3 Holy Spirit Homeowners Association v. Defensor

9/1/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 497
G.R. No. 163980. August 3, 2006.*
HOLY SPIRIT HOMEOWNERS ASSOCIATION, INC. and

NESTORIO F. APOLINARIO, in his personal capacity and
as President of Holy Spirit Homeowners Association, Inc.,
petitioners, vs. SECRETARY MICHAEL DEFENSOR, in
his capacity as Chairman of the Housing and Urban
Development Coordinating Council (HUDCC), ATTY.
EDGARDO PAMINTUAN, in his capacity as General
Manager of the National Housing Authority (NHA), MR.
PERCIVAL CHAVEZ, in his capacity as Chairman of the
Presidential Commission for the Urban Poor (PCUP),
MAYOR FELICIANO BELMONTE, in his capacity as
Mayor of Quezon City, SECRETARY ELISEA GOZUN, in
her capacity as Secretary of the Department of
Environment and Natural Resources (DENR) and
SECRETARY FLORENTE SORIQUEZ, in his capacity as
Secretary of the Department of Public Works and
Highways (DPWH) as ex-officio members of the
NATIONAL GOVERNMENT CENTER
ADMINISTRATION COMMITTEE, respondents.
National Government Center (NGC); Judicial Review; Locus

Standi; An association has the legal standing to institute the
petition, whether or not it is the duly recognized association of
homeowners in the National Government Center (NGC) where it is
shown that the individual members of the association are residents
of the NGC.—“Legal standing” or locus standi has been defined as
a personal and substantial interest in the case such that the party
has sustained or will sustain direct injury as a result of the
governmental act that is being challenged…. The gist of the
question of standing is whether a party alleges “such personal
stake in the outcome of the controversy as to assure that concrete
adverseness which sharpens the presentation of issues upon
which the court depends for illumination of difficult constitutional
questions.” Petitioner association has the legal standing to
institute the instant petition, whether or not it is the duly
recognized association of homeowners in the NGC. There is no
dispute that the individual members of petitioner association are
www.central.com.ph/sfsreader/session/0000016cece210409a537b7c003600fb002c009e/t/?o=False 1/22
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* EN BANC.
582
582 SUPREME COURT REPORTS ANNOTATED
Holy Spirit Homeowners Association, Inc. vs. Defensor
residents of the NGC. As such they are covered and stand to be

either benefited or injured by the enforcement of the IRR,
particularly as regards the selection process of beneficiaries and
lot allocation to qualified beneficiaries. Thus, petitioner
association may assail those provisions in the IRR which it
believes to be unfavorable to the rights of its members. Contrary
to the OSG’s allegation that the failure of petitioner association
and its members to qualify as beneficiaries effectively bars them
from questioning the provisions of the IRR, such circumstance
precisely operates to confer on them the legal personality to assail
the IRR.
Administrative Law; Administrative agencies possess quasi-
legislative or rule-making powers and quasi-judicial or
administrative adjudicatory powers.—Administrative agencies
possess quasi-legislative or rule-making powers and quasi-judicial
or administrative adjudicatory powers. Quasi-legislative or rule-
making power is the power to make rules and regulations which
results in delegated legislation that is within the confines of the
granting statute and the doctrine of non-delegability and
separability of powers.
Same; Exhaustion of Administrative Remedies; The principle
of exhaustion of administrative agencies applies only where the act
of the administrative agency concerned was performed pursuant to
its quasi-judicial function, and not when the assailed act
pertained to its rule-making or quasi-legislative power.—In
questioning the validity or constitutionality of a rule or regulation
issued by an administrative agency, a party need not exhaust
administrative remedies before going to court. This principle,
however, applies only where the act of the administrative agency
concerned was performed pursuant to its quasi-judicial function,
and not when the assailed act pertained to its rule-making or
quasi-legislative power.
Same; Jurisdictions; Where what is assailed is the validity or
constitutionality of a rule or regulation issued by the
administrative agency in the performance of its quasi-legislative
function, the regular courts have jurisdiction to pass upon the

same.—The assailed IRR was issued pursuant to the quasi-
legislative power of the Committee expressly authorized by R.A.
No. 9207. The petition rests mainly on the theory that the
assailed IRR issued by the Committee is invalid on the ground
that it is not germane to the object and purpose of the statute it
seeks to implement. Where what is assailed is the validity
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VOL. 497, AUGUST 3, 2006 583
or constitutionality of a rule or regulation issued by the

administrative agency in the performance of its quasi-legislative
function, the regular courts have jurisdiction to pass upon the
same.
National Government Center (NGC); Hierarchy of Courts;
Since the regular courts have jurisdiction to pass upon the validity
of the assailed Implementing Rules and Regulations (IRR) issued
by the National Government Center Administration Committee
(Committee) in the exercise of its quasi-legislative power, the
judicial course to assail its validity must follow the doctrine of
hierarchy of courts—a direct invocation of the Supreme Court’s
original jurisdiction to issue writs of certiorari, prohibition,
mandamus, quo warranto, habeas corpus and injunction should
be allowed only when there are special and important reasons
therefor, clearly and specifically set out in the petition.—Since the
regular courts have jurisdiction to pass upon the validity of the
assailed IRR issued by the Committee in the exercise of its quasi-
legislative power, the judicial course to assail its validity must
follow the doctrine of hierarchy of courts. Although the Supreme
Court, Court of Appeals and the Regional Trial Courts have
concurrent jurisdiction to issue writs of certiorari, prohibition,
mandamus, quo warranto, habeas corpus and injunction, such
concurrence does not give the petitioner unrestricted freedom of
choice of court forum. True, this Court has the full discretionary
power to take cognizance of the petition filed directly with it if
compelling reasons, or the nature and importance of the issues
raised, so warrant. A direct invocation of the Court’s original
jurisdiction to issue these writs should be allowed only when
there are special and important reasons therefor, clearly and
specifically set out in the petition. In Heirs of Bertuldo Hinog v.
Melicor, 455 SCRA 460 (2005), the Court said that it will not
entertain direct resort to it unless the redress desired cannot be
obtained in the appropriate courts, and exceptional and
compelling circumstances, such as cases of national interest and
of serious implications, justify the availment of the extraordinary

