NATIONAL ELECTRIFICATION ADMINISTRATION (NEA) v. HONORABLE FELICIANO V. BUENAVENTURA et al.
545 SCRA 277 (2008), SECOND DIVISION (Carpio Morales, J.)
It is the NLRC, not the RTC, which has jurisdiction to enjoin the execution of the decision of the Labor Arbiter.
FACTS: Because of serious institutional problems brought about by failure to pay maturing bills, National Electrification Administration (NEA) extended loans to Nueva Ecija III Electric Cooperative, Inc. (NEECO III). Consequently, the latter mortgaged its entire electric system or entire property to NEA. When NEECO III failed to pay its amortizations, NEA took over the properties and assets of the dissolved NEECO III.
Meanwhile, former employees of NEECO III subsequently filed complaints against NEECO III for illegal dismissal, reinstatement, non-payment of salaries/backwages, 13th month pay, differentials, and bonuses. The Labor Arbiter ruled in favor of the dismissed employees and ordered NEECO III to immediately reinstate them with full payment of backwages and other damages. They subsequently filed before the NLRC an Ex Parte Motion for Alias Writ of Execution to collect the amount representing the award. NEECO III failed to comply with the order. The Regional Trial Court thereafter issued an order for the Sheriff to auction movable or immovable properties of NEECO until the award is satisfied.