Procedure for Execution

1. If the execution be for the payment of money, the party obliged is allowed a period of five (5) days to make a voluntary payment, failing which, the Punong Barangay shall take possession of sufficient personal property located in the barangay, of the party obliged to satisfy the settlement or award from the proceeds of the sale thereof with legal interest such sale to be conducted in accordance with the procedure herein provided. If sufficient personal property exists, the party obliged is allowed to point out which of them shall be taken possession of ahead of the others. If personal property is not sufficient to satisfy the settlement or award, the deficiency shall be satisfied in accordance with the applicable provisions of the Rules of Court.
2. If it be for the delivery or restitution of property located in the barangay, the punong barangay shall oust therefrom the person against whom the settlement or award is rendered and place the party entitled thereto in possession of such property.
3. If it be for the delivery or restitution of property located in another barangay of the same city or municipality, the Punong Barangay issuing the notice shall authorize the punong barangay of the barangay where the property is situated to take possession of the property and to act in accordance with paragraph (b) Rule, KPR.
4. If a settlement or award directs a party to execute a conveyance of land, or to deliver deeds or other documents, or to perform any other specific act, and the party fails to comply within the time specified, the Punong Barangay may direct the lupon secretary to perform the act at the cost of the disobedient party and the act when so done shall have like effects as if done by the party.

Execution of Settlement or Award

Execution shall issue only upon the expiration of ten (10) days from date of settlement or receipt of award unless repudiation of the settlement has been made or a petition to nullify the award has been filed prior to the expiration of the said period.

Modes of Execution

The amicable settlement or arbitration award may be enforced by execution by the lupon within six (6) months from date of the settlement or date or receipt of the award or from the date the obligation stipulated in the settlement or adjudged in the arbitration award becomes due and demandable. After the lapse of such time, the settlement or award may be enforced by the appropriate local trial court pursuant to the applicable provisions of the Rules of Court. An amicable settlement reached in a case referred by the court having jurisdiction over the case of the lupon shall be enforced by execution by the said court.

Motion for Execution

The disputant/s may file a motion with the Punong Barangay, copy furnished to the other disputant/s, for the execution of a final settlement or award which has not been complied with.

Hearing

On the day the motion for execution is filed, the Punong Barangay shall set the same for hearing on a date agreed to by the movant, which shall not be later than five (5) days from the date of the filing of the motion. The Punong Barangay shall give immediate notice of hearing to the other party.

During the hearing, the Punong Barangay shall ascertain the fact on non-compliance with the terms of the settlement or award. Upon such determination of non-compliance, the Punong Barangay shall strongly urge the party obliged to voluntarily comply with the settlement or award.

Notice of Execution

The Punong Barangay shall within five (5) days from the day of hearing, determine whether or not voluntary compliance can be secured. Upon the lapse of said five day period, there being no voluntary compliance, he shall issue a notice of execution in the name of the lupong tagapamayapa. The said notice must intelligently refer to the settlement or award and the amount actually due thereunder if it be for money, or the terms thereof which must be complied with.

Parties may go direct to Court

     The parties may go direct to court in the following instances:

1. Where the accused is under detention;
2. Where a person has otherwise been deprived of personal liberty calling for habeas corpus proceedings;
3. Where actions are coupled with provisional remedies such as preliminary injunction, attachment, delivery of personal property, and support pendente lite; and
4. Where the action may otherwise be barred by the statute of limitations.

     The customs and traditions of indigenous cultural communities shall be applied in settling disputes between members of the cultural communities.

Transmittal To Court

     The secretary of the lupon shall transmit the settlement of the arbitration award to the appropriate city or municipal court within five (5) days from the date of the award or from the lapse of the ten-day period repudiating the settlement and shall furnish copies thereof to each of the parties to the settlement and the lupon chairman.

Repudiation

     Any party to the dispute may, within ten (10) days from the date of the settlement, repudiate the same by filing with the lupon chairman a statement to the effect sworn to before him, where the consent is vitiated by fraud, violence, or intimidation. Such repudiation shall be sufficient basis for the issuance of the certification for filing a complaint.

