595 Phil. 927
REYES, R.T., J.:
WHEREFORE, upon posting and approval of the required bond let a writ of preliminary injunction issue enjoining the defendants from committing further acts of preventing plaintiffs or their authorized representatives from collecting rental payments for the occupancy of Maunlad Shopping Malls 1 and 2 from the tenants thereof; from preventing the tenants from making rental payments directly to the plaintiff or authorized representatives; and also to restrain defendants from collecting the rental payments from the tenants, under pain of contempt of court if the writ of preliminary injunction is not heeded. In short defendants are enjoined from exercising acts of ownership and/or possession over Maunlad Shopping Malls 1 and 2 by virtue of the writ of preliminary injunction.The RTC ratiocinated:
Meanwhile, let further hearings on the other pending incidents be set after receipt by this Court of the defendants' opposition to the plaintiff's motion to cite defendants in contempt of court, and of plaintiffs' reply thereto, as previously ordered.[7]
Weighing carefully the arguments of both parties, pro and con, on the basis of the testimonies of plaintiffs' witness, Nemencio C. Pulumbarit, Sr., and defendants' witness, Julie Go, this court, at this stage of the proceedings, must grant the prayer for the issuance of a writ of preliminary injunction. Injunction as an extraordinary remedy is calculated to preserve or maintain the status quo and is generally availed of to prevent an actual or threatened acts until the merits of the case can be heard (Cagayan de Oro, etc. vs. Court of Appeals, 254 SCRA 220, 228). There are only two requisites to be satisfied if an injunction is to issue, namely: the existence of the right to be protected; and the facts against which injunction is to be directed are violative of said right. (Del Rosario vs. Court of Appeals, 255 SCRA 152, 158). The clear showing of an actually existing right to be protected during the pendency of the principal action (Carillo vs. Capulong, 222 SCRA 593, 600-601) with the threatened violation of it (Sabalones vs. Court of Appeals, 230 SCRA 79, 86) has been duly established by plaintiffs. Clearly, at this stage, plaintiff Maunlad Malls 1 and 2 since the inception, it has the right to remain in continuous possession subject to the final outcome of the ejectment suit pending before the MTC of Makati. On the other hand, defendant Union Bank cannot validly claim, even admitting the circumstances offered by it in evidence to be true and correct, because in this jurisdiction no one has the right to obtain possession of a piece of property without resorting to judicial remedies available under the circumstances. To sanction defendant Union Bank's claimed ownership and possession of the premises in question, at this time, vis-à-vis its exercise of the rights appurtenant thereto would be to permit it to contradict itself for, as already pointed out, it has already instituted an action for ejectment against Maunlad Homes, Inc. Good faith demands that defendant Union Bank must wait for the final determination of the ejectment suit, it cannot take the law into its own hands by interfering with or preventing plaintiff Maunlad Homes, Inc, from exercising rights of possession over Malls 1 and 2 and cannot continue to prevent it from collecting the rentals owing from the present occupants of the stalls/units therein.On July 8, 2008, respondents filed an urgent motion to dissolve injunction and to post counter bond.[9] The RTC denied the motion, reasoning as follows:
As to the "sampling" of evidence at the hearing on the motion for preliminary injunction will suffice although not complete or conclusive (Syndicated Media vs. Court of Appeals, 219 SCRA 794, 798), and as required by the Rules, plaintiff Maunlad Homes, Inc. is required to post a bond of P150,000.00 to answer for the damages which defendant Union Bank may incur if later, it should be declared finally that the injunctive writ had been wrongly issued (San Miguel vs. Elbinias, 127 SCRA 312, 318).[8]
Petitioner Union Bank of the Philippines (UBP) asserts its rights and entitlement to an injunction considering its status as the registered and actual owner of the subject properties, arguing that private respondents' claims are anchored on a mere "contract to Sell" which does not vest ownership over said properties on the private respondents unless a deed of absolute sale is executed upon full payment of the purchase price by Maunlad Homes. Further, as We have stated in Our April 28, 2003 Resolution, petitioners stand to suffer grave and irreparable injury during the pendency of the instant case before this Court in terms of the collection of monthly rentals from the subject properties should it be found that the assailed Orders of the RTC were erroneously issued.Undaunted, respondents (CA petitioners) filed a petition for certiorari with the CA under Rule 65 of the 1997 Rules of Civil Procedure.
