SOLID BUILDERS, INC. and MEDINA FOODS INDUSTRIES, INC., Petitioners, - versus CHINA BANKING CORPORATION, G.R. No.

179665 Present: SERENO, CJ., Chairperson, LEONARDO-DE CASTRO, BERSAMIN, VILLARAMA, JR., an RE!ES, JJ. Pro"#$%ate : &&&&&&&&&&&&&&&&&&&&&

Republic of the Philippines Supreme Court Baguio City

FIRST DIVISION Respon ent.'--------------------------------------------------' DECISION LEONARDO-DE CASTRO, J.: This petition (or re)ie* on certiorari+ assai$s the

De,ision- ate Apri$ +., -//0 an the Reso$#tion1 ate Septe"2er +3, -//0 o( the Co#rt o( Appea$s in CA-4.R. SP No. 3+5.3. D#rin% the perio (ro" Septe"2er 6, +55- to Mar,h -0, +55., China Ban7in% Corporation 8CBC9 %rante se)era$ $oans to So$i B#i$ ers, In,. 8SBI9, *hi,h a"o#nte to P+15,555,-16.16, e',$#si)e o( interests an other ,har%es. To se,#re the $oans, Me ina :oo s In #stries, In,. 8M:II9 e'e,#te in CBC;s (a)or se)era$ s#ret< a%ree"ents an ,ontra,ts o( rea$ estate "ort%a%e o)er par,e$s o( $an in the Lo<o$a 4ran Vi$$as in =#e>on Cit< an Ne* C#2ao Centra$ in Cainta, Ri>a$.6 S#2se?#ent$<, SBI propose to CBC a s,he"e thro#%h *hi,h SBI *o#$ se$$ the "ort%a%e properties an share the pro,ee s *ith CBC on a @/-@/ 2asis #nti$ s#,h ti"e that the *ho$e o2$i%ation *o#$ 2e (#$$< pai . SBI a$so propose that there 2e partia$ re$eases o( the ,erti(i,ates o( tit$e o(
+16

An er R#$e 6@ o( the R#$es o( Co#rt.Rollo, pp. 1+-6/B penne 2< J#sti,e Ro ri%o V. Cosi,o *ith Asso,iate J#sti,es Ros"ari D. Caran an% an Mari($or P. P#n>a$an Casti$$o, ,on,#rrin%.I . at 6--61.I . at 1--11.

De,ision - 4.R. No. +05..@

the "ort%a%e properties *itho#t the 2#r en o( #p atin% interests on a$$ $oans.@ In a $etter ate Mar,h -/, -/// a resse to CBC, SBI

re?#este the restr#,t#rin% o( its $oans, a re #,tion o( interests an pena$ties an the i"p$e"entation o( a dacion en pago o( the Ne* C#2ao Centra$ propert<.. The $etter rea s:
Mar,h -/, -/// CHINA BANKING CORPORATION Dasmarinas cor. Juan Luna Sts. Binondo, Manila Attn: Mr. George Yap Account Officer Dear Mr. !ap,This is to re(er to o#r "eetin% he$ at <o#r o((i,e $ast Mar,h +/, -///. In this re%ar C,D p$ease a$$o* #s to ,a$$ <o#r attention on the (o$$o*in% i"portant "atters *e ha)e is,#sse : +. Eith respe,t to the pena$ties, *e are re?#estin% (or a re #,tion in the rates as *e (in it onero#s ,onsi erin% the 2i% a"o#nt o( o#r $oan 8P-+3,@6/,.63.//9. The interest to%ether *ith the pena$ties that <o# are i"posin% is si"i$ar to the ones 2ein% ,har%e 2< pri)ate $en in% instit#tions, i.e., 6.@FG"onth tota$. As I ha is,#sse *ith <o# re%ar in% Dacion en Pago, *hi,h <o# ,ate%ori,a$$< state that it ,o#$ 2e a possi2i$it<, *e are ,onsi erin% p#ttin% o#r Ne* C#2ao Centra$ 8NCC9 on Da,ion an restr#,t#rin% o#r $oan *ith re%ar s to o#r Lo<o$a 4ran Vi$$as.

2.

Consi erin% that <o# ha state that o#r restr#,t#rin% ha not 2een (ina$i>e , *e (in it ti"e$< to raise these #r%ent "atters an possi2$< a%ree on a rea$isti, an *or7a2$e s,he"e that *e ,an in,orporate on o#r (ina$ a%ree"ent.

Than7 <o# an *e stron%$< hope (or <o#r pro"pt ,onsi eration on o#r re?#est. Ver< tr#$< <o#rs, V. BENITO R. SOLIVEN 8S% .9 Presi ent
0

In response, CBC sent SBI a $etter ate Apri$ +0, -/// statin% that the $oans ha 2een ,o"p$ete$< restr#,t#re e((e,ti)e Mar,h +, +555 in the
@.0

I . at 11.I .CA rollo, p. +/+.

De,ision 1 4.R. No. +05..@

a"o#nt o( P-+3,@6/,.6..//. On the aspe,t o( interests an ,har%es, CBC s#%%este the #p atin% o( the o2$i%ation to a)oi pa<in% interests an ,har%es.3 The re$e)ant portion o( the $etter ate Apri$ +0, -/// rea s:
:irst o( a$$, to ,$ari(<, the $oan;s restr#,t#rin% has 2een (ina$i>e an ,o"p$ete on 3/01/99 *ith the 2oo7in% o( the Restr#,t#re $oan o( P218,540,646. On$< t*o A"en "ents o( Rea$ Estate Mort%a%es re"ain to 2e re%istere to ate. Certain o,#"ents that *e re?#este (ro" <o#r ,o"pan< sin,e $ast <ear, that ,o#$ (a,i$itate this a"en "ent ha)e not <et 2een (or*ar e to #s #nti$ no*. Ne)erthe$ess, this oes not ,han%e the (a,t that the restr#,t#rin% o( the $oan has 2een one *ith an (ina$i>e . This in t#rn is *ith re%ar s to state"entCsD no. + H - o( <o#r $etter, re(errin% to the interest rates an pena$ties. As per o#r re,or s, the rates are a,t#a$$< the pre)ai$in% 2an7 interest rates. In a ition, pena$t< ,har%es are i"pose in the e)ent o( non-pa<"ent. To a)oi e'perien,in% ha)in% to pa< "ore #e to the pena$t< ,har%es, #p atin% o( o2$i%ations is ne,essar<. Th#sC,D *e a )ise #p atin% o(

<o#r o2$i%ations to a)oi pena$t< ,har%es. Io*e)er, sho#$ <o# 2e a2$e to #p ate 2oth interest an pena$t< thro#%h a Jone-ti"eK pa<"ent, *e sha$$ present <o#r re?#est to Senior Mana%e"ent (or possi2$e re #,tion in pena$t< ,har%es. Con,ernin% state"ent no. 1 ,ontainin% <o#r re?#est (or the possi2$e Da,ion en Pa%o o( <o#r NCC properties, as *as is,#sse a$rea < in the "eetin%, it is a ,on,ern that has to 2e is,#sse *ith Senior Mana%e"ent an appro)e 2< the E'e,#ti)e Co""ittee 2e(ore *e ,an ,o""it to <o# on the "atter. Ee s#%%est that <o#r ,o"pan<, So$i B#i$ ers, e'ha#st a$$ possi2i$ities to se$$ the NCC properties <o#rse$)es 2e,a#se, 2ein% a rea$ estate ,o"pan<, So$i 5 has 2etter *a<s an "eans o( se$$in% the properties.

