Zafra Financing Enterprise sued Superintendent Tiro because the latter forbade the former’s collection of salary checks of school teacher from division office, following the issuance of Circular No. 21 s. 1969 by the Director of Public Schools. Zafra sought to compel Tiro to honor the special powers of attorney and to declare Circular No. 21 as illegal. The trial court ruled in favor of Zafra. Tiro sought a petition for review and reversal of trial court’s decision.
Whether or not Circular No. 21 s.1969 is invalid for being violative of the non-impairment clause under the Constitution.
No. The circular is valid and enforceable, and is never invasive of any contract. Petition is granted.
The salary check of a government officer or employee such as a teacher does not belong to him before it is physically delivered to him. Until that time the check belongs to the Government. Accordingly, before there is actual delivery of the check, the payee has no power over it; he cannot assign it without the consent of the Government. On this basis Circular No. 21 stands on firm legal footing.