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ARTICLE 774 - 782 CHAPTER I - GENERAL PROVISIONS

RUFINA LUY LIM


VERSUS
COURT OF APPEALS, AUTO TRUCK TBA CORPORATION,
SPEED DISTRIBUTING, INC., ACTIVE DISTRIBUTORS,
ALLIANCE MARKETING CORPORATION, ACTION
COMPANY, INC.
G.R. NO. 124715. JANUARY 24, 2000
ASSOCIATE JUSTICE BUENA
FACTS: Petitioner Rufina Luy Lim is the surviving spouse of
the late Pastor Y. Lim who died intestate on 11 June 1994
whose estate is the subject of probate proceedings. Petitioner,
as surviving spouse and duly represented by her nephew
George Luy, filed on 17 March 1995, a joint petition for the
administration of the estate of Pastor Y. Lim before the RTC of
Quezon aside City.The deceased left properties and in the
amended petition,the widow sought to include properties in
the name of several corporations, private respondents Auto
Truck Corporation, Alliance Marketing Corporation, Speed
Distributing, Inc., Active Distributing, Inc. and Action
Company as part of the estate of the deceased.Likewise
petitioner averred that not only the properties of private
respondent corporations are properly part of the decedents
estate but also the private respondent corporations
themselves.
ISSUE: Whether or not a corporation, in its universality,
be the proper subject of and be included in the inventory
of the estate of a deceased person?
RULING: NO. It is settled that a corporation is clothed with
personality separate and distinct from that of the persons
composing it. It may not generally be held liable for that of the
persons composing it. It may not be held liable for the personal
indebtedness of its stockholders or those of the entities
connected with it. Inasmuch as the real properties included in
the inventory of the estate of the late Pastor Y. Lim are in the
possession of and are registered in the name of private
respondent corporations, which under the law possess a
personality separate and distinct from their stockholders, and
in the absence of any cogency to shred the veil of corporate
fiction, the presumption of conclusiveness of said titles in favor
of private respondents should stand undisturbed.

ARTICLE 774 - 782 CHAPTER I - GENERAL PROVISIONS

WHEREFORE, in view of the foregoing disquisitions, the


instant petition is hereby DISMISSED for lack of merit and the
decision of the Court of Appeals which nullified and set aside
the orders issued by the Regional Trial Court, Branch 93,
acting as a probate court, dated 04 July 1995 and 12
September 1995 is AFFIRMED.