Friday, December 14, 2012

panares


EN BANC
G.R. No. L-28891 August 30, 1968
DEVELOPMENT BANK OF THE PHILIPPINES, petitioner,
vs.
THE REFEREE ESTANISLAO D. SARTO, WORKMEN'S COMPENSATION UNIT, REGIONAL OFFICE NO. 6, MELCHORA Z. VDA. DE BRITANICO, for herself and in behalf of her minor children, respondents.
Eufronio P. Diamante and Vicente G. Pagdatoon, Jr. for petitioner.
Antonio B. Caayao and Estanislao D. Sarto for respondents.

Facts.

Melchora Z. Vda de Britanico, the widow, together with her children and heir of the late Wilfredo V. Britanico, claimed over the death compensation against DBP, being the employer of the deceased husband of the respondent in accordance to the provision provided under the Workmen’s Compensation Act, as amended.
The claimed was denied by the DBP upon the ground that its employees are not covered by the said Compensation Act. In line with its denial to the claim, DBP file through its counsel a petition for prohibition to the Court in connection with its action of denying and dismissing the said claimed.

Issues:
Whether or not DBP is correct with its contention as being not included in the term “political subdivision and instrumentalities” of the national government as defined under Sec.3 of Workmen’s Compensation Act.
Are the employees of DBP covered by the provisions as provided under Sec. 3 of the Workmen’s Compensation Act with regards to the grant of their benefits?

Held:

Traditionally, the government performs two important functions; governmental and proprietary. In this case, the Court said that DBP is an instrumentality of the national government that exercises proprietary function which basically promote the economic development of the country, thus, it is included in the definition under Sec. 3 of the Workmen’s Compensation Act.
The Court also held that DBP, being an instrumentality of the national government follows that its employees are covered by the provision defined in Sec. 3 of the Workmen’s Compensation Acts, quoted as “This Act shall also be applicable to all officials, employees, and laborers in the service of the National Government and its political subdivisions and instrumentalities: Provided, however, that officials, laborers, and employees insured with the GSIS, and their dependents when entitled to the benefits of the said insurance system shall, in addition to the same, be entitled to the benefits granted by this Act." (As amended by R.A. No. 4119).”

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