G.R. No. L-5127 May 27, 1953
PEDRO BATUNGBAKAL, plaintiff-appellee, vs. NATIONAL DEVELOPMENT COMPANY and MANUEL AGREGADO, as Auditor General of the Philippines, defendants-appellants.

FACTS

Pedro Batungbakal was appointed as a cash and property examiner in the office of the Comptroller of the National Development Company (NDC) in 1939. After the position was divided, he retained the role of property examiner. He was suspended on December 31, 1946, and dismissed on April 17, 1947, by the NDC based on findings of gross negligence by an Investigating Committee created under Administrative Order No. 39. Batungbakal sought reconsideration. A subsequent investigation by a committee chaired by Judge de la Costa reconsidered the earlier findings, exonerated Batungbakal of negligence, and recommended his reinstatement. The Secretary of Justice concurred with this recommendation. The Auditor General, however, opined that reinstatement to his former position in the Auditing Department was no longer feasible as it was occupied, but recommended creating a new position for him elsewhere in the NDC and offered no objection to paying his salary from suspension to dismissal. The NDC’s Board of Directors authorized payment of his salary for the suspension period (applied to a debt he owed) and his reappointment to a suitable position, but later conditioned reinstatement on his renouncing claims to back salary or conditioned payment of back salary on his relinquishing reinstatement rights. Batungbakal declined any position other than his former one and demanded payment of his back salary. He filed an action in the Court of First Instance of Manila, which ordered the NDC and the Auditor General to reinstate him to his former position with back salary from the date of suspension to reinstatement, minus his debt. The defendants appealed.

ISSUE

Whether Pedro Batungbakal is entitled to reinstatement to his former position and to payment of his back salary.

RULING

Yes. The Supreme Court affirmed the trial court’s decision. Batungbakal, as a civil service employee, could not be removed except for cause as provided by law. The subsequent investigation exonerated him, establishing that his suspension and dismissal were without legal cause. Therefore, he was entitled to reinstatement. The payment of back salary is incidental to and follows from reinstatement. The Auditor General’s duty to reinstate under these circumstances is ministerial and can be enforced by mandamus. The fact that his former position was occupied by another appointee did not preclude reinstatement, as Batungbakal’s illegal dismissal meant the position never legally became vacant; the incumbent’s tenure was merely temporary. The failure to appeal the Auditor General’s decision to the President did not preclude judicial recourse, as such decisions are not final upon the Judiciary.