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The Court finds the petition devoid of merit. While the right to appeal is a statutory, not a natural right,
nonetheless it is an essential part of our judicial system and
Petitioner insists that A.M. No. 02-11-10-SC governs this case. courts should proceed with caution so as not to deprive a
Her stance is unavailing. The Rule on Declaration of Absolute party of the right to appeal, but rather, ensure that every
Nullity of Void Marriages and Annulment of Voidable party-litigant has the amplest opportunity for the proper and
Marriages as contained in A.M. No. 02-11-10-SC which the just disposition of his cause, free from the constraints of
Court promulgated on March 15, 2003, is explicit in its scope. technicalities.
Section 1 of the Rule, in fact, reads:
In the case at bench, the respondent should be given the
Section 1. Scope – This Rule shall govern petitions for fullest opportunity to establish the merits of his appeal
declaration of absolute nullity of void marriages and considering that what is at stake is the sacrosanct institution
annulment of voidable marriages under the Family Code of of marriage.
the Philippines.
WHEREFORE, the petition is DENIED.
The categorical language of A.M. No. 02-11-10-SC leaves no
room for doubt. The coverage extends only to those UNITED CHRISTIAN MISSIONARY SOCIETY v. SOCIAL
marriages entered into during the effectivity of the Family SECURITY COMMISSION and SOCIAL SECURITY SYSTEM
Code which took effect on August 3, 1988. The rule sets a
demarcation line between marriages covered by the Family In this appeal from an order of the Social Security
Code and those solemnized under the Civil Code. Commission, we uphold the Commission's Order dismissing
the petition before it, on the ground that in the absence of an
The Court finds Itself unable to subscribe to petitioner’s express provision in the Social Security Act vesting in the
interpretation that the phrase "under the Family Code" in Commission the power to condone penalties, it has no legal
A.M. No. 02-11-10-SC refers to the word "petitions" rather authority to condone, waive or relinquish the penalty for late
than to the word "marriages." premium remittances mandatorily imposed under the Social
Security Act.
A cardinal rule in statutory construction is that when the law
is clear and free from any doubt or ambiguity, there is no The five petitioners originally filed on November 20, 1964
room for construction or interpretation. There is only room separate petitions with respondent Commission, contesting
for application. As the statute is clear, plain, and free from the social security coverage of American missionaries who
ambiguity, it must be given its literal meaning and applied perform religious missionary work in the Philippines under
without attempted interpretation. This is what is known as specific employment contracts with petitioners. After several
the plain-meaning rule or verba legis. hearings, however, petitioners commendably desisted from
further contesting said coverage, manifesting that they had
The appellate court was correct in denying petitioner’s adopted a policy of cooperation with the Philippine
motion for extension of time to file a motion for authorities in its program of social amelioration, with which
reconsideration considering that the reglementary period for they are in complete accord.
filing the said motion for reconsideration is non-extendible.
They instead filed their consolidated amended petition dated
The rule is and has been that the period for filing a motion for May 7, 1966, praying for condonation of assessed penalties
reconsideration is non-extendible. The Court has made this against them for delayed social security premium remittances
clear as early as 1986 in Habaluyas Enterprises vs. Japzon. in the aggregate amount of P69,446.42 for the period from
September, 1958 to September, 1963.
Given the above, we rule without hesitation that the
appellate court’s denial of petitioner’s motion for In support of their request for condonation, petitioners
reconsideration is justified, precisely because petitioner’s alleged that they had labored under the impression that as
earlier motion for extension of time did not suspend/toll the international organizations, they were not subject to
running of the 15-day reglementary period for filing a motion coverage under the Philippine Social Security System, but
for reconsideration. Under the circumstances, the CA decision upon advice by certain Social Security System officials, they
has already attained finality when petitioner filed its motion paid to the System in October, 1963, the total amount of
for reconsideration. It follows that the same decision was P81,341.80, representing their back premiums for the period
already beyond the review jurisdiction of this Court. from September, 1958 to September, 1963. They further
claimed that the penalties assessed against them appear to
In fine, the CA committed no reversible error in setting aside be inequitable, citing several resolutions of respondent
the RTC decision which denied due course to respondent’s
Commission which in the past allegedly permitted period shall pay a penalty of three 3% per month. The
condonation of such penalties. prescribed penalty is evidently of a punitive character,
provided by the legislature to assure that employers do not
On May 25, 1966, respondent System filed a Motion to take lightly the State's exercise of the police power in the
Dismiss on the ground that "the Social Security Commission implementation of the Republic's declared policy "to develop,
has no power or authority to condone penalties for late establish gradually and perfect a social security system which
premium remittance, to which petitioners filed their shall be suitable to the needs of the people throughout the
opposition of June 15, 1966, and in turn, respondent filed its Philippines and (to) provide protection to employers against
reply thereto of June 22, 1966. the hazards of disability, sickness, old age and death."
