Koruga vs Arcenas,Jr

7/24/2019 Koruga vs Arcenas,Jr.

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THIRD DIVISION

ANA MARIA A. KORUGA,Petitioner,

- versus -

TEODORO O. ARCENAS, JR., ALBERTC. AGUIRRE, CESAR S. PAGUIO,FRANCISCO A. RIVERA, and THEHONORABLE COURT OF APPEALS,THIRD DIVISION,

Respondents.

x - - - - - - - - - - - - - - - - - - - - - - - - - - - - - xTEODORO O. ARCENAS, JR., ALBERTC. AGUIRRE, CESAR S. PAGUIO, andFRANCISCO A. RIVERA,

Petitioners,

- versus -

HON. SIXTO MARELLA, JR., Pres d n!J"d!e, Bran#$%&', Re! (na) Tr a) C("r*(+ Ma a* C *-,and ANA MARIA A. KORUGA,

Respondents.

G.R. N(. % '&&/

G.R. N(. % 012& Present: YNARES-SANTIAGO, J.,Chairperson,CARPIO, *

CORONA, **

NACH RA, !ndPERA"TA, JJ. Pro#u$%!ted: &une '(, ) (

x------------------------------------------------------------------------------------x
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DECISION

NACHURA, J .3

+e ore t is Court !re t o petitions t !t ori%in!ted ro# ! Co#p$!int i$ed /0An! 1!ri! A. 2oru%! 32oru%!4 /e ore t e Re%ion!$ Tri!$ Court 3RTC4 o 1!5!tiCit0 !%!inst t e +o!rd o 6ire7tors o +!n7o 8i$ipino !nd t e 1e#/ers o t e1onet!r0 +o!rd o t e +!n%5o Sentr!$ n% Pi$ipin!s 3+SP4 or vio$!tion o t eCorpor!tion Code, or inspe7tion o re7ords o ! 7orpor!tion /0 ! sto75 o$der, or re7eivers ip, !nd or t e 7re!tion o ! #!n!%e#ent 7o##ittee.

G.R. N(. % '&&/ T e irst is ! Petition or Certiorari under Ru$e 9 o t e Ru$es o Court,

do75eted !s G.R. No. '9;


3/22


4/22

On Septe#/er '), ) T is pro#pted Ar7en!s, et !$. to i$e /e ore t e CA !Petition or Certiorari !nd Pro i/ition under Ru$e 9 o t e Ru$es o Court it !

pr!0er or t e issu!n7e o ! rit o pre$i#in!r0 in un7tion !nd ! te#por!r0retr!inin% order 3TRO4. =F>

On 8e/ru!r0 (, ) , t e CA issued ! 9 -d!0 TRO en oinin% &ud%e 1!re$$!

ro# 7ondu7tin% urt er pro7eedin%s in t e 7!se.=;>

On 8e/ru!r0 )), ) , t e RTC issued ! Noti7e o Pre-tri!$ =(> settin% t e 7!se

or pre-tri!$ on &une ) !nd (, ) . Ar7en!s, et !$. i$ed ! 1!ni est!tion !nd1otion =' > /e ore t e CA, reiter!tin% t eir !pp$i7!tion or ! rit o pre$i#in!r0in un7tion. T us, on Apri$ ';, ) , t e CA issued t e !ss!i$ed Reso$ution, i7re!ds in p!rt:
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3C4onsiderin% t !t t e Te#por!r0 Restr!inin% Order issued /0 t is Court on8e/ru!r0 (, ) expired on Apri$ ' , ) , it is ne7ess!r0 t !t ! rit o

pre$i#in!r0 in un7tion /e issued in order not to render ine e7tu!$ !tever in!$reso$ution t is Court #!0 render in t is 7!se, ! ter t e petitioners s !$$ !ve

posted ! /ond in t e !#ount o 8IBE H N6RE6 THO SAN6 3P , . 4PESOS. SO OR6ERE6. =''>

6iss!tis ied, 2oru%! i$ed t is Petition or Certiorari under Ru$e 9 o t eRu$es o Court. 2oru%! !$$e%ed t !t t e CA e e7tive$0 %!ve due 7ourse to Ar7en!s,et !$.s petition en it issued ! rit o pre$i#in!r0 in un7tion it out !7tu!$ or $e%!$ /!sis, eit er in t e Apri$ ';, ) Reso$ution itse$ or in t e re7ords o t e

