568 Phil. 219
AUSTRIA-MARTINEZ, J.:
WHEREFORE, judgment is hereby rendered in favor of the plaintiff, ordering the defendants Marinduque Mining & Industrial Corporation, Philippine National Bank, Development Bank of the Philippines, Nonoc Mining and Industrial Corporation, Maricalum Mining Corporation [petitioner], Island Cement Corporation and Asset Privatization Trust to pay , jointly and severally, the sum of P920,755.95, representing the principal obligation, including the stipulated interest as of June 22, 1984, plus ten percent (10%) surcharge per annum by way of penalty, until the amount is fully paid; the sum equivalent to 10% of the amount due as and for attorney's fees; and to pay the costs.Petitioner and its co-defendants PNB, DBP, Nonoc Mining, ICC and APT filed with the CA an appeal docketed as CA-G.R. CV No. 27720.[7] The CA dismissed their appeal in a Decision[8] dated October 6, 1995.
SO ORDERED.[6]
6. With the finality of the Honorable Supreme Court's resolution of denial of December 4, 1996 and the entry of said resolution in the book of entries of judgment itself, for which reason, issuance of a writ of execution for its satisfaction would be most proper at this stage against said [petitioner].[12] (Emphasis supplied.)Over petitioner's objection,[13] the RTC granted the Motion for Execution in an Order[14] dated March 9, 2001. It denied petitioner's Motion for Reconsideration[15] in an Order dated May 10, 2001.[16] Consequently, a Writ of Execution[17] was issued on the basis of which certain bank accounts of petitioner were garnished.[18] This prompted petitioner to file with the CA a Petition for Certiorari and Prohibition (With Preliminary Mandatory Injunction and Preliminary Injunction),[19] docketed as CA-G.R. SP No. 65209.
WHEREFORE, the petition is GRANTED. The decision of the Court of Appeals dated October 6, 1995 and its Resolution promulgated on August 29, 1992 are REVERSED and SET ASIDE. The original complaint filed in the Regional Trial Court in CV Case No. 84-25858 is hereby DISMISSED.which became final on September 27, 2001.
SO ORDERED[21] (Emphasis supplied.)
WHEREFORE, the Court REVERSES the decision of the Court of Appeals and in lieu thereof, enters judgment DISMISSING the complaint of Remington Industrial Sales Corporation in Civil Case No. 84-25858, Regional Trial Court, Branch 19, Manila, as against defendants Philippine National Bank and Development Bank of the Philippines[sic].which became final on February 12, 2002.
No costs.
SO ORDERED,[23]
This time, petitioner's recourse is not in vain.I The Court of Appeals seriously erred in affirming the orders dated March 9, 2001 and May 10, 2001 of Hon. Judge Zenaida R. Daguna granting the motion for execution as against herein petitioner Maricalum, a mere assignee/successor-in-interest of the Philippine National Bank and Development Bank of the Philippines.
- Petitioner Maricalum is merely an assignee/successor-in-interest when it acquired properties foreclosed by the Philippine National Bank (PNB, for brevity) and the Development Bank of the Philippines (DBP, for brevity) and a solidary judgment debtor in the complaint filed by respondent Remington docketed as Civil Case No. 84-25858
- This Honorable Court's Decision dated October 12, 2001 in G.R. No. 122710 in the case entitled “Philippine National Bank v. Court of Appeals and Remington Industrial Sales Corporation” [PNB v. CA] has consequently exonerated petitioner Maricalum from any liability, considering the latter is merely an assignee/successor-in-interest of PNB and DBP.
- By virtue of this Honorable Court's Decision dated October 12, 2001 in G.R. No. 122710, respondent Remington has no more cause of action against petitioner Maricalum, as said decision clearly and unequivocally declares that in Civil Case No. 84-25858, “x x x the obligation remains with MMIC (Marinduque Mining and Industrial Corporation). x x x”
II
The Court of Appeals seriously erred when it declared that respondent Remington had acquired vested rights against herein petitioner Maricalum, a mere assignee/successor-in-interest of PNB and DBP.
- This Decision dated October 12, 2001 of this Honorable Court in G.R. No. 122710 is the law of the case and any right that respondent Remington may have acquired as against petitioner Maricalum prior thereto is contrary to law.
- The Decision dated October 12, 2001 of this Honorable Court in G.R. No. 122710 is a supervening event which renders impossible the execution of the monetary judgment in Civil Case No. 84-25858 as against petitioner Maricalum,
- The assailed Decision dated February 10, 2003 and Resolution dated May 21, 2003 of the Court of Appeals in CA G.R. SP No. 65209 is patently iniquitous and manifestly unjust.[25]
It is a well-settled rule that the perfection of an appeal in the manner and within the period prescribed by law is not only mandatory but jurisdictional and the failure to perfect the appeal has the effect of rendering the judgment final and executory.The Court holds otherwise.
