PNB vs. HON. MARCELINO L. SAYO, JR, NOAH'S ARK SUGAR REFINERY, ALBERTO T. LOOYUKO, JIMMY T. GO and WILSON T. GO Date July 9, 1998 TOPIC IN SYLLA!S" #a$e%ou&e Re'e()t& La*
G.R. No. G.R. No. 129918
Ponente DAVIDE, JR.
SUMMARY : Noa%+& Noa%+& A$ A$ Su-a$ Su-a$ Re(n Re(ne$y e$y (&&ue/ (&&ue/ #a$e% #a$e%ou& ou&e e Re'e() Re'e()t& t& 0ue/a 0ue/an& n& 'o3e$( 'o3e$(nn- &u-a$ &u-a$ /e)o&( /e)o&(te/ te/ 4y Sy, Sy, RNS 5e$'%an/(&(n-, an/ St. T%e$e&e 5e$'%an/(&(n-. T%e&e #a$e%ou&e Re'e()t& *e$e ne-ot(ate/ an/ en/o$&e/ to Ra6o& an/ to 7oleta. Ra6o& an/ 7oleta t%en u&e/ t%e ue/an& a& &e'u$(ty o$ loan $o6 t%e PN. T%e ue/an& *e$e en/o$&e/ 4y t%e6 to PN. Ra6o& an/ 7oleta a(le/ to )ay t%e($ loan& u)on 6atu$(ty. en'e, PN *$ote to Noa%+& A$ /e6an/(n- /el(3e$y o t%e &u-a$ &to'& 'o3e$e/ 4y t%e ue/an& en/o$&e/ to (t 4y 7oleta an/ Ra6o&. Noa%+& A$ Su-a$ Re(ne$y $eu&e/ to 'o6)ly *(t% t%e /e6an/ alle-(n- o*ne$&%() t%e$eo. SC %el/ t%at )$(3ate $e&)on/ent& 6ay eno$'e t%e($ *a$e%ou&e6an:& l(en an/ t%at PN (& l(a4le o$ &to$a-e ee&. PROCEURAL ANTECEENTS: In t%(& &)e'(al '(3(l a't(on o$ 'e$t(o$a$(, a'tually t%e t%($/ /(&)ute 4et*een t%e &a6e )$(3ate )a$t(e& to %a3e $ea'%e/ t%(& Cou$t, )et(t(one$ a&& u& to annul t%e o$/e$& (&&ue/ 4y t%e Re-(onal T$(al Cou$t, 5an(la, $an'% ;<. FACTS: In a''o$/an'e *(t% t%e #a$e%ou&e Re'e()t& La*, Noa%+& A$ Su-a$ Re(ne$y (&&ue/ on &e3e$al /ate& #a$e%ou&e Re'e()t& 0ue/an& 0ue/an& 'o3e$(n- &u-a$ /e)o&(te/ /e)o&(te/ 4y Ro&a Sy, RNS 5e$'%an/(&( 5e$'%an/(&(n-, n-, an/ St. T%e$e&e T%e$e&e 5e$'%an/(& 5e$'%an/(&(n-. (n-. T%e $e'e()t& $e'e()t& a$e &u4&tant(ally (n t%e o$6, an/ 'onta(n& t%e te$6&, )$e&'$(4e/ o$ ne-ot(a4le *a$e%ou&e $e'e()t& 4y Se't(on 2 o t%e la*. Su4&euently, #a$e%ou&e Re'e()t& *e$e ne-ot(ate/ an/ en/o$&e/ to Lu(& T. Ra6o& an/ to C$e&en'(a =. 7oleta. Ra6o& an/ 7oleta t%en u&e/ t%e ue/an& a& &e'u$(ty o$ t*o loan a-$ee6ent& > one o$ P1<.? 6(ll(on an/ t%e ot%e$ o$ P2@.