999
BATONG BUHAY GOLD MINES, INC., petitioner, vs. HONORABLE DIONISIO DELA SERNA IN HIS CAPACITY AS THE UNDERSECRETARY OF THE DEPARTMENT OF LABOR AND EMPLOYMENT, ELSIE ROSALINDA TY, ANTONIO MENDELEBAR, MA. CONCEPCION Q. REYES, AND THE OTHER COMPLAINANTS* IN CASE NO. NCR-LSED-CI-2047-87; MFT CORPORATION AND SALTER HOLDINGS PTY. LTD., respondents.

FACTS

On February 5, 1987, Elsie Rosalinda B. Ty, Antonia L. Mendelebar, Ma. Concepcion O. Reyes, and 1,247 others filed a complaint against Batong Buhay Gold Mines, Inc. (BBGMI) for non-payment of various monetary claims including wage differentials, unpaid salaries, 13th month pay, and leave benefits. The Regional Director of DOLE-NCR, after an inspection and report by Labor Standards and Welfare Officers, issued an Order on July 31, 1987, directing BBGMI to pay the complainants P4,818,746.40. BBGMI failed to post a required bond, leading the Regional Director to issue a writ of execution on September 14, 1987. Special Sheriff John Espiridion C. Ramos seized and sold BBGMI’s properties at public auction. BBGMI appealed the Regional Director’s order to respondent Undersecretary Dionisio dela Serna, contesting the Regional Director’s jurisdiction. On September 16, 1988, the Undersecretary issued an Order affirming the Regional Director’s jurisdiction and the validity of the writ of execution but declared all the auction sales conducted by the Special Sheriff null and void. Motions for Intervention were later filed by MFT Corporation and Salter Holdings Pty. Ltd., claiming rights over properties sold at the October 29, 1987 auction. The Undersecretary granted the interventions in an Order dated December 14, 1988, modifying the September 16 Order to exclude from annulment the properties sold at the October 29, 1987 auction. A subsequent Order dated February 13, 1989, denied motions for reconsideration. BBGMI filed the present Petition for Certiorari to annul these three orders.

ISSUE

1. Whether the Regional Director has jurisdiction over the complaint filed by the employees of BBGMI.
2. Whether the auction sales conducted by the Special Sheriff are valid.

RULING

1. Yes, the Regional Director has jurisdiction. The case is a labor standards case arising from the visitorial and enforcement powers of the Regional Director under Article 128(b) of the Labor Code. The complaint was filed on February 5, 1987. At that time, the applicable law was the version of Article 128(b) prior to its amendment by Republic Act No. 7730 , which granted the Regional Director the power to order compliance with labor standards provisions based on inspection findings and to issue writs of execution, except in cases where the employer contests the findings and the issues cannot be resolved without considering evidentiary matters not verifiable in the ordinary course of inspection. The Court found that the Regional Director properly exercised jurisdiction as the case involved straightforward claims for unpaid wages and benefits verifiable through routine inspection, and BBGMI’s appeal on jurisdictional grounds was without merit.
2. The auction sales were declared null and void, except for the specific sale on October 29, 1987, from which certain properties were excluded due to the interventions. The Undersecretary’s Order of September 16, 1988, affirmed the validity of the writ of execution but annulled all the auction sales conducted by Special Sheriff Ramos, ordering the return of the properties or proceeds. This annulment was based on irregularities in the execution proceedings. However, the Order of December 14, 1988, modified this by excluding from annulment “the one lot of junk mining machineries, equipment and supplies as-is-where-is” sold at the October 29, 1987 auction, after granting the motions for intervention by MFT Corporation and Salter Holdings Pty. Ltd., who claimed rights as assignees of the highest bidder. The Court, in its resolution, ultimately focused on and upheld the Undersecretary’s jurisdiction and the modified orders regarding the auction sales.