Beruflich Dokumente
Kultur Dokumente
Supreme Court Senior Associate Justice Antonio T. Carpio speaks on The South China Sea Dispute before distinguished guests at the PHILJA
Training Center Auditorium, Tagaytay City.
It was a busy second quarter for PHILJA with the conduct of pertaining to the ongoing PHILJA Curriculum Review
our various regular programs: the 72nd Orientation Seminar- participated in by business entrepreneurs, lawyers, and court
Workshop for Newly Appointed Judges; the 29th Orientation users from Makati City also took place at this time.
Seminar-Workshop for Newly Appointed Clerks of Court; the
Orientation Seminar-Workshop for Executive Judges (Selected PHILJA also delivered a Seminar-Workshop on Financial
RTC and First Level Court Executive Judges, Vice Executive Crimes and Money Laundering for Judges (Regions I, VI, and
Judges, 1st3rd Vice Executive Judges, and Single Sala Court VIII); an Information Dissemination through a Dialogue
Judges of Luzon); the Judicial Career Enhancement Program between Barangay Officials and Court Officials for the Cities
for First Level Court Judges of the Fourth Judicial Region (Rizal, of Tarlac and Cabanatuan. Likewise, two Competency
Cavite, Laguna, and Quezon); the Career Enhancement Enhancement Trainings were held one for judges, prosecutors,
Program for RTC Clerks of Court (Region V, Naga City and Region social workers and law enforcement investigators handling
I, Baguio City); the Career Enhancement Programs for Court trafficking in persons cases (CET-TIP) and another for judges
Social Workers in the NCJR and the Third Judicial Region and and court personnel handling cases involving children. The
Regional Trial Court Sheriffs of the NCJR (Batch 1). Personal Security Training for Judges also continued with two
more batches.
A number of special focus seminar-workshops were also
carried out: Seminar-Workshop on Procedural, Substantive An Intensive Seminar-Workshop on Rules 22 and 24 of
Laws and Jurisprudence on Intellectual Property for Clerks of the Proposed Revised Rules of Civil Procedure for Pilot Court
Court of Special Commercial Courts of Regions I, II, III, and V Judges (2 batches) and a Seminar-Workshop on Dangerous
and for Supreme Court and Court of Appeals Attorneys; Drugs Law for Judges, Prosecutors, and Law Enforcers of the
Capacity Building on Environmental Laws and Rules of Fifth Judicial Region were also mounted.
Procedure for Environmental Cases for Judges and Branch The Academy also extended its assistance in quite a
Clerks of Court; and the Seminar on the Rules of Procedure on number of convention-seminars for the benefit of different
Financial Rehabilitation for Executive Judges and V ice court personnel, as follows:
Executive Judges (Regions I and II; Regions VI, VII, and VIII, as
well as the NCJR and Region III). A focus group discussion (FGD) (Next page)
2
APRIL - JUNE 2015
The PHILJA Founding Chancellor Emeritus Justice Ameurfina A. Melencio Herrera Award
for the Most Outstanding Professorial Lecturer featuring
Senior Associate Justice Antonio T. Carpio on The South China Sea Dispute
continued on page 46
4
APRIL - JUNE 2015
On June 910, 2015, PHILJA, in partnership with Konrad- Research and Development, Judges Academy of Taiwan; Hon.
Adenauer-Stiftung (KAS), conducted the Roundtable Thong Chenda, Vice President of the Royal Academy for
Discussion: Knowledge Sharing on Court and Case Judicial Professions, Cambodia; Ms.Thi Hang Nga Nguyen,
Management. The activity, held in the Philippines for the Deputy Chief of Commercial Law Team of Judge Training and
first time, is a gathering of Asia Pacific judicial academies. Vice Dean of the Faculty of Lawyers Training, Judicial Academy
Forty-four magistrates, judges and head of judicial academies of Vietnam; Hon. Tshering Dorji, Registrar General of the
from Germany, V ietnam, Cambodia, Bhutan, Taiwan, Supreme Court of Bhutan; Court of Appeals Justice Maria
Indonesia and the Philippines participated in this international Filomena D. Singh; Judge Maria Rowena Modesto-San Pedro
forum. The program was designed to re-apprise the of RTC Br. 158, Pasig City; Court Administrator Jose Midas P.
participants of the various laws, rules, jurisprudence and Marquez; and Deputy Court Administrator Raul B. Villanueva.
developments on court and case management; familiarize
them with the emerging trends on court and case From among the many challenges on court management,
management and the various challenges that must be the participants identified the following as prevailing in the
addressed to improve present system; and expose them to courts: bringing courts to the digital age; growing complexity
the best practices being observed in other countries. of cases that are brought to court; health effects on judges
considering their heavy caseloads; and modernization
PHILJA Chancellor Justice Adolfo S. Azcuna formally through reforms in human resources, training, budgeting,
opened the program followed by Mr. Marc Alexander information technology and public services. Justice Singh
Spitzkatzs message in behalf of the KAS. The discussion identified the following as challenges faced by Philippine
started off with retired Court Administrator Zenaida N. courts: difficulty to shift to eCourts because of security
Elepaos orientation on Philippine laws and Rules of reasons and technical deficits; and delivering justice on real
Procedure in different courts relative to disposition of cases. time by having a court manager/trained management
Following is a roundtable discussion among the participants personnel with tailor fit court management style and working
that brought about significant views on emerging trends and with a central docket system and a unified trial calendar in
best practices on court and case management from an order that needed orders be expeditiously effected and
international perspective as well as from a local or Philippine served.
perspective. The discussants were Dr. Bernd Wilhelm Pickel,
President of the High Court, Berlin, Germany; Justice Shin- Relative to best practices on court management, Dr. Pickel
Min Chen of the Constitutional Court of Taiwan; Judge Agus stated that today in Germany, all court stations are equipped
Subroto of the Appeal Court of Jakarta and Head of Education with computers with developed databases. In Indonesia, they
and Training Center for Technical Judiciary, Supreme Court provide certification trainings for judges on various areas;
of the Republik of Indonesia; Hon. Wei-Ya Wu, Head of (Continued on page 13)
5
VOLUME XVII ISSUE NO. 66
Next page
6
APRIL - JUNE 2015
The Philippine Mediation Center Office (PMCO) of the Philippine Judicial Academy (PHILJA) hosted the Asian Mediation
Association (AMA) Annual General Meeting (AGM) on April 17, 2015, at the PHILJA Training Center in Tagaytay City. It was
attended by 20 representatives from AMA, PHILJA, PMCO, and the Office of the Court Administrator (OCA) who discussed the
report of the AMA Chairman on the 3rd AMA Conference held in Hong Kong on April 34, 2014, the election of a new AMA
Chairman for the 4th AMA Conference to be held in China in 2016, and the AMA website and linkage with ASEAN.
AMA came into being on August 17, 2007, when representatives from Hong Kong, Indonesia, Malaysia, the Philippines,
and Singaporethe five leading mediation centers in Asiasigned a Memorandum of Understanding. Subsequently, AMA
accepted Bahrain, China, Fiji, India, Japan, and Thailand as additional members. AMA provides access to resources for the
settlement of business and commercial disputes in Asia.
Since its inception, AMA holds annual general meetings and biennial conferences. The PMCO is an active member of AMA
and its representatives have been attending all its activities. Last year, the Supreme Court sent a delegation to the 3rd AMA
Conference headed by PHILJA Chancellor Adolfo S. Azcuna together with other members of the PMCO Executive Committee,
namely, Court Administrator Jose Midas P. Marquez, Justice Marina L. Buzon, Dean Eduardo D. De los Angeles, Judge Selma P.
Alaras, Comm. Linda L. Malenab-Hornilla, Atty. Jose C. Saluib, Jr., and Mr. Jose T. Name, Jr.
procedure in claiming transportation expenses from the Sheriffs Trust Fund, verbal and non-verbal communication skills
and techniques, revisiting the Code of Conduct for Court Personnel, Supreme Court circulars, and administrative orders
and recent jurisprudence concerning sheriffs. To further enhance skills and strengthen their values in the discharge of
duties, workshops were conducted on: how to properly serve summons, subpoenas, and writs; how to accomplish sheriffs
forms, the Statement of Estimated Transportation and Travel Expenses and the Statement of Liquidation; improving
verbal and non-verbal communication skills; and applying the learnings gained from revisiting the Code of Conduct for
Court Personnel. A dialogue with the officials from the Office of the Court Administrator capped the activity.
