13. Marvel Building Corporation, et. al. v. David, 94 Phil.

376

Facts: Upon consideration of the report with regards to the war profit tax case of
Maria B. Castro, the Secretary of Finance recommended the collection of war profit
taxes from the latter. Pursuant thereto, various properties including the Aguinaldo
Building, Wise Building and Dewey Boulevard Padre Faura Mansion were seized by the
CIR. An action was filed by the plaintiffs enjoining the defendant CIR from selling at
public auction the three properties since it belong to Marvel Corporation and not to
Maria B. Castro. Defendant claims that Maria B. Castro is the sole and true owner of all
the subscribed stocks of the Marvel Corporation including those appearing to have
been subscribed and paid for by other members. CFI of Manila rendered judgment
ordering the release of properties and enjoined CIR from selling the same. CIR
appealed.
Issue: Whether or not Maria B. Castro is the owner of the share of stock of Marvel
Building Corp.
Held: Yes. The CIR presented evidence to prove his claim that Maria B. Castro the sole
and true owner of the share of stock Marvel Building Corp., this was the supposed
endorsement in blank of the shares of stock in the name of other incorporators. This
evidence was testified by Aquino, Internal Revenue examiner, Mariano, examiner and
Crispin Llamado, undersecretary of Finance. Julio Llamado who was at that time the
bookkeeper of Marvel Building Corp also testified that he was the one who had
prepared the original certificates which was given by Maria for comparison with the
Articles of Incorporation and that he also prepared a stock certificates which was
copied in the Photostat presented in evidence.
CIR was also able to submit an evidence, is the fact that the other stockholder did not
have incomes in such amounts during the time of the organization of the corporation
in 1947 or immediately thereto, as to enable them to pay full for their supposed
subscription and that this supposed subscribers fail to come to court to assert that
they actually paid for their subscription and are not mere dummies.