PHIL. NATIONAL BANK vs.

JAVIER PABALAN, 83 SCRA 595

G.R. No. L-33112 | June 15, 1978

FACTS: On 17 Dec 1970, Judge Pabalan issued a writ of execution followed thereafter by a
notice of garnishment of the funds of Philippine Virginia Tobacco Administration in the sum
of P12,724.66 deposited with the petitioner bank. PNB La Union filed an administrative
complaint against Pabalan for grave abuse of discretion, alleging that the latter failed to
recognize that the questioned funds are of public character and therefore may not be
garnished, attached or levied upon. The PNB La Union Branch invoked the doctrine of non
suability, putting a bar on the notice of garnishment.

ISSUE: Whether or not PNB may be sued.

HELD: Funds of public corporations which can sue and be sued are not exempt from
garnishment. PVTA is also a public corporation with the same attributes, a similar outcome
is attributed. The government has entered with them into a commercial business hence it
has abandoned its sovereign capacity and has stepped down to the level of a corporation.
Therefore, it is subject to rules governing ordinary corporations and in effect can be sued.
Therefore, the petition of PNB La Union is denied.