7!se. S e pr!0ed t !t t is Court restr!in t e CA ro# i#p$e#entin% t e rit o pre$i#in!r0 in un7tion !nd, ! ter due pro7eedin%s, #!5e t e in un7tion !%!inst t e!ss!i$ed CA Reso$ution per#!nent. =')>

In t eir Co##ent, Ar7en!s, et !$. r!ised sever!$ pro7edur!$ !nd su/st!ntive

issues. T e0 !$$e%ed t !t t e Beri i7!tion !nd Certi i7!tion !%!inst 8oru#-S oppin%!tt!7 ed to t e Petition !s not exe7uted in t e #!nner pres7ri/ed /0 P i$ippine$! sin7e, !s !d#itted /0 2oru%!s 7ounse$ i#se$ , t e s!#e !s on$0 ! !7si#i$e.

T e0 !$so !verred t !t 2oru%! !d !d#itted in t e Petition t !t s e never !s5ed or re7onsider!tion o t e CAs Apri$ ';, ) Reso$ution, 7ontendin% t !tt e Petition did not r!ise pure uestions o $! !s to 7onstitute !n ex7eption to t ere uire#ent o i$in% ! 1otion or Re7onsider!tion /e ore ! Petitionor Certiorari is i$ed.

T e0, $i5e ise, !$$e%ed t !t t e Petition #!0 !ve !$re!d0 /een rendered#oot !nd !7!de#i7 /0 t e &u$0 ) , ) CA 6e7ision, =' i7 denied t eir Petition, !nd e$d t !t t e RTC did not 7o##it %r!ve !/use o dis7retion in issuin%t e !ss!i$ed orders, !nd t us ordered t e RTC to pro7eed it t e tri!$ o t e 7!se.

1e!n i$e, on 1!r7 '


6/22

On t e ot er !nd, respondents 6r. Conr!do P. +!n on !nd Gen. R!#on1ont!o !$so i$ed t eir Co##ent on 2oru%!s Petition, r!isin% su/st!nti!$$0 t es!#e !r%u#ents !s Ar7en!s, et !$. G.R. N(. % 012&

G.R. No. '9( < is ! Petition or Revie on Certiorari under Ru$e ? o t eRu$es o Court, it pr!0er or t e issu!n7e o ! TRO !nd ! rit o pre$i#in!r0in un7tion i$ed /0 Ar7en!s, et !$.

In t eir Petition, Ar7en!s, et !$. !s5ed t e Court to set !side t e6e7ision ='?> d!ted &u$0 ) , ) o t e CA in CA-G.R. SP No. ;;?)), i7 deniedt eir petition, !vin% ound no %r!ve !/use o dis7retion on t e p!rt o t e 1!5!tiRTC. T e CA s!id t !t t e RTC Orders ere inter$o7utor0 in n!ture !nd, t us, #!0

/e !ss!i$ed /0 certiorari or pro i/ition on$0 en it is s o n t !t t e 7ourt !7tedit out or in ex7ess o urisdi7tion or it %r!ve !/use o dis7retion. It !dded t !tt e Supre#e Court ro ns upon resort to re#edi!$ #e!sures !%!inst inter$o7utor0orders.

Ar7en!s, et !$. !n7 ored t eir pr!0er on t e o$$o in% %rounds: t !t, in t eir

Ans er /e ore t e RTC, t e0 !d r!ised t e issue o !i$ure o t e 7ourt to !7 uire urisdi7tion over t e# due to i#proper servi7e o su##ons t !t t e 2oru%! !7tionis ! nuis!n7e or !r!ss#ent suit t !t t ere is !not er 7!se invo$vin% t e s!#e

p!rties or t e s!#e 7!use pendin% /e ore t e 1onet!r0 +o!rd o t e +SP, !nd t is7onstituted oru#-s oppin% !nd t !t urisdi7tion over t e su/ e7t #!tter o t e7!se is vested /0 $! in t e +SP. =' >

