Legally Yours,  Political Law

PNB v. Pabalan

Constitutional Law. Political Law. Doctrine of State Immunity.
PNB v. Pabalan
GR No. L-33112; June 15, 1978

FACTS:
Judgment was rendered against respondent Philippine Virginia Tobacco Administration (PVTA). Judge Javier Pabalan issued a writ of execution followed thereafter by a notice of garnishment of the funds of PVTA. The full amount mentioned in such writ is P12, 724.66. Philippine National Bank alleges that such funds are public in character, thus, the doctrine of non-suability of a state is applicable.

ISSUE:
Is the respondent exempt from garnishment by virtue of the doctrine of non-suability of a state?

HELD:
It is well-settled that when the government enters into commercial business, it abandons its sovereign capacity and is to be treated like any other corporation. Petitioner cannot set a bar to the garnishment for funds of public corporations which can sue and be sued, as is the case of PVTA, are not exempt from garnishment.

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