The writ shall issue upon posting by the petitioners in this Court of a bond in the amount of Two Million Pesos (Php 2,000,000.00) to answer for any damages that may be incurred by the respondents should it be resolved that petitioners are not entitled to the injunctive relief.[10]
WHEREFORE, the instant petition is GRANTED. The assailed orders dated July 20, 2004 and September 6, 2004 as well as the order dated June 22, 2004 and the writ of preliminary injunction issued by the RTC of Malolos, Bulacan, Branch 16, in Civil Case No. 297-M-2004, are REVERSED and SET ASIDE for lack of factual and legal basis.The CA ratiocinated:
SO ORDERED.[11]
Private respondents' invocation of the contract to sell which Maunlad previously entered into with Union Bank and upon which they justify their right to possess and collect rentals, is insufficient basis for issuance of a preliminary injunction in their favor. As the Supreme Court held:Aggrieved, petitioners (CA respondents) resorted to this petition for review on certiorari under Rule 45 of the 1997 Rules of Civil Procedure.x x x the contract to sell does not by itself give respondent the right to possess the property. Unlike in a contract of sale, here in a contract to sell, there is yet no actual sale nor any transfer of title, until and unless, full payment is made. The payment of the purchase price is a positive suspensive condition, the failure of which is not a breach, casual or serious, but a situation that prevents the obligation of the vendor to convey title from acquiring an obligatory force. Respondent must have fully paid the price of acquire title over the property and the right to retain possession thereof. In cases of non-payment, the unpaid seller can avail of the remedy of ejectment since he retains ownership of the property.In view of the absence of a clear and unmistakable right on the part of private respondents, we cannot sustain their claim that they would suffer irreparable injury if injunctive relief is not granted in their favor. Where the complainants' right or title is doubtful or disputed, injunction is not proper. Thus, the possibility of irreparable damage without proof of existing right is no ground for an injunction.
Stated differently, one who prays for issuance of injunction must show the existence of a "clear positive right" especially calling for judicial protection. Injunction is not designed to protect contingent or future right; nor is it a remedy to enforce an abstract right. The duty of the court taking cognizance of a prayer for a writ of preliminary injunction is to determine whether the requisites necessary for the grant of an injunction are present in the case before it. The granting by the trial court despite the absence of any legal right to be protected constitutes grave abuse of discretion.
On the other hand, in line with the petition before the Court, we find that petitioner Union Bank has sufficiently shown its right to the issuance of not only preliminary injunction but also permanent injunction against the respondents.[12]
A preliminary injunction is a provisional remedy, an adjunct to the main case subject to the latter's outcome. Its sole objective is to preserve the status quo until the trial court hears fully the merits of the case. Its primary purpose is not to correct a wrong already consummated, or to redress an injury already sustained, or to punish wrongful acts already committed, but to preserve and protect the rights of the litigant during the pendency of the case.Here, the RTC issued the writ of preliminary injunction as an incident to the main prayer for injunction in the complaint of petitioners. The RTC granted the writ of injunction but the CA reversed its decision. A reading of the CA decision reveals that the appellate court reversed the RTC grant of injunction solely because petitioners' "invocation of the contract to sell" is "insufficient for the issuance of the preliminary injunction." The appellate court reasoned that petitioners have "no clear positive right" to the rental payments.
This Court has ruled that the status quo sought to be preserved by a preliminary injunction is the last actual, peaceable, and uncontested situation which precedes a controversy. The status quo should be existing ante litem motam, or at the time of the filing of the case. For this reason, a preliminary injunction should not establish new relations between the parties, but merely maintain or re-establish the pre-existing relationship between them. x x x[14]
x x x Clearly, at this stage, plaintiff Maunlad Homes, Inc. having been in possession of Maunlad Malls 1 and 2 since the inception, it has the right to remain in continuous possession subject to the final outcome of the ejectment suit pending before the MTC of Makati. On the other hand, defendant Union Bank, cannot validly claim, even admitting the circumstances offered by it in evidence to be true and correct because in this jurisdiction no one has the right to obtain possession of a piece of property without resorting to judicial remedies available under the circumstances. To sanction defendant Union Bank's claimed ownership and possession of the premises in question, at this time, vis-à-vis its exercise of the rights appurtenant thereto would be to permit it to contradict itself for, as already pointed out, it has already instituted an action for ejectment against Maunlad Homes, Inc. Good faith demands that defendantMoreover, as a matter of prudence, it is highly premature for the CA to make a definitive resolution of the rights and obligations of the parties under the contract to sell. It is beyond the power of the appellate court to conclude that petitioner has no right to collect the rental payments under the contract to sell because that issue is yet to be fully resolved by the RTC in the main application for injunction. The only issue for the CA to resolve was the propriety of the issuance of the writ of preliminary injunction, a mere incident to the main prayer for injunction. The issue of a final injunction has yet to be decided by the RTC.
Union Bank must wait for the final determination of the ejectment suit; it cannot take the law into its own hands by interfering with or preventing plaintiff Maunlad Homes, Inc. from exercising rights of possession over Malls 1 and 2 and cannot continue to prevent it from collecting the rentals owning from the present occupants of the stalls/units therein.[17]