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.”