SECOND DIVISION
ENRIQUE T. GARCIA, Petitioner, -
versus - J.G.
SUMMIT PETROCHEMICAL CORPORATION,* Respondent. |
G.R. No.
127925 Present: QUISUMBING,
J., Chairperson, CARPIO, CARPIO
MORALES, TINGA, and
VELASCO,
JR., JJ. Promulgated: February 23,
2007 |
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D E C I S I O N
CARPIO MORALES, J.:
Petitioner Enrique T. Garcia comes to
this Court a third time on a matter involving the establishment of a
petrochemical plant in the country.
On the first occasion,[1] in
G.R. No. 88637, Garcia v. Board of
Investments, he was sustained by this Court that the amended application
for registration of the Bataan Petrochemical Corporation (BPC) must be
published so that those opposing it might be given an opportunity to be heard,
and that access to the amended application and its supporting papers be allowed
by the Board of Investments (BOI or the Board), subject to limitations, in line
with the constitutionally guaranteed right to information on matters of
national concern.
In the subsequent case, G.R. No. 92024,
similarly entitled Garcia v. Board of
Investments,[2] this
Court affirmed that the BOI’s approval of the amended certificate of
registration of the Luzon Petrochemical Corporation (LPC, formerly the BPC)
should be nullified, by virtue of which the original certificate of
registration with Bataan as the plant site, and with naphtha as the feedstock,
was ordered maintained.
Petitioner now asks this Court to
declare whether Presidential Decree (P.D.) Nos. 949[3]
and 1803,[4]
the laws creating a petrochemical complex in Limay,
Respondent J.G. Summit Petrochemical
Corporation was registered by the BOI as a new domestic producer of
polyethylene and polypropylene resins, for which it was issued on
By
letter of
On
Petitioner objected to the Batangas
plant site, citing as basis the 1990 decision of this Court in G.R. No. 92024,[5]
which annulled the Board’s approval of the change of plant site from
As
agreed upon during the pre-hearing conference on respondent’s amended
application for registration conducted on
On
With regard to the BOI’s purported
choice of Bataan as a petrochemical plant site, the Board held that the
preference of said site which was previously expressed by former BOI
vice-chairperson and managing head Tomas I. Alcantara about 10 years ago should
not be considered as its present stand especially in light of new developments
and conditions.
For failure to file a timely report
of its intended change of plant site, which delay was considered a violation of
the Rules and Regulations to Implement Executive Order No. 226[7] or
the Omnibus Investments Code, the BOI fined respondent.
Without
moving for a reconsideration of the May 24, 1996 BOI decision, petitioner filed
a petition for review before the Court of Appeals (CA or the appellate court),
assailing the Board’s alleged reliance on the report of the SRI that “the
country can actually accommodate at least four (4) naphtha cracker plants”
while failing to mention the report’s qualification that the second naphtha
plant would be viable only in the year 2005. And he decried the failure to make
known to the parties the SRI report before or during the hearings, he adding that
during the 15-day reglementary period for the filing of a motion for
reconsideration, he had tried to secure a copy of the report but to no avail.
In its Comment[8] to
the petition, respondent challenged petitioner’s standing to file the case,
absent any constitutional question therein. At any rate, it contended that the decision in
the second Garcia[9]
case did not rule that petrochemical plants must be established in
On its part, the BOI debunked
petitioner’s claim that he was not aware of the SRI report, having himself
actively participated in one of the meetings convened under the auspices of the
ad hoc committee on petrochemicals in which the report was discussed.[10] It likewise stated that petitioner could have
easily obtained an abstract of the pertinent portions of the SRI report before
the lapse of the time to file a motion for reconsideration of its decision had
he or his counsel been minded to secure the same from the BOI Records Division,
the Legal Department, or the Basic Industries Department.
By Decision of
In affirming the BOI decision, the
appellate court held it was “replete with details on why respondent should be
allowed to build its naphtha cracker facility in
As regards petitioner’s contention
that no petrochemical plant should be allowed outside of the
A copy of the SRI Report having already
been sent and received by petitioner on
Hence, this Petition.
