7/24/2019 Scribd GSIS VS COA

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Case 1

GSIS vs COA

Facts: GSIS granted several benefts to its employees. The COA sbse!ently

disallo"ed some o# them. As a reslt$ the employees had to retrn the benefts they

received to GSIS. The la" provides that retirement benefts are e%empt #rom

attachment$ garnishment$ levy$ and e%ection. Section &' o# (A )*'1 e%empts

benefts #rom +dicial processes$ and nconditionally e%empts benefts #rom !asi,

+dicial and administrative processes$ inclding COA disallo"ances$ as "ell as all

fnancial obligations o# the member. -ence$ retirement benefts cannot be

diminished by COA disallo"ances.

Isse: Can the COA isallo"ances be dedcted #rom retirement benefts/

(ling: 0es. The COA disallo"ances "old have been dedcted #rom their salaries$

had they not retired be#ore sch dedctions cold be eected. The respondents

then had an obligation to retrn the amonts received nder the principle o# soltio

indebiti. The delivery o# benefts to respondents nder an erroneos interpretaton o#

the la" granting benefts gave rise to an actionable obligation #or them to retrn the

same.

2nder Article *134 o# the Civil COde$ i# something is received and ndly delivered

throgh mista5e "hen there is no right to demand it$ the obligation to retrn the

thing arises. 6ayment by reason o# mista5e in the constrction or application o# a

dobt#l or di7clt !estion o# la" also comes "ithin the scope o# soltio indebiti.