ARCEGA vs.

COURT OF APPEALS
ALICIA O. ARCEGA, assisted by her husband RAF. L. ARCEGA, doing business
under the firm name of FAIRMONT ICE CREAM CO., petitioner,
Vs. THE COURT OF APPEALS, THE CENTRAL BANK OF THE PHILIPPINES, and
THE PHILIPPINE NATIONAL BANK, respondents.
Facts:
The petitioner Alicia O. Arcega, doing business under the firm name Fairmont Ice
Cream Company, filed a complaint with the Court of First Instance of Manila,
Branch I, against the respondents Central Bank of the Philippines and Philippine
National Bank, for the refund from allegedly unauthorized payments made by her in
the concept of the 17% special excise tax on foreign exchange. The refund prayed for
involves purchases of foreign exchange from the Philippine National Bank to cover
the costs and transportation and other charges incident to the importation into the
Philippines. The Central Bank moved to dismiss the complaint on the grounds,
among others, that the trial court has no jurisdiction over the subject-matter of the
action, because the judgment sought will constitute a financial charge against the
Government, and therefore the suit is one against the Government, which cannot
prosper without its consent, and in this case no such consent has been given.
The petitioner Arcega filed a motion for reconsideration of the resolution to which
an opposition was filed by the Central Bank. Then, the Central Banks Chief
Accountant submitted a certification that the balance of the collected special excise
tax on sales of foreign exchange was turned over to the Treasurer of the Philippines.
The court denied the petitioners motion for reconsideration. As a result, Arcega
appealed to the Court of Appeals.
Holding that the suit is indirectly against the Republic of the Philippines, which
cannot be sued without its consent, the Court of Appeals affirmed the dismissal of
the complaint.
The petitioner interposed the present appeal by certiorari.
Issue:
Whether a suit against the Central Bank a suit against the State.
Held:
The suit is brought against the Central Bank of the Philippines, an entity authorized
by its charter to sue and be sued. The consent of the State to thus be sued, therefore,
has been given.


Notes:
Suability of Central Bank in civil cases only
- The Central Bank is a government corporation created principally to administer the
monetary and banking system of the Republic. It is not a prosecution agency like the
fiscals office. The Central Bank is limited to its statutory powers. Its power to sue and
be sued refers to civil cases only.