7
VOLUME XVII ISSUE NO. 66
REGION I
Atty. Bernard Manrique METROPOLITAN TRIAL COURTS
RTC, Br. 15, Laoag City, Ilocos Norte NCJR
REGION II Mr. Patrick De Vera Calaunan
Atty. Apple Redondo Jandoc MeTC, OCC, Paraaque City
RTC, Br. 29, Bayombong, Nueva Vizcaya Ms. Christine Taningco Mistica
MeTC, Br. 97, Mandaluyong City
REGION III
Mr. Kevin Kingston Bondoc Ronquillo
Atty. Marichriz Ipapo Dumalay
MeTC, Br. 99, Mandaluyong City
RTC, Br. 17, Malolos City, Bulacan
Atty. Eddielyn Lopez Gatdula MUNICIPAL TRIAL COURTS IN CITIES
RTC, Br. 22, Malolos City, Bulacan
Atty. Gerry Radona Gruspe REGION I
RTC, OCC, Olongapo City, Zambales Ms. Cherry Lim Gayagoy
Atty. Sheila Minnelli Carmona Oliva MTCC, Br. 1, Dagupan City, Pangasinan
RTC, Br. 84, Malolos City,Bulacan REGION II
REGION IV Mr. Allen Dongui-is Apaling
Atty. Stephen Acuzar Lamanilao MTCC, Tabuk City, Kalinga
RTC, OCC, Pinamalayan, Mindoro Oriental REGION VI
Atty. Joseph Legaspi Martinez Ms. Eleanor Lonado Fio
RTC, Br. 87, Rosario, Batangas MTCC, Br. 2, Iloilo City, Iloilo
Atty. Mary Ann Panganiban Mendoza-Bolisay
REGION VII
RTC, Br. 75, San Mateo, Rizal
Ms. Johanna Jumawan Magusara
Atty. Diana Rose Buan Ramos
MTCC, Bayawan City, Negros Oriental
RTC, Br. 80, Morong, Rizal
REGION VIII
REGION V
Ms. Rebecca Salazar Macaso
Atty. Odessa Grace Encarnacion Gonzaga
MTCC, Br. 1, Tacloban City, Leyte
RTC, OCC, Naga City, Camarines Sur
REGION IX
REGION VII
Ms. Prescila Relado Cornella
Atty. Elsie Delantar Fabian
MTCC, Br. 3, Zamboanga City
RTC, OCC, Tagbilaran City, Bohol
REGION VIII MUNICIPAL TRIAL COURTS
Atty. Marichu P. Advincula-Samson REGION III
RTC, Br. 8, Tacloban City, Leyte Mr. Mark Derick Bayudan Castillo
REGION IX MTC, Aliaga, Nueva Ecija
Atty. Dinah Bahan Cagampang-Sapong Mr. Jay-ar Reyes Cuarto
RTC, Br. 29, San Miguel, Zamboanga del Sur MTC, Pulilan, Bulacan
Ms. Catherina Flores De Jesus
REGION IX MTC, San Antonio, Nueva Ecija
Atty. Glynmar Caharian Balangkig
RTC, Br. 11, Manolo Fortich, Bukidnon REGION IV
Atty. Kathleen Espaol Llenares-Cezar Ms. Niarichie R. Alvarez-Cosico
RTC, Br. 34, Cabadbaran City, Agusan del Norte MTC, Bay, Laguna
Mr. Apolonio M. Sugay
REGION XI MTC, Candelaria, Quezon
Atty. Dave Landero Cuartero
RTC, Br. 40, Tandag City, Surigao del Sur REGION V
Atty. Kristine Jane Basuga Pague Ms. Jasmin Diezmo Alvarez
RTC, Br. 17, Davao City, Davao del Sur MTC, Basud, Camarines Norte
10
APRIL - JUNE 2015
REGION III
Ms. Michelle Taruc Esguerra
5th MCTC: Apalit-San Simon, Pampanga
REGION IV Career Enhancement Program
Ms. Cecilia Manahan Jaime
2nd MCTC: Bansud-Gloria, Mindoro Oriental
Career Enhancement Program for RTC Clerks of Court
REGION VII REGION I
Ms. Ma. Golda Amila Eftimov Date: May 2628, 2015
2nd MCTC: Tubigon-Clarin, Bohol Venue: Hotel Veniz, Baguio City
Mr. Allan Amista Hinautan Participants: 71 RTC clerks of court
9th MCTC: Guindulman-Duero, Bohol
REGION V
REGION VIII Date: May 57, 2015
Ms. Constancia Bagunas Valenzuela Venue: Avenue Plaza Hotel, Naga City
9th MCTC: Giporlos-Quinapundan Participants: 67 RTC clerks of court
Eastern Samar
REGION X Career Enhancement Program for Court Social Workers
Mr. Crispen Lamor Villarosa NCJR AND REGION III
1st MCTC: Malimono-San Francisco Date: May 57, 2015
Surigao del Norte Venue: PHILJA Training Center, Tagaytay City
Participants: 67 RTC court social workers
REGION XI
Ms. Rowena Regala Layno Career Enhancement Program for RTC Sheriffs
6th MCTC: Barobo-Lianga, Surigao del Sur NCJR (BATCH 1)
Ms. Debra Alameda Sanchez Date: May 1921, 2015
5th MCTC: Marihatag-San Agustin Venue: PHILJA Training Center, Tagaytay City
Surigao del Sur Participants: 68 RTC sheriffs
11
VOLUME XVII ISSUE NO. 66
Seminar-Workshop on Procedural, Substantive Laws and Information Dissemination through a Dialogue between
Jurisprudence on Intellectual Property Barangay Officials and Court Officials
PHILJA Chancellor Adolfo S. Azcuna (seated, center), and Dean Ed Vincent S. Albano (seated, 8th from left) with the participants of the Judicial
Career Enhancement Program (JCEP) for First Level Court Judges of the Fourth Judicial Region (Rizal, Cavite, Laguna, and Quezon) held on May
2729, 2015, at the PHILJA Training Center, Tagaytay City.
The Resource Persons and trainers from the National Bureau of Investigation (NBI), with the participants of the Personal Security Training for
Judges held on April 2830, 2015, at the PHILJA Training Center, Tagaytay City.
Fr. Ranhilio C. Aquino, Chair of PHILJAs Department of Jurisprudence and Legal Philosophy, gives some pointers to the participants of the
PHILJA Curriculum Review: Focus Group Discussion (FGD) for Lawyers/Court Users held on May 5, 2015, at the Bernas Center for Continuing
Legal Education and Research, Ateneo de Manila Law School, Rockwell Center, Makati City.
15
VOLUME XVII ISSUE NO. 66
Chief Justice Ma. Lourdes P. A. Sereno, addresses the attendees of the Information Dissemination through a Dialogue between Barangay
Officials of the Province of Tarlac and Court Officials held on April 23, 2015, at the Diwa ng Tarlac Community Center, Romulo Blvd., Tarlac City.
Also present during the event are officials from the Local and Provincial Government of Tarlac.
Court Administrator Jose Midas P. Marquez (seated, center) with the participants of the 29th Orientation Seminar-Workshop for Newly Appointed
Clerks of Court held on June 25, 2015, at the PHILJA Training Center, Tagaytay City.
The Facilitators and Resource Persons with the participants of the Competency Enhancement Training for Judges, Prosecutors, Social Workers
and Law Enforcement Investigators Handling Trafficking in Persons Cases held on April 2830, 2015, at The Lake Hotel, Tagaytay City.
Note: Additional pictures for these events are available for download at the Photo Gallery section of the PHILJA website (http://philja.judiciary.gov.ph)
16
APRIL - JUNE 2015
Justice Ronaldo B. Martin is an Associate Justice of the Court Justice Sarah Jane T. Fernandez was appointed Associate
of Appeals, a position he assumed on June 13, 2015. His Justice of the Sandiganbayan on May 5, 2015. She took her
professional experience ranges from legal to academic as oath of office before Chief Justice Maria Lourdes P. A. Sereno
follows: teacher of Tulong Dunong at the Ateneo de Manila on May 11, 2015.
University High School (19861987); scriptwriter of Street Prior to her appointment to the Sandiganbayan, Justice
Pulse, a political magazine talk show (19871988); Fernandez served as an Assistant Solicitor General for more
Legislative Liaison Officer at the Office of Senator Rene A.V. than eight years at the Office of the Solicitor General. She
Saguisag (19881992); Project Coordinator for the was the lead assistant solicitor general in the arbitration case
Presidential Elections, Philippine Pastoral Council for filed by the Republic of the Philippines against the Peoples
Responsible Voting (PPCRV) under Fr. Tito Caluag, S.J. Republic of China.
(1992); Legal Counsel at the Congressional Commission on
Health (Healthcom) (1992) and for labor cases at the Sentro Justice Fernandez was also a lecturer of Taxation I, Legal
ng Alternatibong Lingap Pangligal (SALIGAN) (19921993); Writing and Statutory Construction at the University of Santo
Labor Lawyer at the National Union for Workers in Hotels, Tomas from 2008 to 2011.
Restaurants and Allied Industries (NUWHRAIN) (1992
Justice Fernandez was born in Dagupan City. She is the
1993); Legal Counsel and Consultant of the International
youngest daughter of Jimmy Lim Fernandez and Remedios
Labour Organization (ILO) (MayDecember 1997); Legal Staff
Tan-Fernandez. She finished her primary and secondary
Member of the Ad Hoc Independent Citizens Committee
education at the Divine Word Academy of Dagupan (1986).
to investigate the Philippine Centennial Projects (1999);
She holds a BS Legal Management Degree (1990) from the
Professor on Obligations and Contracts and Insurance Law
Ateneo de Manila University, a Juris Doctor [Second Honors]
at the College of Business and Economics, De La Salle
(1994) from the Ateneo de Manila School of Law, and a
University (20032005).
Master in Management (2001) from the Asian Institute of
To better prepare him for a position in the judiciary, he Management. She is an alumna of the Rhodes Academy of
joined the Office of the Solicitor General as Associate Oceans Law and Policy (2013), and of the International Law
continued on page 46 Institute (2013 and 2014).
17
VOLUME XVII ISSUE NO. 66
Doctrinal Reminders
Constitutional Law (continued) affidavits clearly narrate the latters involvement in the
prohibited recruitment.
Code of 1987). Thus, the right to counsel is not always
imperative in administrative investigations because Del Castillo, J., People of the Philippines v. Angel Mateo y Jacinto and Vicenta
such inquiries are conducted merely to determine Lapiz y Medina, G.R. No. 198012, April 22, 2015.
whether there are facts that merit disciplinary measure
against erring public officers and employees, with the Elements of other forms of swindling under Article 316,
purpose of maintaining the dignity of government paragraph 2 of the Revised Penal Code.
service. As such, the hearing conducted by the
investigating authority is not part of a criminal The elements of other forms of swindling under Article 316,
prosecution. paragraph 2 of the Revised Penal Code are as follows: (1) that
the thing disposed of be real property; (2) that the offender
Leonen, J., Maria Theresa G. Gutierrez v. Commission on Audit and Auditor
Narcisa DJ Joaquin, G.R. No. 200628, January 13, 2015. knew that the real property was encumbered, whether the
encumbrance is recorded or not; (3) that there must be express
representation by the offender that the real property is free
from encumbrance; and (4) that the act of disposing of the real
Criminal Law property be made to the damage of another.
The Information in the present case, aside from expressly
indicating in its caption that it is charging the petitioner under
Special Lawelements of illegal recruitment in large scale. Article 316, paragraph 1 of the Revised Penal Code, alleged that
the petitioner with deceit and intent to defraud, pretended
The offense of illegal recruitment in large scale has the
to be the lawful owner of a 200-square meter portion of a lot
following elements: (1) the person charged undertook any
covered by TCT No. T-19932 despite her knowledge that the
recruitment activity as defined under Section 6 of RA No.
entire property had already been sold and was owned by JS
8042; (2) accused did not have the license or the authority to
Francisco. Notably, it had not been alleged that the petitioner
lawfully engage in the recruitment of workers; and, (3)
expressly represented to Naval that the subject property was
accused committed the same against three or more persons
free from any encumbrance.
individually or as a group. These elements are obtaining in
this case. First, the RTC found appellants to have undertaken In Naya v. Abing, the Court set aside the petitioners
a recruitment activity when they promised private conviction for estafa under Article 316(2) of the Revised Penal
complainants employment in Japan for a fee. This factual Code since there had been no allegation in the Information that
finding was affirmed by the CA. The time-tested doctrine is he (petitioner) expressly represented in the sale of the subject
that the matter of assigning values to declarations on the property to William Po that the said property was free from any
witness stand is best and most competently performed by encumbrance. We explained that the gravamen of the crime is
the trial judge. And when his findings have been affirmed the disposition of legally encumbered real property by the
by the Court of Appeals, these are generally binding and offender under the express representation that there is no
conclusive upon the Supreme Court. Second, the Certification encumbrance thereon; and that the accused must make an
issued by the POEA unmistakably reveals that appellants express representation in the deed of conveyance that the
neither have a license nor authority to recruit workers for property sold or disposed of is free from any encumbrance for
overseas employment. Notably, appellants never assailed this one to be criminally liable.
Certification. Third, it was established that there were five Brion, J., Clarita Estrellado-Mainar v. People of the Philippines, G.R. No. 184320,
complainants. Clearly, the existence of the offense of illegal July 29, 2015.
recruitment in large scale was duly proved by the prosecution.
Appellants argument that there was no proof that they
received money from the private complainants deserves no Remedial Law
credence. Suffice it to say that money is not material to a
prosecution for illegal recruitment considering that the
definition of illegal recruitment under the law includes the
Writ of Possession in Expropriation Cases; when issued.
phrase whether for profit or not. Besides, even if there is
no receipt for the money given by the private complainants A Writ of Possession may be issued only upon full compliance
to appellants, the formers respective testimonies and with Section 4 of Republic Act No. 8974.
