3 Tropical Homes Inc Vs NHA
3 Tropical Homes Inc Vs NHA
3 Tropical Homes Inc Vs NHA
Facts: Petitioner Tropical Homes, Inc. entered into a contract with private respondent Arturo P. Cordova
for the sale to the latter of a lot at Better Living Subdivision in Paranaque, Metro Manila. The contract
price was P32,108.00. A ten (10) percent downpayment upon the execution of the contract was
required and the balance payable at a monthly amortization of P318.16 beginning May 17, 1972 for 20
years. Section 14 of the contract provided that the contract will be automatically cancelled upon default
in payment of any installment within 90 days from its due date. Cordova was informed through a letter
signed by Manuel M. Serrano, executive vice-president and general manager of the petitioner
corporation that the contract was cancelled due to non-payment of installments for a period of seven
(7) months in violation of the contract, particularly the above-mentioned section. All the earlier
payments were considered forfeited in favor of the corporation as liquidated damages.
x x x x x x x x x
Section 1. In the exercise of its functions to regulate the real estate trade and business and in
addition to its powers provided for in Presidential Decree No. 957, the National Housing
Authority shall have exclusive jurisdiction to hear and decide cases of the following nature:
b) Claims involving refund and any other claims filed by sub-division lot or condominium
unit buyer against the project owner, developer, dealer, broker or salesman; and
Section 2. The decision of the National Housing Authority shall become final and executory after
the lapse of fifteen (15) days from the date of its receipt. It is appealable only to the President of
the Philippines and in the event the appeal is filed and the decision is not reversed and/or
amended within a period of thirty (30) days, the decision is deemed affirmed. Proof of the
appeal of the decision must be furnished the National Housing Authority.
On June 19, 1978, the petitioners, availing of this decree, appealed to the President of the Philippines.
In said appeal, it stated that " ... we do not thereby waive the right to question the constitutionality of
said Decree, which we believe to be violative of the due process clause of the Constitution as well as
contrary to the primordial concept of separation of powers.
Issue: Whether or not the mode of review on appeal prescribed by the decree violates the constitutional
guarantee of due process?
Ruling: No. The right to appeal is not a natural right nor a part of due process, except where it is granted
by statute in which case it should be exercised in the manner and in accordance with the provisions of
law. (Bello v. Francisco, 4 SCRA 134; Rodriguez v. Director of Prisons, 47 SCRA 153). In other words,
appeal is a right of statutory and not constitutional origin.
The fact that P.D. No. 1344 does not specifically provide for judicial review of NHA decisions affirmed or
reversed by the President, does not necessarily preclude judicial review.
The extraordinary writs of certiorari, prohibition, mandamus or quo warranto (Rules 65 and 66) are
always available in proper cases where there is no appeal or other plain, speedy, or adequate remedy in
the ordinary course of law. The power of the Supreme Court to strike down acts which infringe on
constitutional protections or to nullify administrative decisions contrary to constitutional mandates
cannot be reduced or circumscribed by any statute or decree. No statute is needed to bring arbitrary
acts or decisions within our jurisdiction.