Prescribing The Procedure For Administrative Settlement Or Adjudication Of Disputes, Claims And Controversies Between Or Among Government Offices, Agencies And Instrumentalities, Including

MALACAÑANG
M a n i l a

PRESIDENTIAL DECREE No. 242 July 9, 1973

PRESCRIBING THE PROCEDURE FOR ADMINISTRATIVE SETTLEMENT OR ADJUDICATION OF DISPUTES, CLAIMS AND CONTROVERSIES BETWEEN OR AMONG GOVERNMENT OFFICES, AGENCIES AND INSTRUMENTALITIES, INCLUDING GOVERNMENT-OWNED OR CONTROLLED CORPORATIONS, AND FOR OTHER PURPOSES

WHEREAS, it is necessary in the public interest to provide for the administrative settlement or adjudication of disputes, claims and controversies between or among government offices, agencies and instrumentalities, including government-owned or controlled corporations, to avoid litigation in court where government lawyers appear for such litigants to espouse and protect their respective interests altho, in the ultimate analysis, there is but one real party in interest the Government itself in such litigations;

WHEREAS, court cases involving the said government entities and instrumentalities have needlessly contributed to the clogged dockets of the courts, aside from dissipating or wasting the time and energies not only of the courts but also of the government lawyers and the considerable expenses incurred in the filing and prosecution of judicial actions;

WHEREAS, all the aforementioned...

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Summary of Presidential Decree No. 242

Purpose: To prescribe the procedure for administrative settlement or adjudication of disputes, claims, and controversies between or among government offices, agencies, and instrumentalities, including government-owned or controlled corporations. (Preamble)

Coverage:
- All disputes, claims, and controversies solely between or among departments, bureaus, offices, agencies, and instrumentalities of the National Government, including constitutional offices or agencies, arising from the interpretation and application of statutes, contracts, or agreements. (Section 1)
- Does not apply to cases already pending in court at the time of the decree's effectivity. (Section 1)

Settlement or Adjudication Procedure:

Questions of Law:
- Submitted to and settled or adjudicated by the Secretary of Justice, as Attorney General and ex officio legal adviser of all government-owned or controlled corporations and entities. (Section 2)
- The Secretary of Justice's ruling or determination shall be conclusive and binding upon all parties concerned. (Section 2)

Mixed Questions of Law and Fact or Only Factual Issues:
- Submitted to and settled or adjudicated by: (Section 3)
    a) The Solicitor General, for disputes between or among departments, bureaus, offices, and other agencies of the National Government. (Section 3a)
    b) The Government Corporate Counsel, for disputes between or among government-owned or controlled corporations or entities served by the Office of the Government Corporate Counsel. (Section 3b)
    c) The Secretary of Justice, for all other disputes not covered by (a) and (b). (Section 3c)

Arbitration Panel:
- The Secretary of Justice, Solicitor General, or Government Corporate Counsel may refer the determination of questions of fact to an arbitration panel. (Section 4)
- The duly designated representative of the Secretary of Justice, Solicitor General, or Government Corporate Counsel shall act as Chairman of the panel. (Section 4)

Final Decisions and Appeals:
- Decisions of the Secretary of Justice, as well as those of the Solicitor General or the Government Corporate Counsel when approved by the Secretary of Justice, shall be final and binding upon the parties involved. (Section 5)
- Appeals may be taken to and entertained by the Office of the President only in cases where the amount of the claim or value of the property exceeds P1 million. (Section 5)
- Decisions of the Office of the President on appeal cases shall be final. (Section 5)

Effect of Final Decisions:
- Final decisions rendered in the settlement or adjudication of disputes, claims, or controversies shall have the same force and effect as final decisions of the courts of justice. (Section 6)

Implementation:
- The Secretary of Justice is authorized to promulgate rules necessary to carry out or implement the provisions of this decree. (Section 7)

Effectivity:
- This Decree shall take effect upon its promulgation. (Section 8)