< 6(ll(on > o4ta(ne/ 4y t%e6 $o6 t%e PN. T%e ao$e6ent(one/ ue/an& *e$e en/o$&e/ 4y t%e6 to PN. Ra6o& an/ 7oleta a(le/ to )ay t%e($ loan& u)on 6atu$(ty. en'e, PN *$ote to Noa%+& A$ Su-a$ Re(ne$y /e6an/(n- /el(3e$y o t%e &u-a$ &to'& 'o3e$e/ 4y t%e ue/an& en/o$&e/ to (t 4y 7oleta an/ Ra6o&. Noa%+& A$ Su-a$ Re(ne$y $eu&e/ to 'o6)ly *(t% t%e /e6an/ alle-(n- o*ne$&%() t%e$eo. It alle-e/ t%at t%e o*ne$ o Noa%:& A$, Looyuo, ente$e/ (nto an a-$ee6ent *(t% RNS an/ St. T%e$e&e 5e$'%an/(&(n- to &ell t%e &u-a$ (n/('ate/ (n t%e *a$e%ou&e $e'e()t& &to$e/ (n Noa% o$ an a6ount o P?@,,. C%e'& *e$e (&&ue/ 4ut t%ey *e$e /(&%ono$e/ o$ 4e(n- /$a*n a-a(n&t (n&u('(ent un/&. PN (le/ *(t% t%e RTC o 5an(la a 3e$((e/ 'o6)la(nt o$ BS)e'((' Pe$o$6an'e *(t% Da6a-e& an/ A))l('at(on o$ #$(t o Atta'%6entB a-a(n&t Noa%+& A$ Su-a$ Re(ne$y, Al4e$to T. Looyuo, J(66y T. Go an/ #(l&on T. Go, t%e la&t t%$ee 4e(n- (/ent((e/ a& t%e &ole )$o)$(eto$, 6ana-(n- )a$tne$, an/ Ee'ut(3e V('e P$e&(/ent o Noa%+& A$, $e&)e't(3ely. RTC /(&6(&&e/ &a(/ 'o6)la(nt. 5R /en(e/. On a))eal to t%e SC 3(a )et(t(on o$ $e3(e* on 'e$t(o$a$(, t%e Su)$e6e Cou$t o$/e$e/ Noa%:& A$ an/ (t& o*ne$, Looyuo, to /el(3e$ to PN t%e &u-a$ &to'& 'o3e$e/ 4y t%e *a$e%ou&e $e'e()t& (n 'ont$o3e$&y. o*e3e$, Noa%:& A$ (le/ an O6n(4u& 5ot(on &ee(n- /ee$6ent o t%e u/-6ent unt(l (t *a& %ea$/ on (t& *a$e%ou&e6an:& l(en. RTC -$ante/ t%e o$/e$ an/ e3(/en'e *a& $e'e(3e/ (n &u))o$t t%e$eo. RTC a/u/-e/ t%at t%e$e e(&te/ a 3al(/ l(en (n a3o$ o Noa%:& A$, an/ a''o$/(n-ly, ee'ut(on o t%e u/-6ent a-a(n&t Noa%:& A$ &%oul/ 4e &taye/ unt(l t%e ull a6ount o Noa%:& l(en &%all %a3e 4een &at(&(e/. PN t%en (le/ 'e$t(o$a$( )$o'ee/(n-& 4eo$e t%e Su)$e6e Cou$t. T%e SC %el/ t%at *%(le PN *a& ent(tle/ to t%e &u-a$ &to'& a& en/o$&ee o t%e $e'e()t&, /el(3e$y to (t &%all only 4e ee'te/ u)on )ay6ent o t%e &to$a-e ee&. T%e Su)$e6e Cou$t u$t%e$ $ule/ t%at (6)e$at(3e (& t%e $(-%t o t%e *a$e%ou&e6an to /e6an/ )ay6ent o %(& l(en 4e'au&e %e lo&e& %(& l(en u)on -oo/& 4y &u$$en &u$$en/e$( /e$(nn- )o&&e& )o&&e&&(o &(on n t%e$eo t%e$eo.R .RTC TC Ju/-e Ju/-e Sayo, Sayo, J$. allo*e/ allo*e/ a *$(t *$(t o ee'ut ee'ut(on (on (n a3o$ a3o$ o Noa% Noa% to 'olle' 'olle'tt on (t& *a$e%ou&e6an:& l(en a-a(n&t PN. en'e, t%(& 'e$t(o$a$( )$o'ee/(n- 4eo$e t%e Su)$e6e Cou$t. ISSUES: 1. #ON )$(3ate $e&)on/ent& 6ay eno$'e t%e($ *a$e%ou&e6an:& l(en. YES. 2. #ON PN (& l(a4le o$ &to$a-e ee&. YES. RULING: !. Und"# $%" S&"(a) C(#*+s$an"s (n T%(s Cas", P#(va$" R"s&nd"n$s Ma- En#" T%"(# Wa#"%*s"+an's L("n. T%e $e6e/(e& a3a(la4le to a *a$e%ou&e6an, &u'% a& )$(3ate $e&)on/ent&, to eno$'e %(& *a$e%ou&e6an+& l(en a$e" 01 To $eu&e to /el(3e$ t%e -oo/& unt(l %(& l(en (& &at(&(e/, )u$&uant to Se't(on @1 o t%e #a$e%ou&e Re'e()t La* 02 To &ell t%e -oo/& an/ a))ly t%e )$o'ee/& t%e$eo to t%e 3alue o t%e l(en )u$&uant to Se't(on& @@ an/ @; o t%e #a$e%ou&e Re'e()t& La* an/ 0@ y ot%e$ 6ean& allo*e/ 4y la* to a '$e/(to$ a-a(n&t %(& /e4to$, o$ t%e 'olle't(on $o6 t%e /e)o&(to$ o all '%a$-e& an/ a/3an'e& a/3an'e& *%('% t%e /e)o&(to$ /e)o&(to$ e)$e&&ly o$ (6)l(e/ly (6)l(e/ly 'ont$a'te/ 'ont$a'te/ *(t% t%e *a$e%ou&e6a *a$e%ou&e6an n to )ay un/e$ Se't(on @2 o t%e #a$e%ou&e Re'e()t La* o$ &u'% ot%e$ $e6e/(e& allo*e/ 4y la* o$ t%e eno$'e6ent o a l(en a-a(n&t )e$&onal )$o)e$ty un/e$ Se't(on @< o &a(/ la*. T%e t%($/ $e6e/y (& &ou-%t u/('(ally 4y &u(n- o$ t%e un)a(/ '%a$-e&. CAB: In(t(ally, )$(3ate $e&)on/ent& a3a(le/ o t%e ($&t $e6e/y. #%(le t%e 6o&t a))$o)$(ate $e6e/y o$ )$(3ate $e&)on/ent& *a& an a't(on o$ 'olle't(on, SC al$ea/y $e'o-n(Fe/ t%e($ $(-%t to %a3e &u'% '%a$-e& an/ ee& /ete$6(ne/. T%e (6)o$t o SC:& %ol/(n*a& t%at )$(3ate $e&)on/ent& *e$e l(e*(&e ent(tle/ to a u/-6ent on t%e($ *a$e%ou&e '%a$-e& an/ ee&, an/ t%e e3entual &at(&a't(on t%e$eo, t%e$e4y a3o(/(n- %a3(n- to (le anot%e$ a't(on to $e'o3e$ t%e&e '%a$-e& an/ ee&, *%('% *oul/ only %a3e
u$t%e$ /elaye/ t%e $e&olut(on o t%e $e&)e't(3e 'la(6& o t%e )a$t(e&, an/ a& a 'o$olla$y t%e$eto, t%e (n/e(n(te /ee$6ent o t%e ee'ut(on o t%e u/-6ent. T%u& *e note t%at )et(t(one$, (n a't, al$ea/y a'u(e&'e/ to t%e &'%e/ule/ /ate& )$e3(ou&ly &et o$ t%e %ea$(n- on )$(3ate $e&)on/ent&+ *a$e%ou&e6an+& '%a$-e&. ut, (t *oul/ 4e )$e6atu$e to ee'ute t%e o$/e$ ((n- t%e *a$e%ou&e6an+& '%a$-e& an/ ee&. 