19
VOLUME XVII ISSUE NO. 66
Before the state may expropriate private property for a amount already paid and the just compensation as
national infrastructure project, it must first comply with the determined by the court.
requisites in Republic Act No. 8974, otherwise known as An Leonen, J., Republic of the Philippines v. Heirs of Gabriel Fernandez, G.R. No.
Act to Facilitate the Acquisition of Right-of-Way, Site or 175493, March 25, 2015.
Location for National Government Infrastructure Projects and
for Other Purposes. Section 4 of Republic Act No. 8974 states: Burden of proof in reconveyance cases.
SEC. 4. Guidelines for Expropriation Proceedings. Generally, in civil cases, the burden of proof is on the plaintiff
Whenever it is necessary to acquire real property for to establish his case by a preponderance of evidence. If the
the right-of-way or location for any national
plaintiff claims a right granted or created by law, the same
government infrastructure project through
must be proven by competent evidence. The plaintiff must
expropriation, the appropriate implementing agency
rely on the strength of his own evidence, or evidence which
shall initiate the expropriation proceedings before the
proper court under the following guidelines:
is of greater weight or more convincing than that which is
offered in opposition to it. Hence, parties who have the
(a) Upon the filing of the complaint, and after due burden of proof must produce such quantum of evidence,
notice to the defendant, the implementing agency with plaintiffs having to rely on the strength of their own
shall immediately pay the owner of the property evidence, not on the weakness of the defendants. In an
the amount equivalent to the sum, of (1) 100
action for reconveyance, however, a party seeking it should
percent of the value of the property based on the
establish not merely by a preponderance of evidence but by
current relevant zonal valuation of the Bureau of
Internal Revenue (BIR); and (2) the value of the clear and convincing evidence that the land sought to be
improvements and/or structures as determined reconveyed is his.
under Section 7 hereof; In the case at bar, the respondents failed to dispense their
(b) In provinces, cities, municipalities and other areas burden of proving by clear and convincing evidence that they
where there is no zonal valuation, the BIR is hereby are entitled to the reconveyance of Lot No. 299.
mandated within the period of 60 days from the
Reyes, J., Baltazar Ibot v. Heirs of Francisco Tayco, represented by Flora Tayco,
date of the expropriation case, to come up with a Willy Tayco and Merlyn T. Bulante, G.R. No. 202950, April 6, 2015.
zonal valuation for said area; and
(c) In case the completion of a government
infrastructure project is of utmost urgency and Fresh period rule covers judicial proceedings only.
importance, and there is no existing valuation of
the area concerned, the implementing agency shall The fresh period rule only covers judicial proceedings under
immediately pay the owner of the property its the 1997 Rules of Civil Procedure:
proffered value taking into consideration the
standards prescribed in Section 5 hereof.
The fresh period rule in Neypes declares:
Upon compliance with the guidelines To standardize the appeal periods provided in the Rules
abovementioned, the court shall immediately issue to and to afford litigants fair opportunity to appeal their
the implementing agency an order to take possession cases, the Court deems it practical to allow a fresh
of the property and start the implementation of the period of 15 days within which to file the notice of
project. appeal in the Regional Trial Court, counted from receipt
of the order dismissing a motion for a new trial or
Before the court can issue a Writ of Possession, motion for reconsideration.
the implementing agency shall present to the court a
certificate of availability of funds from the proper Henceforth, this fresh period rule shall also apply
official concerned. to Rule 40 governing appeals from the Municipal Trial
Courts to the Regional Trial Courts; Rule 42 on petitions
In the event that the owner of the property for review from the Regional Trial Courts to the Court
contests the implementing agencys proffered value, of Appeals; Rule 43 on appeals from quasi-judicial
the court shall determine the just compensation to be agencies to the Court of Appeals; and Rule 45 governing
paid the owner within 60 days from the date of filing appeals by certiorari to the Supreme Court. The new
of the expropriation case. When the decision of the rule aims to regiment or make the appeal period
court becomes final and executory, the implementing uniform, to be counted from receipt of the order
agency shall pay the owner the difference between the denying the motion for new trial, motion for
20
APRIL - JUNE 2015
Doctrinal Reminders
Remedial Law (continued) was holding a lagaraw a type of bolo used in the rural areas,
which was stained with blood, and he was restless and uneasy;
reconsideration (whether full or partial) or any final Third, in the morning of the following day, February 29, 2000,
order or resolution. AAAs lifeless body was found with several hack wounds
inflicted on her face, neck and extremities, one hand and one
xxxx
finger were totally severed; Fourth, the post-mortem
As reflected in the above-quoted portion of the examination conducted by Dr. Edu confirmed that AAA died
decision in Neypes, the fresh period rule shall apply from loss of blood due to multiple hack wounds, her
to Rule 40 (appeals from the Municipal Trial Courts to underwear was blood-stained, she had hymenal lacerations
the Regional Trial Courts); Rule 41 (appeals from the and a whitish discharge was found in her vagina; Fifth,
Regional Trial Courts to the Court of Appeals or appellant had the motive to commit the crime against AAA
Supreme Court); Rule 42 (appeals from the Regional considering that it was BBBs son-in-law, Lito Miguel, who
Trial Courts to the Court of Appeals); Rule 43 (appeals
killed appellants father; and Sixth, appellant was evasive
from quasi-judicial agencies to the Court of Appeals);
when being questioned on his knowledge of the identity of
and Rule 45 (appeals by certiorari to the Supreme
his fathers killer and the latters relationship to the family of
Court). Obviously, these Rules cover judicial
proceedings under the 1997 Rules of Civil Procedure.
AAA, and the amicable settlement executed by his mother in
behalf of appellants family.
xxxx
Villarama, Jr., J., People of the Philippines v. Jose Broniola @ Asot, G.R. No.
In this case, the subject appeal, i.e., appeal from a 211027, June 29, 2015.
decision of the HLURB Board of Commissioners to the OP, is
not judicial but administrative in nature; thus, the fresh
period rule in Neypes does not apply.
Brion, J., San Lorenzo Ruiz Builders and Developers Group, Inc. and Oscar
Violago v. Ma. Cristina F. Bayang, G.R. No. 194702, April 20, 2015.
changes brought about by the enactment of Republic Act No. These Rules shall have suppletory application to the
10142 on the aspects of financial rehabilitation, insolvency liquidation of entities expressly excluded from the coverage
and liquidation; of the FRIA under Section 5, Chapter I thereof.
WHEREAS, the Supreme Court, through A.M. No. 12-12-11- SEC. 3. Nature of Proceedings. The proceedings under these
SC dated August 27, 2013, approved the Financial Rules shall be in rem.
Rehabilitation Rules of Procedure (2013), otherwise known
In voluntary liquidation proceedings of both juridical and
as the FR Rules, which incorporated changes pertaining to
individual debtors, jurisdiction over all persons affected by
financial rehabilitation;
the proceedings is acquired upon publication of the
NOW, THEREFORE, acting on the recommendation of the Liquidation Order as provided in these Rules.
Subcommittee on Special Commercial Courts, the Court In involuntary liquidation proceedings of juridical debtors,
resolved to APPROVE the Financial Liquidation and jurisdiction over all persons affected by the proceedings is
Suspension of Payments Rules of Procedure for Insolvent acquired upon publication of the petition or motion under
Debtors (2015), otherwise known as the FLSP Rules. Section 7, Rule 2(B) of these Rules.
The FLSP Rules shall take effect 15 days following its In involuntary liquidation proceedings of individual
publication in the Official Gazette or in two newspapers of debtors, jurisdiction over the person of the debtor is acquired
national circulation. upon service of summons in accordance with Section 15, Rule
April 21, 2015. 3(C) of these Rules; whereas jurisdiction over all other persons
affected by the proceedings is acquired upon publication of
(Sgd.) SERENO, CJ, CARPIO, VELASCO, Jr., LEONARDO-DE the Liquidation Order under Section 2, Rule 4(A) of these
CASTRO, BRION, PERALTA, BERSAMIN, DEL CASTILLO, Rules.
VILLARAMA, Jr., PEREZ, MENDOZA, REYES, PERLAS-BERNABE,
LEONEN, JARDELEZA, JJ. In suspension of payments proceedings, jurisdiction over
all persons affected by the proceedings is acquired upon
publication of the Suspension of Payments Order as provided
FINANCIAL LIQUIDATION AND SUSPENSION OF PAYMENTS in these Rules.
RULES OF PROCEDURE FOR INSOLVENT DEBTORS (2015) The proceedings shall be summary and non-adversarial
Pursuant to Section 6, Chapter I of Republic Act No. 10142, in nature. The following pleadings are prohibited:
otherwise known as the Financial Rehabilitation and (a) motion to dismiss;
Insolvency Act (FRIA) of 2010, the Court hereby adopts and
(b) motion for a bill of particulars;
promulgates the following Rules of Procedure for the
Liquidation of Insolvent Juridical and Individual Debtors, and (c) petition for relief;
Suspension of Payments of Insolvent Individual Debtors: (d) motion for extension;
RULE 1 (e) motion for postponement and other motions of
COVERAGE AND GENERAL PROVISIONS similar intent;
SECTION 1. Title. These Rules shall be known and cited as the (f) reply;
Financial Liquidation and Suspension of Payments Rules of (g) rejoinder;
Procedure for Insolvent Debtors or the FLSP Rules.
(h) intervention; and
SEC. 2. Scope. These Rules shall govern the practice,
pleading, and procedure for the liquidation of insolvent (i) any pleading or motion similar to, or of like effect as,
juridical and individual debtors, and suspension of payments any of the foregoing.
of insolvent individual debtors pursuant to the FRIA. For stated and fully supported compelling reasons, the
court may allow the filing of motions for extension or
They shall similarly govern all further proceedings in
postponement, provided, the same shall be verified and
insolvency cases already pending, except to the extent that,
under oath.
in the opinion of the court, its application would not be
feasible or would work injustice, in which event the Any pleading, motion, or other submission by any
procedures originally applicable shall continue to govern. interested party shall be supported by verified statements
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A.M. No. 15-04-06-SC (continued) (b) Asset is anything of value, which may be either
tangible or intangible. Tangible assets can be current
that the affiant has read the submission and its factual
assets or fixed assets. Current assets may include cash
allegations are true and correct of his personal knowledge or
on hand, money in banks or inventory, while fixed
based on authentic records, and shall contain supporting
assets may include plant, building, property and
annexes, which the submitting party shall attest as faithful
equipment. Intangible assets may include intellectual
reproductions of the originals. An unverified submission shall
property (such as copyrights, patents, and
be considered as not filed. An improperly verified submission
trademarks) and financial assets (such as accounts
may be considered as not filed, at the discretion of the judge.
receivables, subscriptions receivables, and bonds and
Upon motion, the court may order that the originals of the
stocks).
annexes to a submission be produced in court for examination
or comparison by a party to the proceedings. The value of these assets must appear in the
latest audited financial statements immediately
All pleadings or motions shall be filed simultaneously in
preceding the filing of the petition. In case the debtor
three printed and two digitized copies in compact discs, flash
is less than three years in operation, it is sufficient
drives, or other compatible Information and Communications
that the book value is based on the audited financial
Technology (ICT) media, in PDF format.
statement/s for the two years or year immediately
The court may decide matters on the basis of the preceding the filing of the petition, as the case may
pleadings and other documentary evidence, and conduct be.
clarificatory hearings when necessary.