This *as (o$$o*e 2< another ,o""#ni,ation (ro" CBC to SBI reiteratin%, a"on% others, that the $oan has 2een restr#,t#re e((e,ti)e Mar,h +, +555 #pon iss#an,e 2< SBI o( pro"issor< notes in (a)or o( CBC. The re$e)ant portion o( that $etter ate Ma< +5, -/// rea s:
35

A%ain, in response to <o#r ?#er< *ith re%ar s the iss#e o( the $oans restr#,t#rin%, to reiterate, the $oan restr#,t#rin% has 2een (ina$i>e an ,o"p$ete on 3/01/99 *ith the booking o( the Restr#,t#re $oan o( P231,716,646. The Restr#,t#re Loan *as e((e,ti)e e)er sin,e the ne* Pro"issor< Note *as si%ne on the sai ate. The interest rates (or the $oans are a,t#a$$< rates 2oo7e sin,e the ne* Pro"issor< Notes *ere e((e,ti)e. An< "o)e o( ,han%in% it or Jre- pri,in%K the interest is on$< possi2$e e)er< 5/ a<s (ro" the 2oo7in% ate, *hi,h represents the interest a"orti>ation pa<"ent ates. No ,han%e or Jre-pri,in%K in interest rates is possi2$e sin,e interest pa<"entGo2$i%ations ha)e not <et 2een pai . Eith re%ar s to the possi2$e Da,ion en Pa%o o( <o#r NCC

properties, as *as is,#sse a$rea < in the "eetin%, it is a ,on,ern that has to 2e is,#sse *ith Senior Mana%e"ent an appro)e 2< the E'e,#ti)e
Rollo, p. 11.CA rollo, pp. +/6-+/@.

De,ision 6 4.R. No. +05..@ Co""ittee 2e(ore *e ,an ,o""it to <o# on the "atter. Ee s#%%est that <o#r ,o"pan<, So$i B#i$ ers, e'ha#st a$$ possi2i$ities to se$$ the NCC properties <o#rse$)es 2e,a#se, 2ein% a rea$ estate ,o"pan<, So$i has 2etter *a<s an "eans o( se$$in% the +/ properties.

S#2se?#ent$<, in a $etter ate Septe"2er +3, -///, CBC e"an e SBI to sett$e its o#tstan in% a,,o#nt *ithin ten a<s (ro" re,eipt thereo(. The $etter ate Septe"2er +3, -/// rea s:
Septe"2er +3, -/// SOLID BUILDERS, INC. V.V. So$i)en B$ %., IEDSA, San J#an, Metro Mani$a PN NUMBER
PN-ML-TS-16-5-6 PN-ML-TS-16-51+ PN-ML-TS-16-563 PN-MLTS-16-5@@ PN-ML-TS-16-5.- PN-ML-TS-16-505 PN-ML-TS16-53. PN-ML-TS-16-551 PN-ML-TS-161//- PN-ML-TS-161/-.

4reetin%sM O/S BALANCE DUE DATE

/1G/+G-//6 /1G/+G-//6 /1G/+G-//6 /1G/+G-//6 /1G/+G-//6 /1G/+G-//6

/1G/+G-//6 /1G/+G-//6 /1G/+G-//6 /1G/+G-//6

INTEREST PAID UP TO /6G+1G+555 /3G/@G+555 ---------- ---------/0G-.G+555 ---------- /3G/5G+555 ---------- ---------- ---------PIP 35,0//,///.// +5,1@/,///.// 1@,333,///.// .,30/,///.// @,@11,.6..// -+,5@/,///.// 1,@/@,///.// +5,6@@,///.// 6,+.3,///.// +-,+-+,///.// PIP-+3,@6/,.6..//
+/ ++

Ee re(er a%ain to the 2a$an,es o( the a2o)e"entione Pro"issor< Notes a"o#ntin% to PIP-+3,@6/,.6..// e',$# in% interest, pena$ties an other ,har%es si%ne 2< <o# Noint$< an se)era$$< in o#r (a)or, *hi,h re"ains #npai #p to this ate espite repeate e"an s (or pa<"ent. In )ie* o( the stri,t re%#$ations o( Ban%7o Sentra$ n% Pi$ipinas on past #e a,,o#nts, *e re%ret that *e ,annot ho$ these a,,o#nts (#rther in a2e<an,e. A,,or in%$<, *e are reiteratin% o#r re?#est that arran%e"ents to ha)e these a,,o#nts sett$e *ithin ten 8+/9 a<s (ro" re,eipt hereo(, other*ise, *e sha$$ 2e ,onstraine to re(er the "atter to o#r $a*<ers (or ,o$$e,tion. Ee en,$ose a State"ent o( A,,o#nt as o( Septe"2er 1/, -/// (or <o#r re(eren,e an %#i an,e. Ver< tr#$< <o#rs, MERCEDES E. 4ERMAN 8S% .9 Mana%erLoans H Dis,o#nts ++ Depart"ent O I.O.
I . at +/.. I . at ++1.

