Case no.

4
Tsai vs. CA 366 SCRA 324

FACTS:

EVERTEX secured a loan from PBC, guaranteed by a real estate and chattel mortgage over a
parcel of land where the factory stands, and the chattels located therein, as included in a
schedule attached to the mortgage contract. The disputed machineries were heavy, bolted or
cemented on the real property mortgaged Another loan was obtained secured by a
chattel mortgage over properties with similar descriptions listed in the first schedule. During the
date of execution of the second mortgage, EVERTEX purchased machineries and
equipment.

ISSUES:

1. Whether or not the contested properties are personal or movable properties which may be
secured through a chattel mortgage

HELD:

Too, assuming arguendo that the properties in question are immovable by nature, nothing
detracts the parties from treating it as chattels to secure an obligation under the principle of
estoppel. As far back as Navarro v. Pineda, 9 SCRA 631 (1963), an immovable may be
considered a personal property if there is a stipulation as when it is used as security in the
payment of an obligation where a chattel mortgage is executed over it, as in the case at bar.