(c) Commencement date shall refer to the date on which
Any order issued by the court under these Rules is the court issues a commencement order in a
immediately executory. Review of any order of the court shall rehabilitation case.
be in accordance with Rule 5 of these Rules. Provided,
(d) Court/s shall refer to the Regional Trial Court/s
however, that the reliefs ordered by the trial or appellate
designated by the Supreme Court as special
courts shall take into account the need for resolution of the
commercial court/s.
proceedings in a just, equitable, and speedy manner.
(e) Insolvency shall refer to the financial incapacity of
SEC. 4. Construction of Rules. These Rules shall be liberally
the debtors to pay their liabilities as they fall due in
construed to promote a timely, fair, transparent, effective,
the ordinary course of business or whenever their
and efficient liquidation and suspension of payments of
liabilities are greater than their assets.
debtors, in accordance with the declared policy of the FRIA.
(f) Liquidation shall refer to the proceedings under
SEC. 5. Definition of Terms. Terms used but not defined
Chapters V, VI(B) and (C), and VII of the FRIA.
herein shall have the same meanings ascribed to them in the
FRIA: (g) Liquidation Order shall refer to the order issued by
the court pursuant to Section 2, Rule 4(A) of these
(a) Administrative expenses shall refer to those
Rules.
reasonable and necessary expenses
(h) Liquidator shall refer to the natural person or juridical
1) incurred in connection with the filing of a petition
entity appointed as such by the court pursuant to
under these Rules, including filing and
these Rules and entrusted with such powers and
professional fees in preparing the petition;
duties as set forth herein; Provided, that if the
2) arising from, or in connection with the liquidator is a juridical entity, it must designate a
proceedings under these Rules; natural person who possesses all the qualifications
3) incurred in the ordinary course of business of and none of the disqualifications as its
the debtor after the commencement date; representative, it being understood that the juridical
entity and the representative are solidarily liable for
4) incurred for the fees of the liquidator/
all obligations and responsibilities of the liquidator.
commissioner and/or of the professionals he
may engage; and (i) Proceedings, unless the term is used in a different
5) those otherwise authorized or mandated under context, shall refer to liquidation proceedings or
the FRIA or such other expenses authorized suspension of payments proceedings, as the case may
under these Rules. be, under these Rules.
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(j) Suspension of Payments Order shall refer to the order SECTION 1. Who May File Petition; Venue; Contents. An
issued by the court pursuant to Section 2, Rule 3(A) insolvent juridical debtor may file a verified petition for
of these Rules. liquidation in the Regional Trial Court which has jurisdiction
(k) Working day shall have the same meaning as business over its principal office as specified in its articles of
day. incorporation or partnership. Where the principal office of
the corporation or partnership as registered with the
SEC. 6. Debtor Spouses as Parties. A married individual Securities and Exchange Commission (SEC) is in Metro Manila,
debtor shall sue or be sued jointly with his or her spouse, the petition must be filed in the Regional Trial Court of the
except as provided by law. city or municipality where the head office is located. The
SEC. 7. Applicability of Rule 5 of the FR Rules. Rule 5 of the petition shall indicate the names of at least three nominees
FR Rules on Cross-Border Insolvency Proceedings is hereby to the position of liquidator and shall include, as minimum
made applicable to liquidation proceedings and, for this attachments, the following:
purpose, is adopted as part of these Rules. (a) a certificate attesting to the holding of a meeting of
SEC. 8. Liability of Individual Debtor, Owner of a Sole the Board of Directors of a stock corporation or the
Board of Trustees of a non-stock corporation, as the
Proprietorship, Partners in a Partnership, or Directors and
Officers. The individual debtor, owner of a sole case may be, called for the purpose and the approval
proprietorship, the partners in a partnership, or the directors during the meeting of a resolution to file the petition,
signed by the secretary of the meeting and at least a
and officers of a corporate debtor shall be liable for double
the value of the property sold, embezzled or disposed of, or majority of the members of the Board present during
double the amount of the transaction involved, whichever is the meeting;
higher, to be recovered for the benefit of the debtor and the (b) a certificate attesting to the holding of a meeting of
creditors, if they, having notice of the commencement of the the stockholders, members or partners comprising
proceedings, or having reason to believe that the proceedings the debtor, as the case may be, called for the purpose
are about to be commenced, or in contemplation thereof, and the approval during the meeting of a resolution
willfully commit the following acts: to file the petition by the stockholders holding at least
two-thirds of the outstanding capital stock of the
(a) dispose or cause to be disposed any property of the
stock corporation, or two-thirds of the members or
debtor other than in the ordinary course of business
partners in case of a non-stock corporation,
or authorize or approve any transaction in fraud of
association or partnership, as the case may be, signed
creditors or in a manner grossly disadvantageous to
by the chairman and the secretary of the meeting;
the debtor and/or creditors; or
(c) a schedule of debts and liabilities, which lists all the
(b) conceal, authorize or approve the concealment from creditors of the debtor, indicating the name and last
the creditors, or embezzle or misappropriate, any address of record of each creditor; the amount of
property of the debtor. each claim as to principal, interest, or penalties due
The court shall determine the extent of the liability of an 30 days prior to the date of filing; the nature of the
owner, partner, director or officer under this section. In this claim; and any pledge, lien, mortgage, judgment or
connection, in case of partnerships and corporations, the other security given for the payment thereof;
court shall consider the amount of the shareholding or (d) an inventory of assets, which must list with
partnership or equity interest of such partner, director or reasonable particularity all the assets of the debtor,
officer, the degree of control of such partner, director or whether in the possession of the debtor or third
officer over the debtor, and the extent of the involvement of parties, stating the nature of each asset; the location
such partner, director or debtor in the actual management and condition thereof; the book value and market
of the operations of the debtor. value of the asset, attaching the corresponding
RULE 2 certified copy of the certificate of title thereof in
LIQUIDATION OF INSOLVENT JURIDICAL DEBTORS case of real property, or the evidence of title or
ownership in case of movable property; the
A. Voluntary Liquidation encumbrances, liens or claims thereon, if any, and
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A.M. No. 15-04-06-SC (continued)
principal office of the debtor as specified in its articles of
the identities and addresses of the lien holders and incorporation or partnership. Where the principal office of
claimants; the corporation or partnership as registered with the SEC is
(e) a schedule of current income and expenditures in Metro Manila, the petition must be filed in the Regional
within three months prior to the filing of the petition; Trial Court of the city or municipality where the head office
is located. The petition must be verified by each of the
(f) a list of all properties acquired by the debtor in the petitioners or, if the petitioners or any of them is a
immediately preceding two years; corporation, partnership, or association, then by any of their
(g) a list of all properties sold, disposed of, or donated duly authorized officer/s or representative/s. The petition
by the debtor in the immediately preceding two shall indicate the names of at least three nominees to the
years; position of liquidator, and must show that:
(h) a schedule of the debtors executory contracts and (a) there is no genuine issue of fact or law on the claim/s
unexpired leases; of the petitioner/s, and that the due and demandable
payments thereon have not been made for at least
(i) the audited financial statements of the debtor for
180 days or that the debtor has failed generally to
the immediately preceding three years; and
meet its liabilities as they fall due; and
(j) the income tax return of the debtor for the
(b) there is no substantial likelihood that the debtor may
immediately preceding year.
be rehabilitated.
All attachments to the petition shall be deemed part and
The petition shall also include information to the best
parcel of the verified petition.
knowledge of the petitioners on:
S EC . 2. Filing of a Motion to Convert Rehabilitation
(a) the schedule of debts and liabilities, including a list
Proceedings into Liquidation Proceedings. When there is
of its known creditors with their addresses, amounts
a pending court-supervised or pre-negotiated rehabilitation
of claims and collaterals, or securities, if any;
proceeding, the debtor may file a motion in the same court
where the rehabilitation proceedings are pending to convert (b) the debtors assets, including receivables and claims
the rehabilitation proceedings into liquidation proceedings. against third parties; and
The motion shall be verified and shall contain or set forth the
same matters mentioned in the preceding section and the (c) the audited financial statements of the debtor for
grounds relied upon as provided under the FRIA. the immediately preceding three years.
SEC. 3. Action on the Petition or Motion. If the court finds SEC. 5. Bond. The petitioners shall post a bond in an amount
the petition or motion, as the case may be, to be sufficient in at least equal in value to the aggregate of their claims,
form and substance, it shall issue the Liquidation Order conditioned upon payment to the debtor of all expenses and
mentioned in Section 2, Rule 4(A) of these Rules. Otherwise, damages it may incur by reason of the filing of the petition if
the court shall dismiss the petition or deny the motion. The the same is later denied or dismissed by the court, or
court may take any action necessary for the foregoing withdrawn by the petitioners without the consent of the
purposes but it shall have a maximum period of 10 working debtor.
days from the date of the filing of the petition or motion to S EC . 6. Filing of a Motion to Convert Rehabilitation
issue the Liquidation Order, dismiss the petition, or deny the Proceedings into Liquidation Proceedings. When there is
motion. a pending court-supervised or pre-negotiated rehabilitation
B. Involuntary Liquidation proceedings, three or more creditors the aggregate of whose
claims is at least either One Million Pesos (P1 million) or at
SEC. 4. Who May File Petition; Venue; Contents. Three or least 25 percent of the subscribed capital, or partners
more creditors the aggregate of whose claims is at least either contributions, of the debtor, whichever is higher, may file a
One Million Pesos (P1 million) or at least 25 percent of the motion in the same court where the rehabilitation
subscribed capital stock or partners contributions of the proceedings are pending to convert the rehabilitation
insolvent juridical debtor, whichever is higher, may file a proceedings into liquidation proceedings. The motion shall
petition for the liquidation of an insolvent juridical debtor in be verified and shall contain or set forth the same matters
the Regional Trial Court which has jurisdiction over the mentioned in Section 4 of this Rule.
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SEC. 7. Action on the Petition or Motion. If the court finds of payments in the court having jurisdiction over the province
the petition or motion sufficient in form and substance, it or city where he has resided for six months prior to the filing
shall issue an order: of the petition.
