[G.R. No. 122156. February 3, 1997.

MANILA PRINCE HOTEL, Petitioner, v. GOVERNMENT SERVICE INSURANCE SYSTEM, MANILA HOTEL
CORPORATION, COMMITTEE ON PRIVATIZATION and OFFICE OF THE GOVERNMENT CORPORATE
COUNSEL, Respondents.

FACTS:

The controversy arose when respondent Government Service Insurance System (GSIS), pursuant to the
privatization program of the Philippine Government decided to sell through public bidding 30% to 51% of
the issued and outstanding shares of respondent MHC. The winning bidder, or the eventual "strategic
partner," is to provide management expertise and/or an international marketing/ reservation system, and
financial support to strengthen the profitability and performance of the Manila Hotel. Only two (2) bidders
participated in a close bidding held on September 18, 1995, petitioner Manila Prince Hotel Corporation, a
Filipino corporation, which offered to buy 51% of the MHC or 15,300,000 shares at P41.58 per share, and
Renong Berhad, a Malaysian firm, with ITT-Sheraton as its hotel operator, which bid for the same number
of shares at P44.00 per share, or P2.42 more than the bid of petitioner.

While the declaration of Renong Berhard as the winning bidder/strategic partner is still pending and the
execution of the necessary contracts, petitioner in a letter to respondent GSIS dated 28 September 1995
matched the bid price of P44.00 per share tendered by Renong Berhad. In a subsequent letter dated 10
October 1995 petitioner sent a manager’s check issued by Philtrust Bank for Thirty-three Million Pesos
(P33,000,000.00) as Bid Security to match the bid of the Renong Berhad which respondent GSIS refused
to accept.

Apprehensive that respondent GSIS has disregarded the tender of the matching bid and that the sale of
51% of the MHC may be hastened by respondent GSIS and consummated with Renong Berhad, petitioner
came to Court on prohibition and mandamus.

ISSUE/S:

Is the Sec. 10, 2nd par., Art. XII of the 1987 Constitution a self-executing provision?

HELD:

Yes. Sec. 10, 2nd par., Art. XII of the 1987 Constitution is a self-executing provision. A provision which lays
down a general principle, such as those found in Article II of the 1987 Constitution, is usually not self-
executing. But a provision which is complete in itself and becomes operative without the aid of
supplementary or enabling legislation, or that which supplies sufficient rule by means of which the right
it grants may be enjoyed or protected, is self-executing.

Section 10, second paragraph, Art. XII of the 1987 Constitution is a mandatory, positive command which
is complete in itself and which needs no further guidelines or implementing laws or rules for its
enforcement. From its very words the provision does not require any legislation to put it in operation.