As a preliminary matter, this Court
notes that the instant Petition is brought not only as an appeal of the January
21, 1997 CA Decision, but also as a certiorari petition against the May 24,
1996 Decision of the BOI which, under the Rules, must be filed not later than
sixty (60) days from notice (on May 29, 1996[13])
of the Board’s judgment[14]
or until July 29, 1996. Having been
filed out of time on
Respecting petitioner’s opposition to
its amended application for the establishment of its petrochemical plant in
Batangas, respondent maintains that petitioner does not stand to suffer any
injury from the approval of the application, hence, he is not a real party in
interest;[15] and neither does petitioner have standing to
question its amended application because he is not challenging the same on the
ground that it violates the Constitution.[16]
Petitioner submits, on the other
hand, that he has a legal interest in determining the legality of locating
respondent’s plant site in Batangas in light of P.D. Nos. 949 and 1803. He adds
that this Court has recognized his standing in the two previous Garcia cases, which are similar in
nature to the present petition.
Alternatively, he claims that respondent is itself raising a
constitutional issue, i.e., that it
would be deprived of its right to use its property in Batangas should it be
compelled to locate its plant in
Petitioner’s legal interest to oppose
the amended application for registration of the LPC was recognized in G.R. No.
88637 amidst the circumstances surrounding that case. Thus this Court declared:
There
is no merit in the public respondents’ [referring to the BOI and Department of
Trade and Industry] contention that the petitioner has ‘no legal interest’ in
the matter of the transfer of the BPC petrochemical plant from the province of
Bataan to the province of Batangas. The
provision in the Investments Code requiring publication of the investor’s
application for registration in the BOI is implicit recognition that the
proposed investment or new industry is a matter of public concern on which the
public has a right to be heard. And, when the BOI approved BPC’s
application to establish its petrochemical plant in Limay,
It can not be gainsaid that the
provision in the Omnibus Investment Code of 1987 requiring publication of the
investor’s application for registration remains to be a source of petitioner’s
legal interest to oppose herein respondent’s amended application.
In G.R. No. 88637, this Court ruled
that an amended application was “in effect a new application” which must be
published “so that whoever may have any objection to the transfer may be
heard.”[18]
Article 7, subparagraph 3 of the
Omnibus Investments Code, as amended, provides that among the powers and duties
of the BOI is to “[p]rocess and approve applications for registration with the
Board, imposing such terms and conditions as it may deem necessary to promote the objectives of this Code,
including . . . payment of application, registration, publication and other necessary fees . . .” Consonant with this
provision, Section 4 of Rule III of the Rules Implementing the Code provides:
SECTION 4. Publication of Application. — Upon the official acceptance of the application, notice thereof shall be published once in a newspaper of general circulation or in any manner that the Board may require, at applicant's expense, in a format indicating the name of the applicant, the area of investment, the capacity applied for and the plant site, if any.
At the time respondent’s amended
application was filed, petitioner, as representative of
market could not absorb the output of more than one petrochemical complex.
That the petrochemical industry has
been declared a preferred area of investment and conferred a pioneer status in
the country’s 1994-1996 Investments Priorities Plan (IPP)[19]
underscores its importance to the economy.
As this Court aptly observed in G.R. No. 92024, “[a] petrochemical industry
is not an ordinary investment opportunity” and is “essential to the national
interest . . .”[20]
This Court has brushed aside
technicalities of procedure and relaxed the rules of standing in cases of
transcendental significance, especially where the issue or issues involved have
important ramifications to the nation.[21] Thus, granting that petitioner has no right
to oppose respondent’s amended application, the transcendental importance of
the case and the significance of the issues raised herein are considered
sufficient to clothe him with legal interest.
The alleged constitutional question
raised by respondent, meanwhile, need not detain this Court any longer
considering that it is not central to the resolution of the main issue. Courts will not touch the issue of
constitutionality unless it is truly unavoidable to settle the controversy.[22]
And
on to the crux of the present controversy, which is the legality of the
establishment of respondent’s petrochemical plant in barangay Simlong,
In the main, petitioner posits that
the CA erred in sustaining the BOI Decision, because the laws creating the
576-hectare
The question of whether P.D. Nos. 949 and 1803
had intended the petrochemical complex in Limay,
The
petitioner’s motion for partial reconsideration asks this Court to rule on his
contention that the transfer of the
The above quoted pronouncement
notwithstanding, petitioner contends that the Resolution contained merely an
“observation” on the import of P.D. Nos. 949 and 1803. The observation, he adds, could not apply to
the present petition, because it was not the ground cited for the denial of his
motion for partial reconsideration, but his alleged loss of interest in the
case. Neither, he continues, was it part of this Court’s ruling in the
subsequent case as it was mentioned therein only to complete the recital of
antecedent events.[26]
Petitioner’s
contentions are bereft of merit.
