Philippine Resources Development Corporation v. Republic Of The Philippines

J.P., J.:

The Bureau of Prisons, in line with its duty to enforce prison discipline effectively, conserve the health of prisoners and train them for a useful trade, launched a project of exploiting our forest resources with the use of prison labor. The undertaking produced large quantities of resin and logs which said bureau sold to private parties. In 1951, Macario Apostol contracted with the Bureau of Prisons for the purchase by the former from the latter of almaciga and 3,000,000 board feet of lauan logs at P88.00 per thousand board feet.

To secure his obligation under the almaciga contract, Macario Apostol posted a performance bond in the sum of P10,000.00, with the Empire Insurance Company as surety. Accordingly, the Bureau of Prisons delivered almaciga and lauan logs to Apostol. The latter, however, failed to pay in full for said almaciga and logs, and after proper accounting, the Bureau of Prisons found the amount of P34,015.06 1 still due from him.

To settle his obligation, Apostol delivered to the Bureau of Prisons 892 pieces of GI sheets, 399 GI pipes and 2,793 pieces of black iron sheets valued at P4,638.40, P4,398.54 and P21,400.00, respectively, or aggregately valued at P30,436.94. For lack of supporting papers, the value of said properties was not credited against Apostol's indebtedness.1äwphï1.ñët Subsequently, on May 6, 1955, the Republic of the Philippines filed a complaint in the Court of First Instance of Manila against Apostol and the Empire Insurance Company (as surety) for the collection of the aforestated amount of P34,015.06. Apostol, in his answer to the complaint, alleged payment of the account, as follows: Per E.P.O. #1077 (892 pieces of GI Sheets) P 4,638.40 Per E.P.O. 1549 (399 GI Pipes) P 4,398.54 Dec.

28, 1953 (2,793 pieces of black iron sheets) P21,400.00 Forest charges advanced in behalf of Bureau of Prisons P 2,000.00