SECOND DIVISION

[G.R. No. L-39743. September 24, 1983.]

JUSTINIANO CAJIUAT, MARCIAL LARA, JOSE NUÑEZ, LEONOR AMACIO, ETERIO SOTIANGCO,
OTILIO DE GUZMAN, OSCAR INDUCTIVO, DONATO ABELLARDO, CECILIO CUNANAN, CONSTANTE
QUITORIANO, RAYMUNDO QUIÑONES, ABDON LAMSIN, FERNANDO BANAAG, FERNANDO PINEDA,
LORENZO GERONIMO, ENRIQUE VILLANUEVA, DELFIN ESPINO, WILSON ALBANA, VALERIO
ARELLANO, ESTRELLA BAYAWA, PEDRO CORPUZ, MELITON CRUZ, ERNESTO RAMIREZ, LEONARDO
SANTOS, ALBERT ARCE, SATURNINO LARIN, IGNACIO FONTE, ROBERTO TORRES, SEVERINO
BAUTISTA, FELICIANO BAUTISTA, PEDRO GOLPEO, ARSENIO TORRES, DOMINGO MAÑO,
BIENVENIDO VALMONTE, SALVADOR SANTIAGO, ANDRES ASLARONA, RICARDO TOBIAS,
AGAPITO VILLAROMAN, CONRADO PAULINO, MAURICIO BELTRAN, JOSE MARAVILLA, and
CARMELO BARBER, Petitioners, v. HONORABLE ISMAEL MATHAY, SR., in his capacity as Acting
Chairman of the Commission on Audit, Respondent.

Bautista & Zafra Law Office, for Petitioners.

The Solicitor General for Respondent.

SYLLABUS

1. ADMINISTRATIVE LAW; CIVIL SERVICE; RETIREMENT GRATUITY; PRESIDENTIAL DECREE No. 4; DOUBLE
PENSION NOT ALLOWED UNLESS CLEARLY PROVIDED FOR BY LAW. — There must be a provision, clear and
unequivocal, to justify a double pension. The general language employed in paragraph 3, Section 26 of
Presidential Decree No. 4 falls to meet that test. All that it states is that permanent employees of the Rice and
Corn Administration who are retirable are entitled to gratuity equivalent to one month salary for every year
of service but in no case more than twenty-four months salary in addition to other benefits to which they are
entitled under existing laws and regulations. To grant double gratuity then is unwarranted.

2. ID.; ID.; ID.; ID.; RECEIPT OF "OTHER BENEFITS" CONSTRUED. — No reliance can be placed to the use of
the term "other benefits" found in the paragraph relied upon. As clearly stated in the memorandum of the
Solicitor General, they refer to "those receivable by a retiree under the general retirement laws, like the refund
of contributions to the retirement fund and the money value of the accumulated vacation and sick leaves of
said official employee. The clause in addition to all other benefits to which they are entitled under existing
laws and regulations," was inserted to insure the payment to the retiree of the refund of the contributions to
the retirement fund and the money value of the accumulated vacation and sick leaves of said official or
employee.

3. ID.; ID.; ID.; RULE AGAINST DOUBLE COMPENSATION WELL- SETTLED. — The rule against double
compensation is nothing new. It was so held in Peralta v. Auditor General, 100 Phil. 1951(1957). While the
question involved is not identical, its ratio decidendi applies to the instant situation, namely, to allow what
petitioners seek "would be a clear disregard of the prohibition to receive both the compensation and the
pension, annuity, or gratuity." Peralta was cited with approval in a later case, San Diego v. Auditor General,
119 Phil. 335 (1964), and a recent decision Chavez v. Auditor General, L-29311, February 27, 1971, 37 SCRA
776.

DECISION

FERNANDO, J.:

The claim of petitioners, which was denied by the then Acting Chairman of the Commission on Audit, Ismael
Mathay, Sr., is based on par. 3, Section 26 of Presidential Decree No. 4. It reads as follows: "Permanent
officials and employees of the Rice and Corn Administration . . . who prefer to retire, if qualified for
retirement, shall be given gratuity equivalent to one month salary for every year of service but in no case
more than twenty-four months salary, in addition to all other benefits to which they are entitled under
existing laws and regulations." 1 There is no dispute that petitioners were, prior to their retirement,
permanent officials and employees of the then Rice and Corn Administration abolished under Presidential
Decree No. 4. They being retirable, they exercised the option to do so under the Optional Retirement Law. 2
They had, therefore, by virtue thereof, received the gratuity under such law. With the issuance of the
aforesaid Presidential Decree, however, they were led to hope that a claim for separation gratuity would
likewise be justified. Respondent, the then Acting Chairman of the Commission on Audit was of a different
mind. For him, there was no legal basis for allowing them double gratuity. He rendered such a decision. In
view of such refusal to give due course to their plea, they filed this petition before this Court. chanroble s.com : vi rtua l law lib rary

