SEC REVISED RULES OF PROCEDURE

To effectively carry out and implement the provisions of
Presidential Decree No. 902-A, as amended, the Commission pursuant to
the powers vested in it under existing laws, hereby promulgates the
following revised rules of procedure to govern actions or proceedings
before it. (Amended)

RULE I
Meaning of Words and Construction

SECTION 1.       Meaning of Words. — For the purpose of these Rules:

a)      Commission — shall refer to the Securities and Exchange Commission.

b)      Commissioner — shall refer to either the Chairman or any of the Associate Commissioners.

c)      Hearing Officer — shall refer to any Commissioner,
officer, body or panel duly designated or created by the Commission to
hear and decide a particular case.

d)      Order — shall refer to any directive, other than a judgment, of a Hearing Officer. (Amended)

SECTION 2.       Interpretation. — These rules shall be
liberally construed to carry out the objectives of P.D. No. 902-A, as
amended, and other laws enforced by the Securities and Exchange
Commission and to assist the parties in obtaining just, expeditious and
inexpensive settlement of cases filed with the Commission.

RULE II
Powers of a Hearing Officer

SECTION 1.       Who Conducts Hearings. — Hearings shall
be conducted by the Commission or by a Commissioner or by such other
officer, body or panel as may be designated or created by the Commission
for the purpose. (Amended)

SECTION 2.       Powers of a Hearing Officer. — A
Hearing Officer is empowered to hear and decide cases brought before the
Commission. Pursuant thereto, he shall also have the power to
administer oaths and affirmations, issue subpoena, receive evidence, and
compel attendance of parties and witnesses and the production of any
book, papers, correspondence, memoranda, and other records which are
deemed relevant or material to the case, to punish for contempt of the
Commission, both direct or indirect, in accordance with the pertinent
provisions of, and penalties prescribed by the Rules of Court. (Amended)

SECTION 3.       Venue of Hearings. — All actions
brought under these rules shall be commenced and heard in the main
office of the Commission.  However, an action involving a corporation
whose principal office is within a region where the Commission has an
extension office may be commenced and heard in such extension office of
the Commission. (New)

RULE III
Parties to Actions or Proceedings

SECTION 1.       Who may be Parties. — Only natural or juridical persons or entities authorized by law may be parties.

SECTION 2.       Parties in Interest. — All actions
filed with the Commission must be prosecuted and defended, in the name
of the real party in interest. All persons having an interest in the
subject of the action and in obtaining the relief demanded shall be
joined as complainants or petitioners.  All persons who claim an
interest in the controversy or the subject thereof adverse to the
complainant or petitioner or who are necessary to a complete
determination or settlement of the questions involved therein shall be
joined as respondents. (Amended)

SECTION 3.       Representative Parties. — A trustee of
an express trust, a guardian, executor or administrator, or a party
authorized by statute, may sue or be sued without joining the party for
whose benefit the action is presented or defended; but the Hearing
Officer may, at any stage of the proceedings, order such beneficiary to
be made a party.  An agent acting in his own name and for the benefit of
an undisclosed principal may sue or be sued without joining the
principal except when the contract involves things belonging to the
principal.

SECTION 4.       Class Suit. — When the subject matter
of the controversy is one of common or general interest to many persons,
and the parties are so numerous that it is impracticable to bring them
all before the Commission, one or more may sue or defend for the benefit
of all. But in such case, the Hearing Officer shall make sure that the
parties actually before it are sufficiently numerous and representative
so that all interests concerned are fully protected.  Any party in
interest shall have a right to intervene in protection of his individual
interest.

SECTION 5.       Derivative Action. — No action shall be
brought by a stockholder in the right of a corporation unless the
complainant (1) was a stockholder at the time the questioned transaction
occurred as well as at the time the action was filed and remains a
stockholder during the pendency of the action and (2) the complainant
alleges with particularity the efforts, if any, made by the complainant
to obtain the action he desires, or the reason for not making the
effort.

An action authorized by this section shall not be discontinued,
compromised or settled without approval of the Hearing Officer.  If the
Hearing Officer determines that the interest of the stockholders or of
any class thereof will be substantially affected by the discontinuance,
compromise or settlement, the Hearing Officer may direct that notice, by
publication or other- wise, be given to the stockholders or any class
thereof whose interests he determines will be so affected. (New)

SECTION 6.       Compulsory Joinder of Indispensable Parties.
— Parties in interest without whom no final determination can be had of
an action shall be joined either as complainant, petitioner or
respondent.

SECTION 7.       Transfer of Interest. — In case of any
transfer of interest, the action may be continued by or against the
original party, unless the Hearing Officer upon motion directs the
person to whom the interest is transferred to be substituted in the
action or joined with the original party.

RULE IV
Commencement of Action: Pleadings

SECTION 1.       Commencement of Action. — Any action
may be commenced by filing a verified complaint or petition with the
Commission and paying the docket and other required fees therefor.
(Amended)

SECTION 2.       Docket Fee and Other Fees. — The docket
fee for filing a complaint or petition, third-party complaint,
complaint or petition in intervention and permissive counterclaim,
unless otherwise provided by the Commission, shall be one-tenth (1/10)
of one percent (1%) of the amount claimed or prayed for, exclusive of
interest, but which shall not be less than two hundred pesos (P200.00)
nor more than ten thousand pesos (P10,000.00); provided, however, that
if there is no claim for money, the docket fee shall be two hundred
pesos (P200.00).

There shall also be collected as process service fee the amount
of Twenty-five Pesos (P25.00) for every respondent named in the
complaint or petition. (Amended)

SECTION 3.       Pleadings Defined. — Pleadings are the
written allegations of the parties of their respective claims and
defenses submitted to the Commission for trial and judgment.

SECTION 4.       Pleadings Allowed. — The pleadings
allowed by these Rules are the petition, complaint, answer,
intervention, counter-claim, cross-claim, reply, third party complaint,
and other similar complaints, and answers to such pleadings.

SECTION 5.       Form of Pleadings. — All pleadings
filed with the Commission shall be printed, mimeographed or typewritten
on legal size bond papers and shall be in English or Pilipino. A
pleading shall be verified only by an affidavit stating that the person
verifying the same has read the pleading and that the allegations
thereof are true of his own knowledge.  Verifications based on
“information and belief” or upon “knowledge”, “information” or “belief”
shall be deemed insufficient.

Each pleading shall contain a caption setting forth the name of
the Commission, the title of the case, the case number, and designation
of the pleading.

The original and two (2) signed copies of every pleading shall be
filed with the Commission, except a complaint, petition, third-party
complaint or complaint or petition in intervention where there are more
than one (1) respondents in which case, there shall be filed as many
additional signed copies of the said pleading as there are additional
respondents.

No pleading shall be accepted by the Commission unless it
conforms to the formal requirements provided by these rules. (Amended)

SECTION 6.       Complaint. — The complaint shall
contain the names and residences of the parties and a concise statement
of the ultimate facts constituting the complainant’s cause or causes of
action. It shall specify the relief/s sought, but it may add a general
prayer for such further or other relief/s as may be deemed just or
equitable.

SECTION 7.       Petition. — The petition shall contain
the names and residences of the parties and a brief statement of the
right of the petitioner sought to be enforced, the law, rule or
regulation under which the petition is based, and the relief sought.

SECTION 8.       Answer. — The answer shall set forth the negative and affirmative defenses upon which the respondent relies.

