ACCFA v. CUGCO et. al (No. L-221484, November 29, 1969, 30 SCRA 649) Fact !

The case of Agricultural Credit and Cooperative Financing Administration (ACCFA) vs. Confederation of Unions in Government Corporations and Offices (CUGCO) [3 !C"A #$% (&%#%)'( this Court in re)e*amining the aforesaid Bacani ruling o+served that the trend has +een to a+andon and re,ect the traditional -Constituent) .inistrant- criterion in governmental functions in favor of the more responsive postulate that the gro/ing comple*ities of modern societ0 have rendered the traditional classification of government functions unrealistic and o+solete. " #e$ ! 1t has not al/a0s +een eas0 determining /hich functions are governmental in nature and /hich are proprietar0. The characteri2ation of functions performed +0 the government has evolved from the traditional -constituent) administrant- classification (as enunciated in the case of Bacani v. National Coconut Corporation (& 3hil. $#4 [&%5#') to its disavo/al in the case of ACCFA v. CUGCO et. al (6o. 7)88&$4$( 6ovem+er 8%( &%#%( 3 !C"A #$%) /here( considering the social ,ustice provision of the &%35 Constitution( 9e said that the -constituent)ministrant- classification had +ecome unrealistic( if not o+solete. There( /e gave our assent to a socio)political philosoph0 espousing a greater sociali2ation of economic forces. 9e found nothing o+,ectiona+le in government underta:ing in its sovereign capacit0 activities /hich( +0 the constituent-ministrant test /ould have +een considered as merel0 optional. %& 'el( )* t'e ACCFA ca e, t'# ! The gro/ing comple*ities of modern societ0( ho/ever( have rendered this traditional classification of the functions of government ;uite unrealistic( not to sa0 o+solete. The areas /hich used to +e left to private enterprise and initiative and /hich the government /as called upon to enter optionall0( and onl0 <+ecause it /as +etter e;uipped to administer for the pu+lic /elfare than is an0 private individual or groups of individuals(< continue to lose their /ell)defined +oundaries and to +e a+sor+ed /ithin activities that the government must have underta:en in its sovereign capacit0 if it is to meet the increasing social challenges of the times. =ere as almost ever0/here( else( the tendenc0 is undou+tedl0 to/ards a greater sociali2ation of economic forces. =ere of course( this development /as envisioned indeed adopted as a national polic0( +0 the Constitution itself in its declaration of principle concerning the promotion of social ,ustice.