It behooves this Court to clarify
that its Resolution of
By the immediately cited ruling, this
Court laid down a jurisprudential precedent that must be applied in the present
case in accordance with the doctrine of stare
decisis et non quieta movere. Follow past precedents and do not disturb
what has been settled. A point of law,
once established by the court, will generally be followed by the same court and
by all courts of lower rank in subsequent cases in which the same legal issue
is raised. Stare decisis proceeds
from the first principle of justice that, absent powerful countervailing
considerations, like cases ought to be decided alike.[28]
Petitioner himself appeared to have
conceded to this Court’s ruling as he did not assail it in his motion for
reconsideration of the
Parenthetically, the October 24, 1989
Resolution of this Court in G.R. No. 88637 also held that “[t]here is no merit in the petitioner’s other contention
that [this Court] erred in ruling that the BOI’s decision on the matter of
transferring the LPC petrochemical complex to Batangas is appealable only to
the President whose decision shall be final, as provided in Article 36 of the
1987 Omnibus Investments Code . . .”[30]
(Emphasis and underscoring supplied). By
refusing to attend the hearing at the BOI which he passionately sought,
petitioner was deemed to have lost interest and to have waived the fruit of
this Court’s judgment. Thereafter, the motion for reconsideration was disposed
of, as follows:
WHEREFORE, the petitioner’s motion for partial reconsideration of the decision in this case is denied for lack of merit. (Underscoring supplied)
It was, therefore, not solely on the
ground of his alleged loss of interest that petitioner’s motion for
reconsideration was denied, but also the lack of merit in his contentions
regarding the exclusivity of the
As to the argument that the
“observation” made in the Resolution of October 24, 1989 was neither adopted
nor reaffirmed in G.R. No. 92024 but merely mentioned therein to complete the
narration of facts, the same is too specious to consider. There was no occasion or reason in G.R. No.
92024 for this Court to reiterate its ruling against the exclusivity of the
Bataan petrochemical complex because the question then presented for resolution
was whether “the BOI committed a grave abuse of discretion in approving the
transfer of the petrochemical plant from Bataan to Batangas and authorizing the
change of feedstock from naphtha to naphtha and/or LPG for the main reason that
the final say is in the investor all
other circumstances to the contrary notwithstanding.”[31]
(Emphasis supplied)
Petitioner’s submission that G.R. No.
92024 has ruled that the petrochemical industry must be located in the
If only to lay the matter finally to
rest, this Court now reiterates that
P.D. Nos. 949 and 1830 do not prohibit the establishment of a petrochemical
plant outside of Limay,
By Proclamation No. 361 dated
P.D. No. 949 dated
SECTION 2. The Philippine National Oil Company shall manage, operate and develop the said parcel of land as a petrochemical industrial zone and will establish, develop and operate or cause the establishment, development and operation thereat of petrochemical and related industries by itself or its subsidiaries or by any other entity or person it may deem competent alone or in joint venture; Provided, that, where any petrochemical industry is operated by private entities or persons, whether or not in joint venture with the Philippine National Oil Company or its subsidiaries, the Philippine National Oil Company may lease, sell and/or convey such portions of the petrochemical industrial zone to such private entities or persons. (Emphasis supplied)
What is clear then is that the law
reserved an area for a petrochemical industrial zone in
Even the following preambular clauses
of P.D. No. 949 do not express any intent to make the
WHEREAS, the establishment, development and operation of a petrochemical complex and related industries in a petrochemical site is vital to economic and industrial development;
WHEREAS,
the efficient implementation of this objective in that site at Lamao, Limay,
P.D. No. 1803 dated
WHEREAS,
Presidential Decree No. 949, amending Proclamation No. 361 dated
WHEREAS,
it is necessary to include as part of the petrochemical industrial zone several
parcels of land located in the
NOW,
THEREFORE, I, FERDINAND E. MARCOS, President of the
Ubi lex non distinguit nec nos distinguere debemus. When the law makes no distinction, the Court
should not distinguish.[36]
The questions regarding the capacity of the
country to accommodate four naphtha cracker facilities by 1996 and the alleged
violation of petitioner’s right to due process and access to information on
matters of national concern, having arisen from the SRI report, shall be
discussed jointly.