2. P"$($(n"# (s L(a3)" # S$#a4" F""s. Pet(t(one$ (n&(&te/ t%at (t *a& a 6e$e )le/-ee a& t%e ue/an& *e$e u&e/ to &e'u$e t*o loan& (t -$ante/. T%e SC a-$ee/ *(t% t%(& an/ %el/ t%at t%e (n/o$&e6ent an/ /el(3e$y o t%e $e'e()t& 4y Ra6o& an/ 7oleta to PN *a& not to 'on3ey t(tle to o$ o*ne$&%() o t%e -oo/& 4ut to &e'u$e t%e loan& 4y *ay o )le/-e. T%e (n/o$&e6ent o t%e $e'e()t& to )e$e't t%e )le/-e 6e$ely 'on&t(tute/ a &y64ol('al o$ 'on&t$u't(3e /el(3e$y o t%e )o&&e&&(on o t%e t%(n- t%u& en'u64e$e/. T%e '$e/(to$, (n a 'ont$a't o $eal &e'u$(ty, l(e )le/-e, 'annot a))$o)$(ate *(t%out o$e'lo&u$e t%e t%(n-& -(3en 4y *ay o )le/-e. Any &t()ulat(on to t%e 'ont$a$y (& null an/ 3o(/ o$ 4e(n- )a'tu6 'o66(&&o$(o. T%e la* $eu($e& o$e'lo&u$e (n o$/e$ to allo* a t$an&e$ o t(tle o t%e -oo/& -(3en 4y *ay o &e'u$(ty $o6 (t& )le/-o$, an/ 4eo$e any &u'% o$e'lo&u$e, t%e )le/-o$, not t%e )le/-ee, (& t%eo*ne$ o t%e -oo/&. o*e3e$, t%e SC %el/ t%at t%e *a$e%ou&e6an ne3e$t%ele&& (& ent(tle/ to %(& l(en t%at atta'%e& to t%e -oo/& (n3oa4le a-a(n&t anyone *%o 'la(6& a $(-%t o )o&&e&&(on t%e$eon. T%e SC %el/ t%at *%e$e a 3al(/ /e6an/ 4y t%e la*ul %ol/e$ o t%e $e'e()t& o$ t%e /el(3e$y o t%e -oo/& (& $eu&e/ 4y t%e *a$e%ou&e6an, /e&)(te t%e a4&en'e o a la*ul e'u&e )$o3(/e/ 4y t%e la* (t&el, t%e *a$e%ou&e6an:& l(en (& t%e$eate$ 'on'o6(tantly lo&t. A& to *%at t%e la* /ee6& a 3al(/ /e6an/, Se't(on 8 o t%e #a$e%ou&e Re'e()t& La* enu6e$ate& *%at 6u&t a''o6)any a /e6an/ *%(le a& $e-a$/& t%e $ea&on& *%('% a *a$e%ou&e6an 6ay (n3oe to le-ally $eu&e to ee't /el(3e$y o t%e -oo/& 'o3e$e/ 4y t%e ue/an&, t%e&e a$e" 01 T%at t%e %ol/e$ o t%e $e'e()t /oe& not & at(&y t%e 'on/(t(on& )$e&'$(4e/ (n Se't(on 8 o t%e A't. 0See Se'. 8, A't No. 21@ 02 T%at t%e *a$e%ou&e6an %a& le-al t(tle (n %(6&el on t%e -oo/&, &u'% t(tle o$ $(-%t 4e(n- /e$(3e/ /($e'tly o$ (n/($e'tly $o6 a t$an&e$ 6a/e 4y t%e /e)o&(to$ at t%e t(6e o o$ &u4&euent to t%e /e)o&(t o$ &to$a-e, o$ $o6 t%e *a$e%ou&e6an+& l(en. 0Se'. 