BUHI vs CA

FACTS

There was an examination of the books and affairs of petitioner Rural Bank of Buhi, Inc., conducted by
DRBSLA, Central Bank of the Philippines as they were in charge to examine the different rural banks in
the Philippines. However, since the petitioner refused to be examined, their financial assistance was
suspended.

On Jan 1980, during the general examinations of bank affairs, it was discovered that there were
irregularities such as loans in the banking operations. The petitioner was then placed under receivership
and designated respondent Odra as the receiver. The latter implemented and carried out said Monetary
Board Resolution by authorizing the deputies to take charge of the bank.

Furthermore, Buhi filed a petition for injunction with Restraining Order against respondent Odra and
DRBSLA assailing the respondent’s action of recommending the receivership over the bank saying that it
is violative of the provisions of RA 265 and as being ultra vires, done with grave abuse of discretion and
excess of jurisdiction.

ISSUE

WON the due process was violated

HELD

No.

The petitioner’s contention that no property shall be taken without due process of law is guaranteed
under the constitution is without merit. It has long been established that the closure and liquidation of a
bank may be considered as an exercise of police power. Moreover, the appointment of a receiver may
be made by the Monetary Board without notice and hearing or an opportunity to be heard may be
subsequent to the closure.