Ar7en!s, et !$ . !ssi%n t e o$$o in% errors: I. THE CO RT O8 APPEA"S, IN 8IN6ING NO GRABE A+ SE O8

6ISCRETION CO11ITTE6 +Y P +"IC RESPON6ENT REGIONA"TRIA" CO RT O8 1A2ATI, +RANCH '


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II. THE 8IN6ING O8 THE CO RT O8 APPEA"S O8 NO GRABEA+ SE O8 6ISCRETION CO11ITTE6 +Y P +"IC RESPON6ENTREGIONA" TRIA" CO RT O8 1A2ATI, +RANCH '


8/22

Court noted !nd 7onsidered t e Co#p$i!n7e s!tis !7tor0 in its Reso$ution d!ted Nove#/er '9, ) . T ere is, t ere ore, no need to urt er /e$!/or t is issue.

@e no dis7uss t e su/st!ntive issues in t is 7!se. 8irst, e reso$ve t e pr!0er to nu$$i 0 t e CAs Apri$ ';, ) Reso$ution.@e o$d t !t t e Petition in G.R. No. '9;


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8i$ipino o en%!%in% in uns! e, unsound, !nd r!udu$ent /!n5in% pr!7ti7es, #ore p!rti7u$!r$0, !7ts t !t vio$!te t e pro i/ition on se$ -de!$in%.

It is 7$e!r t !t t e !7ts 7o#p$!ined o pert!in to t e 7ondu7t o +!n7o8i$ipinos /!n5in% /usiness. A /!n5, !s de ined in t e General Banking Law ,=)'> re ers to !n entit0 en%!%ed in t e $endin% o unds o/t!ined in t e or# o deposits. =))> T e /!n5in% /usiness is proper$0 su/ e7t to re!son!/$e re%u$!tionunder t e po$i7e po er o t e st!te /e7!use o its n!ture !nd re$!tion to t e is7!$! !irs o t e peop$e !nd t e revenues o t e st!te. +!n5s !re ! e7ted it pu/$i7interest /e7!use t e0 re7eive unds ro# t e %ener!$ pu/$i7 in t e or# o deposits.It is t e Govern#ents responsi/i$it0 to see to it t !t t e in!n7i!$ interests o t oseo de!$ it /!n5s !nd /!n5in% institutions, !s depositors or ot er ise, !re

prote7ted. In t is 7ountr0, t !t t!s5 is de$e%!ted to t e +SP, i7 pursu!nt to itsC !rter, is !ut ori ed to !d#inister t e #onet!r0, /!n5in%, !nd 7redit s0ste# o

t e P i$ippines. It is urt er !ut ori ed to t!5e t e ne7ess!r0 steps !%!inst !n0 /!n5in% institution i its 7ontinued oper!tion ou$d 7!use pre udi7e to itsdepositors, 7reditors !nd t e %ener!$ pu/$i7 !s e$$. =)

T e $! vests in t e +SP t e supervision over oper!tions !nd !7tivities o

/!n5s. T e New Central Bank ct provides:

Se#* (n /2. !uper"ision and #$amination. - T e +!n%5o Sentr!$ s !$$!ve supervision over, !nd 7ondu7t periodi7 or spe7i!$ ex!#in!tions o , /!n5in%institutions !nd u!si-/!n5s, in7$udin% t eir su/sidi!ries !nd ! i$i!tes en%!%ed in

!$$ied !7tivities. =)?>

Spe7i i7!$$0, t e +SPs supervisor0 !nd re%u$!tor0 po ers in7$ude:

?.' T e issu!n7e o ru$es o 7ondu7t or t e est!/$is #ent o st!nd!rds o oper!tion or uni or# !pp$i7!tion to !$$ institutions or un7tions 7overed,t!5in% into 7onsider!tion t e distin7tive 7 !r!7ter o t e oper!tions o institutions !nd t e su/st!ntive si#i$!rities o spe7i i7 un7tions to i7su7 ru$es, #odes or st!nd!rds !re to /e !pp$ied