SECTION 9.       Capacity. — Facts showing the capacity
of a party to sue or be sued or the authority of a party to sue or be
sued in a representative capacity or the legal existence of an organized
association of persons that is made a party, must be averred.  A party
desiring to raise an issue as to the legal existence of any party or the
capacity of any party to sue or be sued in a representative capacity,
shall do so by specific denial, which shall include such supporting
particulars as are peculiarly within the pleader’s knowledge. (New)

SECTION 10.    Action or Defense Based on Document. —
Whenever an action or defense is based upon a written Instrument or
document, the substance of such instrument or document shall be set
forth in the pleading, and the original or a copy thereof shall be
attached to the pleading as an exhibit, which shall be deemed to be a
part of the pleading or said copy may with like effect be set forth in
the pleading.

SECTION 11.    How to Contest Genuineness of Such Documents.
— When an action or defense is founded upon a written instrument,
copied in or attached to the corresponding pleading as provided in the
preceding Section, the genuineness and due execution of the instrument
shall be deemed admitted unless the adverse party, under oath,
specifically denies them and sets forth what he claims to be the facts;
but this provision does not apply when the adverse party does not appear
to be a party to the instrument when compliance with an order for an
inspection of the original instrument is refused.

SECTION 12.    Specific Denial. — The respondent must
specify each material allegation of fact the truth of which he does not
admit and, whenever practicable, shall set forth the substance of the
matters which he will rely upon to support his denial.  Where a pleader
desires to deny only a part or a qualification of an averment, he shall
specify so much of it as is true and material and shall deny only the
remainder.  Where the respondent is without knowledge or information
sufficient to form a belief as to the truth of a material averment made
in the complaint or petition, he shall so state, and this shall have the
effect of a denial.

SECTION 13.    Defenses and Objections Not Pleaded Deemed Waived.
— Defenses and objections not pleaded either in a motion to dismiss or
in the answer are deemed waived; except the (1) failure to state the
cause of action which may be alleged in a later pleading, if one is
permitted by motion for judgment on the pleadings, or at the trial on
the merits; but in the last instance, the motion shall be disposed of in
accordance with the provisions of Section 20 of this Rule in the light
of any evidence which may have been received.  Whenever it appears that
the Commission has no jurisdiction over the subject matter, the Hearing
Officer shall dismiss the action.

SECTION 14.    Amendments in General. — Pleadings may be
amended by adding or striking out an allegation or the name of any
party, or by correcting a mistake in the name of a party or a mistaken
or inadequate allegation or description in any other respect, so that
the actual merits of the controversy may speedily be determined, without
regard to technicalities, and in the most expeditious and inexpensive
manner.

SECTION 15.    When Amendments Allowed as a Matter of Right.
— A party may amend his pleading once as a matter of right at any time
before a responsive pleading is served or if the pleading is one to
which no responsive pleading is permitted and the case has not been set
for hearing, he may so amend it at any time within ten (10) days after
it is served.

SECTION 16.    Amendments by Leave of Hearing Officer. —
After a responsive pleading is served, substantial amendments may be
made only upon leave of the Hearing Officer. But such leave may be
refused if it appears to the Hearing Officer that the motion was made
with intent to delay the action or that the cause of action or defense
is substantially altered. Orders of the Hearing Officer upon the matters
provided in this Section shall be made upon motion filed and after
notice to the adverse party, and an opportunity to be heard.

SECTION 17.    Formal Amendments. — A defect in the
designation of the parties may be summarily corrected at any stage of
the action, provided no prejudice is caused thereby to the adverse
party.

SECTION 18.    Amendments to Conform to or Authorize Presentation of Evidence.
— When issues not raised by the pleading are tried by express or
implied consent of the parties, they shall be treated in all respects,
as if they had been raised in the pleadings.  Such amendments of the
pleadings as may be necessary to cause them to conform to the evidence
and to raise these issues may be made upon motion of any party at any
time, even after judgment; but failure so to amend does not affect the
result of the trial of these issues.  If evidence is objected to at the
trial on the ground that it is not within the issues made by the
pleadings, the Hearing Officer may allow the pleadings to be amended and
shall do so freely when the presentation of the merits of the action
will be subserved thereby and the objecting party fails to satisfy the
Hearing Officer that the admission of such evidence would prejudice him
in maintaining his action or defense upon the merits.  The Hearing
Officer may grant a continuance to enable the objecting party to meet
such evidence.

RULE V
Summons

SECTION 1.       Summons. — Upon the filing of the complaint or petition, the corresponding summons to the respondents shall forthwith be issued.

SECTION 2.       Contents. — The summons shall be
directed to the respondents, under the seal of the Commission, and shall
contain: a) a direction that the respondent answer within the time
fixed by these Rules, b) a notice that unless the respondent so answers,
the complainant or petitioner will take judgment by default and may
demand from the Commission the relief applied for.

SECTION 3.       Alias Summons. — If summons is returned
without being served on any or all of the respondents, or if it has
been lost, the Hearing Officer on demand of the petitioner or
complainant may issue alias summons as the case may require, in the same
form as the original.

SECTION 4.       By whom Summons may be Served. — The
summons may be served by the process server of the Commission, or for
special reasons by any person specially authorized by the Hearing
Officer. (Amended)

SECTION 5.       Return of Summons. — When the service
has been completed, the process server shall return the summons to the
Commission attached to the proof of service. (Amended)

SECTION 6.       Personal Service of Summons. — The
summons shall be served by handing a copy thereof to the respondent in
person or if he refuses to receive it, by tendering it to him.  If the
respondent is a corporation, partnership or association organized and
registered under the laws of the Philippines, service may be made on the
President, Manager, Secretary, Cashier, Agent or any of its directors.
(Amended)

SECTION 7.       Substituted Service. — If the
respondent cannot be served personally with the summons as provided in
the preceding section, service may be affected, (a) by leaving copies of
the summons at the respondent’s dwelling house or residence with some
person of suitable age and discretion then residing therein, or (b) by
leaving the copies at respondent’s principal office or regular place of
business with some competent person in charge thereof. (Amended)

SECTION 8.       Service Upon Private Foreign Entities. —
If the respondent is a foreign corporation, partnership or association
doing business in the Philippines, service may be made on its resident
agent designated in accordance with law for that purpose, or, if there
be no such agent, on the government officials designated by law to that
effect or on any of its officers or agents within the Philippines.

SECTION 9.       Service by Publication: How Effected. —
When the address of a respondent is unknown or even if known, if his
whereabouts cannot be ascertained by diligent inquiry, service of
summons may, by leave of the Commission, be effected upon him by
publication of the complaint or petition and the order granting such
leave once in a newspaper of general circulation.  The publication
expenses shall be defrayed by the petitioner or complainant. Likewise,
when the respondent does not reside or is not found in the Philippines
and the action relates to, or the subject of which is, property within
the Philippines, in which the respondent has or claims a lien or
interest, actual or contingent, or in which the relief demanded
consists, wholly or in part, in excluding the respondent from any
interest therein, or the property of the respondent has been attached
within the Philippines, service may, by leave of the Commission be
effected out of the Philippines by personal service in the manner
provided under Section 6 hereof, and which may be effected through the
Office of the Department of Foreign Affairs; or by publication of the
complaint or petition and the order granting such leave once in a
newspaper of general circulation.  A copy of the complaint or petition
as well as the order granting such leave shall be sent by registered
mail to the last known address of the respondent.

Any order granting such leave shall specify a reasonable time
which shall not be less than Thirty (30) days from the date of last
publication, in case of a resident respondent whose address is unknown
or whose whereabouts cannot be ascertained and not less than Sixty (60)
days from the date of last publication, in case of non-resident
respondent, within which the respondent must answer.

