SECOND DIVISION
G.R. No. 183587, April 20, 2015
LEXBER, INC., Petitioner, v. CAESAR M. AND CONCHITA B. DALMAN, Respondent.
D E C I S I O N
BRION, J.:
We resolve in this petition for review on certiorari1 the challenge to the April 14, 2008 decision2 and the June 30, 2008 resolution3 of the Court of Appeals (CA) in CA-G.R. SP No. 100946. These assailed CA rulings annulled the June 12, 20074 and August 8, 20075 orders of the Regional Trial Court of Quezon City, Branch 90 (trial court), which gave due course to the September 28, 2006 petition for rehabilitation6 of petitioner Lexber, Inc. (Lexber).
- the absence of the HLURB's prior request for the appointment of a rehabilitation receiver; and
- the lapse of the 180-day period for the approval of a rehabilitation plan.
2008 Rules | 2013 Rules |
Rule 8 Procedural Remedies Section 1. Motion for Reconsideration. -A party may file a motion for reconsideration of any order issued by the court prior to the approval of the rehabilitation plan. No relief can be extended to the party aggrieved by the court's order on the motion through a special civil action for certiorari under Rule 65 of the Rules of Court. Such order can only be elevated to the Court of Appeals as an assigned error in the petition for review of the decision or order approving or disapproving the rehabilitation plan. An order issued after the approval of the rehabilitation plan can be reviewed only through a special civil action for certiorari under Rule 65 of the Rules of Court. Section 2. Review of Decision or Order on Rehabilitation Plan. - An order approving or disapproving a rehabilitation plan can only be reviewed through a petition for review to the Court of Appeals under Rule 43 of the Rules of Court within fifteen (15) days from notice of the decision or order. [Emphasis supplied.] | Rule 6 Section 1. Motion for Reconsideration -A party may file a motion for reconsideration of any order issued by the court prior to the approval of the rehabilitation plan. No relief can be extended to the party aggrieved by the court's order on the motion through a special civil action for certiorari under Rule 65 of the Rules of Court. An order issued after the approval of the rehabilitation plan can be reviewed only through a special civil action for certiorari under Rule 65 of the Rules of Court. Section 2. Review of Decision or Order on Rehabilitation Plan. - An order approving or disapproving a rehabilitation plan can only be reviewed through a petition for certiorari to the Court of Appeals under Rule 65 of the Rules of Court within fifteen (15) days from notice of the decision or order. [Emphasis supplied.] |
[T]he [SEC] may appoint a rehabilitation receiver of corporations, partnerships or other associations supervised or regulated by other government agencies, such as banks and insurance companies, upon request of the government agency concerned. [Emphasis supplied.]
- Regulation of the real estate trade and business;
- Registration of subdivision lots and condominium projects;
- Issuance of license to sell subdivision lots and condominium units in the registered units;
- Approval of performance bond and the suspension of license to sell;
- Registration of dealers, brokers and salesman engaged in the business of selling subdivision lots or condominium units;
- Revocation of registration of dealers, brokers and salesmen;
- Approval or mortgage on any subdivision lot or condominium unit made by the owner of developer;
- Granting of permits for the alteration of plans and the extension of period for completion of subdivision or condominium projects;
- Approval of the conversion to other purposes of roads and open spaces found within the project which have been donated to the city or municipality concerned;
- Regulation of the relationship between lessors and lessees; and
- Hear and decide cases on unsound real estate business practices; claims involving refund filed against project owners, developers, dealers, brokers or salesmen and cases of specific performance.
Section 11. Period of the Stay Order - The stay order shall be effective from the date of its issuance until the dismissal of the petition or the termination of the rehabilitation proceedings.
The petition shall be dismissed if no rehabilitation plan is approved by the court upon the lapse of one hundred eighty (180) days from the date of the initial hearing. The court may grant an extension beyond this period only if it appears by convincing and compelling evidence that the debtor may successfully be rehabilitated. In no instance, however, shall the period for approving or disapproving a rehabilitation plan exceed eighteen (18) months from the date of filing of the petition. [Emphasis supplied.]
Endnotes:
1Rollo, pp. 3-56
2 Penned by Associate Justice Rodrigo V. Cosico, and concurred in by Associate Justices Hakim S Abdulwahid and Mariflor P. Punzalan Castillo; id. at 58-68.
3 Id at 70
4 Id. at 222.
5 Id. at 239.
6 Id. at 71-100.
7 Id. at 5-6.
8 Id. at 8.
9 Id. at 6. Id. at 7.
11 Id. at 8-9.
12 Supra note 4.
13 Id. at 223-225.
14 Sec. 11. Period of the Stay Order. - The stay order shall be effective from the date of its issuance until the dismissal of the petition or the termination of the rehabilitation proceedings.