Contrary to petitioner’s contention,
the BOI Decision in fact mentioned that based on the SRI studies, the number of
new and additional petrochemical facilities, including the four naphtha cracker
plants, could be sustained by the country from
the years 1996 to 2012.[37]
This matter must have been taken into consideration by the Board when it ruled
that locating a petrochemical project in Batangas was warranted and in the national
interest.
The BOI has been specifically tasked
by law to “[p]repare or contract for the preparation of feasibility and other
pre-investment studies for pioneer areas . . . ,”[38] to “[p]repare or contract for the preparation
of industry and sectoral development programs and gather and compile
statistical, technical, marketing, financial and other data, including
recommendations on investment policies,”[39]
to “[c]ollate, analyze and compile pertinent information and studies concerning
areas that have been or may be declared preferred areas of investments”[40]
and to prepare and submit the IPP.[41] As has been this Court’s consistent holding,
administrative and quasi-judicial agencies, which have acquired special
knowledge and expertise on matters falling under their jurisdiction, are in a
better position to pass judgment thereon.[42]
As a general rule, their findings of fact are generally accorded great respect
by the courts.[43]
As for petitioner’s claim that he was
denied due process and access to information of national concern because of the
Board’s omission to make the SRI report known before and during the hearings of
respondent’s amended application, it is bereft of merit. Petitioner has not denied having actively
participated in the
Finally, it is not for this Court to
rule on whether the national interest would be served by allowing respondent to
locate its plant in Batangas, instead of
WHEREFORE, the
Petition is DENIED. The Decision of the Court of Appeals is AFFIRMED.
SO ORDERED.
CONCHITA CARPIO MORALES
Associate Justice
WE CONCUR:
LEONARDO A.
QUISUMBING
Associate
Justice
Chairperson
ANTONIO T. CARPIO Associate Justice |
DANTE O. TINGA Associate Justice |
PRESBITERO J. VELASCO, JR.
Associate Justice
ATTESTATION
I attest
that the conclusions in the above Decision were reached in consultation before
the case was assigned to the writer of the opinion of the Court’s Division.
LEONARDO
A. QUISUMBING
Associate
Justice
Chairperson
CERTIFICATION
Pursuant to
Article VIII, Section 13 of the Constitution, and the Division Chairperson’s Attestation,
it is hereby certified that the conclusions in the above Decision were reached
in consultation before the case was assigned to the writer of the Court’s
Division.
REYNATO
S. PUNO
Chief Justice
* The Board of Investments (BOI), which was
originally impleaded in the Petition, was ordered dropped as respondent in this
Court’s Resolution of
[1]
[2] G.R. No. 92024,
[3] “VESTING THE ADMINISTRATION AND OWNERSHIP
IN FAVOR OF THE PHILIPPINE NATIONAL OIL COMPANY OF THAT PARCEL OF LAND OF THE
PUBLIC DOMAIN LOCATED AT LAMAO, LIMAY,
[4] “AMENDING PRESIDENTIAL DECREE NO. 949 DATED
[5] Supra note 2.
[6] Supra note 1.
[7] Rule XI (f) of the Implementing Rules and Regulations requires every registered enterprise to submit reports and/or documents within ten (10) calendar days after change of address or principal place of business.
[8] Rollo, pp. 194-214.
[9] Supra note 2.
[10]
[11] Penned by Justice Romeo A. Brawner, with the concurrence of Justices Conrado M. Vasquez and Celia Lipana-Reyes; id. at 259.
[12] Vide note 10.
[13] Rollo, p. 14; Petition, p. 7.
