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Bacani Vs Nacoco [G.R. No. L-9657.

November 29, 1956




Facts: Plaintiffs herein are court stenographers assigned in Branch VI of the Court of First
Instance of Manila. During the pendency of Civil Case No. 2293 of said court, entitled Francisco
Sycip vs. National Coconut Corporation, Assistant Corporate Counsel Federico Alikpala, counsel
for Defendant ,requested said stenographers for copies of the transcript of the stenographic
notes taken by them during the hearing. Plaintiffs complied with the request by delivering to
Counsel Alikpala the needed transcript containing 714 pages and thereafter submitted to him
their bills for the payment of their fees. The National Coconut Corporation paid the amount of
P564 to Leopoldo T. Bacaniand P150 to Mateo A. Matoto for said transcript at the rate of P1 per
page the Auditor General required the Plaintiffs to reimburse said amounts on the strength of a
circular of the Department of Justice wherein the opinion was expressed that the National
Coconut Corporation, being a government entity, was exempt from the payment of the fees in
question.

Issue :WON NACOCO IS NACOCO is a Government Entity

Held: They do not acquire that status for the simple reason that they do not come under the
classification of municipal or public corporation. Take for instance the National Coconut
Corporation. While it was organized with the purpose of adjusting the coconut industry to a
position independent of trade preferences in the United States and of providing Facilities for
the better curing of copra products and the proper utilization of coconut by-products, a
function which our government has chosen to exercise to promote the coconut industry,
however, it was given a corporate power separate and distinct from our government, for it was
made subject to the provisions of our Corporation Law in so far as its corporate existence and
the powers that it may exercise are concerned (sections 2 and 4, Commonwealth Act No. 518).
It may sue and be sued in the same manner as any other private corporations, and in this sense
it is an entity different from our government. As this Court has aptly said, The mere fact that
the Government happens to be a majority stockholder does not make it a public. the term
Government of the Republic of the Philippines used in section 2 of the Revised Administrative
Code refers only to that government entity through which the functions of the government are
exercised as an attribute of sovereignty, and in this are included those arms through which
political authority is made effective whether they be provincial, municipal or other form of local
government. These are what we call municipal corporations. They do not include government
entities which are given a corporate personality separate and distinct from the government and
which are governed by the Corporation Law. Their powers, duties and liabilities have to be
determined in the light of that law and of their corporate charters. They do not therefore come
within the exemption clause prescribed in section 16, Rule 130 of our Rules of Court

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