Scribd Logo
Upload

Welcome to Scribd!

  • Development Bank of The Philippines (DBP) vs. Honorable Court of Appeals and Remington Industrial Sales Corporation (RISC) G.R. No. 126200 August 16, 2001

    Uploaded by

    sophia
    29 views1 page
    This case involves a dispute between Development Bank of the Philippines (DBP) and Remington Industrial Sales Corporation (RISC). Marinduque Mining-Industrial Co. (MMIC) had taken out loans from DBP and Philippine National Bank (PNB) secured by property, but failed to repay them. DBP and PNB foreclosed on the property and transferred it to new companies. Meanwhile, MMIC had purchased materials from RISC but did not pay. RISC later sued multiple parties trying to recover payment. The Supreme Court ruled in favor of DBP, finding that RISC's claim could not be enforced without a liquidation proceeding to settle all creditor claims.

    Original Description:

    Original Title

    7

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    This case involves a dispute between Development Bank of the Philippines (DBP) and Remington Industrial Sales Corporation (RISC). Marinduque Mining-Industrial Co. (MMIC) had taken out loans from DBP and Philippine National Bank (PNB) secured by property, but failed to repay them. DBP and PNB foreclosed on the property and transferred it to new companies. Meanwhile, MMIC had purchased materials from RISC but did not pay. RISC later sued multiple parties trying to recover payment. The Supreme Court ruled in favor of DBP, finding that RISC's claim could not be enforced without a liquidation proceeding to settle all creditor claims.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    29 views1 page

    Development Bank of The Philippines (DBP) vs. Honorable Court of Appeals and Remington Industrial Sales Corporation (RISC) G.R. No. 126200 August 16, 2001

    Uploaded by

    sophia
    This case involves a dispute between Development Bank of the Philippines (DBP) and Remington Industrial Sales Corporation (RISC). Marinduque Mining-Industrial Co. (MMIC) had taken out loans from DBP and Philippine National Bank (PNB) secured by property, but failed to repay them. DBP and PNB foreclosed on the property and transferred it to new companies. Meanwhile, MMIC had purchased materials from RISC but did not pay. RISC later sued multiple parties trying to recover payment. The Supreme Court ruled in favor of DBP, finding that RISC's claim could not be enforced without a liquidation proceeding to settle all creditor claims.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Development Bank Of The Philippines (DBP) Vs.

    Honorable Court Of Appeals And Remington Industrial Sales


    Corporation (RISC)
    G.R. No. 126200; August 16, 2001

    Marinduque Mining-Industrial Co. (MMIC) obtained various loans from Philippine National Bank (PNB) and DBP
    secured by Real Estate Mortgages (REM) and Chattel Mortgages (CM) over all their properties in Surigao del Norte,
    Negros Occidental and Rizal as well as any assets it may subsequently acquire.

    PNB and DBP instituted extrajudicial foreclosure against MMIC for failure to settle it obligations where PNB and
    DBP emerged and was declared the highest bidder.

    To ensure the continued operation of the refinery, PNB and DBP transferred and assigned all their right and
    interest to Nonoc Mining and Industrial Co. (NMIC) and Miralcum Mining Co. (MMC).

    PNB and DBP later transferred those given to NMIC and MMC to the Government thru the Asset Privatization Trust
    (APT) pursuant to a proclamation.

    Meanwhile, MMIC purchased and caused the delivery of construction materials from RISC. This remained unpaid,
    however, which prompted Remington to file a complaint for sum of money against MMIC.

    RISC later filed multiple amendments to implead PNB, DBP, NMIC, MMC, Island Cement Co. (ICC), and APT
    asserting that they must all be considered as one entity by piercing the veil of corporate fiction, alleging: that
    NMIC, MMC, ICC are wholly owned and managed by the officers of PNB and DBP; that the transfer of properties
    was made in fraud of creditors; that the use of the same premises and hiring of the same employees and officers
    are badged of bad faith.

    The RTC favored RISC. The CA affirmed.

    Hence this petition by DBP maintaining that RISC has no cause of action.

    ISSUE:

    Can the claim of RISC be enforced? NO

    RULING:

    The claim of Remington cannot be enforced in absence of liquidation proceedings.

    The Civil Code demands that there must be first some proceeding where the claims of all the preferred
    creditors may be adjudicated, such as insolvency, the settlement of decedent's estate, or other liquidation
    proceedings of similar import.

    Since the extrajudicial foreclosure instituted by PNB and DBP is not the liquidation proceeding
    contemplated by the Civil Code, Remington cannot claim its pro rata share from DBP.

    You might also like