?.) T e #(nd"#* (+ e5a6 na* (n *( de*er6 ne #(67) an#e 8 *$ )a8s and

re!")a* (ns + *$e # r#"6s*an#es s( 8arran* as de*er6 ned 9- *$eM(ne*ar- B(ard

?.< O:ersee n! *( as#er*a n *$a* )a8s and Re!")a* (ns are #(67) ed 8 *$ ?.? Re!")ar n:es* !a* (n 8$ #$ s$a)) n(* 9e (+*ener *$an (n#e a -ear +r(6

*$e )as* da*e (+ e5a6 na* (n *( de*er6 ne 8$e*$er an ns* *"* (n s
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#(nd"#* n! *s 9"s ness (n a sa+e (r s("nd 9as s : %ro"ided, T !tt e de i7ien7iesDirre%u$!rities ound /0 or dis7overed /0 !n !udit s !$$ /ei##edi!te$0 !ddressed

?. In4" r n! n*( *$e s():en#- and ) 4" d *- (+ *$e ns* *"* (n 3)-64 or

?.9 En or7in% pro#pt 7orre7tive !7tion. =) >

2oru%! !$$e%es t !t t e dispute in t e tri!$ 7ourt invo$ves t e #!nner iti7 t e 6ire7tors 3si74 !ve !nd$ed t e +!n5s ! !irs, spe7i i7!$$0 t e r!udu$ent

$o!ns !nd dacion en pago !ut ori ed /0 t e 6ire7tors in !vor o sever!$ du##07orpor!tions 5no n to !ve 7$ose ties !nd !re indire7t$0 7ontro$$ed /0 t e6ire7tors. =)9> Her !$$e%!tions, t en, 7!$$ or t e ex!#in!tion o t e !$$e%ed$0uestion!/$e $o!ns. @ et er t ese $o!ns !re 7overed /0 t e pro i/ition on se$ -

de!$in% is ! #!tter or t e +SP to deter#ine. T ese !re not ordin!r0 intr!-7orpor!te#!tters r!t er, t e0 invo$ve /!n5in% !7tivities i7 !re, /0 $! , re%u$!ted !ndsupervised /0 t e +SP. As t e Court !s previous$0 e$d:

It is e$$-sett$ed in /ot $! !nd urispruden7e t !t t e Centr!$ 1onet!r0

Aut orit0, t rou% t e 1onet!r0 +o!rd, is vested it ex7$usive !ut orit0 to!ssess, ev!$u!te !nd deter#ine t e 7ondition o !n0 /!n5, !nd indin% su77ondition to /e one o inso$ven70, or t !t its 7ontinu!n7e in /usiness ou$dinvo$ve ! pro/!/$e $oss to its depositors or 7reditors, or/id /!n5 or non-/!n5 in!n7i!$ institution to do /usiness in t e P i$ippines !nd s !$$ desi%n!te !no i7i!$ o t e +SP or ot er 7o#petent person !s re7eiver to i##edi!te$0 t!5e7 !r%e o its !ssets !nd $i!/i$ities. =)F>

Corre$!tive$0, t e General Banking Law o& ' spe7i i7!$$0 de!$s it $o!ns7ontr!7ted /0 /!n5 dire7tors or o i7ers, t us:

SECTION & . Res*r #* (n (n Ban E57(s"re *( D re#*(rs, O++ #ers,

S*(# $()ders and T$e r Re)a*ed In*eres*s. No dire7tor or o i7er o !n0 /!n5 s !$$, dire7t$0 or indire7t$0, or i#se$ or !s t e represent!tive or !%ent o ot ers,

/orro ro# su7 /!n5 nor s !$$ e /e7o#e ! %u!r!ntor, indorser or suret0 or

$o!ns ro# su7 /!n5 to ot ers, or in !n0 #!nner /e !n o/$i%or or in7ur !n07ontr!7tu!$ $i!/i$it0 to t e /!n5 ex7ept it t e ritten !pprov!$ o t e #! orit0 o !$$ t e dire7tors o t e /!n5, ex7$udin% t e dire7tor 7on7erned: Provided, T !tsu7 ritten !pprov!$ s !$$ not /e re uired or $o!ns, ot er 7redit !77o##od!tions!nd !dv!n7es %r!nted to o i7ers under ! rin%e /ene it p$!n !pproved /0 t e+!n%5o Sentr!$. T e re uired !pprov!$ s !$$ /e entered upon t e re7ords o t e

/!n5 !nd ! 7op0 o su7 entr0 s !$$ /e tr!ns#itted ort it to t e !ppropri!tesupervisin% !nd ex!#inin% dep!rt#ent o t e +!n%5o Sentr!$.
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6e!$in%s o ! /!n5 it !n0 o its dire7tors, o i7ers or sto75 o$ders !nd

t eir re$!ted interests s !$$ /e upon ter#s not $ess !vor!/$e to t e /!n5 t !n t oseo ered to ot ers.

