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Pelaez V Auditor General: Initio and The Respondent Permanently Restrained From Passing in Audit Any Expenditure

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Pelaez v Auditor General

Doctrines:
Principle of separation of powers – it is a fundamental principle in our system of government.
It obtains not through express provision but by actual division in our Constitution. Each
department of the government has exclusive cognizance of matters within its jurisdiction and is
supreme within its own sphere.
The Constitution has provided for the elaborate system of checks and balances to secure
coordination in the workings of various departments of the government.

Facts:

 During the period from Sept 4 to Oct 29, 2964 the President of the Philippines,
purporting to act pursuant to Section 68 of the Revised Administrative Code, issued
Executive Orders; creating 33 municipalities.
 Nov 10, 1964 – petitioner Emmanuel Palaez, as VP of the Philippines and as a taxpayer,
instituted the present special civil action, for a writ of prohibition with preliminary
injunction, against Auditor General, to restrain him from passing in audit any expenditure
of public funds in implementation of said executive orders and/or any disbursement by
any municipalities.
 Petitioner alleges that said executive orders are null and void, upon the ground that said
Section 68 has been impliedly repealed by Republic Act No. 2370 and constitutes an
undue delegation of legislative power.
 Petitioner argues, accordingly: “If the President, under the new law, cannot even create
a barrio, can he create a municipality which is composed of several barrios. Since
barrios are units of municipalities?”
 The third paragraph of Sec 3 of R.A. 2370 reads: “Barrios shall not be created or their
boundaries altered nor their names changed except under the provisions of this Act or
by Act of Congress.”
 Respondent herein relies upon Municipality of Cardona vs. Municipality of Binañgonan,
alleging that the power of the President to create municipalities under this section does
not amount to undue delegation of legislative power.
Issue:
WON Section 68 of Revised Administrative Code constitutes an undue delegation of legislative
power. – YES
Ruling:
WHEREFORE, the Executive Orders in question are hereby declared null and void ab
initio and the respondent permanently restrained from passing in audit any expenditure
of public funds in implementation of said Executive Orders or any disbursement by the
municipalities above referred to. It is so ordered.
Ratio:
Section 10 (1) of Article VII of our fundamental law ordains:
“The President shall have control of all the executive departments, bureaus, or offices, exercise
general supervision over all local governments as may be provided by law, and take care that
the laws be faithfully executed.”
Instead of giving the President less power over local governments than that vested in him over
the executive departments, bureaus or offices, it reverses the process and does the exact
opposite, by conferring upon him more power over municipal corporations than that which he
has over said executive departments, bureaus or offices.

The Nature of the Legislative Power to Create the Area For Local Government
The legislative power to create an area of the local government involves two things: (1) the
determination of whether a local area shall be created or not; (2) the determination of whether
said decision shall have the force of law. To leave the decision to another agency or person to
create or not to create and to determine the conditions under which he would create, or to have
discretion whether to follow or not to follow the rule laid down in law, would be undue delegation
of legislative power.
The power of control under this provision implies the right of the President to interfere in the
exercise of such discretion as may be vested by law in the officers of the executive
departments, bureaus, or offices of the national government, as well as to act in lieu of such
officers. This power is denied by the Constitution to the Executive, insofar as local governments
are concerned. With respect to the latter, the fundamental law permits him to wield no more
authority than that of checking whether said local governments or the officers thereof perform
their duties as provided by statutory enactments. Hence, the President cannot interfere with
local governments, so long as the same or its officers act within the scope of their authority.

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