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PRESIDENTIAL DECREE NO. 242
PRESIDENTIAL DECREE NO. 242 -
PRESCRIBING THE PROCEDURE FOR ADMINISTRATIVE SETTLEMENT OR ADJUDICATION
OF DISPUTES, CLAIMS AND CONTROVERSIES BETWEEN OR AMONG GOVERNMENT
OFFICES, AGENCIES AND INSTRUMENTALITIES, INCLUDING GOVERNMENT-OWNED OR
CONTROLLED CORPORATIONS, AND FOR OTHER PURPOSES
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WHEREAS, it
is necessary in the public interest to provide for the administrative
settlement or adjudication of disputes, claims and controversies
between or among government offices, agencies and instrumentalities,
including government-owned or controlled corporations, to avoid
litigation in court where government lawyers appear for such litigants
to espouse and protect their respective interests altho, in the
ultimate analysis, there is but one real party in interest — the
Government itself — in such litigations;chanroblesvirtualawlibrary
WHEREAS, court cases involving the said government entities and
instrumentalities have needlessly contributed to the clogged dockets of
the courts, aside from dissipating or wasting the time and energies not
only of the courts but also of the government lawyers and the
considerable expenses incurred in the filing and prosecution of
judicial actions;chanroblesvirtualawlibrary
WHEREAS, all the aforementioned offices, agencies, and
instrumentalities are under the executive control and supervision of
the President of the Philippines;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by the powers vested in me by the Constitution as Commander-in-Chief of
all the Armed Forces of the Philippines and pursuant to Proclamation
No. 1081 dated September 21, 1972 and General Order No. 1 dated
September 22, 1972, as amended, do hereby order and decree;chanroblesvirtualawlibrary
Section 1. Provisions of law to the contrary
notwithstanding, all disputes, claims and controversies solely between
or among the departments, bureaus, offices, agencies and
instrumentalities of the National Government, including constitutional
offices or agencies, arising from the interpretation and application of
statutes, contracts or agreements, shall henceforth be administratively
settled or adjudicated as provided hereinafter: Provided, That this
shall not apply to cases already pending in court at the time of the
effectivity of this decree.
Section 2. In all cases involving only questions of
law, the same shall be submitted to and settled or adjudicated by the
Secretary of Justice, as Attorney General and ex officio legal adviser
of all government-owned or controlled corporations and entities, in
consonance with section 83 of the Revised Administrative Code. His
ruling or determination of the question in each case shall be
conclusive and binding upon all the parties concerned.
Section 3. Cases involving mixed questions of law and
of fact or only factual issues shall be submitted to and settled or
adjudicated by:cralaw:red
(a) The Solicitor General, with respect to disputes
or claims controversies between or among the departments, bureaus,
offices and other agencies of the National Government;chanroblesvirtualawlibrary
(b) The Government Corporate Counsel, with respect to
disputes or claims or controversies between or among the
government-owned or controlled corporations or entities being served by
the Office of the Government Corporate Counsel; and
(c) The Secretary of Justice, with respect to all
other disputes or claims or controversies which do not fall under the
categories mentioned in paragraphs (a) and (b).
Section 4. In the settlement or adjudication of the
aforementioned cases, the Secretary of Justice or the Solicitor General
or the Government Corporate Counsel may in his discretion refer to an
arbitration panel the determination of questions of fact. The duly
designated representative of the Secretary of Justice, Solicitor
General or Government Corporate Counsel, as the case may be, shall act
as Chairman of such panel. chanroblesvirtualawlibrary
Section 5. The decisions of the Secretary of Justice,
as well as those of the Solicitor General or the Government Corporate
Counsel, when approved by the Secretary of Justice, shall be final and
binding upon the parties involved. Appeals may be taken to and
entertained by the Office of the President only in cases wherein the
amount of the claim or value of the property exceeds P1 million. The
decisions of the Office of the President on appeal cases shall be final.
Section 6. The final decisions rendered in the
settlement or adjudication of all such disputes, claims or
controversies shall have the same force and effect as final decisions
of the court of justice.
Section 7. The Secretary of Justice is hereby
authorized to promulgate such rules as he may deem necessary to carry
out or implement the provisions of this decree.
Section 8. This Decree shall take effect upon its
promulgation.
Done in the City of Manila,
this 9th day of July, in the year of Our Lord, nineteen hundred and
seventy-three.
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