ADMINISTRATIVE LAW| COOPERATIVE DEVELOPMENT AUTHORITY V. DOLEFIL AGRARIAN REFORM BENEFICIARIES COOPERATIVE, INC., G.R. NO. 137489. MAY 29, 2002

COOPERATIVE DEVELOPMENT AUTHORITY V. DOLEFIL AGRARIAN REFORM BENEFICIARIES COOPERATIVE, INC.,

G.R. NO. 137489. MAY 29, 2002

 

TOPIC/DOCTRINE

Pursuant to the constitutional mandate directing Congress to create a centralized agency that shall promote the viability and growth of cooperatives, the Congress approved on 10 March 1990 Republic Act No. 6939 which is the organic law creating the Cooperative Development Authority, and apparently cognizant of the errors in the past, Congress declared in an unequivocal language that the state shall “maintain the policy of non-interference in the management and operation of cooperatives.”

 

FACTS

Sometime in the later part of 1997, the CDA received from certain members of the Dolefil Agrarian Reform Beneficiaries Cooperative, Inc., an agrarian reform cooperative that owns 8,860 hectares of land in Polomolok, South Cotabato, several complaints alleging mismanagement and/or misappropriation of funds of DARBCI by the then incumbent officers and members of the board of directors of the cooperative, some of whom are herein private respondents.

 

Acting on the complaints docketed as CDA-CO Case No. 97-011, CDA Executive Director Candelario L. Verzosa, Jr. issued an order dated December 8, 1997 directing the private respondents to file their answer within ten (10) days from receipt thereof.

 

On December 18, 1991, the private respondents filed a Petition for Certiorari with a prayer for preliminary injunction, damages and attorney’s fees against the CDA and its officers primarily questioning the jurisdiction of the CDA to resolve the complaints against the private respondents, specifically with respect to the authority of the CDA to issue the “freeze order” and to create a management committee that would run the affairs of DARBCI.

 

Petitioner CDA claims that it is vested with quasi-judicial authority to adjudicate cooperative disputes in view of its powers, functions and responsibilities under Section 3 of Republic Act No. 6939. The quasi-judicial nature of its powers and functions was confirmed by the Department of Justice, through the then Acting Secretary of Justice Demetrio G. Demetria, in DOJ Opinion No. 10, Series of 1995.

 

 

ISSUE

whether petitioner Cooperative Development Authority (CDA for brevity) is vested with quasi-judicial authority to adjudicate intra-cooperative disputes.

 

RULING

No.

The court ruled that when the law speaks in clear and categorical language, there is no room for interpretation, vacillation or equivocation—there is only room for application; It can be gleaned from Section 3 of R.A. No. 6939 that the authority of the CDA is to discharge purely administrative functions which consist of policy-making, registration, fiscal and technical assistance to cooperatives and implementation of cooperative laws. Nowhere in the said law can it be found any express grant to the CDA of authority to adjudicate cooperative disputes. The CDA is devoid of any quasi-judicial authority to adjudicate intra-cooperative disputes and more particularly disputes as regards the election of the members of the Board of Directors and officers of cooperatives—the authority to conduct hearings or inquiries and the power to hold any person in contempt may be exercised by the CDA only in the performance of its administrative functions. Pursuant to the constitutional mandate directing Congress to create a centralized agency that shall promote the viability and growth of cooperatives, the Congress approved on 10 March 1990 Republic Act No. 6939 which is the organic law creating the Cooperative Development Authority, and apparently cognizant of the errors in the past, Congress declared in an unequivocal language that the state shall “maintain the policy of non-interference in the management and operation of cooperatives.”







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