A ter due noti7e to t e /o!rd o dire7tors o t e /!n5, t e o i7e o !n0 /!n5 dire7tor or o i7er o vio$!tes t e provisions o t is Se7tion #!0 /ede7$!red v!7!nt !nd t e dire7tor or o i7er s !$$ /e su/ e7t to t e pen!$ provisionso t e Ne Centr!$ +!n5 A7t.

T$e M(ne*ar- B(ard 6a- re!")a*e *$e a6("n* (+ )(ans, #red *

a##(66(da* (ns and !"aran*ees *$a* 6a- 9e e5*ended, d re#*)- (r nd re#*)-,9- a 9an *( *s d re#*(rs, (++ #ers, s*(# $()ders and *$e r re)a*ed n*eres*s, as8e)) as n:es*6en*s (+ s"#$ 9an n en*er7r ses (8ned (r #(n*r())ed 9- sa dd re#*(rs, (++ #ers, s*(# $()ders and *$e r re)a*ed n*eres*s. Ho ever, t eoutst!ndin% $o!ns, 7redit !77o##od!tions !nd %u!r!ntees i7 ! /!n5 #!0

extend to e!7 o its sto75 o$ders, dire7tors, or o i7ers !nd t eir re$!ted interests,s !$$ /e $i#ited to !n !#ount e uiv!$ent to t eir respe7tive unen7u#/ereddeposits !nd /oo5 v!$ue o t eir p!id-in 7!pit!$ 7ontri/ution in t e /!n5:Provided, o ever, T !t $o!ns, 7redit !77o##od!tions !nd %u!r!ntees se7ured /0!ssets 7onsidered !s non-ris5 /0 t e 1onet!r0 +o!rd s !$$ /e ex7$uded ro# su7$i#it: Provided, urt er, T !t $o!ns, 7redit !77o##od!tions !nd !dv!n7es too i7ers in t e or# o rin%e /ene its %r!nted in !77ord!n7e it ru$es !s #!0 /e

pres7ri/ed /0 t e 1onet!r0 +o!rd s !$$ not /e su/ e7t to t e individu!$ $i#it. T e 1onet!r0 +o!rd s !$$ de ine t e ter# re$!ted interests. T e $i#it on $o!ns, 7redit !77o##od!tions !nd %u!r!ntees pres7ri/ed

erein s !$$ not !pp$0 to $o!ns, 7redit !77o##od!tions !nd %u!r!ntees extended /0 ! 7ooper!tive /!n5 to its 7ooper!tive s !re o$ders. =);>

8urt er#ore, t e !ut orit0 to deter#ine et er ! /!n5 is 7ondu7tin% /usiness in !n uns! e or unsound #!nner is !$so vested in t e 1onet!r0+o!rd. T e General Banking Law o& ' provides:

SECTION 2 . C(nd"#* n! B"s ness n an Unsa+e (r Uns("nd

Manner. In deter#inin% et er ! p!rti7u$!r !7t or o#ission, i7 is notot er ise pro i/ited /0 !n0 $! , ru$e or re%u$!tion ! e7tin% /!n5s, u!si-/!n5s or trust entities, #!0 /e dee#ed !s 7ondu7tin% /usiness in !n uns! e or unsound#!nner or purposes o t is Se7tion, t e 1onet!r0 +o!rd s !$$ 7onsider !n0 o t eo$$o in% 7ir7u#st!n7es:

9.'. T e !7t or o#ission !s resu$ted or #!0 resu$t in #!teri!$ $oss or

d!#!%e, or !/nor#!$ ris5 or d!n%er to t e s! et0, st!/i$it0, $i uidit0or so$ven70 o t e institution
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12/22

9.). T e !7t or o#ission !s resu$ted or #!0 resu$t in #!teri!$ $oss or

d!#!%e or !/nor#!$ ris5 to t e institution s depositors, 7reditors,investors, sto75 o$ders or to t e +!n%5o Sentr!$ or to t e pu/$i7 in%ener!$

9.