remedy of writ of certiorari, calling for the exercise of its primary
jurisdiction.
Courts; Hierarchy of Courts; The Supreme Court’s power to
evaluate the validity of an implementing rule or regulation is
generally appellate in nature.—A perusal, however, of the petition
for prohibition shows no compelling, special or important reasons
to warrant the Court’s taking cognizance of the petition in the
first
584
instance. Petitioner also failed to state any reason that precludes

the lower courts from passing upon the validity of the questioned
IRR. Moreover, as provided in Section 5, Article VIII of the
Constitution, the Court’s power to evaluate the validity of an
implementing rule or regulation is generally appellate in nature.
Thus, following the doctrine of hierarchy of courts, the instant
petition should have been initially filed with the Regional Trial
Court.
Prohibition; Prohibition lies against judicial or ministerial
functions, but not against legislative or quasi-legislative functions;
Where the principal relief sought is to invalidate the Implementing
Rules and Regulations (IRR), petitioners’ remedy is an ordinary
action for its nullification, an action which properly falls under
the jurisdiction of the Regional Trial Court.—A petition for
prohibition is also not the proper remedy to assail an IRR issued
in the exercise of a quasi-legislative function. Prohibition is an
extraordinary writ directed against any tribunal, corporation,
board, officer or person, whether exercising judicial, quasi-judicial
or ministerial functions, ordering said entity or person to desist
from further proceedings when said proceedings are without or in
excess of said entity’s or person’s jurisdiction, or are accompanied
with grave abuse of discretion, and there is no appeal or any other
plain, speedy and adequate remedy in the ordinary course of law.
Prohibition lies against judicial or ministerial functions, but not
against legislative or quasi-legislative functions. Generally, the
purpose of a writ of prohibition is to keep a lower court within the
limits of its jurisdiction in order to maintain the administration of
justice in orderly channels. Prohibition is the proper remedy to
afford relief against usurpation of jurisdiction or power by an
inferior court, or when, in the exercise of jurisdiction in handling
matters clearly within its cognizance the inferior court
transgresses the bounds prescribed to it by the law, or where

there is no adequate remedy available in the ordinary course of
law by which such relief can be obtained. Where the principal
relief sought is to invalidate an IRR, petitioners’ remedy is an
ordinary action for its nullification, an action which properly falls
under the jurisdiction of the Regional Trial Court. In any case,
petitioners’ allegation that “respondents are performing or
threatening to perform functions without or in excess of their
jurisdiction” may appropriately be enjoined by the trial court
through a writ of injunction or a temporary restraining order.
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VOL. 497, AUGUST 3, 2006 585

Courts; Procedural Rules and Technicalities; The Supreme
Court will not shirk from its duty to rule on the merits of this
petition to facilitate the speedy resolution of this case—in proper
cases, procedural rules may be relaxed or suspended in the interest
of substantial justice, and the power of the Court to except a
particular case from its rules whenever the purposes of justice
require it cannot be questioned.—In a number of petitions, the
Court adequately resolved them on other grounds without
adjudicating on the constitutionality issue when there were no
compelling reasons to pass upon the same. In like manner, the
instant petition may be dismissed based on the foregoing
procedural grounds. Yet, the Court will not shirk from its duty to
rule on the merits of this petition to facilitate the speedy
resolution of this case. In proper cases, procedural rules may be
relaxed or suspended in the interest of substantial justice. And
the power of the Court to except a particular case from its rules
whenever the purposes of justice require it cannot be questioned.
Republic Act No. 9207; The government’s policy to set aside
public property aims to benefit not only the urban poor but also the
local government and various government institutions devoted to
socioeconomic, charitable, educational and religious purposes.—
Petitioners’ interpretation is also not supported by the policy of
R.A. No. 9207 and the prior proclamations establishing the NGC.
The government’s policy to set aside public property aims to
benefit not only the urban poor but also the local government and
various government institutions devoted to socioeconomic,
charitable, educational and religious purposes. Thus, although
Proclamation No. 137 authorized the sale of lots to bona fide
residents in the NGC, only a third of the entire area of the NGC
was declared open for disposition subject to the condition that
those portions being used or earmarked for public or quasi-public

purposes would be excluded from the housing program for NGC
residents. The same policy of rational and optimal land use can
be read in Proclamation No. 248 issued by then President Ramos.
Although the proclamation recognized the rapid increase in the
population density in the NGC, it did not allocate additional
property within the NGC for urban poor housing but instead
authorized the vertical development of the same 150 hectares
identified previously by Proclamation No. 137 since the
distribution of individual lots would not adequately provide for
the housing needs of all the bona fide residents in the NGC.
586