Any application to the Commission for leave to effect service of
summons by publication shall be made by motion in writing, supported by
affidavit of the petitioner or complainant or some person on his behalf,
setting forth the grounds for the application. (Amended).

SECTION 10.    Service by Publication in Action for
Suspension or Revocation of Franchise of a Corporation Instituted by the
Prosecution and Enforcement Department. — In actions for
suspension or revocation of franchise of a corporation instituted by the
Prosecution and Enforcement Department at the request and upon the
relation of another person when the address of respondent is unknown or
even if known, his whereabouts cannot be ascertained by diligent
inquiry, service of summons, may, by leave of the Commission, be
effected upon the respondent by publication of the complaint or petition
and the order granting such leave once in a newspaper of general
circulation.  The publication expenses shall be defrayed by the person
at whose request and upon whose relation the same is brought. (New)

SECTION 11.    Proof of Service. — The proof of service
of a summons should be made in writing by the server setting forth the
manner, the place and the date of service; it shall specify any papers
which have been served with the process and the name of the person who
received the same; and shall be sworn to when made by a person other
than the server of the Commission.

When the service has been made by publication on a resident
respondent whose address is unknown or whose whereabouts cannot be
ascertained, service maybe proved by the affidavit of the printer,
editor or business or advertising manager and to which affidavit a copy
of such publication shall be attached.

When the service has been made by publication on a non-resident
respondent, service may be proved, aside from the affidavit of the
printer, editor or business or advertising manager, by the affidavit of
the server that a copy of the complaint or petition and the order of the
Commission was sent by registered mail to the last known address of the
respondent.

The respondent’s voluntary appearance before the Commission shall
be equivalent to service for purposes of acquiring jurisdiction over
his person, unless he makes an explicit reservation thereto. (Amended)

RULE VI
Motion To Dismiss

SECTION 1.       Grounds. — Within the time for pleading, a motion to dismiss the action may be made on any of the following grounds:

a)      That the Commission has no jurisdiction over the person of the respondent, or over the subject of the action or suit;

b)      That the Commission has no jurisdiction over the nature of the action or suit;

c)      That the complainant or petitioner or respondent is not the real party in interest;

d)      That the complainant or petitioner has no legal capacity to sue;

e)      That the cause of action is barred by a prior judgment or by statute of limitations;

f)       That the complaint or petition states no cause of action;

g)      That the demand set forth in the complainant’s or
petitioner’s pleading has been waived, abandoned or otherwise
extinguished;

h)      That the suit is between members of the same family and
no earnest efforts towards a compromise have been made. (Amended)

SECTION 2.       Who May File Motion. — A motion to
dismiss may be filed by an original respondent, a third-party
respondent, the complainant in a counterclaim, or a co-party in a
cross-claim.

SECTION 3.       Hearing and Order. — After hearing, the
Hearing Officer may deny or grant the motion or allow amendment of
pleading, or may defer the determination of the motion until the trial
if the ground alleged therein does not appear to be indubitable.

SECTION 4.       Time to Plead. — If the motion to
dismiss is denied or if determination thereof is deferred, the movant
shall file his answer within fifteen (15) days computed from the time he
received notice of denial or deferment, unless the Hearing Officer
provides a different period.

SECTION 5.       Pleading Grounds as Affirmative Defenses.
— Any of the grounds for dismissal provided for in this Rule, may be
pleaded as an affirmative defense, and a preliminary hearing may, motu
proprio or upon proper motion, be held thereon as if a motion to dismiss
had been filed. (Amended)

RULE VII
Answer

SECTION 1.       Form. — The respondent shall answer the
complaint or petition in writing, by either denying specifically the
material allegations of the complaint or petition, or alleging any
lawful defense. All affirmative defenses not pleaded in the answer shall
be deemed waived and the same may not be raised for the first time on
appeal.

SECTION 2.       Time to Answer. — Within fifteen (15)
days after service of summons, respondent shall file his answer and
serve a copy thereof upon the petitioner or complainant.

Where the respondent is a foreign corporation and service of
summons is made on the resident agent designated by the foreign
corporation for the purpose, the respondent shall answer within thirty
(30) days after receipt of summons by the resident agent. (Amended)

SECTION 3.       Answer to Amended Complaint. — If the
complaint is amended, the time fixed for the filing and service of the
answer shall, unless otherwise ordered, run from notice of the order
admitting the amended complaint or from service of such amended
complaint.  The original answer shall be considered as answer to the
amended complaint unless a new answer is filed within ten (10) days from
notice of order or service of the amended complaint. (Amended)

SECTION 4.       Answer to Third-Party Complaint. — The
third-party respondent shall file his answer as provided in this Rule,
alleging his defenses and his counterclaims and cross-claims against the
complainant, the third-party complainant or any other party and he may
assert such defenses as the third party complainant may have against the
complainant’s claim.

SECTION 5.       Answer to Permissive Counterclaim or Cross-claim.
— A permissive counterclaim or cross-claim must be answered within ten
(10) days from service and failure to do so will constitute a default. 
The party filing such answer may plead therein a counterclaim or
cross-claim. (Amended)

SECTION 6.       Default. — If respondent fails to
answer within the time fixed by these Rules, the Hearing Officer, motu
proprio or upon motion of the petitioner or complainant with proof of
such failure, shall declare the respondent in default and forthwith
receive evidence ex parte and render judgment granting such relief as
the petition or complaint and the facts proven may warrant.  This
provision applies where no answer is made to a permissive counterclaim,
cross-claim, or third-party complaint within the period provided in this
Rule.

No service of pleadings other than substantially amended or
supplemental pleadings and final orders or judgments shall be necessary
on a party in default unless he files a motion to set aside the other of
default, in which event he shall be entitled to notice of all further
proceedings regardless of whether the order of default is set aside or
not. (Amended)

SECTION 7.       Relief from Order of Default. — A party
declared in default may at any time after discovery thereof and before
judgment file a motion under oath to set aside the order of default upon
proper showing that his failure to answer was due to fraud, accident,
mistake or excusable negligence and that he has a meritorious defense.
In such case, the order of default may be set aside and in the interest
of Justice, the Hearing Officer may impose terms and conditions thereon.
(New)

SECTION 8.       Judgment When Some Respondents Answer, and Others Make Default.
— When a complaint or petition states a common cause of action against
several respondents, some of whom answer, and the others fail to do so,
the Hearing Officer shall try the case against all upon the answers thus
filed, and render judgment upon the evidence presented.  The same
procedure applies when a common cause of action is pleaded in a
counterclaim, cross-claim and third-party claim. (New)

RULE VIII
Preliminary Conference

SECTION 1.       Preliminary Conference. — In any
action, after the issues have been joined, the Hearing Officer shall set
the case for preliminary conference within 15 days therefrom, and the
parties and their attorneys shall be directed to appear before the
Hearing Officer on the date set on the notice, to consider, based on the
preliminary conference brief submitted by the parties:

a)      The possibility of an amicable settlement;

b)      The necessity or desirability of amendments to pleadings;

c)      The possibility of obtaining stipulations or admissions of facts and or documents to avoid unnecessary proof;

d)      The limitation of the number of witnesses;

e)      The simplification of the issues;

f)       The scheduled dates of hearing of the case, and

g)      Such other matters as may aid in the just and speedy disposition of the case. (Amended)

SECTION 2.       Preliminary Conference Brief . — A
preliminary conference brief mentioned in the preceding paragraph shall
be filed within ten (10) days after the issues are joined and shall
contain the following:

1. a)  A list of material facts to be proved, both in the main case and in any provisional remedy prayed for;

b)           How they are proved; attaching all documentary
evidence in support thereof, properly marked. Documents not attached
shall be inadmissible, except newly discovered evidence;

c)           A list of witnesses to be presented and the nature
of their testimony.  Witnesses not listed shall not be allowed to
testify, except on newly discovered evidence;

d)           The approximate number of hours that will be required by them for the presentation of their respective evidence;

e)           The specific trial dates needed to complete
presentation of evidence by all parties which must be within a period of
three (3) months from the first day of trial.