(a) directing the publication of the petition or motion in The petition shall indicate the names of at least three
a newspaper of general circulation in the Philippines nominees to the position of commissioner and shall include,
once a week for two consecutive weeks; as minimum attachments, the following:
(b) directing the debtor, all known creditors, and any (a) a schedule of debts and liabilities, including a list of
other interested party, to file their comment on the creditors with their addresses, amount of claims and
petition or motion within 15 days from notice of the collaterals, if any;
order; and
(b) an inventory of all the debtors assets, including
(c) directing that a copy of the petition or motion be receivables and claims against third parties;
served on the debtor and on all known creditors,
(c) a schedule of current income and expenditures
unless they exceed 20 in number, in which case,
within three months prior to the filing of the petition;
service shall be made on at least the first 20 largest
known creditors of the debtor in terms of credits (d) the income tax return of the debtor for the
held. However, if there are more than 20 known immediately preceding year;
creditors (who are not petitioners) and one or more (e) a list of all properties acquired by the debtor in the
of them acquired their credit/s within the six month immediately preceding two years;
period immediately preceding the filing of the
petition, the number of creditors to be served copies (f) a list of all properties sold, disposed of, or donated
of the petition shall be increased by the same by the debtor in the immediately preceding two
number. years;
SEC. 8. Hearing on the Petition or Motion. The court shall (g) a schedule of the debtors executory contracts and
conduct a hearing if the petition or motion, as well as the unexpired leases; and
comments thereto raise issues of facts. (h) a proposed agreement with the creditors.
On the basis of the pleadings and the hearing conducted, All attachments to the petition shall be deemed part and
if any, the court shall determine whether the evidence is parcel of the verified petition.
sufficient to warrant the issuance of a Liquidation Order
mentioned in Section 2, Rule 4(A) of these Rules. Otherwise, SEC. 2. Action on the Petition. If the Court finds the petition
the court shall dismiss the petition or deny the motion. sufficient in form and substance, it shall, within five working
days from the filing of the petition, issue a Suspension of
SEC. 9. Conversion by the Court of Rehabilitation Proceedings Payments Order:
into Liquidation Proceedings. After notice and hearing, the
court where rehabilitation proceedings are pending may also (a) prohibiting creditors from suing or instituting
order the conversion of rehabilitation proceedings into proceedings for collection against the debtor, except:
liquidation proceedings in those cases authorized by law, or (i) creditors having claims for personal labor,
at any other time upon the recommendation of the maintenance, expense of last illness and funeral of
rehabilitation receiver or management committee that the the wife or children of the debtor incurred within 60
rehabilitation of the debtor is no longer feasible. In such case, days immediately prior to the filing of the petition;
the FLSP Rules shall apply. and (ii) secured creditors;
(b) calling a meeting of all the creditors named in the
RULE 3
schedule of debts and liabilities at a time not less
INSOLVENCY OF INDIVIDUAL DEBTORS
than 15 days nor more than 40 days from the date of
A. Suspension of Payments such order and designating the date, time, and place
of the meeting;
SECTION 1. Who May File Petition; Venue; Contents. An
individual debtor who has assets that exceed his liabilities (c) directing such creditors to present written evidence
but foresees the impossibility of paying his debts when they of their claims before the scheduled creditors
respectively fall due may file a verified petition for suspension meeting;
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A.M. No. 15-04-06-SC (continued)
(e) After the announcement of the results, all the the creditors to approve the proposed agreement, or any
protests against the majority vote shall be drawn amendment thereto, made during the creditors meeting is
up, and the commissioner, the debtor and all upheld by the court, or when no opposition or objection to
creditors who took part in the voting shall sign said decision has been presented, the court shall issue an
the affirmed propositions. order confirming the approval of the proposed agreement,
The commissioner shall prepare a report of the or any amendment thereto, and directing all parties bound
proceedings that shall include the voting results, the affirmed thereby to comply with its terms.
propositions mentioned in paragraph (e) above, if any, and SEC. 10. Residual Power of the Court. The court, upon
submit the report to the court not later than three days after motion of any affected party, may issue any order which may
the last creditors meeting. be necessary or proper to enforce the agreement. If the
SEC. 7. Rejection of the Debtors Proposal and Dismissal of debtor fails, wholly or in part, to perform his obligations under
the Petition. If no creditors meeting with the required the agreement, or to comply with any order of the court, the
quorum is held within 90 days from the date of the last court, upon motion of any creditor, shall declare the
publication mentioned in Section 2(d) of this Rule, or, there agreement terminated, and all the rights which the creditors
being such meeting or meetings, the debtors proposal is not had against the debtor before the agreement shall revest in
approved within the said period, the same shall be deemed them.
rejected. In such a case, the court, within five days from the B. Voluntary Liquidation
lapse of the 90-day period, or from receiving the report of
the commissioner mentioned in the preceding section that SEC. 11. Who May File Petition; Venue; Contents. An
the debtors proposal has been rejected, shall issue an order individual debtor whose liabilities exceed his assets and
dismissing the petition. whose debts exceed Five Hundred Thousand Pesos
(P500,000) may file a verified petition for liquidation in the
SEC. 8. Objections to the Approval of the Debtors Proposal court having jurisdiction over the province or city where he
or Any Amendment Thereto. If the proposal of the debtor, has resided for six months prior to the filing of the petition.
or any amendment thereto, made during the creditors
meeting, is approved by the majority of creditors in The petition shall indicate the names of at least three
accordance with Section 6 of this Rule, any creditor who nominees to the position of liquidator and shall include, as
attended the meeting and who dissented from and protested minimum attachments, the following:
against the vote of the majority may file an objection with (a) a schedule of debts and liabilities, including a list of
the court within 10 days from the date of the meeting on any creditors with their addresses, amount of claims and
of the following grounds: collaterals, if any;
(a) defects in the call for the meeting, in the holding (b) an inventory of all the debtors assets, including
thereof, and in the deliberations had thereat which receivables and claims against third parties;
prejudice the rights of the creditors;
(c) a schedule of current income and expenditures
(b) fraudulent connivance between one or more within three months prior to the filing of the petition;
creditors and the individual debtor to vote in favor
of the proposed agreement, or any amendment (d) the income tax return of the debtor for the
thereto; or immediately preceding year;
(c) fraudulent conveyance of claims for the purpose of (e) a list of all properties acquired by the debtor in the
obtaining a majority. immediately preceding two years;
The court shall hear and pass upon such objection in a (f) a list of all properties sold, disposed of, or donated
summary manner, within 30 days from the filing of the by the debtor in the immediately preceding two
objection. If the decision of the majority of creditors to years; and
approve the debtors proposal, or any amendment thereto, (g) a schedule of the debtors executor contracts and
is annulled by the court, the petition shall be dismissed. unexpired leases.
SEC. 9. Effects of the Approval of the Debtors Proposal or All attachments to the petition shall be deemed part and
Any Amendment Thereto. If the decision of the majority of parcel of the verified petition.
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A.M. No. 15-04-06-SC (continued) (i) that the debtor has made any assignment, gift, sale,
conveyance or transfer of his estate, property, rights
SEC. 3. Action on the Petition. If the court finds the petition
or credits with intent to hinder or delay the
sufficient in form and substance, it shall issue the Liquidation
liquidation or defraud his creditors;
Order mentioned in Section 2, Rule 4(A) of these Rules.
Otherwise, the court shall dismiss the petition. The court may (j) that the debtor has, in contemplation of insolvency,
take any action necessary for the foregoing purposes but it made any payment, gift, grant, sale, conveyance or
shall have a maximum period of 10 working days from the transfer of his estate, property, rights or credits;
date of the filing of the petition to issue the Liquidation Order (k) that being a merchant or tradesman, the debtor has
or dismiss the petition. generally defaulted in the payment of his current
C. Involuntary Liquidation obligations for a period of 30 days;
SEC. 13. Who May File Petition; Venue; Contents. Any (l) that for a period of 30 days, the debtor has failed,
creditor or creditors with a claim of, or the aggregate of whose after demand, to pay any moneys deposited with him
claims is, at least Five Hundred Thousand Pesos (P500,000) or received by him in a fiduciary capacity; or
may file a verified petition for liquidation of an individual (m) that an execution having been issued against him on
debtor with the court of the province or city where the debtor final judgment for money, the debtor shall have been
resides. found to be without sufficient property subject to
The petition shall state the particulars of at least one of execution to satisfy the judgment.
the following acts of insolvency of the debtor: SEC. 14. Bond for Filing of Petition. The petitioner/s shall
(a) that the debtor is about to depart or has departed post a bond in an amount at least equal in value to the
from the Philippines, with intent to defraud his aggregate of his/their claims, conditioned upon payment to
creditors; the debtor of all expenses and damages the debtor may incur
by reason of the filing of the petition if the petition is later
(b) that being absent from the Philippines, with intent dismissed or withdrawn by the petitioner/s without the
to defraud his creditors, he remains absent; consent of the debtor, or if it is finally determined that the
(c) that the debtor conceals himself to avoid the service debtor is not insolvent.
of legal process for the purpose of hindering or SEC. 15. Order for Debtor to Show Cause. If the petition is
delaying the liquidation or of defrauding his creditors; sufficient in form and substance, the court, within five
(d) that the debtor conceals, or is removing, any of his working days from the filing of the petition, shall issue
property to avoid its being attached or taken on legal summons to the debtor requiring him, by way of comment
process; on or opposition to the petition within an inextendible period
(e) that the debtor has allowed his property to remain of 15 days from service of the summons, to show cause why
under attachment or legal process for three days for he should not be declared insolvent.
the purpose of hindering or delaying the liquidation SEC. 16. Order for Debtor to Refrain from Paying Debts or
or of defrauding his creditors; Transferring Property. Upon motion of any creditor and
(f) that the debtor has confessed or offered to allow after hearing, the court may, upon good cause shown, issue
judgment in favor of any creditor for the purpose of an order prohibiting the debtor from paying any of his debts,
hindering or delaying the liquidation or of defrauding or from transferring any property belonging to him, until the
any creditor; court issues a Liquidation Order or dismisses the petition,
whichever is earlier. However, nothing contained herein shall
(g) that the debtor has wilfully allowed judgment to be affect or impair the rights of a secured creditor to enforce his
taken against him by default for the purpose of lien in accordance with its terms.
hindering or delaying the liquidation or of defrauding
his creditors; SEC. 17. Hearing on the Petition. After the issues are joined,
the court shall set the petition for hearing in order to
(h) that the debtor has suffered or procured his property
determine whether the evidence is sufficient to warrant the
to be taken on legal process with intent to give a
issuance of a Liquidation Order.
preference to one or more of his creditors and
thereby hinder or delay the liquidation or defraud SEC. 18. Issuance of the Liquidation Order. If the debtor on
any one of his creditors; whom summons is properly served fails to file a comment
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VOLUME XVII ISSUE NO. 66
on or opposition to the petition within the period given by return to the court within two days every time he takes
the court, or if the evidence given during the hearing property of the debtor pursuant to the order, and as soon as
mentioned in the preceding section warrant it, the court shall he has taken sufficient amount of the debtors property to
issue the Liquidation Order mentioned in Section 2, Rule 4(A) cover the amount provided for in the order, he shall make a
of these Rules. return to the court of an inventory of all the property taken
within three days from the time of the last taking. Upon
SEC. 19. Absent Debtor. When the debtor resides out of motion and for good cause shown, the time for making an
the Philippines, or when his residence is unknown, or he has inventory, or any return may be extended. The sheriff shall
departed from the Philippines with intent to defraud his also prepare a schedule of the names and residences of the
creditors, or cannot, after due diligence, be found therein, creditors, and the amount due each, from the books of the
or conceals himself to avoid service of summons, or any other debtor, or from such other papers or data of the individual
related preliminary process or orders, then the court, upon debtor available as may come to his possession, and shall file
motion of the petitioning creditors duly supported by an such schedule or list of creditors and inventory with the clerk
affidavit or affidavit/s narrating and substantiating any of the of court.