Same; Where a rule or regulation has a provision not expressly
stated or contained in the statute being implemented, that
provision does not necessarily contradict the statute—all that is
required is that the regulation should be germane to the objects
and purposes of the law; that the regulation be not in contradiction
to but in conformity with the standards prescribed by the law;
Implicit in the authority of the Committee and the statute’s
objective of urban poor housing is the power of the Committee to
formulate the manner by which the reserved property may be
allocated to the beneficiaries.—Where a rule or regulation has a
provision not expressly stated or contained in the statute being
implemented, that provision does not necessarily contradict the
statute. A legislative rule is in the nature of subordinate
legislation, designed to implement a primary legislation by
providing the details thereof. All that is required is that the
regulation should be germane to the objects and purposes of the
law; that the regulation be not in contradiction to but in
conformity with the standards prescribed by the law. In Section 5
of R.A. No. 9207, the Committee is granted the power to
administer, formulate guidelines and policies, and implement the
disposition of the areas covered by the law. Implicit in this
authority and the statute’s objective of urban poor housing is the
power of the Committee to formulate the manner by which the
reserved property may be allocated to the beneficiaries. Under
this broad power, the Committee is mandated to fill in the details
such as the qualifications of beneficiaries, the selling price of the
lots, the terms and conditions governing the sale and other key
particulars necessary to implement the objective of the law. These
details are purposely omitted from the statute and their
determination is left to the discretion of the Committee because

the latter possesses special knowledge and technical expertise
over these matters.
Same; The Committee’s authority to fix the selling price of the
lots may be likened to the rate-fixing power of administrative
agencies, and in case of a delegation of rate-fixing power, the only
standard which the legislature is required to prescribe for the
guidance of the administrative authority is that the rate be
reasonable and just.—The Committee’s authority to fix the selling
price of the lots may be likened to the rate-fixing power of
administrative agencies. In case of a delegation of rate-fixing
power, the only standard which the legislature is required to
prescribe for the guidance of the administrative authority is that
the rate be reasonable and just. However, it has
587
VOL. 497, AUGUST 3, 2006 587
been held that even in the absence of an express requirement as

to reasonableness, this standard may be implied. In this regard,
petitioners do not even claim that the selling price of the lots is
unreasonable.
Same; There is nothing objectionable about prescribing a
period within which the parties must execute the contract to sell.
This condition can ordinarily be found in a contract to sell and is
not contrary to law, morals, good customs, public order, or public
policy.—The provision on the price escalation clause as a penalty
imposed to a beneficiary who fails to execute a contract to sell
within the prescribed period is also within the Committee’s
authority to formulate guidelines and policies to implement R.A.
No. 9207. The Committee has the power to lay down the terms
and conditions governing the disposition of said lots, provided
that these are reasonable and just. There is nothing objectionable
about prescribing a period within which the parties must execute
the contract to sell. This condition can ordinarily be found in a
contract to sell and is not contrary to law, morals, good customs,
public order, or public policy.
Same; In subordinate legislation, as long as the passage of the
rule or regulation had the benefit of a hearing, the procedural due
process requirement is deemed complied with.—Petitioners also
suggest that the adoption of the assailed IRR suffers from a
procedural flaw. According to them the IRR was adopted and
concurred in by several representatives of people’s organizations
contrary to the express mandate of R.A. No. 9207 that only two
representatives from duly recognized peoples’ organizations must

compose the NGCAC which promulgated the assailed IRR. It is
worth noting that petitioner association is not a duly recognized
people’s organization. In subordinate legislation, as long as the
passage of the rule or regulation had the benefit of a hearing, the
procedural due process requirement is deemed complied with.
That there is observance of more than the minimum requirements
of due process in the adoption of the questioned IRR is not a
ground to invalidate the same.
SPECIAL CIVIL ACTION in the Supreme Court.

Prohibition.
The facts are stated in the opinion of the Court.
Elpidio S. Salgado and Joel F. Pradia for petitioners.
588


The Solicitor General for respondents.
The City Attorney for respondent City Government.
TINGA, J.:
The instant petition for prohibition under Rule 65 of the

1997 Rules of Civil Procedure, with prayer for the issuance
of a temporary restraining order and/or writ of preliminary
injunction, seeks to prevent respondents from enforcing the
implementing rules and regulations (IRR) of Republic Act
No. 9207, otherwise known as the “National Government
Center (NGC) Housing and Land Utilization Act of 2003.”
Petitioner Holy Spirit Homeowners Association, Inc.
(Association) is a homeowners association from the West
Side of the NGC. It is represented by its president,
Nestorio F. Apolinario, Jr., who is a co-petitioner in his own
personal capacity and on behalf of the association.
Named respondents are the ex officio members of the
National Government Center Administration Committee
(Committee). At the filing of the instant petition, the
Committee was composed of Secretary Michael Defensor,
Chairman of the Housing and Urban Development
Coordinating Council (HUDCC), Atty. Edgardo Pamintuan,
General Manager of the National Housing Authority
(NHA), Mr. Percival Chavez, Chairman of the Presidential
Commission for Urban Poor (PCUP), Mayor Feliciano
Belmonte of Quezon City, Secretary Elisea Gozun of the
Department of Environment and Natural Resources

