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G.R.No.L32312

TodayisThursday,March03,2016

RepublicofthePhilippines
SUPREMECOURT
Manila
SECONDDIVISION
G.R.No.L32312November25,1983
AURELIOTIRO,asCitySuperintendentofSchoolsofCebuCity,petitionerappellant,
vs.
HONORABLEAGAPITOHONTANOSAS,JudgeoftheCourtofFirstInstanceofCebu,BranchXI,ZAFRA
FINANCINGENTERPRISEandMARCELINOZAFRA,respondentsappellees.
NazarenoR.PacquiaoandMedudioP.Belarminoforpetitionerappellant.
TheSolicitorGeneralandAmadeoSenoandTeodoroAlmaseforrespondentsappellees.

ABADSANTOS,J,:
InCivilCaseNo.11616ofthedefunctCourtofFirstInstanceofCebu,ZafraFinancingEnterprisesuedAurelio
TiroinhisofficialcapacityasSuperintendentofSchoolsinCebuCity.ItappearsthatZafrahadextendedloansto
publicschoolteachersinCebuCityandtheteachersconcernedexecutedpromissorynotesandspecialpowers
ofattorneyinfavorofZafratotakeandcollecttheirsalarychecksfromtheDivisionOfficeinCebuCityofthe
BureauofPublicSchools.However,TiroforbadethecollectionofthechecksonthebasisofCircularNo.21,
series1969,datedDecember5,1969,oftheDirectorofPublicSchoolswhichreadsasfollows:
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PROHIBITINGPAYMENTOFSALARYTOPERSONSOTHERTHANTHEEMPLOYEECONCERNED
ToSuperintendents:
1.QuotedhereunderisMemorandumOrderNo.93datedFebruary5,1968,oftheExecutiveOffice
entitled"ProhibitingPaymentofSalarytoAnyPersonOtherThantheEmployeesConcerned,Except
AsProvidedHerein."
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Ithasbeenobservedthatsomeemployeesdelegatethecollectionoftheirsalariesto
attorneysinfactonthestrengthofpowersofattorneyorotherformsofauthorityin
favorofotherpersons,evidentlyinsatisfactionofobligationscontractedbythem.This
practiceshouldbediscouragedinviewofitsadverseeffectsontheefficiencyand
moraleofemployeeswhoseincentivetoworkisnecessarilyimpaired,sincetheirsalary
oraportionthereofgoestootherpersons.
Tocurbthisunwholesomepractice,itisherebydirectedthathenceforthnocashieror
disbursingofficershallpaytoattorneysinfactorotherpersonswhomaybeauthorized
underapowerofattorneyorotherformsofauthoritytocollectthesalaryofan
employee,exceptwhenthepersonssodesignatedandauthorizedisanimmediate
memberofthefamilyoftheemployeeconcerned,andinallothercases,exceptupon
properauthorizationoftheAssistantExecutiveSecretaryforLegalandAdministrative
Matters,withtherecommendationoftheFinancialAssistant.
Allordersorregulationsinconsistentherewithareherebyrevoked.
Thisordershalltakeeffectimmediately.
2.Accordingly,itisdesiredthat,henceforth,cashiersordisbursingofficerspaythesalarydueany
schoolemployeeorissuethetreasurywarrantofanyteacherdirecttosuchemployeeorteacher,
exceptwhenauthoritytocollectthesalaryortreasurywarranthasbeengiventoanotherperson,and
thepersonsoauthorizedisanimmediatememberofthefamilyoftheemployeeorteacher
concerned.
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G.R.No.L32312

3.AnypreviousregulationissuedbythisOfficeinconsistentwiththisCircularisherebyrevoked.
ZafrasoughttocompelTirotohonorthespecialpowersofattorneytodeclareCircularNo.21tobeillegaland
tomakeTiropayattorney'sfeesanddamages.ThetrialcourtgrantedtheprayerofZafrabuttheclaimformoney
wasdisallowedonthegroundthatheactedingoodfaithinimplementingCircularNo.21.
Tironowseeksinthispetitionforreviewareversalofthetrialcourt'sdecision.
Thepetitionishighlyimpressedwithmerit.
ThecoreissueiswhetherornotCircularNo.21isvalidandenforceableandtheanswerisdefinitelyinthe
affirmative.
Thesalarycheckofagovernmentofficeroremployeesuchasateacherdoesnotbelongtohimbeforeitis
physicallydeliveredtohim.UntilthattimethecheckbelongstotheGovernment.Accordingly,beforethereis
actualdeliveryofthecheck,thepayeehasnopoweroverithecannotassignitwithouttheconsentofthe
Government.OnthisbasisCircularNo.21standsonfirmlegalfooting.
TheCircularinquestionisauthorizedbyrelevantstatutesextantwhenitwasissuedsuchasthefollowing:

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SEC.79(b).Powertoregulate.TheDepartmentHeadshallhavepowertopromulgate,whoever
hemayseefittodoso,allrules,regulations,orders,circular,memorandums,notcontrarytolaw,
necessarytoregulatetheproperworkingandharmoniousandefficientadministrationofeachandall
oftheofficesanddependenciesofhisDepartment,andforthestrictenforcementandproper
executionofthelawsrelativetomattersunderthejurisdictionofsaidDepartmentbutnoneofsaid
rulesorordersshallprescribepenalties.Allrules,regulations,ordersorinstructionsofageneraland
permanentcharacterpromulgatedinconformitywiththissectionshallbenumberedbyeach
Departmentconsecutivelyeachyear,andshallbedulypublished.
ChiefsofBureausorofficesmay,however,beauthorizedtopromulgatecircularsofinformationor
instructionsforthegovernmentoftheofficersandemployeesintheinterioradministrationofthe
businessofeachBureauoroffice,andinsuchcasesaidcircularsshallnotberequiredtobe
published.(RevisedAdministrativeCode.)
SEC.21.DeductionsProhibited.Nopersonshallmakeanydeductionwhatsoeverfromthe
salariesofteachersexceptunderspecificauthorityoflawauthorizingsuchdeductions:Provided,
however,thatuponwrittenauthorityexecutedbytheteacherconcerned,(1)lawfulduesandfees
owingtothePhilippinePublicSchoolTeachersAssociation,and(2)premiumsproperlydueon
insurancepolicies,shallbedeductible.(MagnaCartaForTeachers,R.A.No.4670.)
Zafra'sclaimthattheCircularimpairstheobligationofcontractswiththeteachersisbaseless.FortheCircular
doesnotpreventZafrafromcollectingtheloans.TheCircularmerelymakestheGovernmentanonparticipantin
theircollectionwhichiswithinitscompetencetodo.
WHEREFORE,thepetitionisgrantedthejudgmentofthecourtaquoisherebysetasidecostsagainstthe
privaterespondent.
SOORDERED.

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Makasiar(Chairman),Aquino,ConcepcionJr.,GuerreroandEscolin,JJ.,concur.
DeCastro,J.,tooknopart.
TheLawphilProjectArellanoLawFoundation

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