Professional Documents
Culture Documents
OYO
RESPONDENTS: HON. JOSE R. RAMOLETE, as Presiding Judge, Branch III, CFI, Cebu and TAN PUT
DOCTRINE:
FACTS
Tan Put alleged that she "is the widow of Tee Hoon Lim Po Chuan, who was a partner in the
commercial partnership, Glory Commercial Company with Antonio Lim Tanhu and Alfonso Ng Sua, and
that defendants Antonio Lim Tanhu, Alfonso Leonardo Ng Sua, Lim Teck Chuan, and Eng Chong
Leonardo, through fraud and machination, took actual and active management of the partnership and
although Tee Hoon Lim Po Chuan was the manager of Glory Commercial Company, defendants managed
to use the funds of the partnership to purchase lands and buildings in the cities of Cebu, Lapulapu,
Mandaue, and the municipalities of Talisay and Minglanilla and that after the death of Tee Hoon Lim Po
Chuan, the defendants, without liquidation, continued the business of Glory Commercial Company, by
purportedly organizing a corporation known as the Glory Commercial Company, Incorporated.
Tan Put on several occasions after the death of her husband, has asked defendants of the above-
mentioned properties and for the liquidation of the business of the defunct partnership. She prayed that
judgment be rendered ordering the defendants to render an accounting of the real and personal properties of
the Glory Commercial Company including those registered in the names of the defendants and other
persons.
In a single answer with counterclaim, defendants denied specifically the allegation that respondent
Tan is the widow of Tee Hoon. And according to them, that proper liquidation had been regularly made of
the business of the partnership and Tee Hoon used to receive his just share until his death, as a result of
which the partnership was dissolved and what corresponded to him were all given to his wife and children.
ISSUE:
Whether or not the partnership continued after the death of Po Chuan, entitling his heir to demand
accounting.
HELD:
No. This theory about Po Chuan having been actively managing the partnership up to his death is
a substantial deviation from the allegation in the amended complaint to the effect that the defendants,
through fraud and machination, took actual and active management of the partnership and although Tee
Hoon Lim Po Chuan was the manager of Glory Commercial Co., defendants managed to use the funds of
the partnership to purchase lands and buildings etc. and should not have been permitted to be proven by the
hearing officer, who naturally did not know any better. Moreover, it is very significant that according to the
very tax declarations and land titles listed in the decision, most if not all of the properties supposed to have
been acquired by the defendants Lim Tanhu and Ng Sua with funds of the partnership appear to have been
transferred to their names only in 1969 or later, that is, long after the partnership had been automatically
dissolved as a result of the death of Po Chuan.
Accordingly, defendants have no obligation to account to anyone for such acquisitions in the
absence of clear proof that they had violated the trust of Po Chuan during the existence of the partnership.
Besides, assuming there has not yet been any liquidation of the partnership, contrary to the allegation of the
defendants, then Glory Commercial Co. would have the status of a partnership in liquidation and the only
right plaintiff could have would be to what might result after such liquidation to belong to the deceased
partner, and before this is finished, it is impossible to determine, what rights or interests, if any, the
deceased had (Bearneza vs. Deqoilla, 43 Phil. 237). In other words, no specific amounts or properties may
be adjudicated to the heir or legal representative of the deceased partner without the liquidation being first
terminated.