2.       A statement of the issues both of the case and any provisional remedy prayed for:

3.       A summary of provisions of law, precedents, authorities or
jurisprudence in support of the rights invoked, claims asserted,
defenses relied upon or the remedies prayed for, and

4.       Legal processes requested or documents intended to be produced by the adverse party. (New)

SECTION 3.       Amicable Settlement. — During the
preliminary conference, the Hearing Officer shall take the initiative in
seeing to it that the parties exhaust all available means to arrive at a
fair and reasonable settlement of the case.  The parties, on the other
hand, shall be prepared to present during the preliminary conference
specific proposals or counter-proposals to effect such settlement.

Amicable settlement shall always be encouraged, even at any stage
of the proceedings, provided it shall not be prejudicial to the public
interest or to third parties or contrary to law, rules or regulations of
the Commission nor against good morals or public policy.  The amicable
settlement shall, as far as practicable, be reduced into writing, duly
signed by the parties and/or their counsels, which shall be the basis of
the correspondent order or decision of the Hearing Officer. (Amended)

SECTION 4.       Failure to Appear at Preliminary Conference.
— A party who fails to appear at a preliminary conference or to submit
the preliminary conference brief within the prescribed period may be
non-suited or considered as in default. (Amended)

SECTION 5.       Judgment on the Pleadings or Summary Judgment at Preliminary Conference.
— If at the preliminary conference, the Hearing Officer finds that
facts exist upon which a judgment on the pleadings or a summary judgment
may be made, he may render judgment on the pleadings or a summary
judgment as justice may require.

SECTION 6.       Preliminary Conference Order. — After
the preliminary conference, the Hearing Officer shall issue an Order
which recites the action taken at the conference, the amendments allowed
to the pleadings, and the agreements made by the parties as to any of
the matters considered, including the scheduled dates of hearing.  Such
order shall limit the issues for trial to those not disposed of by
admissions or agreement of counsel and when entered controls the
subsequent course of the action, unless modified before trial to prevent
manifest injustice. (New)

RULE IX
Subpoena and Subpoena Duces Tecum

SECTION 1.       Definition. — Subpoena is a process
directed to a person requiring him to attend and to testify at the
hearing of an action before the Hearing Officer or for the taking of his
deposition which shall be conducted in accordance with the pertinent
provisions of the Rules of Court.  It may also require him to bring with
him any books, documents or other things under his control, in which
case it is called a subpoena duces tecum.

SECTION 2.       By Whom Issued. — The subpoena shall be
issued by the Hearing Officer before whom the witness is required to
attend, or the Clerk of Court of First Instance, or Municipal or City
Judge before whom the deposition is to be taken upon the request of the
Hearing Officer.

SECTION 3.       Form and Contents. — A subpoena shall
be signed by the Hearing Officer under the seal of the Commission.  It
shall state the title of the case, shall be directed to the person whose
attendance is required, and in case of a subpoena duces tecum, it shall
also contain a reasonable description of the books, documents or things
demanded which must appear to the Hearing Officer to be prima facie
relevant. (Amended)

SECTION 4.       Quashing a Subpoena Duces Tecum. — The
Hearing Officer upon motion made promptly and in any event at or before
the time specified in the subpoena duces tecum for compliance therewith,
may quash the subpoena if it is unreasonable and oppressive, the
relevancy of the books, documents or things does not appear, if the
person in whose behalf the subpoena is issued fails to advance the
reasonable cost of the production thereof.

SECTION 5.       Service of a Subpoena. — Service of a
subpoena shall be made by the process server of the Commission or any
person specially authorized by the Hearing Officer who is not a party.
The service must be made so as to allow the witness a reasonable time
for preparation and travel to the place of hearing.

SECTION 6.       Compelling Attendance. — In case of
failure of a witness to attend, the Hearing Officer issuing the
subpoena, upon proof of the service thereof, may upon motion issue a
warrant to the Municipal or City police or military authorities to
arrest the witness and bring him before the Hearing Officer and the
costs of such arrest shall be paid by the witness if the Hearing Officer
issuing it shall determine that his failure to answer the subpoena was
willful and without just cause.

SECTION 7.       Witness not Bound by a Subpoena. — A
witness is not bound to attend as such before the Commission if his
place of residence is more than fifty (50) kilometers to the place of
hearing unless the party in whose behalf the subpoena is issued, shall
tender to him an amount equivalent to his reasonable expenses in coming
to and returning from the hearing.

SECTION 8.       Contempt. — Failure by any person
without adequate cause to obey a subpoena served upon him shall be
deemed a contempt of the Commission.

RULE X
Motions In General

SECTION 1.       Motion Defined. — Every application for an order not included in a judgment may be called a motion.

SECTION 2.       Form. — All motions shall be in writing
except motions for continuance made in the presence of the adverse
party or those made in the course of a hearing or trial.

The rules applicable to pleading shall apply to all motions insofar as it concerns caption, signing and other matters of form.

SECTION 3.       Contents. — A motion shall state the
order sought to be obtained and the grounds upon which it is based, and,
if necessary, shall be accompanied by supporting affidavits and other
papers. All motions shall contain a notice of hearing which shall state
the date and time for the hearing on the motion.

When the facts are set forth in a motion which are not of record
nor within the judicial notice of the hearing-officer, it is necessary
to prove them by affidavit or other papers attached to the motion.

SECTION 4.       Notice. — Notice of a motion shall be
served by the applicant to all parties concerned, at least three (3)
days before the hearing thereof, together with a copy of the motion and
of any affidavits and other papers accompanying it.

The Hearing Officer, however, for good cause may hear a motion on
shorter notice especially on matters which may be disposed of on its
own motion.

SECTION 5.       Proof of Service to be Filed with Motion.
— No motion shall be acted upon by the Hearing Officer, without proof
of service of the notice thereof, except upon satisfaction that the
rights of the adverse party or parties are not affected.

SECTION 6.       Omnibus Motion. — A motion attacking a
pleading or a proceeding shall include all objections then available and
all objections not so included shall be deemed waived.

SECTION 7.       Motion for Reconsideration. — Any
motion for reconsideration of an interlocutory shall be filed within ten
(10) days from receipt of such order.  No more than one motion for
reconsideration of an interlocutory order shall be allowed unless with
express prior leave of the Hearing Officer. (New)

SECTION 8.       Motion for Extension to File Pleadings.
— The period to file pleadings shall not be extended for a period
exceeding the original period provided under the Rules or granted by the
Hearing Officer. (New)

RULE XI
Bill Of Particulars: Intervention

SECTION 1.       Motion for Bill of Particulars. —
Before responding to a pleading or if no responsive pleading is
permitted by these Rules, within ten (10) days after service of the
pleading upon him, a party may move for a more definite statement, or
for a bill of particulars of any matter which is not averred with
sufficient definiteness or particularity to enable him properly to
prepare his responsive pleading or to prepare for trial.  Such motion
shall point out the defects complained of and the details desired.

