G.R. No. L-19988 January 5, 1967
GOVERNMENT SERVICE INSURANCE SYSTEM, petitioner, vs. PEDRO OLASE and COURT OF INDUSTRIAL RELATIONS, respondents.

FACTS

Pedro Olase, an employee of the Government Service Insurance System (GSIS), was dismissed from service on an administrative charge of malfeasance. He filed a petition for reinstatement with back wages before the Court of Industrial Relations (CIR). On January 7, 1960, the CIR ordered his reinstatement but denied his claim for back wages, finding the dismissal was done in good faith without malice. Both parties moved for reconsideration, which was denied by the CIR en banc on February 18, 1960. GSIS received notice of this denial on July 16, 1960. Both parties appealed the CIR decision to the Supreme Court (GSIS appealed the reinstatement order, docketed as L-17186; Olase appealed the denial of back wages, docketed as L-17363). On October 31, 1961, the Supreme Court affirmed the CIR decision. Subsequently, on January 4, 1962, Olase filed a motion for execution in the CIR, seeking reinstatement effective from July 27, 1960 (ten days after GSIS’s receipt of the CIR decision). GSIS actually reinstated Olase on January 21, 1962, but opposed the motion, contending that due to Olase’s own appeal, there was no enforceable decision prior to the Supreme Court’s affirmance. The CIR granted Olase’s motion on April 28, 1962, ruling his reinstatement should be deemed from July 27, 1960, and ordered GSIS to pay his salary from that date until his actual reinstatement. The CIR en banc denied GSIS’s motion for reconsideration on June 11, 1962, prompting the present appeal.

ISSUE

Whether the Court of Industrial Relations decision ordering reinstatement became executory pending appeal, and from what date Olase’s right to reinstatement and corresponding salaries should be reckoned.

RULING

The Supreme Court affirmed the orders of the Court of Industrial Relations. The Court held that under Section 14 of Commonwealth Act 103, the CIR decision became effective and self-executory ten days after the date of the award, order, or decision, regardless of the pendency of an appeal, unless execution was stayed by the Court for special reasons. Since no stay was ordered, the CIR decision became executory on July 27, 1960 (ten days after GSIS’s receipt of the CIR’s denial resolution). The Court rejected GSIS’s argument that Olase’s own appeal negated the enforceability of the decision, stating that the full CIR decision (ordering reinstatement without back wages) was what became executory. Therefore, Olase was entitled to reinstatement effective July 27, 1960, and to payment of salaries from that date until his actual reinstatement on January 21, 1962. The Court clarified that these salaries were distinct from the back wages for the period from his dismissal (June 1, 1957) to July 27, 1960, which had been denied by the CIR and the Supreme Court.