G.R. No. L-5876 April 27, 1953
The People of the Philippines, plaintiff-appellee, vs. Chu Chi, defendant-appellant.

FACTS

The defendant-appellant, Chu Chi, was convicted by the Court of First Instance of Manila for violating Executive Order No. 331 in relation to Republic Act No. 509 (Price Control Law). The evidence for the prosecution established that on July 18, 1950, Felipe Umlas bought a fresh duck’s egg from Chu Chi’s store for P0.20. Patrolman Josue del Rosario, upon learning of the sale, confronted Chu Chi, who admitted selling the egg for that price. The ceiling price under the executive order was P0.15. Chu Chi was taken to the police station where he signed a statement (Exhibit A) admitting the sale. At trial, Chu Chi denied making the sale, claiming it was made by a salesgirl, but the trial court found his testimony not credible. He was sentenced to pay a P5,000 fine, with subsidiary imprisonment, cancellation of his license, a five-year ban from engaging in business, and, as a Chinese alien, a recommendation for deportation. The case was elevated to the Supreme Court after certification from the Court of Appeals, as the appellant questioned the constitutionality of the law.

ISSUE

The primary issue is whether Republic Act No. 509 is unconstitutional for imposing an excessive fine (not less than P2,000 nor more than P10,000) for selling an article above the ceiling price.

RULING

The Supreme Court affirmed the conviction but reduced the penalty. The Court held that Republic Act No. 509 is not necessarily unconstitutional. Following its recent decision in People vs. De la Cruz (G.R. No. L-5790, April 17, 1953), the Court ruled that the fine imposed should be commensurate with the gravity of the offense. Consequently, the P5,000 fine imposed by the trial court was reduced to P2,000, with subsidiary imprisonment in case of insolvency. The rest of the trial court’s decision, including the cancellation of license, five-year business ban, and deportation recommendation, was affirmed.