1303. National Development Company and New Agrix vs.

Philippine
Veterans Bank (192 SCRA 257)
FACTS:
P.D. 1717 was passed to rehabilitate the Agrix Group of Companies which
was a corporation neither owned nor controlled by the government. As part of the
rehabilitation process, the Agrix Group was dissolved by the decree and the
decree created New Agrix, Inc., likewise neither owned nor controlled by the
government.
ISSUE:
Whether or not P.D. 1717 is unconstitutional?
HELD:
Yes. P.D. 1717 was held as unconstitutional on the other grounds that it
violated the Section 16 Article XII of the Constitution where it provides that
xxx The congress shall not, except by general law, provide for the
formation, organization, or regulation of private corporations. xxx