13/22

d!0 or e!7 vio$!tion, t!5in% into 7onsider!tion t e !ttend!nt7ir7u#st!n7es, su7 !s t e n!ture !nd %r!vit0 o t e vio$!tion or irre%u$!rit0 !nd t e si e o t e /!n5 or u!si-/!n5 3/4 suspension o redis7ountin% privi$e%es or !77ess to +!n%5o Sentr!$

7redit !7i$ities 374 suspension o $endin% or orei%n ex7 !n%e oper!tions or !ut orit0 to!77ept ne deposits or #!5e ne invest#ents 3d4 suspension o inter/!n5 7$e!rin% privi$e%es !ndDor 3e4 revo7!tion o u!si-/!n5in% $i7ense. Resi%n!tion or ter#in!tion ro# o i7e s !$$ not exe#pt su7 dire7tor or

o i7er ro# !d#inistr!tive or 7ri#in!$ s!n7tions.

T e 1onet!r0 +o!rd #!0, enever !rr!nted /0 7ir7u#st!n7es, preventive$0 suspend !n0 dire7tor or o i7er o ! /!n5 or u!si-/!n5 pendin% !ninvesti%!tion: Provided, T !t s ou$d t e 7!se /e not in!$$0 de7ided /0 t e +!n%5oSentr!$ it in ! period o one undred t ent0 3') 4 d!0s ! ter t e d!te o suspension, s!id dire7tor or o i7er s !$$ /e reinst!ted in is position: Provided,urt er, T !t en t e de$!0 in t e disposition o t e 7!se is due to t e !u$t,ne%$i%en7e or petition o t e dire7tor or o i7er, t e period o de$!0 s !$$ not /e7ounted in 7o#putin% t e period o suspension erein provided.

T e !/ove !d#inistr!tive s!n7tions need not /e !pp$ied in t e order o

t eir severit0. @ et er or not t ere is !n !d#inistr!tive pro7eedin%, i t e institution

!ndDor t e dire7tors !ndDor o i7ers 7on7erned 7ontinue it or ot er ise persistin t e 7o##ission o t e indi7!ted pr!7ti7e or vio$!tion, t e 1onet!r0 +o!rd #!0issue !n order re uirin% t e institution !ndDor t e dire7tors !ndDor o i7ers7on7erned to 7e!se !nd desist ro# t e indi7!ted pr!7ti7e or vio$!tion, !nd #!0urt er order t !t i##edi!te !7tion /e t!5en to 7orre7t t e 7onditions resu$tin%ro# su7 pr!7ti7e or vio$!tion. T e 7e!se !nd desist order s !$$ /e i##edi!te$0e e7tive upon servi7e on t e respondents.

T e respondents s !$$ /e ! orded !n opportunit0 to de end t eir !7tion in

! e!rin% /e ore t e 1onet!r0 +o!rd or !n0 7o##ittee 7 !ired /0 !n0 1onet!r0+o!rd #e#/er 7re!ted or t e purpose, upon re uest #!de /0 t e respondentsit in ive 3 4 d!0s ro# t eir re7eipt o t e order. I no su7 e!rin% is re uestedit in s!id period, t e order s !$$ /e in!$. I ! e!rin% is 7ondu7ted, !$$ issuess !$$ /e deter#ined on t e /!sis o re7ords, ! ter i7 t e 1onet!r0 +o!rd #!0eit er re7onsider or #!5e in!$ its order.


