PSALM v. CA

POWER SECTOR ASSETS AND LIABILITIES MANAGEMENT CORPORATION (PSALM), Petitioner -versus- COURT OF APPEALS (21st Division), and FRANCISCO LABAO, as General Manager of SAN MIGUEL PROTECTIVE SECURITY AGENCY (SMPSA), Respondents

G.R. No. 194226

February 15, 2017

FACTS:

National Power Corporation set a public bidding for the security package in NPC MinGen. Among the participating bidders was San Miguel Protective Security Agency, represented by Labao. However, NPC's Bids and Awards Committee disqualified SMPSA for its alleged failure to meet the equipage requirements. The disqualification prompted Labao, as the general manager of SMPSA, to bring a petition for certiorari against NPC and its officials in the Regional Trial Court in Lanao del Norte. On January 30, 2009, the RTC issued a temporary restraining order directing NPC and its officials to desist from awarding the security package, as well as from declaring a failure of bidding. On February 17, 2009, the RTC issued the writ of preliminary injunction enjoining NPC and its officials from committing said acts. Notwithstanding the fact that PSALM was not a party in the case brought by Labao against NPC, and the fact that PSALM was not furnished a copy of Labao 's Urgent Motion for the Issuance of a TRO and/or Preliminary Prohibitory Injunction, the CA issued the assailed resolution granting the TRO in order to maintain the status quo, and expressly included PSALM as subject of the writ.

ISSUE:

Whether or not the CA acted without or in excess of jurisdiction or with grave abuse of discretion amounting to lack or excess of jurisdiction in holding petitioner bound by the decision of the lower court although petitioner was not a party to the case between private respondents NPC and Labao

HELD:

Yes. In its resolution promulgated on May 18, 2010 denying PSALM's motion for reconsideration, the CA opined that PSALM was a real party in interest as defined under Section 2, Rule 3 of the Rules of Court because PSALM stood to benefit from or be injured by the judgment in the case. Section 49 of Republic Act No. 9136, or EPIRA, expressly created PSALM as a corporate entity separate and distinct from NPC, to wit:

Section 49. Creation of Power Sector Assets and Liabilities Management Corporation. -There is hereby created a government owned and controlled corporation to be known as the "Power Sector Assets and Liabilities Management Corporation", hereinafter referred to as the "PSALM Corp.", which shall take ownership of all existing NPC generation assets, liabilities, IPP contracts, real estate and all other disposable assets. All outstanding obligations of the National Power Corporation arising from loans, issuances of bonds, securities and other instruments of indebtedness shall be transferred to and assumed by the PSALM Corp. within ninety (90) days from the approval of this Act.