SECTION 2.       Stay of Period to File Responsive Pleading.
— After service of the bill of particulars or of a more definite
pleading, or after notice of denial of his motion, the moving party
shall have the same time to serve his responsive pleadings, if any is
permitted by these Rules, as that to which he was entitled at the time
of serving his motion, but not less than five (5) days in any event.

SECTION 3.       Refusal. — If an order of the Hearing
Officer to make a pleading more definite and certain or for a bill of
particulars is not obeyed within ten (10) days after the notice of the
order, or within such other time as the Hearing Officer may fix, he may
order the striking out of the pleading to which the motion was directed
or make such other orders as he deems just.  He may, upon motion, set
aside the order or modify it in the interest of justice.

SECTION 4.       Intervention: When Proper. — A person
may, before or during a trial, be permitted by the Hearing Officer, in
his discretion, to intervene in an action, if he has legal interest in
the matter in litigation or in the success of either of the parties or
an interest against both, or when he is so situated as to be adversely
affected by a distribution or other disposition of property in the
custody of the Commission.

SECTION 5.       Motion for Intervention. — A person
desiring to intervene shall file a motion for leave of the Commission
with notice upon all the parties to the action.

SECTION 6.       Discretion of the Hearing Officer. — In
allowing or disallowing a motion for intervention, the Hearing Officer
shall consider whether or not the intervention will unduly delay or
prejudice the adjudication of the rights of the original parties and
whether or not the intervenor’s right may be fully protected in a
separate proceeding.

SECTION 7.       Complaint or Petition or Answer in Intervention.
— The intervention shall be made by complaint or petition filed and
served in regular form and may be answered as if it was an original
complaint or petition but where intervenor unites with the respondent in
resisting the claims of the complainant or petitioner, the intervention
may be made in the form of an answer to the complaint or petition.

SECTION 8.       Time. — Unless a different period is
fixed by the Hearing Officer, the complaint or petition or answer in
intervention shall be filed within ten (10) days from notice of the
order permitting the intervention.

RULE XII
Trial

SECTION 1.       Continuous Trial of Cases. — The
Hearing Officer shall, as far as practicable, set the case for
successive and continuous daily trial for the reception not only of the
evidence in chief but also on any provisional remedy prayed for in the
complaint or petition; provided, however, that the hearing of the case
on the merits or the reception of evidence of the parties shall be
terminated within ninety (90) days, thirty (30) days to be allotted to
complainant’s or petitioner’s evidence, thirty (30) days for respondent,
and thirty (30) days for any rebuttal and surrebuttal evidence.  In the
case of provisional remedies, except Preliminary injunction which is
covered by Rule XVIII, the hearings or reception of evidence thereof
shall be terminated within thirty (30) days. (New)

SECTION 2.       Postponement of Hearings. —
Postponement of hearings shall be allowed only on extremely meritorious
grounds and provided, that the reception of evidence of the parties
shall not exceed the periods provided under the preceding section. (New)

SECTION 3.       Order of Trial. — Unless the Hearing Officer, for special reasons, otherwise directs, the order of trial shall be as follows:

a)      The complainant or petitioner must produce evidence in
support of his allegations in the complaint or petition, subject to
cross-examination by the respondent or his counsel;

b)      The respondent shall then offer evidence in support of
his defense, counterclaim, cross-claim, and third-party claims subject
to cross-examination by complainant or petitioner or his counsel.

c)      The third party-respondent, if any, shall introduce
evidence of his defense, counterclaim, cross-claim and third-party
claim;

d)      The fourth, etc. party, if any, shall introduce evidence of the material facts pleaded by him;

e)      The parties against whom any counterclaim or
cross-claim has been pleaded shall introduce evidence in support of
their defense, in the order to be prescribed by the Hearing Officer.

f)       The parties may then respectively offer rebutting
evidence only, unless the Hearing Officer, for good reasons, in the
furtherance of justice, permits them to offer additional evidence
pertinent to the original issue.

g)      then the presentation of evidence is concluded, the
parties may submit their respective memoranda, the submission of which
shall be simultaneous, within fifteen (15) days from the date of the
last hearing. (Amended)

SECTION 4.       Consolidation. — When actions involving
a common question of law or fact are pending before the Commission, the
Hearing Officer may order a joint hearing or trial of any or all the
matters in issue in the actions; it may order all the actions
consolidated; and it may make such orders concerning proceedings therein
as may tend to avoid unnecessary costs or delay. (New)

SECTION 5.       Reconsideration. — Within thirty (30)
days from receipt of the order or decision of the Hearing Officer, the
aggrieved party may file a motion for reconsideration of such order or
decision together with proof of service thereof upon the adverse party. 
No more than one motion for reconsideration shall be allowed unless
with the express prior leave of the Hearing Officer. (Amended)

SECTION 6.       Opposition to Motion for Reconsideration.
— Within ten (10) days from receipt of the copy of the motion for
reconsideration, the party interested in upholding the order or decision
may file his opposition thereto and serve a copy thereof upon the
movant. (Amended)

SECTION 7.       When Motion Deemed Submitted. — After
the opposition is filed or at the expiration of the period for filing
the same without such opposition having been filed, the motion shall be
deemed submitted for resolution, unless the Hearing Officer considers it
necessary to hear the oral arguments of the parties, in which case
notice to that effect shall be issued.

SECTION 8.       When Order Becomes Final. — The
decision or order of the Hearing Officer shall become final and
executory after the lapse of thirty (30) days from notice of such
decision or order, unless a motion for reconsideration of such order or
decision or an appeal is filed within the period prescribed. (Amended)

RULE XIII
Judgment On The Pleadings, Judgment On Demurrer To Evidence, and Summary Judgment

SECTION 1.       Judgment on the Pleadings. — Where an
answer fails to tender an issue or otherwise admits the material
allegation of the adverse party’s pleadings, the Hearing Officer may, on
motion of that party, direct judgment on such pleading.

SECTION 2.       Judgment on Demurrer to Evidence. —
After the complainant or petitioner has completed the presentation of
his evidence, the respondent, without waiving his right to offer
evidence in the event the motion is not granted, may move for a
dismissal on the ground that, upon the facts and the law, the
complainant or petitioner has shown no right to relief.  However, if the
motion is granted and the order of dismissal is reversed on appeal to
the Commission en banc the movant loses his right to present evidence in
his behalf.

SECTION 3.       Summary Judgment. — A party seeking to
recover upon a claim, counterclaim, or cross-claim or to obtain a
declaratory relief may, at any time after the pleading in answer thereto
has been served, move with supporting affidavits for a summary judgment
in his favor upon all or any part thereof.

A party against whom a claim, counterclaim, or cross-claim is
asserted or a declaratory relief is sought may, at any time, move with
supporting affidavits for a summary judgment in his favor as to all or
any part thereof.

RULE XIV
Entry, Execution, Satisfaction and Effect of Judgment

SECTION 1.       Entry of Judgment and Orders. — If no
appeal or motion for reconsideration is filed within the time provided
in these rules, the judgment or order shall be entered and the recording
of the judgment or order in the book of entries of judgment shall
constitute its entry. The record shall contain the dispositive part of
the judgment or order and a certificate that such judgment or order has
become final and executory. (New)

SECTION 2.       Execution Upon Final Judgment. —
Execution shall issue only upon a judgment or order that finally
disposes of the action or proceeding. Such execution shall issue as a
matter of right upon the expiration of the period to appeal therefrom,
if no appeal has been duly perfected.