De,ision @ 4.R. No. +05..@

On O,to2er @, -///, ,$ai"in% that the interests, pena$ties an ,har%es i"pose 2< CBC *ere ini?#ito#s an #n,ons,iona2$e an to enNoin CBC (ro" initiatin% (ore,$os#re pro,ee in%s, SBI an M:II (i$e a Co"p$aint JTo Co"pe$ E'e,#tion o( Contra,t an (or Per(or"an,e an Da"a%es, Eith Pra<er (or Erit o( Pre$i"inar< InN#n,tion an E'-Parte Te"porar< Restrainin% Or erK in the Re%iona$ Tria$ Co#rt 8RTC9 o( Pasi% Cit<. The ,ase *as o,7ete as Ci)i$ Case No. .3+/@ an assi%ne to Bran,h -.6.+In s#pport o( their app$i,ation (or the iss#an,e o( *rit o( pre$i"inar< inN#n,tion, SBI an M:II a$$e%e :
IV. APPLICATION :OR PRELIMINAR! INJANCTION EITI EP- PARTE TEMPORAR! RESTRAININ4 ORDER A. 4ROANDCSD :OR PRELIMINAR! INJANCTION +. That CSBI an M:IID are entit$e to the re$ie(s e"an e , a"on% *hi,h is enNoinin%Grestrainin% the ,o""ission o( the a,ts ,o"p$aine o(, the ,ontin#an,e o( *hi,h *i$$ *or7 inN#sti,e to the p$ainti((sB that s#,h a,ts are in )io$ation o( the ri%hts o( p$ainti((s an , i( not enNoine Grestraine , *i$$ ren er the N# %"ent so#%ht herein ine((e,t#a$. -. That #n er the ,ir,#"stan,es, it is ne,essar< to re?#ire, thro#%h pre$i"inar< inN#n,tion, CCBCD to re(rain (ro" i""e iate$< en(or,in% its $etters ate Apri$ +0, -/// an Ma< +5, -/// an Septe"2er +3, -/// #rin% the pen en,< o( this ,o"p$aint, an 1. That CSBI an M:IID s#2"it that the< are e'e"pt (ro" (i$in% o( a 2on ,onsi erin% that the $etters ate Apri$ +0, -///, Ma< +5, -/// an Septe"2er +3, -/// are a patent n#$$it<, an in the e)ent

Cthe< areD not, the< are *i$$in% to post s#,h 2on this Ionora2$e Co#rt "a< eter"ine an #n er the ,on itions re?#ire 2< Se,tion +1 6, R#$e @3.

In its Ans*er an Opposition to the iss#an,e o( the *rit o( pre$i"inar< inN#n,tion, CBC a$$e%e that to i"p$e"ent the a%ree restr#,t#rin% o( the $oan, SBI e'e,#te ten pro"issor< notes stip#$atin% that the interest rate sha$$ 2e at +3.@F per ann#". :or its part, M:II e'e,#te thir part< rea$ estate "ort%a%e o)er its properties in (a)or o( CBC to se,#re the pa<"ent o( SBI;s restr#,t#re $oan. As SBI *as e$in?#ent in the pa<"ent o( the prin,ipa$ as *e$$ as the interest thereon, CBC e"an e sett$e"ent o( SBI;s a,,o#nt.+6 A(ter hearin% the parties, the tria$ ,o#rt iss#e an Or er ate De,e"2er +6, -/// %rantin% the app$i,ation o( SBI an M:II (or the iss#an,e o( a *rit o( pre$i"inar< inN#n,tion. The tria$ ,o#rt he$ that SBI an M:II *ere a2$e to s#((i,ient$< ,o"p$< *ith the re?#isites (or the iss#an,e o( an inN#n,ti)e *rit:
+- +1 +6

Rollo, p. 16.CA rollo, pp. 63-65. Rollo, pp. 16-1@.

De,ision . 4.R. No. +05..@ It is *e$$-sett$e that to 2e entit$e to an inN#n,ti)e *rit, a part< "#st sho* that: 8+9 the in)asion o( ri%ht so#%ht to 2e prote,te is "ateria$ an s#2stantia$B 8-9 the ri%ht o( ,o"p$ainant is ,$ear an #n"ista7a2$eB an , 819 there is an #r%ent an para"o#nt ne,essit< (or the *rit to pre)ent serio#s a"a%e.

The Co#rt opines that the a2o)e-"entione re?#isites ha)e 2een s#((i,ient$< sho*n 2< p$ainti((s in this ,ase, a,,or in%$<, a *rit o( pre$i"inar< inN#n,tion is in or er. The three s#2Ne,t $etters, parti,#$ar$< the $etter ate Septe"2er +3, -///C,D in i,ate that the pro"issor< notes e'e,#te 2< Benito So$i)en as Presi ent o( p$ainti(( SBI a"o#nte to P-+3,@6/,.6..//C,D e',$# in% interest, pena$ties an other ,har%es re"aine #npai , an e"an that the a,,o#nt 2e sett$e *ithin ten a<sC,D e$se e(en ant 2an7 sha$$ re(er the $atter to its $a*<ers (or ,o$$e,tion. The "essa%e in the $etter is ,$ear: I( the a,,o#nt is not sett$e *ithin the %ra,e perio , e(en ant 2an7 *i$$ resort to (ore,$os#re o( "ort%a%e on the s#2Ne,t properties. The a,t#a$ or i""inent a"a%e to p$ainti((s is $i7e*ise ,$ear. Consi erin% the n#"2er o( par,e$s o( $an an area in)o$)e , i( these are (ore,$ose 2< e(en ant 2an7, p$ainti((s; properties an so#r,e o( in,o"e *i$$ 2e e((e,ti)e$< i"inishe , possi2$< to the point o( ,$os#re. The on$< iss#e re"ainin% is *hether or not p$ainti((s ha)e the ri%ht to as7 (or an inN#n,ti)e *rit in or er to pre)ent e(en ant 2an7 (ro" ta7in% o)er their properties. P$ainti((CsD ar%#e that the interest an pena$ties ,har%e the" in the s#2Ne,t $etters an atta,he state"ents o( a,,o#nt in,rease #rin% a se)en-"onth perio to an a"o#nt the< es,ri2e as Jonero#sK, J#s#rio#sK a J%ree <K. The< $i7e*ise asserte that there *ere on-%oin% ta$7s 2et*een o((i,ers o( the ,orporations in)o$)e to treat or restr#,t#re the ,ontra,ts to a a,ion en pa%o, as there *as a propose p$an o( a,tion 2< representati)es o( p$ainti((s #rin% the "eetin%s. De(en ant, on the other han , so#%ht to e'p$ain the in,rease in the

interest as ,ontaine in the pro"issor< notes *hi,h *ere )o$#ntari$< an *i$$in%$< si%ne 2< So$i)en, there(ore, 2in in% on p$ainti((s an that the propose p$an o( a,tion is "ere$< an ora$ ,ontra,t sti$$ in the ne%otiation sta%e an not 2in in%. The ,on ition on the interest pa<"ents as ,ontaine in the pro"issor< notes are as (o$$o*s: JInterest (or the (irst ?#arter sha$$ 2e Q +3.@F P.A. Therea(ter, it sha$$ 2e pa<a2$e ?#arter$< in arrears 2ase on three "onths a)era%e rate.K In its Me"oran #", e(en ant 2an7 trie to sho* that the ?#estione in,rease in the interests *as "ere$< in ,o"p$ian,e *ith the a2o)e ,on ition. To this Co#rt, the e'p$anation is ins#((i,ient. A "ore De,ision 0 4.R. No. +05..@ etai$e rationa$i>ation is re?#ire to ,on)in,e the ,o#rt o( the (airness o( the in,rease in interests an pena$ties. Io*e)er, the ,o"in% e'p$anation "a< pro2a2$< 2e hear on$< #rin% tria$ on the "erits, an 2< then this pen in% in,i ent or the entire ,ase, "a< a$rea < 2e "oot an a,a e"i, i( the inN#n,ti)e +@ *rit is not iss#e .

