Campos Rueda & Co v Pacific Commercial (44 Phil

916)
Facts:
Campos, Rueda & Co., a limited partnership, is indebted to the appellants: Pacific
Commercial Co. , Asiatic Petroleum Co, and International Banking Corporation
amounting to not less than P1,000.00 (which were not paid more than 30 days
prior to the date of the filing by petitioners of the application for voluntary
insolvency).
The trial court denied their petition on the ground that it was not proven, nor
alleged, that the members of the firm were insolvent at the time the application
was filed. It also held that the partners are personally and solidarily liable for the
consequences of the transactions of the partnership.

Issue:
Whether or not a limited partnership may be held to have committed an act of
insolvency.

Held:
Yes.  A limited partnership’s juridical personality is different from the personality
of its members.  On general principle, the limited partnership must answer for and
suffer the consequence of its acts. Under our Insolvency Law, one of the acts of
bankruptcy upon w/c an adjudication of involuntary insolvency can be predicated
is the failure to pay obligations.
The failure of Campos, Rueda & Co., to pay its obligations constitutes an act w/c
is specifically provided for in the Insolvency Law for declaration of involuntary
insolvency. The petitioners have a right to a judicial decree declaring the
involuntary insolvency of said partnership