SECTION 3.       Issuance of Writ. — After a decision,
order or judgment has become final and executory, the Hearing Officer
shall, upon motion of the prevailing party with notice to adverse party
issue a writ of execution, attaching thereto a certified true copy of
the decision, order or judgment, and serving upon the party against whom
the same is rendered, or upon any other person required thereby, or by
law, to obey the same, and such party or person may, upon proper motion,
be punished for contempt if he disobeys such decision, order or
judgment. (New)

SECTION 4.       Execution Pending Appeal. — On motion
of the prevailing party with notice to the adverse party, the Hearing
Officer may, in his discretion, order execution to issue before the
expiration of the time to appeal, upon meritorious grounds to be stated
in a special order and the posting of a sufficient bond. (Amended)

SECTION 5.       Stay of Execution. — Execution issued
before the expiration of the time to appeal may be stayed upon the
approval by the Hearing Officer of a sufficient supersedeas bond filed
by the appellant, conditioned upon the performance of the Judgment or
order appealed from in case it is affirmed wholly or in part by the
Commission en banc.  The bond thus given may be proceeded against on
motion before the Hearing Officer with notice to surety, after the case
is remanded to him by the Commission en banc. (Amended)

SECTION 6.       Effect of Reversal of Executed Judgment.
— Where a judgment executed is reversed totally or partially on appeal,
the Hearing Officer, on motion, after the case is remanded to him, may
issue such orders of restitution as equity and justice may warrant under
the circumstances.

SECTION 7.       Execution by Motion or by Independent Action.
— A judgment may be executed on motion within five (5) years from the
date of its entry or from the date it becomes final and executory. After
the lapse of such time, and before it is barred by the statute of
limitation, a judgment may be enforced by action.

SECTION 8.       Judgment for Specific Acts. — If
judgment directs a party to deliver deeds or other documents, or to
perform any specific act and the party fails to comply within the time
specified, the Hearing Officer may direct the act to be done at the cost
of the disobedient party by some other person appointed for the purpose
and the act when so done shall have like effect as if done by the
party.

SECTION 9.       Return of Writ of Execution. — The Writ
of execution may be made returnable to the Hearing Officer at any time
not less than ten (10) nor more than sixty (60) days after its receipt
by the officer so designated for the purpose who must set forth in
writing on its back the whole of his proceedings by virtue thereof, and
file it together with the other papers of the case.  A certified copy of
the record in the execution book kept by the clerk shall be evidence of
the contents of the original whenever they, or any part thereof, have
been lost or destroyed. (Amended)

RULE XV
Petition For Review By Certiorari

SECTION 1.       Petition For Review or Certiorari. —
The Commission en banc, may entertain a petition for review or
certiorari when it appears on the face of the petition that the Hearing
Officer has acted without or in excess of his jurisdiction or with grave
abuse of discretion in issuing said order and there is no plain, speedy
or adequate remedy in the ordinary course of law.

The petition shall be verified, alleging the facts with certainty
and praying that judgment be rendered annulling or modifying the
questioned order or ruling as the law requires.

The petition shall be accompanied by a certified true copy of the
order subject thereof, together with copies of all pleadings and
documents relevant and pertinent thereto. (New)

SECTION 2.       Docket Fee and Where Petition filed. — Unless otherwise provided by the Commission the docket fee shall be five hundred Pesos (P500.00).

The petition shall be filed with the Secretary of the Commission
in seven (7) copies within ten (10) days from receipt of the order
subject of the petition from receipt of the order denying the motion for
reconsideration, if any, furnishing a copy thereof to the party
interested in sustaining the order and the Hearing Officer who issued
the same. (New)

SECTION 3.       Parties Respondent. — The petitioner
shall join as party respondents together with the Hearing Officer who
issued the questioned order, the party or parties interested, in
sustaining such order, and it shall be the duty of such party or parties
to defend the questioned order. (New)

SECTION 4.       Proceeding Before the Commission En Banc.
— The proceedings before the Commission en banc shall be summary in
nature. Upon receipt of the verified petition, the Commission en banc
may either dismiss outright the petition if it is not sufficient in form
and substance or is filed manifestly for delay or if from its face
there is no showing that in issuing the questioned order, the Hearing
Officer has acted without or in excess of his jurisdiction, or has acted
with grave abuse or discretion, it may require the party or parties
interested in sustaining the questioned order, to comment thereon within
ten (10) days from notice, upon the filing of which the petition is
deemed submitted for resolution, unless the Commission en banc sets the
case for oral arguments. (New)

SECTION 5.       Stay of the Action. — No petition for
review or certiorari shall stay the progress of the action in the main
case unless a restraining order is issued by the Commission en banc
enjoining the further hearing of the main case and in which event, the
Commission en banc may also issue such orders for the preservation of
the rights of the parties during the pendency of the proceedings. (New)

RULE XVI
Appeals

SECTION 1.       Decision, Order or Ruling Subject to Appeal. — Only final decisions, orders or rulings may be appealed to the Commission en banc.

No interlocutory order shall stay the progress of an action nor
shall it be the subject of appeal to the Commission en banc until a
final decision, order or ruling is rendered for one party or the other,
except as provided in Rule XV hereof. (Amended)

SECTION 2.       Who May Appeal. — Any party to the action may appeal from a final decision, order or ruling of the Hearing Officer to the Commission en banc.

SECTION 3.       How Appeal is Taken: When Perfected. —
Appeal may be taken by filing with the Hearing Officer who promulgated
the decision, order or ruling within thirty (30) days from notice
thereof; and serving upon the adverse party, a notice of appeal and a
memorandum on appeal and paying the corresponding docket fee therefor. 
The appeal shall be considered perfected upon the filing of the
memorandum on appeal and payment of the docket fee within the period
herein-above fixed. (Amended)

SECTION 4.       Interruption of Time to Appeal. — The
time during which a motion for reconsideration has been pending shall be
deducted from the period for perfecting an appeal.

If a motion for reconsideration has been filed on the last day of
the period to appeal and the said motion is denied, the appeal must be
perfected within the day following that in which the party appealing
received the notice of said denial. (Amended)

SECTION 5.       Notice of Appeal. — The notice of
appeal shall specify the parties to the appeal, indicate the material
dates to show that the appeal was seasonably filed and shall designate
the decision or order, or part thereof appealed from. (New)

SECTION 6.       Docket Fee for Appeal. — Unless otherwise provided by the Commission the docket fee for an appeal shall be five hundred pesos (P500.00). (Amended)

SECTION 7.       Memorandum on Appeal. — The appellant
shall file with the Hearing Officer seven (7) copies of the memorandum
on appeal which shall contain a concise statement of the facts and
issues involved, the errors assigned, the grounds relied upon for the
appeal and the arguments in support thereof. (Amended)

SECTION 8.       Reply Memorandum. — The appellee shall
file seven (7) copies of his reply memorandum with the Secretary of the
Commission copy furnished the appellant, within ten (10) days from his
receipt of the appeal memorandum.  Failure to file said reply memorandum
within the period herein fixed shall be construed as a waiver to file
the same. (New)

SECTION 9.       Transmittal of Case Records. — Within
five (5) days following the perfection of the appeal, the entire records
of the case, including the notice and memorandum on appeal, shall be
transmitted to the Commission en banc. (Amended)

SECTION 10.    Action on Incidental Motions. — All
incidental motions filed by any party before the perfection of the
appeal shall be acted upon by the Hearing Officer concerned.  After the
appeal has been perfected, said Hearing Officer loses jurisdiction over
the case. (New)

SECTION 11.    Dismissal of Appeal. — An appeal may be
dismissed outright by the Hearing Officer if it is not perfected within
the period prescribed by these rules.

