Kilusang Bayan sa Paglilingkod ng mga Magtitinda ng Bagong Pamilihang Bayan ng Muntinlupa, Inc. v. Dominguez G.R. No. 85439 January 13, 1992 Davide, Jr., J.
Re%uation 34 o!
Facts: Petitioners questopn the vaidity o! the order o! then "e#retary o! $%ri#uture &on. 'aros G. Do(in%ue) *hi#h ordered+ 1- the tae/over 0y the Depart(ent o! $%ri#uture o! the (ana%e(ent o! the petitioner iusan% ayan sa Pa%iin%od N% %a a%titinda n% a%on% Pa(iihan% ayan n% untiupa, untiupa, n#. PP- pursuant pursuant to the Depart(e Depart(ents nts re%uatory re%uatory and superviso supervisory ry po*ers po*ers under "e#tion "e#tion 8 o! P.D. P.D. No. 165, as a(ended, a(ended, and "e#tion 4 o! 7e#utive rder No. 13, 2- the #reation o! a ana%e(ent 'o((ittee *hi#h sha assu(e the (ana%e(ent o! P upon re#eipt o! the order, 3- the dis0and(ent o! the oard o! Dire#tors, and 4- the turn over o! a assets, assets, properties properties and re#ords re#ords o! the P the ana%e(ent ana%e(ent 'o((ittee. :he eordiu( o! said rder unerrin%y indi#ates that its 0asis is the ae%ed petition o! the %enera (e(0ership o! the P requestin% the Depart(ent !or assistan#e in the re(ova o! the (e(0ers o! the oard o! Dire#t Dire#tors ors *ho *ho *ere *ere not ee#te ee#ted d 0y the %enera %enera (e(0er (e(0ershi ship; p; o! the #ooperative and that the on%oin% !inan#ia and (ana%e(ent audit o! the Depart(en Depart(entt o! $%ri#uture $%ri#uture auditors sho*s that the (ana%e(ent (ana%e(ent o! the P is not operatin% that #ooperative in a##ordan#e *ith P.D. 165, < 23, the 'ir#uars issued 0y D$=$'D and the provisions and 0y/a*s o! P. t is aso pro!essed therein that the rder *as issued 0y the Depart(ent >in the eer#ise o! its re%uatory and supervisory po*ers under "e#tion 8 o! P.D. 165, as a(ended, and "e#tion 4 o! 7e#utive rder No. 113.
$ su0stantiay identi#a provision, !ound in "e#tion 16, $rti#e o! the Ps 0y/a*s, reads+ "e#. 16. Removal of Directors and Committee Members . @ $ny ee#ted dire#tor or #o((ittee (e(0er (ay 0e re(oved !ro( o!!i#e !or #ause 0y a (a?ority vote o! the (e(0ers in %ood standin% present at the annua or spe#ia %enera asse(0y #aed !or the purpose a!ter havin% 0een %iven the opportunity to 0e heard at the asse(0y. Ander the sa(e arti#e are !ound the require(ents !or the hodin% o! 0oth the annua %enera asse(0y and a spe#ia %enera asse(0y. asse(0y. ndu0ita0y then, there is an esta0ished pro#edure !or the re(ova o! dire#tors and o!!i#ers o! #ooperatives. t is ie*ise (ani!est that the ri%ht to due pro#ess is respe#ted 0y the epress provision on the opportunity to 0e heard. ut even *ithout said provision, petitioners #annot 0e deprived o! that ri%ht. :he pro#edure *as not !oo*ed in this #ase. Respondent "e#retary o! $%ri#uture $%ri#uture arro%ated arro%ated unto hi(se! hi(se! the po*er o! the (e(0ers o! the P *ho are authori)ed to vote to re(ove the petitionin% dire#tors and o!!i#ers. &e #annot tae re!u%e under "e#tion 8 o! P.D. P.D. No. 165 *hi#h %rants hi( authority to supervise and re%uate a #ooperatives. :his se#tion does not %ive hi( that ri%ht.
Issue: *hether or not the rder issued 0y the "e#retary o! $%ri#uture is ie%a Held:
$n ad(inistrative o!!i#er has ony su#h po*ers as are epressy %ranted to hi( and those those ne#essari ne#essariy y i(pied i(pied in the eer#ise eer#ise thereo!. thereo!. :hese :hese po*ers shoud not 0e etended 0y i(pi#ation 0eyond *hat (ay to ne#essary !or their ?ust and reasona0e ee#ution.
upe!vision and cont!ol in#ude ony the authority to+ a" act di!ectly #heneve! a speci$ic $unction is ent!usted %y la# o! !egulation to a su%o!dinate& '%" di!ect the pe!$o!mance o$ duty& !est!ain the commission o$ acts& 'c" !evie#, app!ove, !eve!se o! modi$y acts and decisions o$ su%o!dinate o$$icials o! units& 'd" dete!mine p!io!ities in the e(ecution o$ plans and p!og!ams& and 'e" p!esc!i%e standa!ds, guidelines, plans and p!og!ams. peci$ically, administ!ative supe!vision is limited to the autho!ity o$ the depa!tment o! its e)uivalent to: '*" gene!ally ove!see the ope!ations o$ such agencies and insu!e that they a!e managed e$$ectively, e$$iciently and economically %ut #ithout inte!$e!ence #ith day+to+day activities& '" !e)ui!e the su%mission o$ !epo!ts and cause the conduct o$ management audit, pe!$o!mance evaluation and inspection to dete!mine compliance #ith policies, standa!ds and guidelines o$ the depa!tment& '-" take such action as may %e necessa!y $o! the p!ope! pe!$o!mance o$ o$$icial $unctions, including !ecti$ication o$ violations, a%uses and othe! $o!ms o$ mal+administ!ation& '" !evie# and pass upon %udget p!oposals o$ such agencies %ut may not inc!ease o! add to them.
:he po*er to su((ariy dis0and the 0oard o! dire#tors (ay not 0e in!erred !ro( any o! the !ore%oin% as 0oth P.D. No. 165 and the 0y/a*s o! the P epi#ity (andate the (anner 0y *hi#h dire#tors and o!!i#ers are to 0e re(oved. :he "e#retary shoud have no*n 0etter than to disre%ard these pro#edures and rey on a (ere petition 0y the %enera (e(0ership o! the P and an on/%oin% audit 0y Depart(ent o! $%ri#uture auditors in eer#isin% a po*er *hi#h he does not have, epressy or i(piedy. Be #annot #on#ede to the proposition o! the !!i#e o! the "oi#itor Genera that the "e#retarys po*er under para%raph d-, "e#tion 8 o! P.D. No. 165 a0ove quoted to suspend the operation or #an#e the re%istration o! any #ooperative in#udes the >(ider authority o! suspendin% o!!i#ers and #ain% !or the ee#tion o! ne* o!!i#ers.; Cirsty, neither suspension nor #an#eation in#udes the tae/over and ouster o! in#u(0ent dire#tors and o!!i#ers, other*ise the a* itse! *oud have epressy so stated. "e#ondy, even %rantin% that the a* intended su#h as postuated, there is the requirement of a hearing . None *as #ondu#ted