(DENR), and Secretary Florante Soriquez of the
Department of Public Works and Highways (DPWH).
Prior to the passage of R.A. No. 9207, a number of
presidential issuances authorized the creation and
development of what is now known as the National
Government Center (NGC).
On March 5, 1972, former President Ferdinand Marcos
issued Proclamation No. 1826, reserving a parcel of land in
Constitution Hills, Quezon City, covering a little over 440
589
VOL. 497, AUGUST 3, 2006 589

hectares as a national government site to be known as the

NGC.1
On August 11, 1987, then President Corazon Aquino
issued Proclamation No. 137, excluding 150 of the 440
hectares of the reserved site from the coverage of
Proclamation No. 1826 and authorizing instead the
disposition of the excluded portion by direct sale to the
bona fide residents therein.2
In view of the rapid increase in population density in the
portion excluded by Proclamation No. 137 from the
coverage of Proclamation No. 1826, former President Fidel
Ramos issued Proclamation No. 248 on September 7, 1993,
authorizing the vertical development of the excluded
portion to maximize the number of families who can
effectively become beneficiaries of the government’s
socialized housing program.3
On May 14, 2003, President Gloria Macapagal-Arroyo
signed into law R.A. No. 9207. Among the salient
provisions of the law are the following:
Sec. 2. Declaration of Policy.—It is hereby declared the policy

of the State to secure the land tenure of the urban poor. Toward
this end, lands located in the NGC, Quezon City shall be utilized
for housing, socioeconomic, civic, educational, religious and other
purposes.
Sec. 3. Disposition of Certain Portions of the National
Government Center Site to Bona Fide Residents.—Proclamation
No. 1826, Series of 1979, is hereby amended by excluding from the
coverage thereof, 184 hectares on the west side and 238 hectares
on the east side of Commonwealth Avenue, and declaring the
same open for disposition to bona fide residents therein: Provided,
That the determination of the bona fide residents on the west side
shall be based on the census survey conducted in 1994 and the

determination of the bona fide residents on the east side shall be
based on the census survey conducted in 1994 and occupancy
verification survey conducted in 2000: Provided, further, That all
existing legal agreements,
_______________
1 Rollo, p. 6.
2 Id., at p. 7.
3 Id.
590

programs and plans signed, drawn up or implemented and actions

taken, consistent with the provisions of this Act are hereby
adopted.
Sec. 4. Disposition of Certain Portions of the National
Government Center Site for Local Government or Community
Facilities, Socioeconomic, Charitable, Educational and Religious
Purposes.—Certain portions of land within the aforesaid area for
local government or community facilities, socioeconomic,
charitable, educational and religious institutions are hereby
reserved for disposition for such purposes: Provided, That only
those institutions already operating and with existing facilities
or structures, or those occupying the land may avail of the
disposition program established under the provisions this Act;
Provided, further, That in ascertaining the specific areas that may
be disposed of in favor of these institutions, the existing site
allocation shall be used as basis therefore: Provided, finally. That
in determining the reasonable lot allocation of such institutions
without specific lot allocations, the land area that may be
allocated to them shall be based on the area actually used by said
institutions at the time of effectivity of this Act. (Emphasis
supplied.)
In accordance with Section 5 of R.A. No. 9207,4 the

Committee formulated the Implementing Rules and
Regulations (IRR) of R.A. No. 9207 on June 29, 2004.
Petitioners subsequently filed the instant petition, raising
the following issues:
WHETHER OR NOT SECTION 3.1 (A.4), 3.1 (B.2), 3.2 (A.1)

AND 3.2 (C.1) OF THE RULES AND REGULATIONS OF
REPUBLIC ACT NO. 9207, OTHERWISE KNOWN AS
“NATIONAL GOVERNMENT CENTER (NGC) HOUSING AND

LAND UTILIZATION ACT OF 2003” SHOULD BE DECLARED
NULL AND VOID FOR BEING INCONSISTENT WITH THE
LAW IT SEEKS TO IMPLEMENT.
WHETHER OR NOT SECTION 3.1 (A.4), 3.1 (B.2), 3.2 (A.1)
AND 3.2 (C.1) OF THE RULES AND REGULATIONS OF
REPUB-
_______________
4 Sec. 5. National Government Center Administration Committee.—There is

hereby created a National Government Center Administration Committee to
administer, formulate guidelines and policies, and implement the land disposition
of the areas covered by this Act. x x x
591
VOL. 497, AUGUST 3, 2006 591

LIC ACT NO. 9207, OTHERWISE KNOWN AS “NATIONAL

GOVERNMENT CENTER (NGC) HOUSING AND LAND
UTILIZATION ACT OF 2003” SHOULD BE DECLARED NULL
AND VOID FOR BEING ARBITRARY, CAPRICIOUS AND
WHIMSICAL.5
First, the procedural matters.

