Sunday, August 2, 2020

[CASE DIGEST] VILLEGAS v. HSUI CHIONG TSAI PAO (G.R. No. L-29646, 86 SCRA 270)

November 10, 1978

Ponente: Fernandez, J.

FACTS

The Municipal Board of Manila Passed Ordinance 6537, which prohibited aliens from being employed or to engage in any occupation or business, whether permanent, temporary or casual, without first securing an employment permit from the Mayor of Manila and paying a P50 permit fee.

Hiu Chiong Tsai Pao Ho, employed in Manila, filed a petition to declare the Ordinance null and void for being violative of the rule on uniformity of taxation, and for being discriminatory and arbitrary as there was no distinction or criteria among aliens in imposing the permit fee.

The CFI judge declared the subject ordinance null and void.

RULING

The SC held for Hiu Chiong Tsai Pao Ho.

Contrary to the Municipal Board of Manila's contention that the subject ordinance is valid for serving a mere regulatory purpose, the SC held that it is void because it does not contain or suggest any standard or criterion to guide the mayor in the exercise of the power, which has been granted to him by the same ordinance. It thus violates the due process and equal protection clauses of the Constitution.

Although the equal protection clause of the Constitution does not forbid classification, it is imperative that the classification should be based on real and substantial differences having a reasonable relation to the subject of the particular legislation.