The ispositi)e portion o( the tria$ ,o#rt;s Or er ate De,e"2er +6, -/// rea s:
WHEREFORE, pre"ises ,onsi ere , the app$i,ation (or iss#an,e o( *rit o( pre$i"inar< inN#n,tion is GRANTED. De(en ant CIINA BANLIN4 CORPORATION, its representati)es, a%ents an a$$ persons *or7in% in its 2eha$( are here2< enNoine (ro" en(or,in% the ,ontents o( its $etters to p$ainti((s ate Apri$ +0, -///, Ma< +5, -/// an Septe"2er +3,

-///, parti,#$ar$< the 2an7;s $e%a$ epart"ent or other ,o#nse$ ,o""en,in% ,o$$e,tion pro,ee in%s a%ainst p$ainti((s in the a"o#nt state in the $etters an state"ents o( a,,o#nt. The Erit o( Pre$i"inar< InN#n,tion sha$$ 2e iss#e #pon p$ainti((s; postin% o( a 2on e'e,#te to e(en ant in the a"o#nt o( T*o Mi$$ion Pesos 8P-,///,///.//9 to the e((e,t CthatD the p$ainti((CsD *i$$ pa< e(en ant a$$ a"a%es *hi,h the $atter "a< s#stain 2C<D reason o( the inN#n,tion i( it 2e #$ti"ate$< e,i e that the +. inN#n,tion CisD #n*arrante .

CBC so#%ht re,onsi eration 2#t the tria$ ,o#rt enie it in an Or er+0 ate De,e"2er +/, -//+. S#2se?#ent$<, CBC (i$e a JMotion to Disso$)e InN#n,tion Or erK 2#t this *as enie in an Or er+3 ate No)e"2er +/, -//1. The tria$ ,o#rt r#$e that the "otion *as in the nat#re o( a "ere 2e$ate se,on "otion (or re,onsi eration o( the Or er ate De,e"2er +6, -///. It a$so e,$are that CBC (ai$e to s#2stantiate its pra<er (or the isso$#tion o( the inN#n,ti)e *rit. A%%rie)e , CBC (i$e a Petition (or Certiorari o,7ete as CA-4.R. SP No. 3+5.3 in the Co#rt o( Appea$s *here it ,$ai"e that the Or ers ate De,e"2er +6, -/// 8%rantin% the app$i,ation o( petitioners SBI an M:II (or the iss#an,e o( *rit o( pre$i"inar< inN#n,tion9, De,e"2er +/, -//+ 8 en<in% re,onsi eration o( the or er ate De,e"2er +6, -///9, an No)e"2er +/, -//1 8 en<in% the CBC;s "otion to isso$)e inN#n,tion or er9 *ere a$$ iss#e *ith %ra)e a2#se o( is,retion a"o#ntin% to $a,7 o( N#ris i,tion.+5

+@ +. +0 +3 +5

CA rollo, pp. 11-16. I . at 16.I . at +3@.I . at -0-1+. Rollo, p. 10.

De,ision 3 4.R. No. +05..@

In a De,ision ate Apri$ +., -//0, the Co#rt o( Appea$s (o#n that, on its (a,e, the tria$ ,o#rt;s Or er ate De,e"2er +6, -/// %rantin% the app$i,ation o( SBI an M:II (or the iss#an,e o( a *rit o( pre$i"inar< inN#n,tion ha no 2asis as there *ere no (in in%s o( (a,t or $a* *hi,h *o#$ in i,ate the e'isten,e o( an< o( the re?#isites (or the %rant o( an inN#n,ti)e *rit. It appeare to the Co#rt o( Appea$s that, in or erin% the iss#an,e o( a *rit o( inN#n,tion, the tria$ ,o#rt si"p$< re$ie on the i"position 2< CBC o( the interest rates to the $oans o2taine 2< SBI an M:II. A,,or in% to the Co#rt o( Appea$s, ho*e)er, the re,or s o not re)ea$ a ,$ear an #n"ista7a2$e ri%ht on the part o( SBI an M:II that *o#$ entit$e the" to the prote,tion o( a *rit o( pre$i"inar< inN#n,tion. Th#s, the Co#rt o( Appea$s %rante the petition o( CBC, set asi e the Or ers ate De,e"2er +6, -///, De,e"2er +/, -//+, an No)e"2er +/, -//1 an isso$)e the inN#n,ti)e *rit iss#e 2< the RTC o( Pasi% Cit<.-/ SBI an M:II (i$e a "otion (or re,onsi eration 2#t it *as enie 2< the Co#rt o( Appea$s in a Reso$#tion ate Septe"2er +3, -//0. Ien,e, this petition.

SBI an M:II assert that the De,ision ate Apri$ +., -//0 o( the Co#rt o( Appea$s is $e%a$$< in(ir" as its ,on,$#sions are ,ontrar< to the N# i,ia$ a "issions o( CBC. The< a$$e%e that, in its Ans*er, CBC a "itte para%raphs -@ an -. o( the Co"p$aint re%ar in% the interests an ,har%es a"o#ntin% to P1@,/51,53/.+6 an P3/,.+6,@-@.+@, respe,ti)e$<, *hi,h ,onstit#te "ore than @/F o( the tota$ o2$i%ation o( P116,-65,+@+.-5 as o( :e2r#ar< +@, -///. :or SBI an M:II, CBC;s a "ission o( para%raphs -@ an -. o( the Co"p$aint is an a "ission that the interest rate i"pose 2< CBC is #s#rio#s, e'or2itant an ,on(is,ator<. Th#s, *hen the Co#rt o( Appea$s %rante the petition o( CBC an or ere the $i(tin% o( the *rit o( pre$i"inar< inN#n,tion it e((e,ti)e$< ispose o( the "ain ,ase, Ci)i$ Case No. .3+/@, *itho#t tria$ on the "erits an ren ere "oot an a,a e"i, as it ena2$e CBC to (ore,$ose on the "ort%a%es espite the #s#rio#s, e'or2itant an ,on(is,ator< interest rates.-+ SBI an M:II a$so ,$ai" that the Co#rt o( Appea$s either o)er$oo7e or isre%ar e #n isp#te an a "itte (a,ts *hi,h, i( proper$< ,onsi ere , *o#$ ha)e ,a$$e (or the "aintenan,e an preser)ation o( the pre$i"inar< inN#n,tion iss#e 2< the tria$ ,o#rt. The< ar%#e that the Co#rt o( Appea$s i not e)en ,onsi er Arti,$e +--5 o( the Ci)i$ Co e *hi,h pro)i es:
-/ -+