Respondent Commission set the Motion to Dismiss for 2. Petitioners contend that in the exercise of the respondent
hearing and oral argument on July 20, 1966. At the hearing, Commission's power of direction and control over the system,
petitioners' counsel made no appearance but submitted their as provided in Section 3 of the Act, it does have the authority
Memorandum in lieu of oral argument. Upon petition of the to condone the penalty for late payment under Section 4 (1),
System's Counsel, the Commission gave the parties a further whereby it is empowered to "perform such other acts as it
period of fifteen days to submit their Memorandum may deem appropriate for the proper enforcement of this
consolidating their arguments, after which the motion would Act." The law does not bear out this contention. Section 4 of
be deemed submitted for decision. Petitioners stood on their the Social Security Act precisely enumerates the powers of
original memorandum, and respondent System filed its the Commission. Nowhere from said powers of the
memorandum on August 4, 1966. Commission may it be shown that the Commission is granted
expressly or by implication the authority to condone penalties
On September 22, 1966, respondent Commission issued its imposed by the Act.
Order dismissing the petition. The petition is hereby
dismissed and petitioners are directed to pay the respondent 3. Moreover, the funds contributed to the System by
System, within 30 days from receipt of this Order, the amount compulsion of law have already been held by us to be "funds
of P69,446.42 representing the penalties payable by them. belonging to the members which are merely held in trust by
the Government." Being a mere trustee of the funds of the
This Court is thus confronted on appeal with this question of System which actually belong to the members, respondent
first impression as to whether or not respondent Commission Commission cannot legally perform any acts affecting the
erred in ruling that it has no authority under the Social same, including condonation of penalties, that would
Security Act to condone the penalty prescribed by law for diminish the property rights of the owners and beneficiaries
late premium remittances. of such funds without an express or specific authority
therefor.
We find no error in the Commission's action.
1. The plain text and intent of the pertinent provisions of the 4. Where the language of the law is clear and the intent of the
Social Security Act clearly rule out petitioners' posture that legislature is equally plain, there is no room for interpretation
the respondent Commission should assume, as against the and construction of the statute. The Court is therefore bound
mandatory imposition of the 3% penalty per month for late to uphold respondent Commission's refusal to arrogate unto
payment of premium remittances, the discretionary authority itself the authority to condone penalties for late payment of
of condoning, waiving or relinquishing such penalty. social security premiums, for otherwise we would be
sanctioning the Commission's reading into the law
The pertinent portion of Section 22 (a) of the Social Security discretionary powers that are not actually provided therein,
Act peremptorily provides that: and hindering and defeating the plain purpose and intent of
SEC 22. Remittance of premiums. — (a) The contributions the legislature.
imposed in the preceding sections shall be remitted to the
System within the first seven days of each calendar month 5. Petitioners cite fourteen instances in the past wherein
following the month for which they are applicable or within respondent Commission had granted condonation of
such time as the Commission may prescribe. "Every employer penalties on delayed premium payments. They charge the
required to deduct and to remit such contribution shall be Commission with grave abuse of discretion in not having
liable for their payment and if any contribution is not paid to uniformly applied to their cases its former policy of granting
the system, as herein prescribed, he shall pay besides the condonation of penalties. They invoke more compelling
contribution a penalty thereon of three per centum per considerations of equity in their cases, in that they are non-
month from the date the contribution falls due until paid . . . profit religious organizations who minister to the spiritual
needs of the Filipino people, and that their delay in the
No discretion or alternative is granted respondent payment of their premiums was not of a contumacious or
Commission in the enforcement of the law's mandate that deliberate defiance of the law but was prompted by a well-
the employer who fails to comply with his legal obligation to founded belief that the Social Security Act did not apply to
remit the premiums to the System within the prescribed their missionaries.
The past instances of alleged condonation granted by the The mere fact that there was a pending appeal in the Court of
Commission are not, however, before the Court, and the Appeals from an identical ruling of the Commission in an
unilateral conclusion asserted by petitioners that the earlier case as to its lack of authority to condone penalties
Commission had granted such condonations would be of no does not mean, as petitioners contend, that the Commission
avail, without a review of the pertinent records of said cases. was thereby shorn of its authority and discretion to dismiss
Nevertheless, assuming such conclusion to be correct, the their petition on the same legal ground. The Commission's
Commission, in its appealed Order of September 22, 1966 action has thus paved the way for a final ruling of the Court
makes of record that since its Resolution No. 536, series of on the matter.
1964, which it reiterated in another resolution dated August
18, 1966, it had definitely taken the legal stand, pursuant to ACCORDINGLY, the order appealed from is hereby affirmed,
the recommendation of its Committee on Legal Matters and without pronouncement as to costs.
