Director Zafrullah G. Masahud

March 7, 1990 Director Zafrullah G. Masahud Bureau of Small & Medium Business Development 3rd Floor, WIPI Building 349 Sen. Gil J. Puyat Avenue Makati, Metro Manila S i r : This refers to your letter dated, February 7, 1990, requesting comments of this Commission on one of the issues raised during the public hearing to review the Guidelines and Regulations to implement the provisions of the Republic Act 6810, otherwise known as "kalakalan 20." prcd You stated that among the issues raised during the hearing was the juridical personality of the beneficiaries, the Countryside and Barangay Business Enterprises (CBBES),after the five year duration of the CBBE'S Authority. One suggestion is the automatic registration of the firms with the SEC. Republic Act No. 6810, otherwise known as Kalakalan 20 provides: "SECTION 5. CBBEs registered under the provisions of this Act shall acquire a separate and distinct juridical personality from the owners/members thereof and as such can own, dispose and encumber its properties and enter into contracts on its own account, with the capacity to sue and be sued and transact business any where in the country." Thus, by express provision of law, registered CBBE need not register again with the SEC to acquire a juridical personality. Likewise, under the Implementing Rules of the law, registration of CBBES is vested in the office of the Municipal Treasurers. "SECTION 3. Municipal and City Registration Offices . The Office of the Treasurer of the CBBE cities and municipalities shall take charge of the processing of CBBE registration. Undeniably, therefore, the Commission has no jurisdiction over the registration of this type of business firms. It was observed, however, that in the Rules and Regulations implementing the law, it is provided that: "SECTION 10. Duration of CBBE Authority . The CBBE Authority shall be valid for a period of five (5) years from date of registration, without any renewal." llcd The above provision is not provided for by the law itself. There is therefore a clear doubt on the status of CBBE after the expiration of the 5 year period. As stated in the letter, one suggestion is the automatic registration of the CBBE's with the SEC. In this connection, it is worth mentioning that it is a long standing rule that jurisdiction over the subject matter is conferred only by the constitution or law. (De Jesus et al, vs. Garcia, G.R. No. L-26816, February 28, 1967, cited in SEC Case No. 2102, dated March 9, 1982). Jurisdiction, therefore, cannot be presumed as the same "must appear clearly from statute or it will not be held to exist." (Africa vs. Gronke, G.R. No. 10649, March 1, 1916, 34 Phil. 50). Moreover, jurisdiction cannot be broadened upon "doubtful inference from statute and absent a statutory grant, neither convenience nor assumed justice or propriety of the exercise thereof in a particular class of cases can justify the assumption of jurisdiction by said courts." (Tuason vs. Crossfield, G.R. No. 9453, March 30, 1915, 30 Phil 543, cited in SEC case, Supra.) "The rule with respect to administrative agencies such as this Commission is more stringent. Being a creature of the legislature and not a court, it can only exercise such jurisdiction and powers as are expressly or by necessary implication, conferred upon it by statute." (SEC Case, Supra, citing RCPI vs. Board of Communications, G.R. No. L-45378, November 29, 1977; Filipino Bus Co. vs. Phil. Railway Co., G.R. No. 37929, February 16, 1933, 57 Phil 860). Inasmuch as there is a clear doubt on the matter of jurisdiction and the issue posed involves a drawing of conclusion with respect a subject beyond our jurisdiction, it is suggested that you bring the issue to the attention of the Department of Justice for a proper ruling on the matter. LexLib Very truly yours, (SGD.) RODOLFO L. SAMARISTA Associate Commissioner