Art. +--5. The N# %e sha$$ e?#ita2$< re #,e the pena$t< *hen the

prin,ipa$ o2$i%ation has 2een part$< or irre%#$ar$< ,o"p$ie *ith 2< the e2tor. E)en i( there has 2een no per(or"an,e, the pena$t< "a< a$so 2e re #,e 2< the ,o#rts i( it is ini?#ito#s or #n,ons,iona2$e.
I . at 15.Rollo, pp. 5--5.

De,ision 5 4.R. No. +05..@

:or SBI an M:II, the (ai$#re o( the Co#rt o( Appea$s to ta7e into a,,o#nt Arti,$e +--5 o( the Ci)i$ Co e an its a,t o( $i(tin% the pre$i"inar< inN#n,tion J*o#$ e(inite$< pa)e the *a< (or CCBC;sD #n2ri $e i"position o( i$$e%a$ rates o( interest an i""e iate (ore,$os#reK o( the properties o( SBI an M:II J*itho#t the 2ene(it o( a (#$$ 2$o*n tria$.K-:or its part, CBC assai$s the petition ,onten in% that it is not a$$o*e #n er R#$e 6@ o( the R#$es o( Co#rt 2e,a#se it si"p$< raises iss#es o( (a,t an not iss#es o( $a*. CBC (#rther asserts that the De,ision o( the Co#rt o( Appea$s is an e'er,ise o( so#n N# i,ia$ is,retion as it is in a,,or *ith the $a* an the app$i,a2$e pro)isions o( this Co#rt.-1 The petition (ai$s. This Co#rt has re,ent$< reiterate the %enera$ prin,ip$es in iss#in% a *rit o( pre$i"inar< inN#n,tion in Palm Tree Estates, Inc. v. Philippine National Bank-6:
A pre$i"inar< inN#n,tion is an or er %rante at an< sta%e o( an a,tion prior to N# %"ent o( (ina$ or er, re?#irin% a part<, ,o#rt, a%en,<, or person to re(rain (ro" a parti,#$ar a,t or a,ts. It is a

preser)ati)e re"e < to ens#re the prote,tion o( a part<;s s#2stanti)e ri%hts or interests pen in% the (ina$ N# %"ent in the prin,ipa$ a,tion. A p$ea (or an inN#n,ti)e *rit $ies #pon the e'isten,e o( a ,$ai"e e"er%en,< or e'traor inar< sit#ation *hi,h sho#$ 2e a)oi e (or other*ise, the o#t,o"e o( a $iti%ation *o#$ 2e #se$ess as (ar as the part< app$<in% (or the *rit is ,on,erne . At ti"es re(erre to as the JStron% Ar" o( E?#it<,K *e ha)e ,onsistent$< r#$e that there is no po*er the e'er,ise o( *hi,h is "ore e$i,ate an *hi,h ,a$$s (or %reater ,ir,#"spe,tion than the iss#an,e o( an inN#n,tion. It sho#$ on$< 2e e'ten e in ,ases o( %reat inN#r< *here ,o#rts o( $a* ,annot a((or an a e?#ate or ,o""ens#rate re"e < in a"a%esB Jin ,ases o( e'tre"e #r%en,<B *here the ri%ht is )er< ,$earB *here ,onsi erations o( re$ati)e in,on)enien,e 2ear stron%$< in ,o"p$ainant;s (a)orB *here there is a *i$$(#$ an #n$a*(#$ in)asion o( p$ainti((;s ri%ht a%ainst his protest an re"onstran,e, the inN#r< 2ein% a ,ontin#in% one, an *here the e((e,t o( the "an ator< inN#n,tion is rather to reesta2$ish an "aintain a pree'istin% ,ontin#in% re$ation 2et*een the parties, re,ent$< an ar2itrari$< interr#pte 2< the e(en ant, than to esta2$ish a ne* re$ation.K

A *rit o( pre$i"inar< inN#n,tion is an e'traor inar< e)ent *hi,h "#st 2e %rante on$< in the (a,e o( a,t#a$ an e'istin% s#2stantia$ ri%hts. The #t< o( the ,o#rt ta7in% ,o%ni>an,e o( a pra<er (or a *rit o( pre$i"inar< inN#n,tion is to eter"ine *hether the re?#isites ne,essar< (or the %rant o( an inN#n,tion are present in the ,ase 2e(ore it.-@ In this ,onne,tion, a *rit o( pre$i"inar< inN#n,tion is iss#e to preser)e the status quo ante, #pon the
-- -1 -6 -@

I . at --.Rollo, pp. --.---3.4.R. No. +@510/, O,to2er 1, -/+-, ,itin% Barbieto v. Court of Appeals, 4.R. No. +36.6@, O,to2er 1/, -//5, ./6 SCRA 3-@, 366-36@. I .

De,ision +/ 4.R. No. +05..@

app$i,ant;s sho*in% o( t*o i"portant re?#isite ,on itions, na"e$<: 8+9 the ri%ht to 2e prote,te e'ists prima facie, an 8-9 the a,ts so#%ht to 2e enNoine are )io$ati)e o( that ri%ht. It "#st 2e pro)en that the )io$ation so#%ht to 2e pre)ente *o#$ ,a#se an irrepara2$e inN#r<.-. Iere, SBI an M:II 2asi,a$$< ,$ai" a ri%ht to ha)e their "ort%a%e properties shie$ e (ro" (ore,$os#re 2< CBC on the %ro#n that the interest rate an pena$t< ,har%es i"pose 2< CBC on the $oans a)ai$e o( 2< SBI are ini?#ito#s an #n,ons,iona2$e. In parti,#$ar, SBI an M:II assert:
There is there(ore an #r%ent ne,essit< (or the iss#an,e o( a *rit o( pre$i"inar< inN#n,tion or at $east a status quo Cor erD, other*ise, respon ent 2an7 *i$$ e(inite$< (ore,$ose petitioners; properties *itho#t a*aitin% the tria$ o( the "ain ,ase on the "eritsC,D *ith -0 sai #s#rio#s an ,on(is,ator< rates o( interest as 2asis.

