342 Phil. 387
MELO, J.:
Sec. 2. Execution pending appeal. – On motion of the prevailing party which notice to the adverse party, the court may, in its discretion, order execution to issue even before the expiration of the time to appeal, upon good reasons to be stated in a special order. If a record on appeal is filed thereafter the motion and the special order shall be included therein.The execution of a judgment before becoming final by reason of appeal is recognized. However, this highly exceptional case must find itself firmly founded upon good reasons for such execution. For instance, execution pending appeal was granted by this Court where the prevailing party is of advanced age and in a precarious state of health and the obligation in the judgment is non-transmissible, being for support (De Leon vs. Soriano, 95 Phil. 806 [1954]), or where the judgment debtor is insolvent (Padilla vs. Court of Appeals, 53 SCRA 168 [1973]). Execution pending appeal was also allowed by this Court where defendants were exhausting their income and have no other property aside from the proceeds of the subdivision lots subject of the action (Lao vs. Mencias, 21 SCRA 1021 [1967]).
Execution pending appeal in accordance with Section 2 of Rule 39 is, of course, the exception. Normally, execution of a judgment should not be had until and unless it has become final and executory –i.e., the right of appeal has been renounced or waived, the period for appeal has lapsed without an appeal having been taken, or appeal having been taken, the appeal has been resolved and the records of the case have been returned to the court of origin – in which case, execution “shall issue as a matter of right.”Respondent court’s basis for setting aside the trial court’s order for the partial execution of the judgment pending appeal is herein quoted as follows:
On the other hand, when the period of appeal has not expired, execution of the judgment should not be allowed, save only if there be good reasons therefor, in the court’s discretion. “As provided in Section 2, Rule 39 of the x x Rules x x, the existence of good reasons is what confers discretionary power on a Court x x to issue a writ of execution pending appeal. The reasons allowing execution must constitute superior circumstances demanding urgency which will outweigh the injury or damages should the losing party secure a reversal of the judgment.”
It is not intended obviously that execution pending appeal shall issue as a matter of course. “Good reasons, special, important, pressing reasons must exist to justify it; otherwise, instead of an instrument of solicitude and justice, it may well become a tool of oppression and inequity. But to consider the mere posting of a bond a “good reason” would precisely make immediate execution of a judgment pending appeal routinary, the rule rather than the exception. Judgments would be executed immediately, as a matters of course, once rendered, if all that the prevailing party needed to do was to post a bond to answer for damages that might result therefrom. This is a situation, to repeat, neither contemplated nor intended by law.
(pp. 377 – 378.)
The special reason which prompted the court a quo to grant the petition for execution pending appeal are not the special reasons contemplated by the rules in this particular case. There is no urgency or immediate necessity in the execution of the P50,000,000.00 allowed by the trial court. It is of judicial notice that aside from the regular income of the Municipality of Limay, Bataan derive from local taxes, it also receives regular allotment from the national government for daily operation. The immediate release of the P50,000,000.00 from Petron to the respondent Municipality of Limay, Bataan is not urgent that its non-release will cause the paralization of the governmental function of the town.This Court upholds respondent Court of Appeals’ ruling that the basis relied upon by the regional trial court does not constitute good reason or reasons for the execution of the judgment pending appeal even though such execution was only a partial of the judgment, the amount awarded being in the substantial amount of P50 million pesos. The posting of a corresponding bond to answer for damages does not cure the insufficiency or lack of good reason.
It is likewise unrebutted by respondent in their rejoinder that Petron pays around P46,620,916.22 in realty taxes and fees yearly to the town of Limay, Bataan. This amount plus the subsidy it receives from the national government and the direct incomes from taxes and other fees it collects can be appropriated for its infrastracture projects.
(pp. 23-24, Rollo.)