1?, A't No. 21@ 0@ T%at t%e *a$e%ou&e6an %a& le-ally &et u) t%e t(tle o$ $(-%t o t%($/ )e$&on& a& la*ul /een&e o$ nonH/el(3e$y o t%e -oo/& 0; T%at t%e *a$e%ou&e6an %a3(n- a l(en 3al(/ a-a(n&t t%e )e$&on /e6an/(n- t%e -oo/& $eu&e& to /el(3e$ t%e -oo/& to %(6 unt(l t%e l(en (& &at(&(e/. 0Se'. @1 A't No. 21@ 0< T%at t%e a(lu$e *a& not /ue to any ault on t%e )a$t o t%e *a$e%ou&e6an, a& 4y &%o*(n- t%at, )$(o$ to /e6an/ o$ /el(3e$y an/ $eu&al, t%e -oo/& *e$e &tolen o$ /e&t$oye/ 4y ($e, loo/, et'., *(t%out any ne-l(-en'e on %(& )a$t, unle&& %e %a& 'ont$a'te/ &o a& to 4e l(a4le (n &u'% 'a&e, o$ t%at t%e -oo/& %a3e 4een taen 4y t%e 6(&tae o a t%($/ )e$&on *(t%out t%e no*le/-e o$ (6)l(e/ a&&ent o t%e *a$e%ou&e6an, o$ &o6e ot%e$ u&t((a4le -$oun/ o$ nonH/el(3e$y. T%e SC e)la(ne/ t%at $e-$etta4ly, t%e a'tual &ett(n-& /o not &u('(ently (n/('ate *%et%e$ t%e /e6an/ to o4ta(n )o&&e&&(on o t%e -oo/& 'o6)l(e/ *(t% Se'. 8. T%e )$e&u6)t(on, ne3e$t%ele&&, *oul/ 4e t%at t%e la* *a& 'o6)l(e/ *(t%. On t%e ot%e$ %an/, (t *oul/ a))ea$ t%at t%e $eu&al o Noa%:& A$ to /el(3e$ t%e -oo/& *a& not an'%o$e/ on a 3al(/ e'u&e, (.e., nonH&at(&a't(on o t%e l(en o3e$ t%e -oo/&, 4ut on an a/3e$&e 'la(6 o o*ne$&%(). !n/e$ t%e '($'u6&tan'e&, t%(& %a$/ly ual((e/ a& a 3al(/, le-al e'u&e. T%e lo&& o t%e l(en, %o*e3e$, /oe& not ne'e&&a$(ly 6ean t%e et(n-u(&%6ent o t%e o4l(-at(on to )ay t%e *a$e%ou&(nee& an/ '%a$-e& *%('% 'ont(nue& to 4e a )e$&onal l(a4(l(ty o t%e o*ne$&, (.e., t%e )le/-o$&, not t%e )le/-ee, (n t%(& 'a&e. ut e3en a& to t%e o*ne$&H)le/-o$&, t%e *a$e%ou&e6an ee& an/ '%a$-e& %a3e 'ea&e/ to a''$ue $o6 t%e /ate o t%e $ee't(on 4y Noa% to %ee/ t%e la*ul /e6an/ 4y PN o$ t%e $elea&e o t%e -oo/&. en'e, t%e t(6e $o6 *%('% t%e ee& an/ '%a$-e& &%oul/ 4e 6a/e )aya4le (& $o6 t%e t(6e Noa%:& A$ $eu&e/ to %ee/ PN:& /e6an/ o$ /el(3e$y o t%e &u-a$ &to'& an/ (n no e3ent 4eyon/ t%e 3alue o t%e '$e/(t (n a3o$ o t%e )le/-ee &(n'e (t (& 4a&(' t%at, (n o$e'lo&u$e&, t%e 4uye$ /oe& not a&&u6e t%e o4l(-at(on& o t%e )le/-o$ to %(& ot%e$ '$e/(to$& e3en *%(le &u'% 4uye$ a'u($e& t(tle o3e$ t%e -oo/& le&& any e(&t(n- )$ee$$e/ l(en t%e$eo3e$.