an On this "atter, the Or er ate De,e"2er +6, -/// o( the tria$ ,o#rt en#"erates as the (irst ar%#"ent raise 2< SBI an M:II in s#pport o( their app$i,ation (or the iss#an,e o( a *rit o( pre$i"inar< inN#n,tion:
+. Their ri%hts 2asi,a$$< are (or the prote,tion o( their properties

p#t #p as ,o$$atera$ (or the $oans e'ten e 2< e(en ant 2an7 to -5 the"C.D

As e2tor-"ort%a%ors, ho*e)er, SBI an M:II o not ha)e a ri%ht to pre)ent the ,re itor-"ort%a%ee CBC (ro" (ore,$osin% on the "ort%a%e properties si"p$< on the 2asis o( a$$e%e J#s#rio#s, e'or2itant an ,on(is,ator< rate o( interest.K1/ :irst, ass#"in% that the interest rate a%ree #pon 2< the parties is #s#rio#s, the n#$$it< o( the stip#$ation o( #s#rio#s interest oes not a((e,t the $en er;s ri%ht to re,o)er the prin,ipa$ $oan, nor a((e,t the other ter"s thereo(.1+ Th#s, in a usurious loan with mortgage, the right to foreclose the mortgage subsists, and this right can be exercised by the creditor upon failure by the debtor to pay the debt due.1There is there(ore no $e%a$ N#sti(i,ation (or the Ionora2$e Co#rt o( Appea$s to $i(tG isso$)e the inN#n,tion iss#e 2< the tria$ ,o#rt, other*ise, respon ent 2an7 O on the 2asis o( this i$$e%a$ i"position o( interest O ,an a$rea < (ore,$ose the properties o( petitioners an ren er the *ho$e ,ase 8sans tria$ on the "erits9 "oot an -3 a,a e"i,.
-. -0 -3 -5 1/ 1+ 1-

Philippine National Bank v. Castalloy Technology Corporation, 4.R. No. +031.0, Mar,h +5, -/+-, ..3 SCRA 6+@, 6-+.Rollo, p. -@.I . at -/. CA rollo, p. 11.Rollo, p. -/.First Metro Investment Corporation v. Este Del Sol Mountain Reserve, Inc., 6-/ Phi$. 5/-, 5+3 8-//+9.Advocates for Truth in

Lending, Inc. v. Bangko Sentral Monetary Board, 4.R. No. +5-53., Jan#ar< +@, -/+1.

De,ision ++ 4.R. No. +05..@

Se,on , e)en the Or er ate De,e"2er +6, -/// o( the tria$ ,o#rt, *hi,h %rante the app$i,ation (or the iss#an,e o( a *rit o( pre$i"inar< inN#n,tion, re,o%ni>es that the parties sti$$ ha)e to 2e hear on the a$$e%e $a,7 o( J(airness o( the in,rease in interests an pena$tiesK #rin% the tria$ on the "erits.11 Th#s, the 2asis o( the ri%ht ,$ai"e 2< SBI an M:II re"ains to 2e ,ontro)ersia$ or isp#ta2$e as there is sti$$ a nee to eter"ine *hether or not, #pon ,onsi eration o( the )ario#s ,ir,#"stan,es s#rro#n in% the a%ree"ent o( the parties, the interest rates an pena$t< ,har%es are #n,ons,iona2$e. There(ore, s#,h ,$ai"e ri%ht ,annot 2e ,onsi ere ,$ear, a,t#a$ an s#2sistin%. In the a2sen,e o( a ,$ear $e%a$ ri%ht, the iss#an,e o( the inN#n,ti)e *rit ,onstit#tes %ra)e a2#se o( is,retion.16 The Or er ate De,e"2er +/, -//+ a$so sho*s the reasonin% o( the tria$ ,o#rt *hi,h 2etra<s that its %rant o( the app$i,ation o( SBI an M:II (or the iss#an,e o( a *rit o( pre$i"inar< inN#n,tion *as not 2ase on a ,$ear $e%a$ ri%ht. Sai the tria$ ,o#rt:
It *as $i7e*ise sho*n that p$ainti((s CSBI an M:IID ha the ,$ear ri%ht an #r%en,< to as7 (or inN#n,tion because of the issue of validity of the increase in the amount of the loan obligation. 8E"phasis s#pp$ie .9
1@

At "ost, the a2o)e (in in% o( the tria$ ,o#rt that the )a$i it< o( the in,rease in the a"o#nt o( the $oan o2$i%ation is in iss#e si"p$< a"o#nte to a (in in% that the ri%hts o( SBI an M:II )is-R-)is that o( CBC are isp#te an e2ata2$e. In s#,h a ,ase *here the ,o"p$ainant-"o)ant;s ri%ht is o#2t(#$ or isp#te , the iss#an,e o( an inN#n,ti)e *rit is not proper.1. E)en ass#"in% that SBI an M:II are ,orre,t in ,$ai"in% their s#ppose ri%ht, it nonethe$ess isinte%rates in the (a,e o( the ten pro"issor< notes in the tota$ a"o#nt o( P-+3,@6/,.63.//, e',$#si)e o( interest an pena$ties, iss#e 2< SBI in (a)or o( CBC on Mar,h +, +555 *hi,h #nti$ no* re"ain #npai espite the "at#rit< o( the sai notes on Mar,h +, -//6 an CBC;s repeate e"an s (or pa<"ent.10 :ore,$os#re is 2#t a ne,essar< ,onse?#en,e o( nonpa<"ent o( "ort%a%e in e2te ness.13 As this Co#rt he$ in Equitable PCI Bank, Inc. v. OJ-Mark Trading, Inc.15:
11 16 1@ 1. 10 13 15

Rollo, p. @+.Palm Tree Estates, Inc. v. Philippine National Bank, s#pra note -6.CA rollo, p. +3@.See Selegna Management and Development Corporation v. United Coconut Planters Bank, @-- Phi$. .0+, .5+ 8-//.9. In this ,ase, it *as he$ that pre$i"inar< inN#n,tion is not proper *hen the ,o"p$ainant;s ri%ht is o#2t(#$ or isp#te .De"an $etters ate J#ne --, -/+/ o( CBC to SBI an M:II, respe,ti)e$<, Anne'es JBK an JCK o( the Ar%ent E'-Parte Petition (or I""e iate Iss#an,e o( Te"porar< Restrainin% Or er an Gor Erit o( Pre$i"inar< InN#n,tion (i$e 2< SBI an M:II in this ,ase on J#$< 5, -/+/.Lotto Restaurant Corporation v. BPI Family Savings Bank, Inc., 4.R. No. +00-./, Mar,h 1/, -/++, .6. SCRA

.55, 0/@.4.R. No. +.@5@/, A#%#st ++, -/+/, .-3 SCRA 05, 5+-5-.