14/22

T e Governor is ere/0 !ut ori ed, !t is dis7retion, to i#pose upon /!n5in% institutions, or !n0 !i$ure to 7o#p$0 it t e re uire#ents o $! ,1onet!r0 +o!rd re%u$!tions !nd po$i7ies, !ndDor instru7tions issued /0 t e1onet!r0 +o!rd or /0 t e Governor, ines not in ex7ess o Ten t ous!nd pesos3P' , 4 ! d!0 or e!7 vio$!tion, t e i#position o i7 s !$$ /e in!$ !nd

exe7utor0 unti$ reversed, #odi ied or $i ted /0 t e 1onet!r0 +o!rd on !ppe!$.=)(>
http://sc.judiciary.gov.ph/jurisprudence/2009/june2009/168332.htm#_ftn31http://sc.judiciary.gov.ph/jurisprudence/2009/june2009/168332.htm#_ftn31


15/22

2oru%! !$so !77used Ar7en!s, et !$. o vio$!tion o t e Corpor!tion Codes provisions on se$ -de!$in% !nd 7on $i7t o interest. S e invo5ed Se7tion


16/22

@ ere !n0 o t e irst t o 7onditions set ort in t e pre7edin% p!r!%r!pis !/sent, in t e 7!se o ! 7ontr!7t it ! dire7tor or trustee, su7 7ontr!7t #!0 /er!ti ied /0 t e vote o t e sto75 o$ders representin% !t $e!st t o-t irds 3)D


17/22

Se#* (n /0. ppointment o& Conser"ator. - @ enever, on t e /!sis o !report su/#itted /0 t e !ppropri!te supervisin% or ex!#inin% dep!rt#ent, t e1onet!r0 +o!rd inds t !t ! /!n5 or ! u!si-/!n5 is in ! st!te o 7ontinuin%in!/i$it0 or un i$$in%ness to #!int!in ! 7ondition o $i uidit0 dee#ed !de u!te to

prote7t t e interest o depositors !nd 7reditors, t e 1onet!r0 +o!rd #!0 !ppoint !

7onserv!tor it su7 po ers !s t e 1onet!r0 +o!rd s !$$ dee# ne7ess!r0 to t!5e7 !r%e o t e !ssets, $i!/i$ities, !nd t e #!n!%e#ent t ereo , reor%!ni e t e#!n!%e#ent, 7o$$e7t !$$ #onies !nd de/ts due s!id institution, !nd exer7ise !$$

po ers ne7ess!r0 to restore its vi!/i$it0. T e 7onserv!tor s !$$ report !nd /eresponsi/$e to t e 1onet!r0 +o!rd !nd s !$$ !ve t e po er to overru$e or revo5et e !7tions o t e previous #!n!%e#ent !nd /o!rd o dire7tors o t e /!n5 or u!si-/!n5.

x x x x T e 1onet!r0 +o!rd s !$$ ter#in!te t e 7onserv!tors ip en it is

s!tis ied t !t t e institution 7!n 7ontinue to oper!te on its o n !nd t e7onserv!tors ip is no $on%er ne7ess!r0. T e 7onserv!tors ip s !$$ $i5e ise /eter#in!ted s ou$d t e 1onet!r0 +o!rd, on t e /!sis o t e report o t e7onserv!tor or o its o n indin%s, deter#ine t !t t e 7ontinu!n7e in /usiness o t e institution ou$d invo$ve pro/!/$e $oss to its depositors or 7reditors, in i77!se t e provisions o Se7tion < s !$$ !pp$0.

Se#* (n &1. %roceedings in Recei"ership and Li/uidation. - @ enever,

upon report o t e e!d o t e supervisin% or ex!#inin% dep!rt#ent, t e 1onet!r0+o!rd inds t !t ! /!n5 or u!si-/!n5:

3!4 is un!/$e to p!0 its $i!/i$ities !s t e0 /e7o#e due in t eordin!r0 7ourse o /usiness: Provided, T !t t is s !$$ not in7$udein!/i$it0 to p!0 7!used /0 extr!ordin!r0 de#!nds indu7ed /0in!n7i!$ p!ni7 in t e /!n5in% 7o##unit0 3/4 !s insu i7ient re!$i !/$e !ssets, !s deter#ined /0 t e +!n%5oSentr!$, to #eet its $i!/i$ities or 374 7!nnot 7ontinue in /usiness it out invo$vin% pro/!/$e $ossesto its depositors or 7reditors or 3d4 !s i$$ u$$0 vio$!ted ! 7e!se !nd desist order under Se7tion