Execution

     The amicable settlement or arbitration award may be enforced by the execution by the lupon within six (6) months from the date of the settlement. After the lapse of such time, the settlement may be enforced by action in the appropriate city or municipal court.

Effects of Amicable Settlement

     The amicable settlement and arbitration award shall have the force and effect of a final judgment of a court upon the expiration of ten (10) days from the date thereof, unless repudiation of the settlement has been made or a petition to nullify the award has been filed before the proper city or municipal court.

     However, this provision shall not apply to court cases settled by the lupon under the last paragraph of Section 408 of RA. 7160, in which case the compromise settlement agreed upon by the parties before the lupon chairman or the pangkat chairman shall be submitted to the court and upon approval thereof, have the force and effect of a judgment of said court.

Arbitration

     The parties may, at any stage of the proceedings, agree in writing that they shall abide by the arbitration award of the lupon chairman or the pangkat. Such agreement to arbitrate may be repudiated within five (5) days from the date thereof for the same grounds and in accordance with the procedure hereinafter prescribed. The arbitration award shall be made after the lapse of the period for repudiation and within ten (10) days thereafter.

     The arbitration award shall be in writing in a language or dialect known to the parties. When the parties to the dispute do not use the same language or dialect, the award, shall be written in the language or dialect known to them.

Form of Settlement

     All amicable settlements shall be in writing, in a language or dialect known to the parties, signed by them, and attested to by the lupon chairman, as the case may be. When the parties to the dispute do not use the same language or dialect, the settlement shall be written in the language or dialect known to them.

Failure to Appear

     The complaint may be dismissed when complainant, after due notices, refuses or willfully fails to appear without justifiable reason on the date set for mediation, conciliation or arbitration. Such dismissal ordered by the Punong Barangay/pangkat chairman after giving the complainant an opportunity to explain his non-appearance shall be certified to by the lupon or pangkat secretary as the case may be, and shall bar the complainant from seeking judicial recourse for the same cause of action as that dismissed.

     Upon a similar failure of the respondent to appear, any counterclaim he has made that arises from or is necessarily connected with complainant's action, may be dismissed. Such dismissal, ordered by the Punong Barangay/pangkat chairman after giving the respondent an opportunity to explain his non-appearance shall be certified to by the lupon or pangkat secretary, as the case may be, and shall bar the respondent from filing such counterclaim in court or any government office for adjudication.

     Further, in all cases where the respondent fails to appear at the mediation proceedings before the Punong Barangay it is mandatory for the latter to constitute the pangkat pursuant to Section 1 (c), Rule III KPR; but the respondent's refusal or willful failure to appear without justifiable reason before the pangkat, as determined by the latter after notice of hearing, shall be a sufficient basis for the issuance of a certification for filing complainant's cause of action in court or with the proper government agency or office. (Sec. 8, Rule VI, KPR).

    Refusal or willful failure of any party or witness to appear before the lupon or pangkat in compliance with a summons issued pursuant to the provisons of the Katarungang Pambarangay law, may be punished by the city or municipal court as for indirect contempt of court upon application filed therewith by the lupon chairman, the pangkat chairman, or by any of the contending parties. Such refusal or willful failure to appear shall be reflected in the records of the lupon secretary or in the minutes of the pangkat secretary and shall bar the complainant who fail to appear, from seeding judicial recourse for the same cause of action and the respondent who refuses to appear, from filing any counterclaim arising out of or necessarily connected with the complaint. (Sec. 515, LGC)

Pangkat has no POWER to punish

     The Lupon or Pangkat does not have the power to directly punish contemptuous acts, said power being an inherent attribute of a court. The sanctions for said acts are imposed by the city or municipal court upon application filed therewith by the Lupon Chairman, the Pangkat Chairman, or by any of the parties.

     The rationale behind this prohibition is that a charge for contempt of court is in the nature of a criminal action and the rules of procedure and constitutional guarantees governing criminal prosecutions which are applicable thereto are not observed in barangay proceedings.

     For this same reason, the Lupon or the Pangkat would be precluded from imposing any criminal sanction such as imprisonment or fine upon a party to a barangay settlement proceeding.