The Office of the Solicitor General (OSG) argues that
petitioner Association cannot question the implementation
of Section 3.1 (b.2) and Section 3.2 (c.1) since it does not
claim any right over the NGC East Side. Section 3.1 (b.2)
provides for the maximum lot area that may be awarded to
a resident-beneficiary of the NGC East Side, while Section
3.2 (c.1) imposes a lot price escalation penalty to a qualified
beneficiary who fails to execute a contract to sell within the
prescribed period.6 Also, the OSG contends that since
petitioner association is not the duly recognized people’s
organization in the NGC and since petitioners not qualify
as beneficiaries, they cannot question the manner of
disposition of lots in the NGC.7
“Legal standing” or locus standi has been defined as a
personal and substantial interest in the case such that the
party has sustained or will sustain direct injury as a result
of the governmental act that is being challenged…. The gist
of the question of standing is whether a party alleges “such
personal stake in the outcome of the controversy as to
assure that concrete adverseness which sharpens the
presentation of issues upon which the court depends for

illumination of difficult constitutional questions.”8
Petitioner association has the legal standing to institute
the instant petition, whether or not it is the duly
recognized association of homeowners in the NGC. There is
no dispute
_______________
5 Rollo, p. 12.
6 Id., at p. 80.
7 Id., at p. 82.
8 Sanlakas v. Executive Secretary, G.R. No. 159085, February 3, 2004,
421 SCRA 656, 665, citing Integrated Bar of the Philippines v. Zamora,
G.R. No. 141284, August 15, 2000, 338 SCRA 81.
592

that the individual members of petitioner association are

residents of the NGC. As such they are covered and stand
to be either benefited or injured by the enforcement of the
IRR, particularly as regards the selection process of
beneficiaries and lot allocation to qualified beneficiaries.
Thus, petitioner association may assail those provisions in
the IRR which it believes to be unfavorable to the rights of
its members. Contrary to the OSG’s allegation that the
failure of petitioner association and its members to qualify
as beneficiaries effectively bars them from questioning the
provisions of the IRR, such circumstance precisely operates
to confer on them the legal personality to assail the IRR.
Certainly, petitioner and its members have sustained
direct injury arising from the enforcement of the IRR in
that they have been disqualified and eliminated from the
selection process. While it is true that petitioners claim
rights over the NGC West Side only and thus cannot be
affected by the implementation of Section 3.1 (b.2), which
refers to the NGC East Side, the rest of the assailed
provisions of the IRR, namely, Sections 3.1 (a.4), 3.2 (a.1)
and 3.2 (c.1), govern the disposition of lots in the West Side
itself or all the lots in the NGC.
We cannot, therefore, agree with the OSG on the issue of
locus standi. The petition does not merit dismissal on that
ground.
There are, however, other procedural impediments to

the granting of the instant petition. The OSG claims that
the instant petition for prohibition is an improper remedy
because the writ of prohibition does not lie against the
exercise of a quasi-legislative function.9 Since in issuing the
questioned IRR of R.A. No. 9207, the Committee was not
exercising judicial, quasi-judicial or ministerial function,
which is the scope of a petition for prohibition under
Section 2, Rule 65 of the 1997 Rules of Civil Procedure, the
instant prohibition should be dismissed outright, the OSG
contends. For their
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9 Rollo, p. 81.
593
VOL. 497, AUGUST 3, 2006 593

part, respondent Mayor of Quezon City10 and respondent

NHA11 contend that petitioners violated the doctrine of
hierarchy of courts in filing the instant petition with this
Court and not with the Court of Appeals, which has
concurrent jurisdiction over a petition for prohibition.
The cited breaches are mortal. The petition deserves to
be spurned as a consequence.
Administrative agencies possess quasi-legislative or
rule-making powers and quasi-judicial or administrative
adjudicatory powers. Quasi-legislative or rule-making
power is the power to make rules and regulations which
results in delegated legislation that is within the confines
of the granting statute and the doctrine of non-delegability
and separability of powers.12
In questioning the validity or constitutionality of a rule
or regulation issued by an administrative agency, a party
need not exhaust administrative remedies before going to
court. This principle, however, applies only where the act of
the administrative agency concerned was performed
pursuant to its quasi-judicial function, and not when the
assailed act pertained to its rule-making or quasi-
legislative power.13
The assailed IRR was issued pursuant to the quasi-
legislative power of the Committee expressly authorized by
R.A. No. 9207. The petition rests mainly on the theory that
the assailed IRR issued by the Committee is invalid on the
ground that it is not germane to the object and purpose of

the statute it seeks to implement. Where what is assailed is
the validity or constitutionality of a rule or regulation
issued by the administrative agency in the performance of
its quasi-
_______________
10 Id., at p. 51.
11 Id., at p. 66.
12 Smart Communications, Inc. v. National Telecommunications
Commission, 456 Phil. 145, 155; 408 SCRA 678, 686 (2003).
13 Id., at p. 157; pp. 687-688.
594

legislative function, the regular courts have jurisdiction to

pass upon the same.14
Since the regular courts have jurisdiction to pass upon
the validity of the assailed IRR issued by the Committee in
the exercise of its quasi-legislative power, the judicial
course to assail its validity must follow the doctrine of
hierarchy of courts. Although the Supreme Court, Court of
Appeals and the Regional Trial Courts have concurrent
jurisdiction to issue writs of certiorari, prohibition,
mandamus, quo warranto, habeas corpus and injunction,
such concurrence does not give the petitioner unrestricted
freedom of choice of court forum.15
True, this Court has the full discretionary power to take
cognizance of the petition filed directly with it if compelling
reasons, or the nature and importance of the issues raised,
so warrant.16 A direct invocation of the Court’s original
jurisdiction to issue these writs should be allowed only
when there are special and important reasons therefor,
clearly and specifically set out in the petition.17
In Heirs of Bertuldo Hinog v. Melicor,18 the Court said
that it will not entertain direct resort to it unless the
redress desired cannot be obtained in the appropriate
courts, and exceptional and compelling circumstances, such
as cases of national interest and of serious implications,
justify the availment of the extraordinary remedy of writ of
certiorari, calling for the exercise of its primary
jurisdiction.19 A perusal, however, of the petition for
prohibition shows no compelling, special or important

reasons to warrant the Court’s taking cognizance of
_______________
14 Id., at p. 158; p. 689.