The petition shall be dismissed if no rehabilitation plan is approved by the court upon the lapse of one hundred eighty (180) days from the date of the initial hearing. The court may grant an extension beyond this period only if it appears by convincing and compelling evidence that the debtor may successfully be rehabilitated. In no instance, however, shall the period for approving or disapproving a rehabilitation plan exceed eighteen (18) months from the date of filing of the petition. [Emphasis supplied.]
15 Id. at 240-257.
16 Id. at 59-60.
17Section 6. In order to effectively exercise such jurisdiction, the Commission shall possess the following powers:x x x x
(c) To appoint one or more receivers of the property, real and personal, which is the subject of the action pending before the Commission in accordance with the pertinent provisions of the Rules of Court in such other cases whenever necessary in order to preserve the rights of the parties-litigants and/or protect the interest of the investing public and creditors: Provided, however, That the Commission may, in appropriate cases, appoint a rehabilitation receiver of corporations, partnerships or other associations not supervised or regulated by other government agencies who shall have, in addition to the powers of a regular receiver under the provisions of the Rules of Court, such functions and powers as are provided for in the succeeding paragraph d) hereof: Provided, further, That the Commission may appoint a rehabilitation receiver of corporations, partnerships or other associations supervised or regulated by other government agencies, such as banks and insurance companies, upon request of the government agency concerned: Provided, finally, That upon appointment of a management committee, rehabilitation receiver, board or body, pursuant to this Decree, all actions for claims against corporations, partnerships or associations under management or receivership pending before any court, tribunal, board or body shall be suspended accordingly. [Emphasis supplied.]
18 Reorganization Of The Securities And Exchange Commission With Additional Power And Placing The Said Agency Under The Administrative Supervision Of The Office Of The President.
19Rollo, pp. 62-64.
20 Id. at 15-16.
21 Id. at 32.
22 Id. at 46.
23 A.M. No. 00-8-10-SC, December 2, 2008.
24 A.M. No. 12-12-11-SC, October 22, 2013.
25 Under Rule 3, Section 1 of the Interim Rules, the following are prohibited pleadings:26 This is consistent with the amendments in the 2008 and 2013 Rules which respectively provide:
- Motion to dismiss;
- Motion for a bill of particulars;
- Motion for new trial or for reconsideration;
- Petition for relief;
- Motion for extension;
- Memorandum;
- Motion for postponement;
- Reply or rejoinder;
- Third party complaint; and
- Intervention.
Rule 4, Sections 5 and 7 of the 2008 Rules:
Section 5. Initial Hearing. -
(a) On or before the initial hearing set in the order mentioned in Section 7 of Rule 3, the petitioner shall file a publisher's affidavit showing that the publication requirements and a petitioner's affidavit showing that the notification requirement for foreign creditors had been complied with, as required in the stay order, x x x
Section 7. Order After Initial Hearing. -
(a) Within twenty (20) days after the last hearing, the court shall issue an order which shall:
(1) Give due course to the petition and immediately refer the petition and its annexes to the rehabilitation receiver who shall evaluate the rehabilitation plan and submit his recommendations to the court not later than ninety (90) days from the date of the last initial hearing, if the court is satisfied that there is merit to the petition, otherwise the court shall immediately dismiss the petition; x x x [Emphasis supplied.]
Rule 2, Sections 13 of the 2013 Rules:
Section 13. Compliance with Jurisdictional Requirements - On or before the first initial hearing set in the Commencement Order, the petitioner shall file a publisher's affidavit showing that the publication requirements and a petitioner's affidavit showing that the service requirement for local creditors and notifications requirement for foreign creditors had been complied with, as required in the Commencement Order.
27 Section 5.2 of RA 8799 provides that the SEC's jurisdiction over all cases enumerated under section 5 of Presidential Decree No. 902-A is now transferred to the courts of general jurisdiction or the appropriate regional trial court.
28 Under Rule 1, Section 2 of the Interim Rules, cases for rehabilitation transferred from Securities Exchange Commission to the Regional Trial Court pursuant to Republic Act No. 8799, otherwise known as The Securities Regulation Code, shall likewise be governed by the Interim Rules.
29 The New Central Bank Act.
30Section 30. Proceedings in Receivership and Liquidation — Whenever, upon report of the head of the supervising or examining department, the Monetary Board finds that a bank or quasi-bank:
(a) is unable to pay its liabilities as they become due in the ordinary course of business: Provided, That this shall not include inability to pay caused by extraordinary demands induced by financial panic in the banking community;
(b) has insufficient realizable assets, as determined by the Bangko Sentral, to meet its liabilities; or
(c) cannot continue in business without involving probable losses to its depositors or creditors; or
(d) has willfully violated a cease and desist order under Section 37 that has become final, involving acts or transactions which amount to fraud or a dissipation of the assets of the institution; in which cases, the Monetary Board may summarily and without need for prior hearing forbid the institution from doing business in the Philippines and designate the Philippine Deposit Insurance Corporation as receiver of the banking institution.x x x x
The designation of a conservator under Section 29 of this Act or the appointment of a receiver under this section shall be vested exclusively with the Monetary Board. Furthermore, the designation of a conservator is not a precondition to the designation of a receiver. [Emphasis supplied.]
