# 142 By: Tangonan

Case Name: PNB vs. Pabalan Topic: Consent to Execution

GR No. L-33112
Date: 15 June 1978
FACTS:
Judge Pabalan issued a writ of execution against resp. Philippine Virginia Tobacco Administration (PVTA). After it
reached finality, it was followed by a notice of garnishment for the amount of Php 12.7k, w/c were deposited w PNB.
PNB objected thereto alleging that since the funds were of public character, the doctrine of non-suability of the state
applies to PVTA, a public corporation. Hence, this petition for certiorari and prohibition.

ISSUE/S: W/N the PNBs allegation that the funds of Phil. Virginia Tobacco Administrations, as public funds, cannot be
garnished, and as a public corporation, it is also immune from suit.

RULING: NO
Although the State may not be sued w/o its consent, garnishment lies in the present case because the said funds did not appertain
to one of the regular departments/offices in the government. Also, even if the funds of resp. PVTA were indeed of public character,
it didnt followe that they were exempt from garnishment.

As a government owned and controlled corporation, it has its own personality that is separate and distinct from the
government. Further, by engaging in a particular business thru the instrumentality of a corporation, the government had
divested itself pro hac vice of its sovereign characted and rendered it subject to the rules governing private corporations.
Thus, PVTA may sue and be sued, and be subject to court processes, such as garnishment, just like any other corporation.