18/22

x x x x

T e a#* (ns (+ *$e M(ne*ar- B(ard *a en "nder *$ s se#* (n (r "nderSe#* (n /0 (+ *$ s A#* s$a)) 9e + na) and e5e#"*(r-, and 6a- n(* 9e res*ra ned(r se* as de 9- *$e #("r* e5#e7* (n 7e* * (n +(r certiorari (n *$e !r("nd *$a*

*$e a#* (n *a en 8as n e5#ess (+ ?"r sd #* (n (r 8 *$ s"#$ !ra:e a9"se (+ d s#re* (n as *( a6("n* *( )a# (r e5#ess (+ ?"r sd #* (n . T e petitionor certiorari #!0 on$0 /e i$ed /0 t e sto75 o$ders o re7ord representin% t e#! orit0 o t e 7!pit!$ sto75 it in ten 3' 4 d!0s ro# re7eipt /0 t e /o!rd o dire7tors o t e institution o t e order dire7tin% re7eivers ip, $i uid!tion or 7onserv!tors ip.

T e desi%n!tion o ! 7onserv!tor under Se7tion )( o t is A7t or *$ea77( n*6en* (+ a re#e :er "nder *$ s se#* (n s$a)) 9e :es*ed e5#)"s :e)- 8 *$*$e M(ne*ar- B(ard . 8urt er#ore, t e desi%n!tion o ! 7onserv!tor is not !

pre7ondition to t e desi%n!tion o ! re7eiver .=


19/22

!ttention t e !7ts s e !d enu#er!ted in er 7o#p$!int /e ore t e RTC. T e $etter re!ds in p!rt:

+!n7o 8i$ipino !nd t e 7urrent #e#/ers o its +o!rd o 6ire7tors s ou$d

/e p$!7ed under investi%!tion or vio$!tions o /!n5in% $! s, t e 7o##ission o irre%u$!rities, !nd or 7ondu7tin% /usiness in !n uns! e or unsound #!nner. T e0s ou$d $i5e ise /e p$!7ed under preventive suspension /0 virtue o t e po ers%r!nted to t e 1onet!r0 +o!rd under Se7tion

In ! $etter d!ted 1!0 9, )


20/22

8in!$$0, t ere is one ot er re!son 0 2oru%!s 7o#p$!int /e ore t e RTC7!nnot prosper. Given er o n !d#ission !nd t e s!#e is $i5e ise supported /0eviden7e t !t s e is #ere$0 ! #inorit0 sto75 o$der o +!n7o 8i$ipino, s e ou$dnot !ve t e st!ndin% to uestion t e 1onet!r0 +o!rds !7tion. Se7tion < o t e

Ne Centr!$ +!n5 A7t provides: T e petition or certiorari #!0 on$0 /e i$ed /0 t e sto75 o$ders o re7ordrepresentin% t e #! orit0 o t e 7!pit!$ sto75 it in ten 3' 4 d!0s ro# re7eipt /0t e /o!rd o dire7tors o t e institution o t e order dire7tin% re7eivers ip,$i uid!tion or 7onserv!tors ip.

A$$ t e ore%oin% dis7ussion 0ie$ds t e inevit!/$e 7on7$usion t !t t e CAerred in up o$din% t e urisdi7tion o , !nd re#!ndin% t e 7!se to, t e RTC. Givent !t t e RTC does not !ve urisdi7tion over t e su/ e7t #!tter o t e 7!se, itsre us!$ to dis#iss t e 7!se on t !t %round !#ounted to %r!ve !/use o dis7retion.

@HEREFORE , t e ore%oin% pre#ises 7onsidered, t e Petition in G.R. No.

'9;


21/22

ANTONIO T. CARPIOAsso7i!te &usti7e

RENATO C. CORONAAsso7i!te &usti7e

DIOSDADO M. PERALTAAsso7i!te &usti7e

A T T E S T A T I O N

I !ttest t !t t e 7on7$usions in t e !/ove 6e7ision ere re!7 ed in 7onsu$t!tion /e ore t e 7!se !s !ssi%ned to t e riter o t e opinion o t e Courts 6ivision.

CONSUELO NARES


22/22

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