Proceedings not Investigative

     The barangay settlement procedure is compulsory for all cases falling within the authority of the lupon. The only exceptions to this rule are those cases enumerated in Section 408 of RA. 7160. Moreover, the said barangay proceedings are not investigative in nature but conciliatory. In the exercise of their conciliation functions, the Punong Barangay and the Pangkat ng Tagapagkasundo, explore all avenues to obtain an amicable settlement from the parties. A hearing of both parties, not an investigation of the incident involved, is necessary to find out how far each party is willing to compromise their respective interests to avoid a court litigation.

Appearance of Parties

     In all katarungang pambarangay proceedings, the parties must appear in person without the assistance of counsel or representative, except for minors and incompetents who may be assisted by their next-of-kin who are not lawyers.

Proceedings Open to Public

     All proceedings for settlement shall be public and informal. However, the lupon chairman or the pangkat chairman, as the case may be, may motu proprio or upon request of a party, exclude the public from the proceedings in the interest of privacy, decency, or public morals.

Barangay Budget: Definition of Terms

A. Annual Budget - Financial plan embodying the estimates of income certified as reasonably collectible by the treasurer, and appropriations covering the proposed expenditures for the ensuing calendar year.

B. Budgetary Appropriations - Refers to the estimates of expenditures in a budget when finally approved by the appropriate authorities concerned.

C. Capital Outlay - Refers to the purchase of goods and services with a life-expectancy extending beyond the fiscal year and which add to the assets of the local government concerned, except furniture and equipment of nominal value usually used in the conduct of normal government operations.

D. Current Operating Expenditures - Refers to appropriations for the purchase of goods and services for current consumption within the fiscal yer, including the acquisition of furniture and equipment of nominal value usually used in the conduct of normal government operations.

E. Income - Covers all revenues and receipts collected or received, forming the gross accretions of funds of the government.

F. Receipts - Refers to income realized from operations and activities of the government or are received by the government in the exercise of its corporate functions, consisting of charges or services rendered or for conveniences furnished, or the price of commodity sold, as well as authorized contributions or aids from other entities except provisional advances for budgetary purposes.

G. Revenue - Refers to income derived from the regular system of taxation enforced under authority of law or ordinance, and as such, accrue more or less regularly every year.

H. Supplemental Budget - A supplementary financial plan embodying changes during the calendar year in the annual estimates of income and appropriations.

Procedure for Amicable Settlement

1. Complaint - Upon payment of the appropriate filing fee, any individual who has a cause of action against another individual involving any matter within the authority of the lupon may complain, orally or in writing, to the lupon chairman of the barangay.
2. Mediation by lupon chairman - Upon receipt of the complaint, the lupon chairman shall within, the next working day, summon the respondent(s), with notice to the complainants(s) for them and their witnesses to appear before him for a mediation of their conflicting interests. If he fails in his mediation effort within fifteen (15) days from the first meeting of the parties before him, he shall forthwith set a date for the constitution of the pangkat.
3. Suspension of prescriptive period of offenses - While the dispute is under mediation, conciliation, or arbitration, the prescriptive periods for offenses and cause of action under existing laws shall be interrupted upon filing of the complaint with the Punong Barangay. The prescriptive periods shall resume upon receipt by the complainanat of the complaint or the certificate of repudiation or of the certification to file action issued by the lupon or pangkat secretary. Such interruption shall not exceed sixty (60) days from the filing of the complaint with the Punong Barangay.
4. Issuance of summons - The pangkat shall convene not later than three (3) days from its constitution, on the day and hour set by the lupon chairman, to hear both parties and their witnesses, simplify issues, and explore all possibilities for amicable settlement. For this purpose, the pangkat may issue summons for the personal appearance of parties and witnesses before it.
5. Move to disqualify - In the event that a party moves to disqualify any member of the pangkat by reson of relationship, bias, interest, or any other similar grounds discovered after the constitution of the pangkat, the matter shall be resolved by the affirmative vote of the majority of the pangkat whose decision shall be final. Should disqualification be decided upon, the resulting vacancy shall be filled.
6. Period to arrive at a settlement - The pangkat shall arrive at a settlement or resolution of the dispute within fifteen (15) days from the day it convenes. This period shall, at the discretion of the pangkat, be extendible for another period which shall not exceed fifteen (15) days, except in clearly meritorious cases.