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PHILIPPINE SUPREME COURT DECISIONS

EN BANC

[G.R. Nos. L-17481 and L-17537 to 17559. August 15, 1961. ]

LIBERATA ANTONIO ESTRADA, CANUTO CENIZAN, NAZARIO DE LA CRUZ, GENARO ALVARO, ET AL., Petitioners, v. COURT OF AGRARIAN RELATIONS and FAUSTINO F. GALVAN, Respondents.

Ortiz & Valencia Law Office, for Petitioners.

Nora G. Nostratis for Respondents.


SYLLABUS


1. WAREHOUSE RECEIPTS; RIGHT OF MANAGER OF BONDED WAREHOUSE NOT TO RELEASE DEPOSITED PALAY. — The manager of a bonded warehouse has the right to refuse to release deposited palay for failure to surrender the original of the warehouse receipts, since said receipts may have been negotiated for value in favor of innocent third parties.

2. ID.; ID.; COURT ACTION TO FACILITATE DELIVERY OF PALAY TO ENTITLED PARTIES. — Where the court ordered the manager of the bonded warehouse to deliver the deposited palay to certain specified parties, and the person ordered to present the original warehouse receipts failed to do so because they were allegedly lost in a fire, the court may order said manager to release the palay to the proper parties upon their issuing a receipt therefor, without necessity of producing and surrendering the original receipts.


R E S O L U T I O N


NATIVIDAD, J.:


These cases are now before this Court on the petition filed by the petitioners under date of June 10, 1961, asking that the manager of the Moncada Bonded Warehouse and respondent Faustino F. Galvan be declared in contempt of court and punished accordingly.

It appears that, upon motion, this Court, on January 6, 1961, issued a resolution of the following tenor:jgc:chanrobles.com.ph

"In cases L-17481 and L-17537 to 17559 (Liberata Antonio Estrada, Et. Al. v. Court of Agrarian Relations and Faustino Galvan), considering the motion, and opposition thereto, that the owner or manager of the Moncada Bonded Warehouse be ordered to release and give to petitioners-appellants the remaining deposits — 10% of the net produce of the first crop minus P300 and 15% of the net produce of the second crop minus P200, the COURT RESOLVED to grant the motion, without prejudice to subsequent accounting."cralaw virtua1aw library

that on April 12, 1961, this Court, passing upon a motion filed by the petitioners in which they alleged that the manager of the Moncada Bonded Warehouse had refused to comply with the above resolution unless "the original of the receipts of palay deposits be presented and surrendered to him," issued another resolution which provides:jgc:chanrobles.com.ph

"In cases L-17537 to 17559 (Liberata Antonio Estrada, Et. Al. v. Court of Agrarian Relations, Et. Al.) , considering the petitioner’s motion dated March 18, 1961, and the respondent’s opposition thereto, THE COURT RESOLVED to order respondent Faustino Galvan to surrender the original of the receipts of the palay deposits to the manager or owner of the Moncada Bonded Warehouse, Moncada, Tarlac."cralaw virtua1aw library

that the manager of the Moncada Bonded Warehouse and respondent Faustino F. Galvan were duly served with notice of the above resolutions, and that notwithstanding such service of notice and in spite of repeated demands, the manager of the Moncada Bonded Warehouse and respondent Faustino F. Galvan refused and still refuse to comply with the above orders of this Court, the former, for the reason that petitioners could not surrender to him the original of the warehouse receipts issued for the palay in question, and the latter, because, as he alleged in his answer to the motion for contempt, he could not locate any more said receipts "as they were scattered, misplaced, destroyed or lost when the contents of the Office of said respondent- appellee, Faustino F. Galvan, in the Galvan-Cabrera Building in Ylaya Street, Manila, were being desperately evacuated therefrom during the fire which burned the Divisoria market and said Galvan-Cabrera Building in Ylaya Street, Manila, in the latter part of May, 1961."cralaw virtua1aw library

The excuses respectively offered by the manager of the Moncada Bonded Warehouse and respondent Faustino F. Galvan are not without some merits. The former unquestionably had the right to protect the interests of the bonded warehouse of which he was manager, as the warehouse receipts issued for the palay in question might have been negotiated for value in favor of innocent third parties; and the latter, or Faustino F. Galvan, might have in fact lost said warehouse receipts in the manner above stated, for his allegation to that effect in his answer to petitioners’ motion for contempt until now has not been contradicted. Such incidents, however, do not constitute a valid excuse to evade compliance with the order of this Court that the palay in question be delivered to the petitioners, and, considering that the petitioners, according to the manifestation filed by their counsel under date of August 3, 1961, are in dire need of said palay for their subsistence, our order must be carried out in the meantime that these cases have not been finally decided, in order to ameliorate the precarious situation in which said petitioners find themselves.

WHEREFORE, it is hereby ordered that the manager or the owner of the Moncada Bonded Warehouse in Moncada, Tarlac, and respondent Faustino F. Galvan release and deliver to the petitioners the portion still remaining to be delivered to them of their shares in the palay involved in these cases, i.e.,

"(a) 10% of the net produce of the first crop minus P300.00; and

"(b) 15% of the net produce of the second crop minus P200.00."cralaw virtua1aw library

which was ordered deposited in said warehouse by the trial court, upon the issuance by said petitioners, or their duly authorized representatives, of the corresponding receipts, without the necessity of producing and surrendering the original of the warehouse receipts issued therefor. It is so ordered.

Padilla, Labrador, Reyes, J.B.L., Barrera, Paredes, Dizon and De Leon, JJ., concur.

Bengzon, C.J., took no part.

Concepcion, J., took no part.

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