foregoing allegations and a bond approved by the court in
SEC. 21. All Property Taken to be held for All Creditors; Appeal
double the amount of the aggregate sum of their claims
Bonds; Exemptions to Sureties. If after the taking mentioned
against the debtor, shall issue an order directing:
in the preceding section, there still remains property of the
(a) the sheriff of the province or city in which the matter debtor not exempt from execution and not subject of a
is pending to take into custody, within 30 days from secured creditors lien, any other creditor or creditors, upon
the date of the order, a sufficient amount of property giving bond approved by the court in double the amount of
of the debtor, not exempt from execution and not his/their claim/s, singly or jointly, shall be entitled to similar
subject of a secured creditors lien, to satisfy the orders and to like action, by the sheriff, until all claims are
claims of the petitioning creditors and the costs of provided for, and as long as the debtor has sufficient property.
the proceedings; All such property taken into custody by the sheriff shall be
held by him for the benefit of all creditors whose claims shall
(b) the publication of the summons and the said order
be duly established in the proceedings.
in a newspaper of general circulation in the
Philippines once a week for two consecutive weeks; SEC. 22. Bonds for Custody of Property and Appeal. The
(c) the mailing of the petition, the summons and the bonds provided for in Sections 19 and 21 of this Rule to
order to the debtors last known address; procure the order for custody of the property and effects of
the debtor shall be conditioned upon payment to the debtor,
(d) the sending of an electronic mail to the debtors last his heirs, administrators, executors or assigns of all damages
known electronic mail address, if any, attaching he may sustain by reason of the order for which the bonds
thereto copies of the petition, the summons and the were procured if, after hearing of the petition, the court shall
order; and find in favor of the debtor and the petition is dismissed. Such
(e) the posting of copies of the petition and the damages, which shall not exceed the amount of the bond,
summons on at least three conspicuous places on shall be determined and fixed by the court. If either the
any real property owned by the debtor. petitioners or the debtor shall appeal from the decision of
the court, upon final hearing of the petition, the appellant
If the debtor fails to file a comment, opposition or other shall be required to give bond to the successful party in a
responsive pleading to the petition or order within 15 days sum double the amount of the value of the property in
after the last publication of the summons and order, or within controversy, and for the costs of the proceedings.
any other period given by the court, then the court shall issue
a Liquidation Order mentioned in Section 2, Rule 4(A) of these Any person interested in the estate may object to the
Rules. sufficiency of the surety or sureties on such bond or bonds.
The court shall direct the surety or sureties to justify their
SEC. 20. Duty of Sheriff. Upon receiving the order for him to sufficiency. If the court finds that the sureties or any of them
take into custody property of the debtor, the sheriff shall take are insufficient, the court shall issue an order dismissing the
custody of such property of the debtor not exempt from petition or vacating the order to take into the custody of the
execution and not subject of any secured creditors lien sheriff the property of the individual debtor, or denying the
sufficient to cover the amount provided for. He shall make a appeal, as the case may be.
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Resolutions
A.M. No. 15-04-06-SC (continued) (h) authorize the payment of administrative expenses
SEC. 23. Sale of Debtors Property under Sheriffs Custody. as they become due;
If the property of the debtor taken into custody by the sheriff (i) state that the debtor and creditors who are not
under Sections 19, 20 and 21 of this Rule is perishable, costly petitioner/s may submit the names of other
to maintain, subject to or in anger of rapid obsolescence, nominees to the position of liquidator; and
depreciation, or diminution in value, or when the interests
of the debtor and the creditors will be better served by the (j) set the case for hearing for the election and
sale thereof, the court, upon motion of any creditor, duly appointment of the liquidator, which date shall not
supported by affidavit/s narrating facts supporting the be less than 30 days nor more than 45 days from the
application and a bond equivalent to the estimated value of date of the last publication.
the property approved by the court, shall issue an order SEC. 3. Effects of the Liquidation Order. Upon the issuance
directing: (a) the sale of the property in the same manner as of the Liquidation Order:
property is sold under execution, the proceeds to be
(a) the juridical debtor shall be deemed dissolved and
deposited in the court to abide by the result of the
its corporate or juridical existence terminated;
proceedings; and (b) the publication of the order once a week
for two consecutive weeks in a newspaper of general (b) legal title to and control of all the assets of the debtor,
circulation in the city or province where the court exercises except those that may be exempt from execution,
jurisdiction. shall be deemed vested in the liquidator or, pending
his election or appointment, with the court;
RULE 4
PROVISIONS COMMON TO LIQUIDATION IN INSOLVENCY (c) all contracts of the debtor shall be deemed
OF INDIVIDUAL AND JURIDICAL DEBTORS terminated and/or breached, unless the liquidator,
within 90 days from the time he takes his oath of
SECTION 1. Use of Term Debtor. The term debtor used in this office, declares otherwise and the contract counter-
Rule shall refer to an individual debtor and/or a juridical party agrees;
debtor whenever appropriate.
(d) no separate action for the collection of an unsecured
A. The Liquidation Order claim shall be allowed. Actions already pending will
SEC. 2. Liquidation Order. The Liquidation Order shall: be transferred to the liquidator for him to accept and
settle or contest. If the liquidator contests or disputes
(a) declare the debtor insolvent;
the claim, the court shall allow, hear, and resolve such
(b) order the liquidation of the debtor and, in the case contest, except when the case is already on appeal.
of a juridical debtor, declare it as dissolved; In such a case, the suit may proceed to judgment,
(c) order the sheriff to take possession and control of and any final and executory judgment therein for a
all the property of the debtor, except those that may claim against the debtor shall be filed and allowed in
be exempt from execution; court; and
(d) order the publication of the Liquidation Order, (e) no foreclosure proceeding shall be allowed for a
together with the petition, or motion to convert the period of 180 days from the date of the order.
rehabilitation proceedings into liquidation B. Secured Creditors
proceedings, if any, in a newspaper of general
circulation in the Philippines once a week for two SEC. 4. Rights of Secured Creditors. The Liquidation Order
consecutive weeks; shall not affect the right of a secured creditor to enforce his
lien in accordance with the applicable contract or law, unless
(e) direct payments of any claims and conveyance of any he waives his right.
property due the debtor to the liquidator;
SEC. 5. Duty of Secured Creditors. At any time prior to the
(f) prohibit payments and the transfer of any property election of the liquidator, a secured creditor shall manifest in
by the debtor; writing to the court whether he is:
(g) direct all creditors to file their claims with the (a) waiving his right under the security or lien in
liquidator not later than five days from the time the accordance with Section 6 of this Rule; or
liquidator takes his oath of office, furnishing a copy
thereof to the court; (b) maintaining his right under the security or lien.
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VOLUME XVII ISSUE NO. 66
If a secured creditor fails to file such a manifestation, he (c) the secured creditor may enforce the lien or foreclose
shall be deemed to have opted to maintain his right under on the property pursuant to applicable laws.
the security or lien.
C. The Liquidator
SEC. 6. Waiver of Security or Lien. A secured creditor shall
not be deemed to have waived his right under the security SEC. 8. Qualifications of the Liquidator. The liquidator shall:
or lien unless the waiver is made in a public document, in
(a) be a citizen of the Philippines or a resident thereof
unequivocal language, and with full knowledge of the
for six months immediately preceding his
consequences of his action. If a secured creditor waives his
nomination;
right, he shall be entitled to participate in the liquidation
proceedings as an unsecured creditor. (b) be of good moral character and with acknowledged
integrity, impartiality and independence;
SEC. 7. When a Secured Creditor Maintains His Security or
Lien. If a secured creditor elects to enforce or maintain his (c) have the requisite knowledge of insolvency and other
right under the security or lien, at his option: relevant commercial laws, rules and procedures, as
well as the relevant training and/or experience that
(a) the value of the property may be fixed in a manner
may be necessary to enable him to properly discharge
agreed upon by the creditor and the liquidator, and
the duties and obligations of a liquidator; and
approved by the court.
(d) have no conflict of interest: Provided, that such
When the value of the property is less than the claim
it secures, the liquidator may convey the property conflict of interest may be waived, expressly or
to the secured creditor and the latter will be admitted impliedly, by a party who may be prejudiced thereby.
in the liquidation proceedings as an unsecured An individual shall be deemed to have a conflict of interest
creditor for the balance. If the value of the property if he is so situated as to be materially influenced in the exercise
exceeds the claim secured, the liquidator may convey of his judgment for or against any party to the proceedings.
the property to the secured creditor and waive the Without limiting the generality of the foregoing, an individual
debtors right of redemption upon receiving the shall be deemed to have a conflict of interest if:
excess from the creditor. In any case, any other
creditor or interested party may, upon a prima facie (a) he is a creditor, owner, partner or stockholder of the
showing that the valuation is too low, contest the debtor;
valuation and propose another mode by which to (b) he is a creditor, owner, partner or stockholder of a
dispose of the property, or to otherwise convert it creditor of the debtor;
to cash or its equivalent, to ensure that the true
maximum value of the property under the (c) he is engaged in a line of business which competes
circumstances is obtained. A dissenting creditor or with that of the debtor;
any other creditor or interested party may also offer
(d) he is, or was, within five years from the filing of the
to purchase the property at the price it is valued by
petition or motion for conversion, a director, officer,
the secured creditor and the liquidator, as approved
owner, partner or employee of the debtor or any of
by the court. At all times, it shall be the duty of the
the creditors, or acted as legal counsel or auditor or
court to ensure that the property is valued at its
maximum under the circumstances. In case there is accountant of the debtor or any of the creditors;
conflict on the valuation of the property, the court (e) he is, or was, within two years from the filing of the
may appoint an independent third party appraiser petition or motion for conversion, an underwriter of
to assist in determining the proper valuation of the the outstanding securities of the debtor;
property;
(f) he is related by consanguinity or affinity within the
(b) the liquidator may sell the property and satisfy the fourth civil degree to any individual creditor, owner
secured creditors entire claim from the proceeds of of a sole proprietorship-debtor, partner in a
the sale. The sale shall be made under such terms partnership-debtor or stockholder, director, officer,
and conditions as the liquidator and the secured employee or underwriter of a corporate-debtor;
creditor may agree upon, as approved by the court,
provided, that the costs of the sale, if any, shall be (g) he has any other direct or indirect material interest
for the account of the secured creditor; or in the debtor or any of the creditors; or
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A.M. No. 15-04-06-SC (continued) hearing for the election of the liquidator. Any person
appointed by the court to administer the debtor as a
(h) he was the receiver or member of the management
rehabilitation receiver prior to the commencement of the
committee, the counsel or an employee of either,
liquidation may subsequently be appointed as its liquidator.