Likewise, the Commission en banc may dismiss an appeal if the
order or ruling appealed from is not appealable under these rules. (New)

SECTION 12.    Withdrawal of Appeal. — An appeal may be
withdrawn as a matter of right at any time before the filing of
appellants’ reply memorandum.  After the reply memorandum is filed, the
withdrawal may be allowed by leave of the Hearing Officer. (New)

SECTION 13.    When Case Deemed Submitted for Decision. —
Upon the filing of the reply memorandum with the Commission en banc, or
after the expiration of the period to file the same and no such
memorandum has been filed, the case shall be deemed submitted for
decision, unless the Commission en banc motu proprio, or upon proper
motion and for special reasons, sets the case for oral arguments. (New)

SECTION 14.    Disposition of Case. — The Commission en
banc, in the exercise of its appellate jurisdiction, may affirm, reverse
or modify the decision or order appealed from or may direct further
proceedings to be taken. (New)

SECTION 15.    Frivolous or Dilatory Appeals. — To
discourage frivolous or dilatory appeals, the Commission may impose
reasonable penalty, including fines and censures upon the appellants.

RULE XVII
Appeal From The Decision, Order or Ruling Of The Commission En Banc

SECTION 1.       Any aggrieved party may appeal the
order, decision or ruling of the Commission sitting en banc to the
appellate court as may be provided by law.

RULE XVIII
Preliminary Injunction

SECTION 1.       Preliminary Injunction Defined. — A
preliminary injunction is an order granted at any stage of an action
prior to the final judgment, requiring a person to refrain from a
particular act.  It may also require the performance of a particular
act, in which case, it shall be known as a preliminary mandatory
injunction.

SECTION 2.       Grounds for Issuance of Preliminary Injunction.
— A preliminary injunction may be granted by the Hearing Officer at any
time after the commencement of the action and before judgment when it
is established after notice and hearing:

a)      That the petitioner or complainant is entitled to the
relief demanded, and the whole or part of such relief consists in
restraining the commission or continuance of the acts complained of, or
in the performance of an act or acts, either for a limited period or
perpetually.

b)      That the commission or continuance of some act
complained of during the litigation or the non-performance thereof would
probably work injustice to the petitioner or complainant; or

c)      That the respondent is doing, threatens, or is about to
do, or is procuring or suffering to be done, some act probably in
violation of the petitioners or complainants rights respecting the
subject of the action, and tending to render the judgment ineffectual.

SECTION 3.       Verified Complaint and Bond for Preliminary Injunction. — A preliminary injunction may be granted only when:

a)      The complaint or petition is verified, and shows facts
entitling the complainant or petitioner to the relief demanded; and

b)      The complainant or petitioner files with the Commission
a bond executed to the party enjoined, in an amount to be fixed by the
Hearing Officer, to the effect that the complainant or petitioner will
pay to such party all damages which he may sustain by reason of the
injunction, if the Commission should finally decide that the complainant
or petitioner was not entitled thereto.

SECTION 4.       Temporary Restraining Order. — If it
shall appear from the facts shown by affidavit or by the verified
complaint or petition that great or irreparable injury would result to
the applicant before the matter can be heard on notice, the Hearing
Officer may issue a temporary restraining order to be effective only for
a period of twenty days from date of its issuance.  Within the said
twenty-day period, the Hearing Officer must cause an order to be served
on the respondent, requiring him to show cause, at a specified time and
place, why the injunction should not be granted, and determine within
the same period whether or not the preliminary injunction shall be
granted, and shall accordingly issue the corresponding order. In the
event that the application for preliminary injunction is denied, the
restraining order is deemed automatically vacated. (Amended)

SECTION 5.       Grounds for Objection to, or for Motion of Dissolution of Injunction.
— The injunction may be refused, or, if granted may be dissolved, upon
the insufficiency of the complaint or petition as shown by the complaint
or petition itself, with or without notice to the adverse party.  It
may also be refused or dissolved on other grounds upon affidavit on the
part of the respondent which may be opposed by the complainant or
petitioner also by affidavits.  It may further be refused, or if
granted, may be dissolved, if it appears after hearing that although the
complainant or petitioner is entitled to the injunction, the issuance
or continuance thereof, as the case may be, would cause great damage to
the respondents while the complainant or petitioner can be fully
compensated for such damages as he may suffer, and the respondent files a
bond in an amount fixed by the Hearing Officer conditioned that he will
pay all damages which the complainant or petitioner may suffer by the
refusal or the dissolution of the injunction.  If it appears that the
extent of the preliminary injunction granted is too great, it must be
modified.

SECTION 6.       Order. — After hearing on the merits,
the Hearing Officer may grant or refuse, continue, modify or dissolve
the injunction as justice may require.

SECTION 7.       Service of Copies of Bonds: Effects of Disapproval of Same.
— The party filing a bond in accordance with the provisions of this
Rule shall forthwith serve a copy of such bond on the other party, who
may except to the sufficiency of the bond, or of the surety or sureties
thereon.  If the complainant’s or petitioner’s bond is found to be
insufficient in amount, or if the- surety or sureties thereon fail to
justify, and a bond sufficient in amount with sufficient sureties
approved after justification is not filed forthwith, the injunction
shall be dissolved.  If the respondent’s bond is found to be
insufficient in amount, or the surety or sureties thereon fail to
justify and a bond sufficient in amount with sufficient sureties
approved after justification is not filed forthwith, the injunction
shall be granted or restored, as the case may be.

SECTION 8.       Judgment to Include Damages Against Party and Sureties.
— Upon the trial the amount of damages to be awarded to the complainant
or petitioner or the respondent, as the case may be, upon the bond of
the other party, shall be claimed, ascertained, and awarded under the
same procedure as prescribed in Section 20 of Rule 57 of the Rules of
Court.

SECTION 9.       When Final Injunction Granted. — If
upon the trial of the action it appears that the petitioner or
complainant is entitled to have the act complained of permanently
enjoined, the Hearing Officer shall grant a final injunction perpetually
restraining the respondent from the commission or the continuance of
the act or confirming the preliminary mandatory injunction.

RULE XIX

Contempt

SECTION 1.       Direct Contempt Punished Summarily. — A
person guilty of misbehavior in the presence of or so near the Hearing
Officer as to obstruct or interrupt the proceedings before him,
including disrespect toward the Hearing Officer, offensive personalities
toward others, or refusal to be sworn to or answer as a witness, or to
subscribe an affidavit or deposition when lawfully required to do so,
may be summarily adjudged in contempt by the Hearing Officer and
punished by fine not less than Five Hundred Pesos, (P500.00) or
imprisonment not exceeding ten (10) days or both. (Amended)

SECTION 2.       Indirect Contempt to be Punished After Charge and Hearing.
— After a charge in writing has been filed, and an opportunity given to
the accused to be heard by himself or counsel, a person guilty of any
of the following acts may be punished for contempt:

a)      Disobedience of or resistance to a lawful writ,
process, order, judgment, or command of the Hearing Officer, or
injunction granted by him;

b)      Any abuse of or any unlawful interference with the
process or proceedings of the Commission, not constituting direct
contempt under Section 1 of this rule;

c)      Any improper conduct tending, directly or indirectly,
to impede, obstruct, or degrade the administration of justice or the
performance of the Commission’s proper function:

d)      Failure to obey a subpoena duly served.

