China Banking Corporation v.

Members of the Board of Trustees,

Home Development Mutual Fund | Gonzaga-Reyes, J. (1999)
FACTS
China Banking Corp. (CBC) and CBC Properties and Compter
Center, !n". (CBC-PCC!) #ere granted "erti$i"ates o$ #ai%er de to
their &sperior retirement p'an( nder )e". 19 o$ P* 1+,-, as
amended .y R/ ++0- (1ome *e%e'opment 2ta' 3nd 4a#),
#hi"h stated that5
o &6mp'oyers #ho ha%e their o#n e7isting pro%ident and8or
emp'oyees-hosing p'an may register $or anna'
"erti$i"ation $or #ai%er or sspension $rom "o%erage or
parti"ipation in the 1ome *e%e'opment 2ta' 3nd9(
:he 1*23 Board issed an /mendment to the R'es and
Reg'ations !mp'ementing R/ ++0- and Re%ised Gide'ines $or
$i'ing app'i"ation $or ;ai%er or )spension o$ 3nd Co%erage,
#hi"h stated that5
o / "ompany mst ha%e a pro%ident8retirement /<*
hosing p'an sperior to that pro%ided .y the Pag-!B!G
3nd to .e entit'ed to the e7emption or #ai%er.
CBC and CBC-PCC! $i'ed a petition $or "ertiorari and prohi.ition in
the R:C seeking to ann' and de"'are %oid the /mendment and
Gide'ines $or ha%ing .een issed in e7"ess o$ =risdi"tion and #ith
gra%e a.se o$ dis"retion amonting to 'a"k o$ =risdi"tion, in
re>iring .oth a retirement8pro%ident p'an and an emp'oyee
hosing p'an to .e entit'ed to a #ai%er, $or ha%ing e7"eeded its
r'e making po#er.
R:C?*ismissed.
o *enia' or grant o$ #ai%er #as #ithin the po#er and
athority o$ the 1*23 Board.
o CBC and CBC-PCC! 'ost their right to appea' $or their
$ai're to e7hast a'' a%ai'a.'e administrati%e remedies.
SS!"#H"$D
%&ro'edural ssue( )o* 'ertiorari +as the proper remed,.YES.
There was no need for CBC and CBC-PCCI to exhaust all available
administrative remedies.
%Substantive ssue( )o* the Amendment and -uidelines issued b,
the HDMF Board, in so far as it re.uired that both a
provident#retirement fund and an emplo,ee housing plan that is
superior in order to be e/empted from the fund, +ere in e/'ess of
its rule making po+er.0YES. Amendment and uidelines were
issued in ex!ess of "urisdi!tion and with #rave abuse of dis!retion
for bein# in ex!ess of the $%&' Board(s rule ma)in# *ower.
CBC and CBC-PCC! "ontend5
o :he ena.'ing 'a# "onditions e7"eption pon the e7isten"e
o$ a pro%ident8retirement $nd and8or hosing p'an, not
.oth.
1*23 Board "ontends5
o :he se o$ &and8or( "an on'y .e sed inter"hangea.'y
nad not together and that the option o$ making o$ making
it either .oth (app'ying &and() or any one (app'ying &or()
.e'ongs to the .oard o$ trstees.
1AT2
%&ro'edural ssue( &ropriet, of Certiorari
Certiorari is an appropriate remedy to >estion the %a'idity o$ the
"ha''enged issan"es, #hi"h #ere a''eged to ha%e .een issed in
e7"ess o$ =risdi"tion and #ith gra%e a.se o$ dis"retion
amonting to 'a"k o$ =risdi"tion.
/mong the e7"eptions to the do"trine o$ e7hastion o$
administrati%e remedies5
o ;here the >estion is pre'y 'ega', and
o ;here the "ontro%erted a"t is patent'y i''ega' or
per$ormed #ithot =risdi"tion or in e7"ess o$ =risdi"tion.
%Substantive ssue(
:he se o$ &and8or( sho'd .e taken in its origina' signi$i"ation, i.e.
&either and or(@ e.g. an emp'oyer #ith a pro%ident p'an AR an
emp'oyee hosing p'an AR .oth may >a'i$y $or the e7"eption
o :he intention o$ the 'egis'atre in sing &and8or( is that
the #ords &and( and &or( are to .e sed inter"hangea.'y.
o !$ the 'a# intended that the emp'oyee sho'd ha%e on'y
.oth, then it #o'd ha%e sed the #ords &and( instead o$
&and8or.(
:he r'es and reg'ations, #hi"h are the prod"t o$ a delegated
po+er to 'reate ne+ or additional legal provisions that ha%e
the po#er and e$$e"t o$ 'a#, should be +ithin the s'ope of the
statutor, authorit, granted b, the legislature to the
administrati%e agen"y.
o /dministrati%e reg'ations adopted nder 'egis'ati%e
athority mst .e on harmony #ith the pro%isions o$ the
'a#, and sho'd .e $or the so'e prpose o$ "arrying into
e$$e"t its genera' pro%isions.
o :he r'e making po#er mst .e "on$ined to detai's $or
reg'ating the mode or pro"eeding and "annot .e
e7tended to amending or e7panding the stattory
re>irements or em.ra"e matters not "o%ered .y the
statte.
DS&2ST3"
:he /mendment and Gide'ines inso$ar as they re>ire that an emp'oyer
sho'd ha%e .oth a pro%ident8retirement p'an sperior to the .ene$its
o$$ered .y the 3nd, and a hosing p'an sperior to the Pag-!B!G hosing
'oan program in order to >a'i$y $or #ai%er or sspension or $nd "o%erage
are n'' and %oid.