when there is a showing that the financial distress of
the debtor was not arrested or its fiscal condition SEC. 11. Oath and Bond of the Liquidator. Prior to assuming
deteriorated and resulted in its liquidation by reason his office, the liquidator shall take an oath and file a bond, in
of his lack of diligence or foresight. such amount to be fixed by the court, conditioned upon the
proper and faithful discharge of his powers, duties and
A nominee or an elected or appointed liquidator and their responsibilities.
personnel shall immediately disclose to the court any ground
that may give rise to an actual or potential conflict of interest, SEC. 12. Powers, Duties and Responsibilities of the Liquidator.
regardless of his personal assessment of its sufficiency, as soon The liquidator shall be deemed an officer of the court with
as he becomes aware of it. the principal duty of preserving and maximizing the value
and recovering the assets of the debtor, with the end in view
If the liquidator is a juridical entity, it must designate a of liquidating them and discharging to the extent possible all
natural person who possesses all the qualifications and none the claims against the debtor. The powers, duties and
of the disqualifications as its representative, it being responsibilities of the liquidator shall include, but not be
understood that the juridical entity and the representative limited to, the following:
are solidarily liable for all obligations and responsibilities of
the liquidator. (a) to sue and recover all the assets, debts and claims,
belonging or due to the debtor;
SEC. 9. Election of Liquidator. The creditors entitled to vote
will elect the liquidator in open court. To constitute a quorum (b) to take possession of all the property of the debtor,
for the election of the liquidator, creditors representing or except property exempt by law from execution;
holding at least a majority of the total claims entitled to vote (c) to sell, with the approval of the court, any property
must be present either in person or by proxy. Only creditors of the debtor under his possession or control;
who were included in the schedule of debts and liabilities or
registry of claims, or have filed their claims within the period (d) to redeem all mortgages and pledges, and satisfy any
set by the court, and whose claims are not barred by the judgment which may constitute an encumbrance on
statute of limitations, are entitled to vote. A secured creditor any property sold by him;
shall not be entitled to vote, unless: (a) he waives his right (e) to settle all accounts between the debtor and his
under the security or lien; and (b) has the value of the creditors, subject to the approval of the court;
property subject of his security or lien fixed and approved by
the court, and is admitted for the balance of his claim. The (f) to recover any property, or its value, fraudulently
nominee receiving the highest number of votes cast in terms conveyed by the debtor;
of the amount of claim held or represented, and who is (g) to recommend to the court the creation of a
qualified pursuant to Section 8 of this Rule, shall be appointed creditors committee which will assist him in the
as the liquidator. discharge of his functions and which shall be vested
SEC. 10. Court-Appointed Liquidator. The court may appoint with powers as the court deems just, reasonable and
the liquidator if: necessary; and
(a) on the date set for the election of the liquidator, there (h) upon approval of the court, to engage the services
is no quorum; of persons with specialized skills or training as may
be necessary and reasonable to assist him in the
(b) the creditors who attend either fail or refuse to elect discharge of his duties. Such persons or professionals
a liquidator; shall be deemed employees or independent
(c) after being elected, the liquidator fails to qualify; or contractors of the liquidator and shall possess the
same qualifications as the liquidator.
(d) a vacancy occurs for any reason whatsoever.
In addition to the rights and duties of a rehabilitation
In any of these cases, the court, upon motion or motu receiver under Section 31, Chapter II (C) of the FRIA, insofar
proprio, and for good cause shown, may set another date or as they are applicable to liquidation proceedings, the
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VOLUME XVII ISSUE NO. 66
liquidator, shall have the right and duty to take all reasonable liquidator will file a final accounting with the court, with proof
steps to manage and dispose of the debtors assets with a of notice to all creditors. The accounting will be set for
view towards maximizing the proceeds therefrom, to pay hearing. If the court finds the same in order, the court will
creditors and stockholders, and to terminate the debtors discharge the liquidator.
legal existence.
SEC. 17. Registry of Claims. Within 20 days from his
SEC. 13. Removal of the Liquidator. The liquidator may be assumption into office, the liquidator shall submit to the court
removed at any time by the court either motu proprio or upon a preliminary registry of claims of secured and unsecured
motion by the debtor or any creditor or creditors on any of creditors indicating, among others, the amount and nature
the following grounds: of each claim, the documentary or other basis for each claim,
and a description of the nature and location of every security
(a) he did not actually receive the highest number of
or lien, if any. Secured creditors who have waived their rights
votes during the election for liquidator;
under their security or lien, or have fixed the value of the
(b) incompetence, gross negligence, failure to perform property subject of their security or lien by agreement with
or exercise the proper degree of care in the the liquidator and are admitted as creditors for the balance,
performance of his duties and powers; shall be considered as unsecured creditors. The liquidator
shall make the registry available for public inspection, give
(c) lack of a particular or specialized competency notice to all the creditors and other interested parties that
required by the specific case; the registry is available for inspection and copying, and
(d) illegal acts or conduct in the performance of his publish said notice in a newspaper of general circulation in
duties and powers; the province or city where the debtors principal office is
located.
(e) lack of any of the qualifications stated under Section
8 of this Rule or presence of any disqualification; D. Determination of Claims
(f) conflict of interest, unless, waived, expressly or SEC. 18. Right of Set-Off. If the debtor and creditor are
impliedly, by a party who may be prejudiced thereby; mutually debtor and creditor of each other, one debt shall
be set off against the other and only the balance, if any, shall
(g) partiality or lack of independence; or be allowed in the liquidation proceedings.
(h) any other ground analogous to the foregoing. SEC. 19. Opposition or Challenge to Claims. Within 30 days
from the expiration of the period for the filing of claims, a
SEC. 14. Compensation of the Liquidator. The liquidator and
creditor, debtor, or other interested party may submit to the
the persons engaged or employed by him to assist in the
court an opposition or challenge to any claim or claims,
discharge of his powers and duties shall be entitled to such
serving a certified copy on the liquidator and the creditor
reasonable compensation as may be determined by the court,
holding the challenged claim. Upon the expiration of the
after consultation with the creditors.
period, the liquidator shall submit to the court the registry
SEC. 15. Reporting Requirements. The liquidator shall make of claims containing the undisputed claims that have not been
and keep a record of all property received and all subject to challenge. Such claims shall become final upon the
disbursements made by him or under his authority as filing of the register and may be subsequently set aside only
liquidator. He shall render a quarterly report thereof to the on grounds of fraud, accident, mistake or excusable neglect.
court, which report shall be made available to all interested
SEC. 20. Submission of Disputed Claims to the Court. The
parties. The liquidator shall also submit such reports as may
liquidator shall resolve disputed claims and submit his findings
be required by the court from time to time as well as a final
thereon to the court for final approval. The liquidator may
report at the end of the liquidation proceedings.
disallow claims, subject to final approval of the court.
SEC. 16. Discharge of Liquidator. Upon the filing of his final
E. Avoidance Proceedings
report, and in preparation for the final settlement of all the
claims against the debtor, the liquidator will notify all the SEC. 21. Rescission or Nullity of Certain Transactions. Any
creditors, either by publication in a newspaper of general transaction occurring prior to the issuance of the Liquidation
circulation or such other mode as the court may direct or Order or, in the case of conversion of rehabilitation
allow, that he will apply with the court for the settlement of proceedings to liquidation proceedings, prior to the
his account and his discharge from liability as liquidator. The commencement date, entered into by the debtor or involving
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A.M. No. 15-04-06-SC (continued) assets and payment of the claims. The Liquidation Plan shall
make provisions for, among others, disputed claims and any
its assets, may be rescinded or declared null and void on the action for rescission or nullity of certain transactions.
ground that the same was executed with intent to defraud a
SEC. 24. Exempt Property to be Set Apart. Upon motion,
creditor or creditors or constitutes an undue preference of
and after notice and hearing, the court shall set apart
creditors. The presumptions set forth in Section 58, Chapter
property of the individual debtor exempt from execution. The
II of the FRIA shall apply.
motion shall be heard and granted only after it is shown that
SEC. 22. Actions for Rescission or Nullity. the clerk of court has posted or caused notice of the motion
and hearing in at least three public places in the province or
(a) The liquidator or, with his conformity, a creditor, may city where the court exercises jurisdiction at least 10 days
initiate and prosecute any action to rescind, or prior to the time of such hearing, which notice shall set forth
declare null and void, any transaction described in the name of the debtor, and the time and place appointed
the immediately preceding paragraph. If the for the hearing of such motion, and shall briefly indicate the
liquidator does not consent to the filing or homestead sought to be exempted or the property sought
prosecution of such action, any creditor may seek to be set aside.
leave of the court to commence and prosecute said
action. SEC. 25. Concurrence and Preference of Credits. The
Liquidation Plan and its implementation shall ensure that the
The court shall have five working days to act on the
concurrence and preference of credits as enumerated in the
motion for leave to commence or prosecute an
Civil Code of the Philippines, and other relevant laws, shall
action.
be observed, unless a preferred creditor voluntarily waives
(b) If leave of court is granted under subsection (a) his preferred right. For purposes of this Rule, credits for
hereof, the liquidator shall assign and transfer to the services rendered by employees or laborers to the debtor
creditor all rights, title and interest in the chose in shall enjoy first preference under Article 2244 of the Civil
action or subject matter of the proceeding, including Code, unless the claims constitute legal liens under Articles
any document in support thereof. 2241 and 2242 thereof.
(c) Any benefit derived from a proceeding taken SEC. 26. Sale of Assets in Liquidation. With the approval of
pursuant to subsection (a) hereof shall belong the court, the liquidator may sell, transfer or otherwise
exclusively to the creditor instituting the proceeding dispose of the unencumbered assets of the debtor and
to the extent of his claim and the costs, and the convert the same into money. The sale, transfer or disposition
surplus, if any, shall belong to the estate. shall be made at public auction. However, a private sale,
transfer or disposition may be allowed with the approval of
(d) Where, before an order is made under subsection
the court if (a) the goods to be sold are of a perishable nature,
(a) hereof, the liquidator signifies to the court his
or are liable to quickly deteriorate in value, or are
readiness to institute the proceeding for the benefit
disproportionately expensive to keep or maintain; or (b) the
of the creditors, the order shall fix the time within
private sale, transfer or disposition is for the best interest of
which he shall do so and, in that case the benefit
the debtor and his creditors. With the approval of the court,
derived from the proceedings, if instituted within the
unencumbered property of the debtor may also be conveyed
time limits so fixed, shall belong to the estate.
to a creditor in satisfaction of his claim or part thereof. In all
In any case, the liquidator shall make provisions for any cases, the liquidator and the court shall ensure that the
action for rescission or nullity in the Liquidation Plan. manner of sale, transfer or disposition is in the best interest
of the debtor and his creditors.
