National Investment and Development Corp. (NIDC) v.

Aquino
FACTS:
Batjak, (Basic Agricultural Traders Jointly Administered Kasamahan) is a
Filipino-American corporation organized under the las o! the "hilippines, primarily
engaged in the manu!acture o! coconut oil and copra cake !or e#port$
%n &'(), the total inde*tedness o! Batjak amounted to " &&$'+$ As security,
Batjak had mortaged its , coco-oil processing mills is -a.ao /ity, +isamis and 0eyte
to +anila*ank, 1epu*lic Bank and "/% Bank$ +oreo.er, as it as necessary to place
additional capital to optimize the operation o! the mills, Batjak o*tained 23nancial
assistance4 !rom "5B$
"er Batjak6s agreement ith "5B, the !olloing happened7
a$ 5%-/ (a "5B su*sidiary) in.ested " ($8+ in Batjak in the !orm o! pre!erred
shares, con.erti*le ithin )yrs at par into common stock$
*$ The , mortgagee *anks released in !a.or o! "5B the mortgages they held9
Batjak also e#ecuted 3rst mortgages in !a.or o! "5B
c$ "5B granted Batjak an e#port-ad.ance line o! " ,+, later increased to " )+$
d$ A .oting trust agreement (:TA) as e#ecuted in !a.or o! "5B *y the
stockholders representing (;< o! the outstanding paid-up and su*scri*ed
shares o! Batjak$ (The :TA as !or a period o! )yrs, su*ject to renegotiation)
%n &'(), as Batjak as insol.ent, "5B = 5%-/ !oreclosed on the , mills$
>u*se?uently, onership as consolidated in 5%-/$ Batjak rote to 5%-/ in?uiring i!
it as interested in a renegotiation$ @a.ing recei.ed no reply, it rote another letter
in!orming 5%-/ that it (Batjak) ould sa!ely assume that 5%-/ as no longer
interested$ %t then sent a third letter asking !or a complete accounting o! the assets,
properties, management and operation o! Batjak, preparatory to the turn-o.er and
trans!er o! the shares co.ered *y the :TA$ 5%-/ replied and re!used to comply$
Batjak sued !or mandamus$ Batjak also 3led a petition !or recei.ership o!
property = assets$
5%-/ 3les a motion to dismiss9 denied$ >u*se?uentky, the /F% judge granted the
petition !or
recei.ership, appointing , recei.ers$
%ssue7
WON the grant of receivership was proper. (Rule 59)
Held: NO
A recei.er o! real or personal property, hich is the su*ject o! the action, may *e
appointed *y the court hen it appears !rom the pleadings that the party applying
!or the appointment o! recei.er has an interest in said property$A) The right,
interest, or claim in property, to entitle one to a recei.er o.er it, must *e present
and e#isting$
As *orne out *y the records o! the case, "5B ac?uired onership o! to (A) o! the
three (,) oil mills *y .irtue o! mortgage !oreclosure sales$ 5%-/ ac?uired onership
o! the third oil mill also under a mortgage !oreclosure sale$ /erti3cates o! title ere
issued to "5B and 5%-/ a!ter the lapse o! the one (&) year redemption period$
>u*se?uently, "5B trans!erred the onership o! the to (A) oil mills to 5%-/$ There
can *e no dou*t, there!ore, that 5%-/ not only has possession o!, *ut also title to
the three (,) oil mills !ormerly oned *y Batjak$ The interest o! Batjak o.er the
three (,) oil mills ceased upon the issuance o! the certi3cates o! title to "5B and
5%-/ con3rming their onership o.er the said properties$ +ore so, here Batjak
does not impugn the .alidity o! the !oreclosure proceedings$ 5either Batjak nor its
stockholders ha.e instituted any legal proceedings to annul the mortgage
!oreclosure a!orementioned$
The ac?uisition *y "5B-5%-/ o! the properties in ?uestion as not made or eBected
under the capacity o! a trustee *ut as a !oreclosing creditor !or reco.ering on a just
and .alid o*ligation o! Batjak$
+oreo.er, the pre.ention o! imminent danger to property is the guiding principle
that go.erns courts in the matter o! appointing recei.ers$ Cnder >ec$ & (*), 1ule )'
o! the 1ules o! /ourt, it is necessary in granting the relie! o! recei.ership that the
property or 3red *e in danger o! loss, remo.al or material injury$
%n the case at *ar, Batjak in its petition !or recei.ership, or in its amended petition
there!or, !ailed to present any e.idence, to esta*lish the re?uisite condition that the
property is in danger o! *eing lost, remo.ed or materially injured unless a recei.er is
appointed to guard and preser.e it$
D@E1EFF1E, the petitions are G1A5TE-$