But nothing in this section shall be so construed as to prevent
the Hearing Officer from issuing process to bring the accused party
into or before the Commission, or from holding him in custody pending
such proceedings. (Amended)

SECTION 3.       Hearing: Release on Bail. — If the
hearing is not ordered to be had forthwith, the accused maybe released
from custody upon filing a bond, in an amount fixed by the Hearing
Officer, for his appearance to answer the charge. Upon the day set for
the hearing, the Hearing Officer shall proceed to investigate the charge
and consider such answer or testimony as the accused may make or offer.
(Amended)

SECTION 4.       Punishment if Found Guilty. — If the
accused is thereupon adjudged guilty of contempt committed against the
Hearing Officer, he may be punished by a fine not exceeding ten thousand
(P10,000) pesos or imprisonment not more than five (5) years, or both,
and if the contempt consists in the violation of an injunction, he may
also be ordered to make complete restitution to the party injured by
such violation. (Amended)

SECTION 5.       Imprisonment Until Order Obeyed — When
the contempt consists in the omission to do an act which is yet in the
power of the accused to perform, he maybe imprisoned by order of the
Hearing Officer until he performs it. (Amended)

SECTION 6.       Proceedings When Party Released on Bail Fails to Answer
— When an accused released on bail fails to appear on the date fixed
for the hearing, the Hearing Officer may issue another order of arrest
or may order the bond for his appearance to be prosecuted, or both; and,
if the bond be prosecuted, the measure of damages shall be the extent
of the loss or injury sustained by the aggrieved party by reason of the
misconduct for which the contempt was prosecuted. and the costs of the
proceedings, and such recovery shall be for the benefit of the party
injured.  But if there is no aggrieved party, the bond shall be liable
as in criminal cases.

SECTION 7.       Hearing Officer May Release Accused. —
The Hearing Officer may discharge from imprisonment a person imprisoned
for contempt when it appears that public interest will not suffer
thereby.

SECTION 8.       Review of Judgment or Order by the Commission En Banc: Bond for Stay.
— The judgment or order of the Hearing Officer made in a case of
contempt punished after written charge and hearing may be reviewed by
the Commission en banc, but execution of the judgment or order shall not
be suspended until a bond is filed by the person in contempt, in an
amount fixed by the Hearing Officer conditioned that if the appeal be
decided against him he will abide by and perform the judgment or order. 
The appeal may be taken as in criminal cases. (Amended)

RULE XX
Action For Suspension Or Revocation Of Franchise

SECTION 1.       Grounds for Instituting the Action Against a Corporation. — An action for suspension or revocation of franchise may be brought against a corporation registered with the Commission:

a)      When it has offended against a provision of the Corporation Code;

b)      When it has forfeited its privileges and franchises by non-user;

c)      When it has committed or omitted an act which amounts
to a surrender of its corporate rights, privileges, or franchises;

d)      When it has misused a right, privilege, or franchise
conferred upon it by law, or when it has exercised a right, privilege,
or franchise in contravention of law.

SECTION 2.       Action by Whom Filed. — (a) An action
under the preceding section shall be commenced by the Prosecution and
Enforcement Department when directed by the Commission.

b)      The Prosecution and Enforcement Department may also
bring such an action when it has good reasons to believe that any case
can be established by proof, or at the request and upon the relation of
another person; but in such case the Prosecution and Enforcement
Department may first require that an indemnity for the expenses and
costs of the action be given to it by the person at whose request and
upon whose relation the same is brought.

c)      Actions for the suspension or revocation of a franchise
or certificate of registration of a corporation, partnership or
association as provided in Section 2 (a) shall be filed with the
Securities Investigation and Clearing Department. (New)

SECTION 3.       Limitation — Nothing contained in this
Rules shall be construed to authorize an action against a corporation
for forfeiture of charter unless the same be commenced within five (5)
years after the act complained of was done or committed. (New)

RULE XXI
Mandamus

SECTION 1.       Petition for Mandamus. — When any
corporation, board or person unlawfully neglects the performance of an
act which the law specifically enjoins as a duty resulting from an
office, trust or station, or unlawfully excludes another from the use
and enjoyment of a right or office to which such other is entitled, and
there is no other plain, speedy and adequate remedy in the ordinary
course of law, the person aggrieved thereby may file a verified petition
with the Commission alleging the facts with certainty and praying that
judgment be rendered commanding the respondent, immediately or at some
other specified time, to do the act required to be done to protect the
rights of the petitioner, and to pay the damages sustained by the
petitioner by reason of the wrongful acts of the respondent.

SECTION 2.       Order to Answer. — If the petition is
sufficient in form and substance to justify such process, the Hearing
Officer shall issue an order requiring the respondent to answer the
petition within ten (10) days from receipt of copy thereof.

SECTION 3.       Expediting Proceedings: Preliminary Injunction.
— The Hearing Officer may issue orders expediting the proceedings, and
may also grant a preliminary injunction for the preservation of the
rights of the parties pending such proceedings.

SECTION 4.       Proceedings After Answer is Filed. —
Once the answer is filed, or the time for its filing has expired, the
Hearing Officer shall hear the case, and if after such hearing he finds
that the allegations of the petition are true, he shall render judgment
for such of the relief prayed for as the petitioner is entitled to, with
or without costs, as justice requires.

SECTION 5.       Service and Enforcement or Order or Judgment.
— A certified copy of the judgment rendered in accordance with the last
preceding section shall be served upon the corporation, board, officer
or persons concerned in such manner as the Hearing Officer may direct,
and disobedience thereof punished as for contempt.  An execution may
issue as in other cases for any damages or costs awarded.

RULE XXII
Appearance Before The Commission: Stenographers

SECTION 1.       Employment of Legal Counsel. — A party
who appears before any Hearing Officer to prosecute his complaint or
make his defense may employ the services of a legal counsel, who must be
a member of the Integrated Bar of the Philippines, unless the Hearing
Officer, for special reasons, allows a party to prosecute or defend by
himself without the benefit of counsel. (Amended)

SECTION 2.       Formal Appearance of Counsel. — Every
attorney appearing before any hearing conducted by the Commission shall
manifest orally or in writing his appearance for a party stating his
name and exact address, his Professional Tax Receipt and IBP Number for
the current year, and any pleading filed and signed by him without
complying with the above requirement shall not be accepted and he shall
not be allowed to continue the prosecution or defense of any suit or
claim. (Amended)

SECTION 3.       Stenographer. — All hearings before the
Commission shall be attended by a stenographer who shall take down
notes of all the proceedings had therein.  At the termination of each
hearing, it shall be the duty of the stenographer to immediately
transcribe all the notes taken thereat and after transcription thereof,
to have the transcript of stenographic notes, duly certified, initialed
on each page and signed on the last page thereof filed with the records
of the case.

RULE XXIII
Applicability Of The Rules of Court

SECTION 1.       The provisions of the rules of court, unless inconsistent, shall have suppletory effect on those rules. (Amended)

RULE XXIV
Effectivity Applicability

The foregoing Revised Rules shall be published in two newspapers
of general circulation in the Philippines or in the Official Gazette and
the same shall be effective fifteen (15) days after publication.

Adopted: 1 Aug. 1989

(SGD.) ROSARIO N. LOPEZ Chairman
(SGD.) GONZALO T. SANTOS, JR.	(SGD.) RODOLFO L. SAMARISTA
Associate Commissioner	Associate Commissioner
(SGD.) MERLE O. MANUEL	(SGD.) ARMANDO Z. GONZALES
Associate Commissioner	Associate Commissioner

 Effective: 29 October 1989