[14] Section 4 of Rule 65 of the Rules of Court provides:
SEC. 4. Where petition filed. – The petition may be filed not later than
sixty (60) days from notice of the judgment, order or resolution sought to be
assailed in the Supreme Court or, if it relates to the acts or
omissions of a lower court or of a corporation, board, officer or person, in
the Regional Trial Court exercising jurisdiction over the territorial area as
defined by the Supreme Court. It may also be filed in the Court of Appeals
whether or not the same is in aid of its appellate jurisdiction, or in the
Sandiganbayan if it is in aid of its jurisdiction. If it involves the acts or omissions of a
quasi-judicial agency and unless otherwise provided by law or these Rules, the
petition shall be filed in and cognizable only by the Court of Appeals.
(Emphasis and underscoring supplied)
[15] Rollo, pp. 356-358, 362-363.
[16]
[17] Supra note 1 at 383.
[18] Ibid.
[19]
Rollo, p. 187; BOI Decision,
p. 9.
[20] Supra note 2 at 296.
[21] Constantino, Jr. v. Cuisia, Jr., G.R. No. 106064,
[22] Philippine Veterans Bank v. Court of Appeals,
G.R. No. 132561, June 30, 2005, 462 SCRA 336, 349; Francisco, Jr. v. House of Representatives, 460 Phil. 830, 914
(2003); Sps. Hontiveros v. RTC, Br. 25, Iloilo City, 368 Phil. 653, 668 (1999); Ty v. Trampe, 321 Phil. 81, 103 (1995),
citing Macasiano v. National Housing Authority, G.R. No.
107921, 224 SCRA 236, 242, July 1,1993.
[23] Rollo, p. 9, Petition, p. 2; Rollo, p. 407, Petitioner’s Memorandum, p. 4.
[24]
[25] Petition for certiorari and prohibition under Rule 65 of the Rules of Court.
[26] Rollo, p. 18; Petition, p. 11.
[27] Supra.
[28] CDCP Mining Corporation v. Commissioner of
Internal Revenue, G.R. No. 122213, July 28, 2005, 464 SCRA 270, 278; Pinlac v. Court of Appeals, 457 Phil.
527, 540 (2003); Ayala Corp. v.
Rosa-Diana Realty and Dev. Corp., 400 Phil. 511, 521 (2000).
[29]
Garcia v. BOI, supra note 2 at 290-291.
[30] Resolution of
Decisions of the BOI under Title I of the Investments
Code regarding the determination of preferred areas of investments, formulating
an investments priority plan, and approving or disapproving the application for
registration of an enterprise, are not reviewable by this Court for they are
political and economic decisions which in our system of government are
functions of the executive branch over which this court has no power of review
except when the chief executive acts without jurisdiction or with grave abuse
of discretion or in violation of private rights.
Article 82, which the
petitioner erroneously invokes, provides for an appeal to this court from
orders or decisions of the Board of Investments in cases involving the
interpretation and application of the provisions of the Investments Code. This Court’s jurisdiction over such cases
derives from its role as the final interpreter of the Constitution and the laws
of the land. As this case does not involve
a question of legality, but of wisdom, of the BOI’s action, Article 82 of the
Code does not apply.
[31] Garcia v. BOI, supra note 2 at 297.
[32] 64 O.G. 3985-3986.
[33] 65 O.G. 13553-13554-A.
[34] Presidential Decree No. 949 (1976), Sec. 1.
[35]
[36] BAYAN (Bagong Alyansang Makabayan) v.
Exec. Sec. Zamora, 396 Phil. 623, 653 (2000); Pilar v. Commission on
Elections, 315 Phil. 851, 856-857 (1995); Commissioner of Internal Revenue v.
Commission on Audit, G.R. No. 101976,
January 29, 1993, 218 SCRA 203, 214-215.
[37]
BOI Decision, p. 10; Rollo, p.
188.
[38] Executive Order No. 226 (1987), Art. 7 (10).
[39] Id., Art. 7 (16).
[40] Id., Art. 7 (19).
[41] Id., Art. 27.
[42] Villaflor v. Court of
Appeals, 345 Phil. 524, 559 (1997); Alcasid
v. Court of Appeals, G.R. No. 94927,
January 22, 1993, 217 SCRA 437,
441-442; Heirs of Filomeno Tuyac v.
Consolacion, G.R. No. 60161, March 21, 1990, 183 SCRA 396, 401.
[43] Supra.
[44] Supra note 1 at 382.