31 The General Banking Law of 2000.
32Section 69. Receivership and Involuntary Liquidation. - The grounds and procedures for placing a bank under receivership or liquidation, as well as the powers and duties of the receiver or liquidator appointed for the bank shall be governed by the provisions of Sections 30, 31, 32, and 33 of the New Central Bank Act: Provided, That the petitioner or plaintiff files with the clerk or judge of the court in which the action is pending a bond, executed in favor of the Bangko Sentral, in an amount to be fixed by the court. This Section shall also apply to the extent possible to the receivership and liquidation proceedings of quasi-banks. [Emphasis supplied.]
33 The Insurance Code of the Philippines.
34 Section 249 of the Insurance Code provides:
Section 249. Whenever, upon examination or other evidence, it shall be disclosed that the condition of any insurance company doing business in the Philippines is one of insolvency, or that its continuance in business would be hazardous to its policyholders and creditors, the Commissioner [of the Insurance Commission] shall forthwith order the company to cease and desist from transacting business in the Philippines and shall designate a receiver to immediately take charge of its assets and liabilities, as expeditiously as possible collect and gather all the assets and administer the same for the benefit of its policyholders and creditors, and exercise all the powers necessary for these purposes including, but not limited to, bringing suits and foreclosing mortgages in the name of the insurance company. [Emphasis supplied.]
35Section 5. Powers and Duties of the Commission [the HLURB].
a) Promulgate zoning and other land use control standards and guidelines which shall govern land use plans and zoning ordinances of local governments; x x x
b) Review, evaluate and approve or disapprove comprehensive land use development plans and zoning ordinances of local government; and the zoning component of civil works and infrastructure projects of national, regional and local governments; subdivisions, condominiums or estate development projects including industrial estates, of both the public and private sectors and urban renewal plans, programs and projects: x x x
c) Issue rules and regulations to enforce the land use policies and human settlements as provided for in Presidential Decree Nos. 399, 815, 933, 957, 1216, 1344, 1396, 1517, Letter of Instructions No. 713, 729, 833, 935 and other related laws regulating the use of land including the regulatory aspects of the Urban Land Reform Act and all decrees relating to regulation of the value of land and improvements, and their rental.
d) Ensure compliance with policies, plans, standards and guidelines on human settlements promulgated in paragraph (a) of this section.
e) Conduct public hearings relating to its functions.
f) Act as the appellate body on decisions and actions of local and regional planning and zoning bodies and of the deputized officials of the Commission, on matters arising from the performance of these functions.
g) Promote, encourage, coordinate and assist private enterprises and government agencies and instrumentalities in planning, developing and coordinating human settlements plans and programs by furnishing legal, technical and professional assistance.
h) Develop and implement prototype projects supportive of its regulatory functions either by itself or as part of an inter-agency group or by contract with such appropriate public or private entities as it may deem proper,
i) Call on any government employee or any department, bureau, office, agency or instrumentality of the government or private entities and organizations for cooperation and assistance in the exercise of its functions.
j) Adopt rules of procedures for the conduct of its business,
k) Staff its organization with appropriate and qualified personnel in accordance with that is deemed proper or necessary to achieve the objectives of the Commission.
l) Make or enter into contracts of any kind of nature to enable it to discharge its functions under this
Order,
m) Acquire, purchase, own, lease, mortgage, sell or otherwise dispose of any land, or any improvements thereon, or property of any kind, movable and immovable, exercise the right of eminent domain by expropriating the land improvements thereon, which in the opinion of the Commission, are vital and necessary to develop and implement prototype projects supportive of its regulatory functions.
n) Charge and collect fees in the performance of its functions,
o) Impose administrative fine not exceeding Twenty-Thousand Pesos (P20,000.00) for any violation of its charter and of its rules and regulations,
p) Issue orders after conducting the appropriate investigation for the cessation or closure of any use or activity and to issue orders to vacate or demolish any building or structure that is determines to have violated or failed to comply with any of the laws, presidential decrees, letters of instructions, executive orders and other presidential issuances and directives being implemented by it, either on its own motion or upon complaint of any interested party.
q) Cite and declare any person, entity or enterprise in contempt of the Commission x x x;
r) Perform such other functions and activities which are necessary for the effective accomplishment of the abovementioned functions.
36 Reorganizing the Human Settlements Regulatory Commission, February 7, 1981.
37Azarcon v. Sandiganbayan, 335 Phil. 1202, 1215 (1997).
38 Id. at 1214.
39Agbayani v. Court of Appeals, G.R. No. 183623, June 25, 2012, 674 SCRA 358, 376.