15 Heirs of Bertuldo Hinog v. Melicor, G.R. No. 140954, April 12, 2005,
455 SCRA 460, 470.
16 Fortich v. Corona, 352 Phil. 461, 480; 289 SCRA 624, 645 (1998).
17 Id., at p. 481; p. 646.
18 Heirs of Bertuldo Hinog v. Melicor, supra.
19 Id., at p. 471.
595
VOL. 497, AUGUST 3, 2006 595

the petition in the first instance. Petitioner also failed to

state any reason that precludes the lower courts from
passing upon the validity of the questioned IRR. Moreover,
as provided in Section 5, Article VIII of the Constitution,20
the Court’s power to evaluate the validity of an
implementing rule or regulation is generally appellate in
nature. Thus, following the doctrine of hierarchy of courts,
the instant petition should have been initially filed with
the Regional Trial Court.
A petition for prohibition is also not the proper remedy
to assail an IRR issued in the exercise of a quasi-legislative
function. Prohibition is an extraordinary writ directed
against any tribunal, corporation, board, officer or person,
whether exercising judicial, quasi-judicial or ministerial
functions, ordering said entity or person to desist from
further proceedings when said proceedings are without or
in excess of said entity’s or person’s jurisdiction, or are
accompanied with grave abuse of discretion, and there is no
appeal or any other plain, speedy and adequate remedy in
the ordinary course of law.21 Prohibition lies against
judicial or ministerial functions, but not against legislative
or quasi-legislative functions. Generally, the purpose of a
writ of prohibition is to keep a lower court within the limits
of its jurisdiction in order to maintain the administration of
justice in orderly channels.22 Prohibition
_______________
20 CONSTITUTION, Art. VIII, Sec. 5 states: The Supreme Court shall have
the following powers:
x x x
(2) Review, revise, reverse, modify, or affirm on appeal or
certiorari, as the law or the Rules of Court may provide, final
judgments and orders of lower courts in:
(a) All cases in which the constitutionality or validity of any
treaty, international or executive agreement, law, presidential
decrees, proclamation, order, instruction, ordinance, or regulation
is in question. x x x
21 RULES OF COURT, Rule 65, Sec. 2.
22 David v. Rivera, G.R. Nos. 139913 & 140159, January 16, 2004, 420
SCRA 90, 100.
596

is the proper remedy to afford relief against usurpation of

jurisdiction or power by an inferior court, or when, in the
exercise of jurisdiction in handling matters clearly within
its cognizance the inferior court transgresses the bounds
prescribed to it by the law, or where there is no adequate
remedy available in the ordinary course of law by which
such relief can be obtained.23 Where the principal relief
sought is to invalidate an IRR, petitioners’ remedy is an
ordinary action for its nullification, an action which
properly falls under the jurisdiction of the Regional Trial
Court. In any case, petitioners’ allegation that “respondents
are performing or threatening to perform functions without
or in excess of their jurisdiction” may appropriately be
enjoined by the trial court through a writ of injunction or a
temporary restraining order.
In a number of petitions,24 the Court adequately
resolved them on other grounds without adjudicating on
the constitutionality issue when there were no compelling
reasons to pass upon the same. In like manner, the instant
petition may be dismissed based on the foregoing
procedural grounds. Yet, the Court will not shirk from its
duty to rule on the merits of this petition to facilitate the
speedy resolution of this case. In proper cases, procedural
rules may be relaxed or suspended in the interest of
substantial justice. And the power of the Court to except a
particular case from its rules whenever the purposes of
justice require it cannot be questioned.25
Now, we turn to the substantive aspects of the petition.
The outcome, however, is just as dismal for petitioners.
Petitioners assail the following provisions of the IRR:
_______________

23 Id.
24 Development Bank of the Phils. v. Commission on Audit, 424 Phil.
411; 373 SCRA 356 (2002); Planters Products, Inc. v. Court of Appeals, 375
Phil. 615; 317 SCRA 195 (1999); Spouses Mirasol v. Court of Appeals, 403
Phil. 761; 351 SCRA 44 (2001).
25 Philippine National Bank v. Sanao Marketing Corporation, G.R. No.
153951, July 29, 2005, 465 SCRA 287.
597
VOL. 497, AUGUST 3, 2006 597


Section 3. Disposition of Certain portions of the NGC Site to

the bona fide residents
3.1. Period for Qualification of Beneficiaries
x x x x
(a.4) Processing and evaluation of qualifications shall
be based on the Code of Policies and subject to the condition
that a beneficiary is qualified to acquire only one (1) lot
with a minimum of 36 sq. m. and maximum of 54 sq. m. and
subject further to the availability of lots.
x x x x
(b.2) Applications for qualification as beneficiary shall
be processed and evaluated based on the Code of Policies
including the minimum and maximum lot allocation of 35
sq. m. and 60 sq. m.
x x x x
3.2. Execution of the Contract to Sell
(a) Westside
(a.1) All qualified beneficiaries shall execute Contract
to Sell (CTS) within sixty (60) days from the effectivity of
the IRR in order to avail of the lot at P700.00 per sq. m.
x x x x
(c) for both eastside and westside
(c.1) Qualified beneficiaries who failed to execute CTS
on the deadline set in item a.1 above in case of westside and
in case of eastside six (6) months after approval of the