De,ision +- 4.R. No. +05..@ Ehere the parties stip#$ate in their ,re it a%ree"ents, "ort%a%e ,ontra,ts an pro"issor< notes that the "ort%a%ee is a#thori>e to (ore,$ose the "ort%a%e properties in ,ase o( e(a#$t 2< the "ort%a%ors, the "ort%a%ee has a ,$ear ri%ht to (ore,$os#re in ,ase o( e(a#$t, "a7in% the iss#an,e o( a Erit o( Pre$i"inar< InN#n,tion i"proper. ' ' '. 8Citation o"itte .9

In a ition, the e(a#$t o( SBI an M:II to pa< the "ort%a%e in e2te ness is?#a$i(ies the" (ro" a)ai$in% o( the e?#ita2$e re$ie( that is the inN#n,ti)e *rit. In parti,#$ar, SBI an M:II ha)e state in their Co"p$aint that the< ha)e "a e )ario#s re?#ests to CBC (or restr#,t#rin% o( the $oan.6/ The tria$ ,o#rt;s Or er ate De,e"2er +6, -/// a$so (o#n that SBI *rote se)era$ $etters to CBC Jre?#estin%, a"on% others, (or a re #,tion o( interests an pena$ties an restr#,t#rin% o( the $oan.K6+ A e2tor;s )ario#s an ,onstant re?#ests (or e(er"ent o( pa<"ent an restr#,t#rin% o( $oan, *itho#t a,t#a$$< pa<in% the a"o#nt #e, are ,$ear in i,ations that sai e2tor *as #na2$e to sett$e his o2$i%ation.6SBI;s e(a#$t or (ai$#re to sett$e its o2$i%ation is a 2rea,h o( ,ontra,t#a$ o2$i%ation *hi,h tainte its han s an is?#a$i(ie it (ro" a)ai$in% o( the e?#ita2$e re"e < o( pre$i"inar< inN#n,tion. As SBI is not entit$e to the iss#an,e o( a *rit o( pre$i"inar< inN#n,tion, so is M:II. The a,,essor< (o$$o*s the prin,ipa$. The a,,essor< o2$i%ation o( M:II

as a,,o""o ation "ort%a%or an s#ret< is tie to SBI;s prin,ipa$ o2$i%ation to CBC an arises on$< in the e)ent o( SBI;s e(a#$t. Th#s, M:II;s interest in the iss#an,e o( the *rit o( pre$i"inar< inN#n,tion is ne,essari$< preN# i,e 2< SBI;s *ron%(#$ ,on #,t an 2rea,h o( ,ontra,t. E)en Arti,$e +--5 o( the Ci)i$ Co e, *hi,h SBI an M:II in)o7e, *or7s a%ainst the". An er that pro)ision, the e?#ita2$e re #,tion o( the pena$t< stip#$ate 2< the parties in their ,ontra,t *i$$ 2e 2ase on a (in in% 2< the ,o#rt that s#,h pena$t< is ini?#ito#s or #n,ons,iona2$e. Iere, the tria$ ,o#rt has not <et "a e a r#$in% as to *hether the pena$t< a%ree #pon 2< CBC *ith SBI an M:II is #n,ons,iona2$e. S#,h (in in% *i$$ 2e "a e 2< the tria$ ,o#rt on$< a(ter it has hear 2oth parties an *ei%he their respe,ti)e e)i en,e in $i%ht o( a$$ re$e)ant ,ir,#"stan,es. Ien,e, (or SBI an M:II to ,$ai" an< ri%ht or 2ene(it #n er that pro)ision at this point is pre"at#re. As no ,$ear ri%ht that *arrants the e'traor inar< prote,tion o( an inN#n,ti)e *rit has 2een sho*n 2< SBI an M:II to e'ist in their (a)or, the (irst re?#ire"ent (or the %rant o( a pre$i"inar< inN#n,tion has not 2een satis(ie . In the a2sen,e o( an< re?#isite, an *here (a,ts are sho*n to 2e *antin% in 2rin%in% the "atter *ithin the ,on itions (or its iss#an,e, the an,i$$ar< *rit o( inN#n,tion "#st 2e str#,7 o*n (or ha)in% 2een ren ere in

6/ 6+ 6-

Para%raphs +1-+. o( Part II 84enera$ A$$e%ations9 an - o( Part III.A. 8:irst Ca#se o( A,tion9, rollo, pp. .--.1 an .0-.3, respe,ti)e$<.Rollo, p. 65.Palm Tree Estates, Inc. v. Philippine National Bank, s#pra note -6.

De,ision +1 4.R. No. +05..@

%ra)e a2#se o( is,retion.61 Th#s, the Co#rt o( Appea$s i not err *hen it %rante the petition (or certiorari o( CBC an or ere the isso$#tion o( the *rit o( pre$i"inar< inN#n,tion iss#e 2< the tria$ ,o#rt. Neither has there 2een a sho*in% o( irrepara2$e inN#r<. An inN#r< is ,onsi ere irrepara2$e i( it is o( s#,h ,onstant an (re?#ent re,#rren,e that no (air or reasona2$e re ress ,an 2e ha there(or in a ,o#rt o( $a*, or *here there is no stan ar 2< *hi,h their a"o#nt ,an 2e "eas#re *ith reasona2$e a,,#ra,<, that is, it is not s#s,epti2$e o( "athe"ati,a$ ,o"p#tation. The pro)isiona$ re"e < o( pre$i"inar< inN#n,tion "a< on$< 2e resorte to *hen there is a pressin% ne,essit< to a)oi inN#rio#s ,onse?#en,es *hi,h ,annot 2e re"e ie #n er an< stan ar o( ,o"pensation.66 In the (irst p$a,e, an< inN#r< that SBI an M:II "a< s#((er in ,ase o( (ore,$os#re o( the "ort%a%e properties *i$$ 2e p#re$< "onetar< an ,o"pensa2$e 2< an appropriate N# %"ent in a proper ,ase a%ainst CBC. Moreo)er, *here there is a )a$i ,a#se to (ore,$ose on the "ort%a%es, it ,annot 2e ,orre,t$< ,$ai"e that the irrepara2$e a"a%e so#%ht to 2e pre)ente 2< the

