People v. Encarnacion
REITERATIONFacts
The Antecedents: Nicolas Encarnacion was prosecuted under Article 397 of the Penal Code for allegedly taking an interest in contracts awarded by the Government. Procedural History: The accused filed a demurrer to the complaint, alleging that Article 397 of the Penal Code had been repealed by the Administrative Code. The lower court sustained this demurrer. The Appeal: The People of the Philippine Islands, through the prosecuting attorney, appealed the order sustaining the demurrer, questioning the lower court's conclusion that the relevant provisions of the Administrative Code had repealed Article 397 of the Penal Code.
Issue(s)
Whether Article 397 of the Penal Code was repealed by the Administrative Code in relation to Act No. 2798.
Ruling
The Supreme Court reversed the order of the lower court sustaining the demurrer. It held that Article 397 of the Penal Code was not repealed by the Administrative Code and ordered the accused to plead to the complaint, allowing the proceedings to continue in accordance with law.
Ratio Decidendi
On Issue 1: The Supreme Court held that Article 397 of the Penal Code was not repealed. First, the Court found that Section 2581 of the Administrative Code, which defines and punishes taking interest in government contracts, specifically refers to the Department of Mindanao and Sulu and was not extended to the Mountain Province by Act No. 2798. Second, while Section 2613 of the Administrative Code does apply to the Mountain Province, it merely outlines general procedures for administrative suspension and removal without detailing specific criminal acts. Third, and most pivotally, the Court distinguished between administrative and penal sanctions. Applying Article 24, No. 3 of the Penal Code, the Court observed that disciplinary measures taken by administrative or executive authorities are not considered 'penalties' within the meaning of criminal law. Therefore, because the two punishments differ in nature—one being administrative/disciplinary and the other being judicial/penal—the enactment of the former does not manifest a legislative intent to repeal the latter.
Main Doctrine
Article 397 of the Penal Code, which defines and punishes the act of taking an interest in contracts awarded by the government, was not repealed by Sections 2581 and 2613 of the Administrative Code. The Court reasoned that Section 2581, which deals with taking interest in government contracts, was not made applicable to the Mountain Province where the offense occurred, and furthermore, the penalty prescribed therein is disciplinary and administrative in nature, unlike the strictly penal nature of the punishment under Article 397 of the Penal Code. The administrative proceedings under Section 2613 are for suspension and removal, not criminal prosecution, and the penalties are distinct, indicating no legislative intent to repeal the penal provision.