- The present composition of the Board of Commissioners, wherein five out of its nine GSIS v.

HLURB
members sit in ex-officio capacity while the remaining four serve as full time commissioners, Example of Rule-Making in Various Agencies | 5 May 2010 | J. Carpio-Morales
practicality necessitates the establishment of a procedure whereby a case on appeal may be
decided by members of a division. Nature of Case: Petition for Review on Certiorari
- Since the 2004 HLURB Rules of Procedure provides that a motion for reconsideration shall Digest maker: Vitriolo
be assigned to the Division from which the decision, order or ruling originated, the SUMMARY: NSJBI obtained loan from GSIS which was secured by a mortgage over a condo
questioned cognizance by the HLURB Second Division of GSISs motion for reconsideration unit, which the former subsequently sold to Sps. De los Reyes. When unit was foreclosed,
Sps. De los Reyes filed a complaint. HLU Arbiter also granted cease and desist order, which
is in order.
was affirmed by HLURB 2nd Division. Court held that HLURB did not act without
jurisdiction when it made a decision made thru the division.
RULING: AFFIRMED.
DOCTRINE: Sec. 5 of E.O. No. 648 mandates the HLURB Board of Commissioners to adopt
rules of procedure for the conduct of its business and perform such functions necessary for
the effective discharge thereof. Such grant of power necessary to carry out its functions has
NOTE:
been held to be an adequate source of authority to delegate a particular function, unless, by
• Ruling as to propriety of cease and desist order (CDO): express provision of the Act or by implication, it has been withheld.
- 2nd paragraph of Sec. 2 of PD No. 385 recognises that an injunction may be ordered against
a government financial tuition. This was qualified by the obligation of the borrower to
liquidate remaining balance of arrearages.
FACTS:
- Furthermore, HLURB has jurisdiction over a complaint for annulment of foreclosure sale
1. New San Jose Builders Inc. (NSJBI) mortgaged three parcels of lands and condominium
and grant of incidental relieves like CDO.
units to GSIS to secure its Php600k worth of loan. Later, one these units was sold to Sps. De
los Reyes.
2. For failure to pay, GSIS foreclosed the property. This was then discovered by Sps. De los
Reyes who subsequently filed a complaint against with HLURB praying that GSIS be
ordered to release the mortgage and that NSJBI cause delivery of title to them.
3. Before expiration of redemption period, Sps. De los Reyes filed an urgent motion for
issuance of a writ of Preliminary Injunction. GSIS opposed on the ground that PD No. 385
prohibits issuance of a restraining order against any government financial institution.
4. HLU Arbiter granted and issued cease and desist order. On appeal, decision was affirmed
by HLURB Second Division.
5. GSIS argued that HLURB acted without jurisdiction for only 3 members, instead of 9-man
Board of Commissioners, entertained the appeal contrary to Secs. 5 and 6 of EO No 648.

ISSUE/S & RATIO:

1. WON HLURB acted without jurisdiction. — NO
- Sec. 5 of E.O. No. 648 mandates the HLURB Board of Commissioners to adopt rules of
procedure for the conduct of its business and perform such functions necessary for the
effective discharge thereof. Such grant of power necessary to carry out its functions has been
held to be an adequate source of authority to delegate a particular function, unless, by
express provision of the Act or by implication, it has been withheld.