In the case at bench, the failure of the defendants, among them the petitioner, to perfect their appeal from the decision of this Court in CA-G.R. No. 27720, promulgated on 06 October 1995, affirming the decision of the trial court, rendered the said decision of the Court final and executory except as against Philippine National Bank and Development Bank of the Philippines.
The respective appeals filed by the Philippine National Bank and the Development Bank of the Philippine did not inure to the benefit of their co-defendants, including the petitioner, who did not appeal nor can it be deemed to be an appeal of such co-defendants from the judgment against them. Simply put, the appeals interposed by the Philippine National Bank and Development Bank of the Philippines, in no way, prevented the aforementioned decision of this Court from becoming final and executory as against the petitioner and the other defendants notwithstanding the fact that all of said defendants were held solidarily liable in the said decision.
Once a decision becomes final and executory, vested rights are acquired by the winning party. As such, the winning party can have the said decision executed as a matter of right, and the issuance of a Writ of Execution becomes a ministerial duty of the court. By the same token, the sheriff's duty in the execution of a writ issued by a court is likewise purely ministerial.[26] (Emphasis supplied.)
The modification made by this Court to the judgment of the Court of Appeals must operate as against Yoro, for as fittingly held by the court a quo:In Director of Lands v. Reyes,[30] the Court identified the circumstances indicative of a commonality in the interests of the parties, such as when: a) their rights and liabilities originate from only one source or title; b) homogeneous evidence establishes the existence of their rights and liabilities; and c) whatever judgment is rendered in the case or appeal, their rights and liabilities will be affected, even if to varying extents.
While it is settled that a party who did not appeal from the decision cannot seek any relief other than what is provided in the judgment appealed from, nevertheless, when the rights and liability of the defendants are so interwoven and dependent as to be inseparable, in which case, the modification of the appealed judgment in favor of appellant operates as a modification to Gen. Yoro who did not appeal. In this case, the liabilities of Gen. Yoro and appellant being solidary, the above exception applies. [29]
x x x In this case, however, we do not find any fraud on the part of Marinduque Mining and its transferees to warrant the piercing of the corporate veil.The Court further held that the subsequent transfer by DBP of the properties of Marinduque Mining to several corporations, including petitioner, was legitimate:
It bears stressing that PNB and DBP are mandated to foreclose on the mortgage when the past due account had incurred arrearages of more than 20% of the total outstanding obligation. Section 1 of Presidential Decree No. 385 (The Law on Mandatory Foreclosure) provides:It shall be mandatory for government financial institutions, after the lapse of sixty (60) days from the issuance of this decree, to foreclose the collateral and/or securities for any loan, credit accommodation, and/or guarantees granted by them whenever the arrearages on such account, including accrued interest and other charges, amount to at least twenty percent (20%) of the total outstanding obligations, including interest and other charges, as appearing in the books of account and/or related records of the financial institution concerned. This shall be without prejudice to the exercise by the government financial institution of such rights and/or remedies available to them under their respective contracts with their debtors, including the right to foreclose on loans, credits, accommodations and/or guarantees on which the arrearages are less than twenty (20%) percent.Thus, PNB and DBP did not only have a right, but the duty under said law, to foreclose upon the subject properties. The banks had no choice but to obey the statutory command.[31]
Neither do we discern any bad faith on the part of DBP by its creation of Nonoc Mining, Maricalum [petitioner] and Island Cement. As Remington [private respondent] itself concedes, DBP is not authorized by its charter to engage in the mining business. The creation of the three corporations was necessary to manage and operate the assets acquired in the foreclosure sale lest they deteriorate from non-use and lose their value. In the absence of any entity willing to purchase these assets from the bank, what else would it do with these properties in the meantime? Sound business practice required that they be utilized for the purposes for which they were intended.Based on the foregoing findings, the Court concluded that private respondent failed to discharge its burden of proving bad faith on the part of Marinduque Mining and its transferees in the mortgage and foreclosure of the subject properties as to justify the piercing of the corporate veil.[33] More crucial, the Court ordered the dismissal of the original complaint, noting that the proper remedy of private respondent is to enforce its lien on the unpaid purchase price of the specific movable properties it sold to Marinduque Mining through a liquidation proceeding instituted in accordance with Article 2243 of the Civil Code.[34]
[Private respondent] also asserted in its third amended complaint that the use of Nonoc Mining, [petitioner] and Island Cement of the premises of Marinduque Mining and the hiring of the latter’s officers and personnel also constitute badges of bad faith.
Assuming that the premises of Marinduque Mining were not among those acquired by DBP in the foreclosure sale, convenience and practicality dictated that the corporations so created occupy the premises where these assets were found instead of relocating them. No doubt, many of these assets are heavy equipment and it may have been impossible to move them. The same reasons of convenience and practicality, not to mention efficiency, justified the hiring by Nonoc Mining, [petitioner] and Island Cement of Marinduque Mining’s personnel to manage and operate the properties and to maintain the continuity of the mining operations.[32] (Emphasis supplied.)