It is their submission that to deny them separation gratuity "would render the clause under consideration
meaningless as if it is (sic) never written in the decree. This would be contrary to the rules on statutory
construction and interpretation that every part of the statute should be carried into effect." 3 The Solicitor
General, in his memorandum for respondent, rejected such an argument. Thus: "It is respectfully submitted
that since the petitioners herein have already retired and were paid the gratuity under Commonwealth Act
No. 186, as amended by Republic Act No. 1616, they are no longer entitled to the gratuity provided under
paragraph 3, Section 26 of Presidential Decree No. 4." 4 After referring to the gratuity as "a free gift, a
present, or any benefits of pecuniary value bestowed without claim or demand, or without consideration," 5
he pointed out that from its very nature, "there seems to be no apparent reason for granting to the herein
petitioners the gratuity provided for under paragraph 3, Section 26, of Presidential Decree No. 4, in addition
to the gratuity which they have already received under Commonwealth Act No. 186, as amended by
Republic Act No. 1616. This is so because to assume otherwise would not only be an act of "over-liberality"
on the part of the State but likewise inconsistent with its policy against double pension or gratuity for the
same service." 6

To bolster his submission, he cited the ruling in Borromeo v. Government Service Insurance System: 7 "The
gratuity received by petitioner under Act 2589 was obviously in consideration of his services to the
government as of his retirement in December 15, 1949. It is similarly obvious that the retirement benefits
he was found to be entitled to receive under the provisions of Act 910, as amended, were in consideration of
the same services to the government. Therefore, for petitioner to receive full benefits under the law, in
addition to the gratuity he had already received under Act 2589, would amount to allowing him to receive
double pension for exactly the same services as consideration. The rule in construing or applying pension
and gratuity laws is that, in the absence of express provisions to the contrary, they will be so interpreted as
to prevent any person from receiving double compensation." 8 It was further stressed that the enactment of
later legislations after the retirement of a public official "is not a circumstance of sufficient weight to justify
our ignoring the general policy of the State — expressed both in Act 2589 as well as in Act 910 — against
double pensions for the same services. To the contrary, the fact that even after petitioner’s retirement under
Act 2589 another pension law was enacted under which he could claim greater benefits affords a greater
reason for the application of the general policy against double pensions, unless the contrary was expressly
and clearly provided in the later enactment." 9

This Court, after a careful consideration, arrives at the same conclusion. There must be a provision, clear
and unequivocal, to justify a double pension. The general language employed in paragraph 3, Section 26 of
Presidential Decree No. 4 fails to meet that test. All that it states is that permanent employees of the Rice
and Corn Administration who are retirable are entitled to gratuity equivalent to one month salary for every
year of service but in no case more than twenty-four months salary in addition to other benefits to which
they are entitled under existing laws and regulations. To grant double gratuity then is unwarranted. No
reliance can he placed to the use of the term "other benefits" found in the paragraph relied upon. As clearly
stated in the memorandum of the Solicitor General, they refer to "those receivable by a retiree under the
general retirement laws, like the refund of contributions to the retirement fund and the money value of the
accumulated vacation and sick leaves of said official employee. The clause ‘in addition to all other benefits to
which they are entitled under existing laws and regulations,’ was inserted to insure the payment to the
retiree of the refund of the contributions to the retirement fund and the money value of the accumulated
vacation and sick leaves of said official or employee." 10

That is all it can plausibly signify. To go further would make it a fruitful parent of injustice. It would set at
naught a state policy dictated by reason and fairness alike. Petitioners seek to claim the status of an exempt
class. The burden of proof is on them. That they failed to meet, relying as they do on words hardly indicative
of their being accorded a favored status. To justify such a result, it is imperative that the language
employed be of the clearest and most satisfactory character. The paragraph relied upon in Section 26 of
Presidential Decree No. 4, to repeat, cannot be so characterized. c han robles. com : virtual law l ib rary

One last word. It is to be added that the rule against double compensation is nothing new. It was so held in
Peralta v. Auditor General. 11 While the question involved is not identical, its ratio decidendi applies to the
instant situation, namely, to allow what petitioners seek "would be a clear disregard of the prohibition to
receive both the compensation and the pension, annuity, or gratuity." 12 Peralta was cited with approval in
a later case, San Diego v. Auditor General. 13 A recent decision, Chavez v. Auditor General, 14 puts the
matter tersely but emphatically. Thus: "Appeal from a decision of the Auditor General, in which we reaffirm
the Court’s doctrine against the payment to retirees from the government service of double pension for
exactly the same services." 15 We do so again.

WHEREFORE, this petition for certiorari is denied for lack of merit and the decision of respondent, the then
Auditor General, denying due course to the claim of petitioner for double gratuity affirmed. No costs.

Makasiar, Aquino, Concepcion, Jr., Guerrero and Escolin, JJ., concur.

Abad Santos, J., took no part.

De Castro, J., is on leave.

Endnotes:

1. Section 26, par. 3 of Presidential Decree No. 4.

2. Commonwealth Act No. 186.

3. Memorandum for the Petitioners, 11.

4. Memorandum of Solicitor General for Respondent, 1-2. Solicitor General Mendoza was assisted by then
Assistant Solicitor General Reynato Puno and then Solicitor Ramon Barcelona.

5. Ibid. 2.

6. Ibid.

7. 10 Phil. 1 (1960)

8. Ibid, 3.

9. Ibid, 4.

10. Memorandum for the Respondent, 5.

11. 100 Phil. 1951 1957).

12. Ibid, 1055.

13. 119 Phil. 335 (1964).

14. L-29311, February 27, 1971, 37 SCRA 776.

15. Ibid, 777. Cf. Espejo v. Auditor General, 97 Phil. 216 (1955).