app$i,ation (or pre$i"inar< inN#n,tion is the $oss o( the "ort%a%e properties to a#,tion sa$e.6@ The a$$e%e entit$e"ent o( SBI an M:II to the Jprote,tion o( their properties p#t #p as ,o$$atera$ (or the $oansK the< pro,#re (ro" CBC is not the 7in o( irrepara2$e inN#r< ,onte"p$ate 2< $a*. :ore,$os#re o( "ort%a%e propert< is not an irrepara2$e a"a%e that *i$$ "erit (or the e2tor-"ort%a%or the e'traor inar< pro)isiona$ re"e < o( pre$i"inar< inN#n,tion. As this Co#rt state in Philippine National Bank v. Castalloy Technology Corporation6.:
CAD$$ is not $ost (or e(a#$tin% "ort%a%ors *hose properties *ere (ore,$ose 2< ,re itors-"ort%a%ees. The respon ents *i$$ not 2e epri)e o#tri%ht$< o( their propert<, %i)en the ri%ht o( re e"ption %rante to the" #n er the $a*. Moreo)er, in e'traN# i,ia$ (ore,$os#res, "ort%a%ors ha)e the ri%ht to re,ei)e an< s#rp$#s in the se$$in% pri,e. Th#s, i( the "ort%a%ee is retainin% "ore o( the pro,ee s o( the sa$e than he is entit$e to, this (a,t a$one *i$$ not a((e,t the )a$i it< o( the sa$e 2#t *i$$ %i)e the "ort%a%or a ,a#se o( a,tion to re,o)er s#,h s#rp$#s. 8Citation o"itte .9

The En Banc Reso$#tion in A.M. No. 55-+/-/@-/, Re: Procedure in Extrajudicial or Judicial Foreclosure of Real Estate Mortgages, (#rther sta,7s the o s a%ainst SBI an M:II. Iss#e on :e2r#ar< -/, -//0, or so"e t*o "onths 2e(ore the Co#rt o( Appea$s pro"#$%ate its e,ision in this ,ase, the reso$#tion e"2o ies the a itiona$ %#i e$ines inten e to ai ,o#rts in (ore,$os#re pro,ee in%s, spe,i(i,a$$< $i"itin% the instan,es, an ,itin% the ,on itions, *hen a *rit a%ainst

(ore,$os#re o( a "ort%a%e "a< 2e iss#e , to *it:

61 66 6@ 6.

I .Philippine National Bank v. Castalloy Technology Corporation, s#pra note -. at 6-6.G.G. Sportswear Manufacturing Corporation v. Banco De Oro Unibank, Inc., 4.R. No. +36616, :e2r#ar< 3, -/+/, .+- SCRA 60, @1.S#pra note -. at 6-@.

De,ision +6 4.R. No. +05..@ 8+9 No te"porar< restrainin% or er or *rit o( pre$i"inar< inN#n,tion a%ainst the e'traN# i,ia$ (ore,$os#re o( rea$ estate "ort%a%e sha$$ 2e iss#e on the a$$e%ation that the $oan se,#re 2< the "ort%a%e has 2een pai or is not e$in?#ent #n$ess the app$i,ation is )eri(ie an s#pporte 2< e)i en,e o( pa<"ent. 8-9 No temporary restraining order or writ of preliminary injunction against the extrajudicial foreclosure of real estate mortgage shall be issued on the allegation that the interest on the loan is unconscionable, unless the debtor pays the mortgagee at least twelve percent per annum interest on the principal obligation as stated in the application for foreclosure sale, which shall be updated monthly while the case is pending. 819 Ehere a *rit o( pre$i"inar< inN#n,tion has 2een iss#e a%ainst a (ore,$os#re o( "ort%a%e, the isposition o( the ,ase sha$$ 2e spee i$< reso$)e . To this en , the ,o#rt ,on,erne sha$$ s#2"it to the S#pre"e Co#rt, thro#%h the O((i,e o( the Co#rt A "inistrator, ?#arter$< reports on the pro%ress o( the ,ases in)o$)in% ten "i$$ion pesos an a2o)e. 869 A$$ re?#ire"ents an restri,tions pres,ri2e (or the iss#an,e o( a te"porar< restrainin% or erG*rit o( pre$i"inar< inN#n,tion, s#,h as the postin% o( a 2on , *hi,h sha$$ 2e e?#a$ to the a"o#nt o( the o#tstan in% e2t, an the ti"e $i"itation (or its e((e,ti)it<, sha$$

app$< as *e$$ to a status quo or er.

60

The %#i e$ines spea7 o( stri,t e',eptions an ,on itions.63 To re)erse the e,ision o( the Co#rt o( Appea$s an reinstate the *rit o( pre$i"inar< inN#n,tion iss#e 2< the tria$ ,o#rt *i$$ 2e to a$$o* SBI an M:II to ,ir,#")ent the %#i e$ines an ,on itions pro)i e 2< the En Banc Reso$#tion in A.M. No. 55-+/-/@-/ ate :e2r#ar< -/, -//0 an pre)ent CBC (ro" (ore,$osin% on the "ort%a%e properties 2ase si"p$< on the a$$e%ation that the interest on the $oan is #n,ons,iona2$e. This Co#rt *i$$ not per"it s#,h a sit#ation. Ehat ,annot 2e one ire,t$< ,annot 2e one in ire,t$<.65 A$$ to$ , the re$e)ant ,ir,#"stan,es in this ,ase sho* that there *as (ai$#re to satis(< the re?#isites (or the iss#an,e o( a *rit o( pre$i"inar< inN#n,tion. The inN#n,ti)e *rit iss#e 2< the tria$ ,o#rt sho#$ there(ore 2e $i(te an isso$)e . That *as ho* the Co#rt o( Appea$s e,i e . That is ho* it sho#$ 2e.
60 63 65

WHEREFORE, the petition is here2< DENIED.

I . at 6-1.I . at 6-6.Tawang Multi-Purpose Cooperative v. La Trinidad Water District, 4.R. No. +..60+, Mar,h --, -/++, .6. SCRA -+, 1+.

Decision 15 G.R. No. 179665

SO ORDERED. WE CONCUR:

.
TERESITA J. LEONARDO-DE CASTRO Associate Justice

~~~-u~
MARIA LOURDES P. A. SERENO Chief Justice Chairperson Associate Justice CERTIFICA TION Pursuant to Section 13, Article VIII of the Constitution, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court's Division. MARIA LOURDES P. A. SERENO Chief Justice