subdivision plan shall be subjected to lot price escalation.
The rate shall be based on the formula to be set by the
National Housing Authority factoring therein the affordability
criteria. The new rate shall be approved by the NGC-
Administration Committee (NGC-AC).
Petitioners contend that the aforequoted provisions of

the IRR are constitutionally infirm as they are not germane
to and/or are in conflict with the object and purpose of the
law sought to be implemented.
First. According to petitioners, the limitation on the
areas to be awarded to qualified beneficiaries under Sec.
3.1 (a.4)
598

and (b.2) of the IRR is not in harmony with the provisions

of R.A. No. 9207, which mandates that the lot allocation to
qualified beneficiaries shall be based on the area actually
used or occupied by bona fide residents without limitation
to area. The argument is utterly baseless.
The beneficiaries of lot allocations in the NGC may be
classified into two groups, namely, the urban poor or the
bona fide residents within the NGC site and certain
government institutions including the local government.
Section 3, R.A. No. 9207 mandates the allocation of
additional property within the NGC for disposition to its
bona fide residents and the manner by which this area may
be distributed to qualified beneficiaries. Section 4, R.A. No.
9207, on the other hand, governs the lot disposition to
government institutions. While it is true that Section 4 of
R.A. No. 9207 has a proviso mandating that the lot
allocation shall be based on the land area actually used or
occupied at the time of the law’s effectivity, this proviso
applies only to institutional beneficiaries consisting of the
local government, socioeconomic, charitable, educational
and religious institutions which do not have specific lot
allocations, and not to the bona fide residents of NGC.
There is no proviso which even hints that a bona fide
resident of the NGC is likewise entitled to the lot area
actually occupied by him.
Petitioners’ interpretation is also not supported by the
policy of R.A. No. 9207 and the prior proclamations
establishing the NGC. The government’s policy to set aside
public property aims to benefit not only the urban poor but
also the local government and various government
institutions devoted to socioeconomic, charitable,
26
educational and religious purposes. Thus, although
Proclamation No. 137 authorized the
_______________

26 Republic Act No. 9207 (2003), Sec. 2, provides: Declaration of Policy.
—It is hereby declared the policy of the State to secure the land tenure of
the urban poor. Toward this end, lands located in the NGC, Quezon City
shall be utilized for housing, socioeconomic, civic, educational, religious
and other purposes.
599
VOL. 497, AUGUST 3, 2006 599

sale of lots to bona fide residents in the NGC, only a third

of the entire area of the NGC was declared open for
disposition subject to the condition that those portions
being used or earmarked for public or quasi-public
purposes would be excluded from the housing program for
NGC residents. The same policy of rational and optimal
land use can be read in Proclamation No. 248 issued by
then President Ramos. Although the proclamation
recognized the rapid increase in the population density in
the NGC, it did not allocate additional property within the
NGC for urban poor housing but instead authorized the
vertical development of the same 150 hectares identified
previously by Proclamation No. 137 since the distribution
of individual lots would not adequately provide for the
housing needs of all the bona fide residents in the NGC.
In addition, as provided in Section 4 of R.A. No. 9207,
the institutional beneficiaries shall be allocated the areas
actually occupied by them; hence, the portions intended for
the institutional beneficiaries is fixed and cannot be
allocated for other non-institutional beneficiaries. Thus,
the areas not intended for institutional beneficiaries would
have to be equitably distributed among the bona fide
residents of the NGC. In order to accommodate all qualified
residents, a limitation on the area to be awarded to each
beneficiary must be fixed as a necessary consequence.
Second. Petitioners note that while Sec. 3.2 (a.1) of the

IRR fixes the selling rate of a lot at P700.00 per sq. m., R.A.
No. 9207 does not provide for the price. They add Sec. 3.2
(c.1) penalizes a beneficiary who fails to execute a contract
to sell within six (6) months from the approval of the
subdivision plan by imposing a price escalation, while there
is no such penalty imposed by R.A. No. 9207. Thus, they
conclude that the assailed provisions conflict with R.A. No.
9207 and should be nullified. The argument deserves scant
consideration.
Where a rule or regulation has a provision not expressly
stated or contained in the statute being implemented, that
provision does not necessarily contradict the statute. A
legis-
600

lative rule is in the nature of subordinate legislation,

designed to implement a primary legislation by providing
the details thereof.27 All that is required is that the
regulation should be germane to the objects and purposes
of the law; that the regulation be not in contradiction to but
in conformity with the standards prescribed by the law.28
In Section 5 of R.A. No. 9207, the Committee is granted
the power to administer, formulate guidelines and policies,
and implement the disposition of the areas covered by the
law. Implicit in this authority and the statute’s objective of
urban poor housing is the power of the Committee to
formulate the manner by which the reserved property may
be allocated to the beneficiaries. Under this broad power,
the Committee is mandated to fill in the details such as the
qualifications of beneficiaries, the selling price of the lots,
the terms and conditions governing the sale and other key
particulars necessary to implement the objective of the law.
These details are purposely omitted from the statute and
their determination is left to the discretion of the
Committee because the latter possesses special knowledge
and technical expertise over these matters.
The Committee’s authority to fix the selling price of the
lots may be likened to the rate-fixing power of
administrative agencies. In case of a delegation of rate-
fixing power, the only standard which the legislature is
required to prescribe for the guidance of the administrative
authority is that the rate be reasonable and just. However,
it has been held that even in the absence of an express

