The Court of Appeals denied a petition seeking to stop the Department of Transportation and Communications from bidding out the new information communications technology infrastructure and database systems for the Land Transportation Office with a budget allotment of P8 billion.
In an 18-page decision, the CA’s Eight Division through Associate Justice Carmelita Salandanan Manahan sustained the ruling issued by Regional Trial Court, Branch 217, of Quezon City, which “expunged and terminated proceedings” on the petition for declaratory relief with prayer for the issuance of a temporary restraining order or a writ of preliminary injunction to enjoin the implementation of DoTC Special Order No. 2011-181.
The appellate court junked the petition filed by Bonifacio Sumbilla, who claimed to be the president of Stradcom Corp., to its rights as bidder under the Government Procurement Act, for judicial determination of the duties of the DoTC Bids and Awards Committee under the law and to ascertain the legality of DoTC Special Order No. 2011-181.
DoTC Special Order No. 2011-181 was issued by former DoTC secretary and now presidential aspirant Manuel Roxas III on Sept. 13, 2011 starting the process for the conduct of a public bidding for a new LTO ICT infrastructure and systems contract.
However, in an order issued on Feb. 6, 2013, the Quezon City RTC granted the motion filed by Cesar Quiambao, who claimed to be the true and lawful president of Stradcom, to junk the petition of Sumbilla group because the latter has no legal authority to institute the suit.
On Nov. 23, 2013, the QC RTC also denied the motion for reconsideration filed by the Sumbilla group saying that the latter failed to prove that it has the legal or official management and control of Stradcom.
It added that based on Stradcom’s General Information Sheets the Quiambao group manages and controls Stradcom from the start.
In affirming the RTC ruling, the appellate court rejected the contention of the Sumbilla group that the QC RTC defied the Supreme Court’s resolution issued on August 23, 2011 which directed the re-raffle of interpleader case involving the two groups to the Special Commercial Court of Quezon City in conjunction with its January 24, 2012 resolution which denied Quiambao group’s motion for reconsideration thereto.
The CA said it agreed with the Quezon City court’s ruling that the SC’s resolution pertains only to the interpleader case pending before QC RTC Branch 222.
The appellate court noted that in the resolution, the SC neither made any pronouncement nor mentioned any special instruction in the disposition of Sumbilla group’s petition for declaratory relief.
The appellate court stressed that since there is no allegation that the interpleader proceeding before the QC Special Commercial Court has finally terminated and that a decision has been rendered, the trial court handling the petition for declaratory relief “cannot be held hostage to await the same as no proscription on its part was imposed by a higher court.”
“In the case at bench, the trial court finds that the Sumbilla group represented by Bonifacio Sumbilla, in his purported capacity as president and CEO of Stradcom Corporation and Jer B. Samson, in his purported capacity as corporate secretary, are not in legitimate control and management of Stradcom Corporation,” the CA explained.
“Accordingly, the trial court assailed orders which decreed the expunction of the petition for declaratory relief and the dismissal of the proceedings are in accordance with the procedural tenets in play,” it said.
Associate Justices Japar Dimaampao and Franchito Diamante concurred with the ruling.