Legislation, that in the absence of an express provision in the
Social Security Act vesting in the Commission the power to PHILIPPINE NATIONAL BANK vs. THE COURT OF APPEALS and
condone penalties, it "has no power to condone, waive or EPIFANIO DE LA CRUZ
relinquish the penalties for late premium remittances which
may be imposed under the Social Security Act." The notices of sale under Section 3 of Act No. 3135, as
amended by Act No. 4118, on extra-judicial foreclosure of
6. The Commission cannot be faulted for this correct legal real estate mortgage are required to be posted for not less
position. Granting that it had erred in the past in granting than twenty days in at least 3 public places of the
condonation of penalties without legal authority, the Court municipality or city where the property is situated, and if such
has held time and again that "it is a well-known rule that property is worth more than P400, such notices shall also be
erroneous application and enforcement of the law by public published once a week for at least 3 consecutive weeks in a
officers do not block subsequent correct application of the newspaper of general circulation in the municipality or city.
statute and that the Government is never estopped by
mistake or error on the part of its agents."5 Petitioners' lack Respondent court, through Justice Filemon Mendoza with
of intent to deliberately violate the law may be conceded, whom Justices Campos, Jr. and Aldecoa, Jr. concurred,
and was borne out by their later withdrawal in May, 1966 of construed the publication of the notices on March 28, April
their original petitions in November, 1964 contesting their 11 and 12, 1969 as a fatal announcement and reversed the
social security coverage. The point, however, is that they judgment appealed from by declaring void, inter alia, the
followed the wrong procedure in questioning the applicability auction sale of the foreclosed pieces of realty, the final deed
of the Social Security Act to them, in that they failed for five of sale, and the consolidation of ownership.
years to pay the premiums prescribed by law and thus
incurred the 3% penalty thereon per month mandatorily Hence, the petition at bar, premised on the following
imposed by law for late payment. The proper procedure backdrop lifted from the text of the challenged decision:
would have been to pay the premiums and then contest their
liability therefor, thereby preventing the penalty from The facts of the case as related by the trial court are, as
attaching. This would have been the prudent course, follows:
considering that the Act provides in Section 22 (b) thereof This is a verified complaint brought by the plaintiff for the
that the premiums which the employer refuses or neglects to reconveyance to him (and resultant damages) of 2 parcels of
pay may be collected by the System in the same manner as land mortgaged by him to the defendant PNB, which the
taxes under the National Internal Revenue Code, and that at defendant allegedly unlawfully foreclosed. The defendant
the time they instituted their petitions in 1964 contesting then consolidated ownership unto itself, and subsequently
their coverage, the Court had already ruled in effect against sold the parcels to third parties. The amended Answer of the
their contest three years earlier, when it held in Roman defendant states on the other hand that the extrajudicial
Catholic Archbishop vs. Social Security Commission that the foreclosure, consolidation of ownership, and subsequent sale
legislature had clearly intended to include charitable and to the third parties were all valid, the bank therefore
religious institutions and other non-profit institutions, such as counterclaims for damages and other equitable remedies.
petitioners, within the scope and coverage of the Social
Security Act. The Court is of the opinion that the following facts have been
proved: Two lots, located at Bulacan (the first covered by
7. No grave abuse of discretion was committed, therefore, by Torrens Certificate No. 16743 and possessed of an area of
the Commission in issuing its Order dismissing the petition for approximately 3,109 square meters: the second covered by
condonation of penalties for late payment of premiums, as Torrens Certificate No. 5787, possessed of an area of around
claimed by petitioners in their second and last error assigned. 610 square meters, and upon which stood a residential-
Petitioners were duly heard by the Commission and were commercial building were mortgaged to the defendant
given due opportunity to adduce all their arguments, as in Philippine National Bank. The lots were under the common
fact they filed their Memorandum in lieu of oral argument names of the plaintiff (Epifanio dela Cruz), his brother (Delfin)
and waived the presentation of an additional memorandum. and his sister (Maria). The mortgage was made possible
because of the grant by the latter two to the former of a THE PNB WAS EMBODIED IN THE REAL ESTATE MORTGAGE
special power of attorney to mortgage the lots to the (EXB. 10) WHICH WAS REGISTERED IN THE REGISTRY OF
defendant. The lots were mortgaged to guarantee several PROPERTY OF BULACAN AND WAS ANNOTATED ON THE TWO
promissory notes. TORRENS CERTIFICATES INVOLVED"
We are not convinced by petitioner's submissions because 1st principle: You should interpret it that it would render it
the disquisition in support thereof rests on the erroneous unconstitutional
impression that the day on which the first publication was
2nd principle: You have to interpret the law to make it
effective, you have to give life.