SECOND DIVISION
G.R. No. 198222, April 04, 2016
GOLDEN CANE FURNITURE MANUFACTURING CORPORATION, Petitioner, v. STEELPRO PHILIPPINES, INC., SOCIAL SECURITY SYSTEM, AIR LIQUIDE PHILIPPINES, INC., CLARK DEVELOPMENT CORPORATION, PHILIPPINE NATIONAL BANK, BUREAU OF INTERNAL REVENUE, UP-TOWN INDUSTRIES SALES, INC., Respondents.
D E C I S I O N
BRION, J.:
This is a petition for review on certiorari1 filed by Golden Cane Furniture Manufacturing Corporation (Golden Cane) from the November 27, 2009 and August 16, 2011 resolutions of the Court of Appeals (CA) in CA-G.R. SP No. 111530.2 The CA dismissed Golden Cane's petition for certiorari from the Regional Trial Court's (RTC) May 11, 20093 and August 27, 20094 orders in Comm. Case No. 058.5
The CA dismissed the petition for certiorari for being the wrong remedy to challenge the RTC's dismissal of Golden Cane's petition for corporate rehabilitation.
Whereas, there is a need to clarify the proper mode of appeal in these cases in order to prevent cluttering the dockets of the courts with appeals and/or petitions for certiorari;In 2008, this Court enacted the Rules of Procedure on Corporate Rehabilitation25 (2008 Rules). The 2008 Rules included motions for reconsideration as a relief from any order of the court prior to the approval of the rehabilitation plan.
Wherefore, the Court Resolves:
1. All decisions and final orders in cases falling under the Interim Rules of Corporate Rehabilitation and the Interim Rules of Procedure Governing Intra-Corporate Controversies under Republic Act No. 8799 shall be appealable to the Court of Appeals through a petition for review under Rule 43 of the Rules of Court.24ChanRoblesVirtualawlibrary
Notably, the 2008 Rules also allowed a petition for certiorari under Rule 65 of the Rules of Court as a recourse, but only against an order issued after the approval of the rehabilitation plan. Lastly, the 2008 Rules adopted the mode of appeal prescribed in A.M. No. 04-9-07-SC against an order approving or disapproving the rehabilitation plan.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.26 [emphasis supplied]
Under the 2013 Rules, the Rehabilitation Court's final order approving or disapproving a rehabilitation plan is no longer subject to appeal; it can only be reviewed through a petition for certiorari. The 2013 Rules narrowed the scope of appellate review from errors of law and fact under Rule 43,30 to errors of jurisdiction or abuse of discretion under Rule 65.31 It effectively lends more credence to the factual findings and the judgment of rehabilitation courts.RULE 6
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.
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.29ChanRoblesVirtualawlibrary
Accordingly, the Interim Rules - not the 2008 Rules - apply to Golden Cane's petition for corporate rehabilitation.Rule 9
Final Provisions
Sec. 2. Transitory Provision. - Unless the court orders otherwise to prevent manifest injustice, any pending petition for rehabilitation that has not undergone the initial hearing prescribed under the Interim Rules of Procedure for Corporate Rehabilitation at the time of the effectivity of these Rules Shall be governed by these rules.
Endnotes:
1Rollo, p. 10.
2Id. at 41, 44. Both penned by Associate Justice Ramon M. Bato, Jr. and concurred in by Associate Justices Noel G. Tijam and Antonio L. Villamor.
3Id. at 92.
4Id. at 146.
5 RTC, San Fernando City, Pampanga, Branch 42, through Judge Maria Amifaith S. Fider-Reyes.
6Rollo, p. 46.
7Id. at 62.
8Id. at 92.
9Id. at 107.
10Id. at 146.
11Id. at 159.
12Id. at 156.
13Id. at 41.
14 Re: Mode of Appeal in Cases Formerly Cognizable by the Securities and Exchange Commission, promulgated 14 September 2004.
15Rollo, p. 44.
16 A.M. No. 00-8-10-SC, Re: Transfer of Cases from the Securities and Exchange Commission to the Regional Trial Courts (September 4, 2001).
17 See Interim Rules, Rule 3, Section 1; 2008 Rules, Rule 3, Section 1; and A.M. No. 12-12-11-SC, 2013 Financial Rehabilitation Rules of Procedure, Rule 1, Section 4, (August 27, 2013).
18 Supra note 16.
19Id.
20 Presidential Decree No. 902-A, Sections 3 and 5(b).
21 Republic Act No. 8799, Section 5.2.
22 Interim Rules, Rule 3, Section 1.
23 Interim Rules, Rule 3, Section 5:
Sec. 5. Executory Nature of Orders. - Any order issued by the court under these Rules is immediately executory. A petition for review or an appeal therefrom shall not stay the execution of the order unless restrained or enjoined by the appellate court. The review of any order or decision of the court or an appeal therefrom shall be in accordance with the Rules of Court: Provided, however, that reliefs ordered by the trial or appellate courts shall take into account the need for resolution of proceedings in a just, equitable, and speedy manner.
24 A.M. No. 04-9-07-SC (September 14, 2004).cralawred
25 A.M. No. 00-8-10-SC (December 2, 2008).
26 2008 Rules, Rule 8, Sec. 1 and 2.cralawred
27 Republic Act No. 10142.
28 A.M. No. 12-12-11-SC (August 27, 2013).
29 2013 Rules, Rule 6, Section 1 and 2.
30 RULES OF COURT, Rule 43, Section 3.
31 RULES OF COURT, Rule 65, Section 1.
32 2008 Rules, Rule 9, Section 3.
33 FRIA, Section 74.
34 2008 Rules, Rule 8, Section 2.