G.R. No. L-17159 November 23, 1965
AFAG VETERAN CORPS, INC., petitioner-appellant, vs. MARIANO G. PINEDA, Securities and Exchange Commissioner and AMORSOLO V. MENDOZA, Securities and Exchange Investigator, respondents-appellees.

FACTS

Petitioner AFAG Veteran Corps, Inc. (AFAG) is a corporation registered with the Securities and Exchange Commission (SEC). On April 7, 1959, the Solicitor General filed an administrative case (S.E.C. Case No. 956) against AFAG before the SEC, charging it with various violations including the unauthorized use and conferment of military ranks, misrepresentation to the public to induce membership with promises of backpay, collection of fees, and acting as a military organization disturbing peace and order. The SEC summoned the parties for investigation. On May 23, 1959, AFAG filed a petition for injunction in the Court of First Instance of Pasay (Civil Case No. 1920-P) to prevent the SEC from proceeding, mainly on the ground of lack of jurisdiction. The Pasay court dismissed the petition on November 5, 1959, holding that the SEC had authority to investigate, and that the court could not enjoin the Commission. This order became final. On March 19, 1960, AFAG filed a new petition for injunction in the Court of First Instance of Manila (Civil Case No. 42794) alleging the same causes of action. The Manila court dismissed the petition on May 7, 1960. AFAG appealed.

ISSUE

Whether the Court of First Instance of Manila had jurisdiction to entertain AFAG’s petition for injunction (or prohibition) seeking to restrain the Securities and Exchange Commission from proceeding with its administrative investigation.

RULING

No. The Supreme Court affirmed the order of dismissal. The power to review orders or decisions of the Securities and Exchange Commission pertains exclusively to the Supreme Court pursuant to Section 1, Rule 43, and Section 35 of Commonwealth Act No. 83 , as amended. The petition, whether treated as one for injunction or prohibition, effectively sought a review of the SEC’s assumption of jurisdiction and its order setting the administrative case for investigation. A petition for prohibition against the SEC, being a tribunal of equal rank as the Court of First Instance, must be filed with the Supreme Court, not with an inferior court. The remedy available to AFAG, if any, was a petition for review or prohibition filed directly with the Supreme Court.