requirement as to reasonableness,
_______________

27 Commissioner of Internal Revenue v. Court of Appeals, 329 Phil. 987,
1006-1007; 261 SCRA 236 (1996), citing Misamis Oriental Association of
Coco Traders, Inc. v. Department of Finance Secretary, 238 SCRA 63.
28 Sigre v. Court of Appeals, 435 Phil. 711, 719; 387 SCRA 15, 23
(2002).
601
VOL. 497, AUGUST 3, 2006 601

this standard may be implied.29 In this regard, petitioners

do not even claim that the selling price of the lots is
unreasonable.
The provision on the price escalation clause as a penalty
imposed to a beneficiary who fails to execute a contract to
sell within the prescribed period is also within the
Committee’s authority to formulate guidelines and policies
to implement R.A. No. 9207. The Committee has the power
to lay down the terms and conditions governing the
disposition of said lots, provided that these are reasonable
and just. There is nothing objectionable about prescribing a
period within which the parties must execute the contract
to sell. This condition can ordinarily be found in a contract
to sell and is not contrary to law, morals, good customs,
public order, or public policy.
Third. Petitioners also suggest that the adoption of the
assailed IRR suffers from a procedural flaw. According to
them the IRR was adopted and concurred in by several
representatives of people’s organizations contrary to the
express mandate of R.A. No. 9207 that only two
representatives from duly recognized peoples’ organizations
must compose the NGCAC which promulgated the assailed
IRR. It is worth noting that petitioner association is not a
duly recognized people’s organization.
In subordinate legislation, as long as the passage of the
rule or regulation had the benefit of a hearing, the
procedural due process requirement is deemed complied
with. That there is observance of more than the minimum
requirements of due process in the adoption of the

questioned IRR is not a ground to invalidate the same.
In sum, the petition lacks merit and suffers from
procedural deficiencies.
WHEREFORE, the instant petition for prohibition is
DISMISSED. Costs against petitioners.
_______________

29 Philippine Communications Satellite Corporation v. Alcuaz, G.R. No.
84818, December 18, 1989, 180 SCRA 218, 225-226.
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9/1/2019 SUPREME COURT REPORTS ANNOTATED VOLUME 497

G.R. No. 163980. August 3, 2006.*

HOLY SPIRIT HOMEOWNERS ASSOCIATION, INC. and

National Government Center (NGC); Judicial Review; Locus

582 SUPREME COURT REPORTS ANNOTATED

Holy Spirit Homeowners Association, Inc. vs. Defensor

residents of the NGC. As such they are covered and stand to be

function, the regular courts have jurisdiction to pass upon the

VOL. 497, AUGUST 3, 2006 583

Holy Spirit Homeowners Association, Inc. vs. Defensor

or constitutionality of a rule or regulation issued by the

of serious implications, justify the availment of the extraordinary

584 SUPREME COURT REPORTS ANNOTATED

Holy Spirit Homeowners Association, Inc. vs. Defensor

instance. Petitioner also failed to state any reason that precludes

transgresses the bounds prescribed to it by the law, or where

VOL. 497, AUGUST 3, 2006 585

Holy Spirit Homeowners Association, Inc. vs. Defensor

those portions being used or earmarked for public or quasi-public

586 SUPREME COURT REPORTS ANNOTATED

Holy Spirit Homeowners Association, Inc. vs. Defensor

determination is left to the discretion of the Committee because

VOL. 497, AUGUST 3, 2006 587

Holy Spirit Homeowners Association, Inc. vs. Defensor

been held that even in the absence of an express requirement as

representatives from duly recognized peoples’ organizations must

SPECIAL CIVIL ACTION in the Supreme Court.

588 SUPREME COURT REPORTS ANNOTATED

The instant petition for prohibition under Rule 65 of the

Department of Environment and Natural Resources

VOL. 497, AUGUST 3, 2006 589

hectares as a national government site to be known as the

Sec. 2. Declaration of Policy.—It is hereby declared the policy

shall be based on the census survey conducted in 1994 and the

590 SUPREME COURT REPORTS ANNOTATED

programs and plans signed, drawn up or implemented and actions

In accordance with Section 5 of R.A. No. 9207,4 the

WHETHER OR NOT SECTION 3.1 (A.4), 3.1 (B.2), 3.2 (A.1)

“NATIONAL GOVERNMENT CENTER (NGC) HOUSING AND

4 Sec. 5. National Government Center Administration Committee.—There is

VOL. 497, AUGUST 3, 2006 591

LIC ACT NO. 9207, OTHERWISE KNOWN AS “NATIONAL

First, the procedural matters.

presentation of issues upon which the court depends for

592 SUPREME COURT REPORTS ANNOTATED

that the individual members of petitioner association are

There are, however, other procedural impediments to

VOL. 497, AUGUST 3, 2006 593

part, respondent Mayor of Quezon City10 and respondent

ground that it is not germane to the object and purpose of

594 SUPREME COURT REPORTS ANNOTATED

legislative function, the regular courts have jurisdiction to

prohibition shows no compelling, special or important

14 Id., at p. 158; p. 689.

VOL. 497, AUGUST 3, 2006 595

the petition in the first instance. Petitioner also failed to

596 SUPREME COURT REPORTS ANNOTATED

is the proper remedy to afford relief against usurpation of