F. The Liquidation Plan
SEC. 27. Manner of Implementing the Liquidation Plan. The
SEC. 23. The Liquidation Plan. Within three months from
liquidator shall implement the Liquidation Plan as approved
his assumption into office, the liquidator shall submit a
by the court in an order duly issued therefor. Payments shall
Liquidation Plan to the court. The Liquidation Plan shall, as a
be made to creditors only in accordance with the provisions
minimum, enumerate all the assets of the debtor not exempt
of the Plan.
from execution, a list of all creditors and their claims which
have been duly proved as shown in the final registry of claims, SEC. 28. Final Report of the Liquidator. When all the property
and a proposed mode and schedule of liquidation of the of the debtor not exempt from execution have been realized
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VOLUME XVII ISSUE NO. 66
and their proceeds distributed to the creditors in accordance the proposed agreement mentioned in Section 9, Rule 3(A)
with the Liquidation Plan, the liquidator shall submit his final of these Rules can only be reviewed through a petition for
report to the court, together with the final accounting of his certiorari to the Court of Appeals under Rule 65 of the Rules
administration and a recommendation for the termination of Court within 15 days from notice of the decision or order.
of the proceedings, furnishing all the creditors and other
interested parties with copies thereof. S EC . 3. Motion for Reconsideration in Liquidation
Proceedings. A party may file a motion for reconsideration
SEC. 29. Termination of Proceedings. If, after notice and of any order issued by the court prior to the issuance of the
hearing, the court is satisfied with the final report, it shall Liquidation Order. No relief can be extended to the party
issue an order approving the same and directing the removal aggrieved by the courts order on the motion through a
of the name of the juridical debtor from the register of legal special civil action for certiorari under Rule 65 of the Rules of
entities of the SEC and other government agencies, or Court.
discharging the individual debtor from his liabilities included
in the Liquidation Plan, as the case may be. S EC . 4. Review of Decision or Order in Liquidation
Proceedings. The Liquidation Order, and the order
In the same order discharging the individual debtor from approving or disapproving the Liquidation Plan under Section
his liabilities, the court shall state that the proceedings are 27, Rule 4(F) of these Rules can only be reviewed through a
terminated. However, in the case of a juridical debtor petition for certiorari to the Court of Appeals under Rule 65
registered with the SEC, the court shall issue an order of the Rules of Court within 15 days from notice of the
terminating the proceedings only upon receipt of evidence decision or order.
showing that the debtor has been removed from the registry
of legal entities at the SEC. RULE 6
EFFECTIVITY
SEC. 30. Liquidation of a Securities Market Participant. The
foregoing provisions shall be without prejudice to the power SECTION 1. Effectivity. These Rules shall take effect 15 days
of a regulatory agency or self-regulatory organization to after their complete publication in the Official Gazette or in
liquidate trade-related claims of clients or customers of a at least two newspapers of national circulation in the
securities market participant which, for purposes of investor Philippines.
protection, are hereby deemed to have absolute priority over
other claims of whatever nature or kind insofar as trade-
related assets are concerned.
For purposes of this section, trade-related assets include
cash, securities, trading right, and other assets owned and
used by the securities market participant in the ordinary
course of its business.
RULE 5
PROCEDURAL REMEDIES
SECTION 1. Motion for Reconsideration in Suspension of MEMORANDUM ORDER NO. 14-2015
Payments Proceedings. A party may file a motion for
reconsideration of a Suspension of Payments Order, or any
order issued by the court prior to its order confirming or
disapproving the proposed agreement mentioned in Section CREATING THE SPECIAL COMMITTEE ON SPEEDY TRIAL
9, Rule 3(A) of these Rules. No relief can be extended to the WHEREAS, criminal cases comprise more than 50 percent of
party aggrieved by the courts order on the motion through the total caseload of the trial courts;
a special civil action for certiorari under Rule 65 of the Rules
of Court. WHEREAS, there is a need to address delays and congestion
in many of the trial courts nationwide;
SEC. 2. Review of Decision or Order in Suspension of Payments
Proceedings. The courts dismissal of the petition for WHEREAS, there is a need to review the current application
suspension of payments on the ground of insufficiency in form of existing rules on speedy trial in criminal cases, and issue
and substance resulting in the non-issuance of a Suspension new guidelines to truly fulfill the objective of expediting the
of Payments Order, and its order confirming or disapproving trial and resolution of criminal cases;
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Orders
Memorandum Order No. 14-2015 (continued)
NOW THEREFORE, the Special Committee on Speedy Trial is c. Budget requirements for each initiative; and
hereby created and constituted as follows: d. Responsible/focal persons.
Chairperson 2. Survey and compile the best practices employed by
Hon. Diosdado M. Peralta trial court judges;
Associate Justice, Supreme Court
3. Formulate the guidelines for the pilot and full
Vice Chairperson
implementation of the continuous trial system for
Hon. Lucas P. Bersamin
criminal cases, including but not limited to pre-trial,
Associate Justice, Supreme Court
prohibited pleadings, bail, jail decongestion, and
Members drugs cases;
Hon. Martin S. Villarama, Jr.
Associate Justice, Supreme Court 4. Identify other initiatives that will expedite trials, and
decongest all the trial courts in the country;
Hon. Jose C. Mendoza
Associate Justice, Supreme Court 5. Propose amendments to existing rules to further
expedite the trial and resolution of criminal cases;
Hon. Jose Midas P. Marquez
Court Administrator To enable it to perform its functions and duties, the
Committee shall be authorized to:
Hon. Magdangal M. De Leon
Associate Justice, Court of Appeals 6. Create technical working groups as the need arises
to look into the different aspects of criminal trial and
Hon. Mario V. Lopez
carry out its duties;
Associate Justice, Court of Appeals
Hon. Alexander G. Gesmundo 7. Collaborate with the Philippine Judicial Academy for
Associate Justice, Sandiganbayan the development of skills advancement training
modules for trial court judges; and
Hon. Maria Filomena D. Singh
Associate Justice, Court of Appeals 8. Do such other acts as may be necessary in the
performance of its mandate.
Secretary
(To be designated by the Chairperson) The Chairperson, Vice Chairperson, Members, and
Members of the Secretariat of the Committee shall receive
Asst. Secretaries
the usual expense allowances.
Atty. Crisostomo A. Uribe, OCJ
Atty. Jilliane Joyce R. De Dumo, OCJ This Memorandum Order shall take effect upon its
Secretariat Issuance this 6th day of April 2015.
(To be designated by the Chairperson)
(Sgd.) MARIA LOURDES P. A. SERENO
The Committee shall have the following functions and Chief Justice
duties: Chairperson, First Division
1. Draft a multi-year work plan to be submitted to the (Sgd.) ANTONIO T. CARPIO
Chief Justice within one month from the creation of Senior Associate Justice
the Committee that will include: Chairperson, Second Division
a. Identified initiatives/activities with timelines;
(Sgd.) PRESBITERO J. VELASCO Jr.
b. Brief description and expected outcome/output Associate Justice
of the initiatives/activities; Chairperson, Third Division
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VOLUME XVII ISSUE NO. 66
Circulars
OCA Circular No. 70-2015 (continued)
designations of OIC-Clerks of Court entitled to the payment photographs to be submitted must show the front, right and
of the representation and transportation allowance (RATA). left profile of the accused.
More often than not, the designation of the OIC-Clerk of Court
To maintain uniformity and to prevent further omission
is effected by the Presiding Judge on an earlier date but the
of the abovementioned material data, all concerned are
request for confirmation of the Office of the Court
hereby DIRECTED to judiciously REQUIRE each accused to
Administrator (OCA) of such designation is made on a much
submit to your respective courts his/her photographs before
later date and not immediately after. Such circumstance
the scheduled arraignment, and MONITOR your respective
invariably results in a substantial disruption of the cash flow
clerks of court in the accomplishment of the warrant of arrest
and availability of funds for the lower courts because it could
of the accused by including therein not only the full middle
happen that the payment of RATA retroacts to more than
name or middle initial, but also his second name, if any.
one or two years, reckoned from the date when the
designation was made. Strict compliance is hereby enjoined.
Thus, all Judges are hereby directed to forthwith submit April 23, 2015.
for confirmation their designations of OIC-Clerks of Court who
shall be entitled to the payment of RATA. Effective (Sgd.) RAUL BAUTISTA VILLANUEVA
immediately, for the purpose of payment of RATA to the Deputy Court Administrator and
concerned OIC-Clerks of Court, the computation of the Officer in Charge
amount thereof shall be reckoned from the date of Office of the Court Administrator
confirmation of designation and not on the date the
designation was made.
For strict compliance.
OCA CIRCULAR NO. 77-2015
April 17, 2015.
.
(Sgd.) JOSE MIDAS P. MARQUEZ
Court Administrator TO: ALL REGIONAL TRIAL COURT JUDGES
SUBJECT: APPLICATION OF REPUBLIC ACT NO. 10640
The attention of this Court has been called to the significance
of the so-called Sotto Amendment to the Anti-Drug Law,
OCA CIRCULAR NO. 75-2015 or otherwise known as Republic Act No. 10640 (An Act to
Further Strengthen the Anti-Drug Campaign of the
Government, Amending for the Purpose Section 21 of Republic
TO: ALL JUDGES OF THE FIRST AND SECOND LEVEL COURTS Act No. 9165, Otherwise Known as the Comprehensive
Dangerous Drugs Act of 2002) which took effect on July 23,
SUBJECT: SUBMISSION OF PHOTOGRAPH OF THE ACCUSED 2014.
BEFORE THE SCHEDULED ARRAIGNMENT AND INCLUSION
OF THE CORRECT MIDDLE NAME IN THE PREPARATION OF In view of the foregoing, all concerned are hereby
A WARRANT OF ARREST REMINDED to COMPLY with the above-quoted law, appended
herein as Annex A, for the purpose of ensuring that all those
It has been brought to the attention of this Court that there involved in the proper apprehension of the drug violators will
are instances that (a) the warrants of arrest issued by the avail of the full benefits of the law.
trial courts fail to indicate the complete name, including the
middle name, of the person who is the subject of the warrant Strict compliance is hereby enjoined.
of arrest pursuant to OCA Circular No. 64-2014 dated April
April 23, 2015.
23, 2014; (b) the practice of some judges issuing the orders
that require the accused to submit a photograph before the (Sgd.) RAUL BAUTISTA VILLANUEVA
arraignment proper is highly commendable, as it would result Deputy Court Administrator and
to a more efficient execution of the warrants of arrest; and Officer in Charge
(c) the consequential effect of such practice entails that the Office of the Court Administrator
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VOLUME XVII ISSUE NO. 66
Annex A
officer/team, whichever is practicable, in case
H. No. 2285 of warrantless seizures: Provided, finally, That
S. No. 2273 noncompliance of these requirements under
justifiable grounds, as long as the integrity and
Republic of the Philippines the evidentiary value of the seized items are
Congress of the Philippines properly preserved by the apprehending
Metro Manila officer/team, shall not render void and invalid
Sixteenth Congress such seizures and custody over said items.
First Regular Session xxxx
Begun and held in Metro Manila, on Monday, the twenty- (3) A certification of the forensic laboratory
second day of July, two thousand thirteen. examination results, which shall be done by the
[REPUBLIC ACT NO. 10640] forensic laboratory examiner, shall be issued
immediately upon the receipt of the subject
AN ACT TO FURTHER STRENGTHEN THE ANTI-DRUG item/s: Provided, That when the volume of
CAMPAIGN OF THE GOVERNMENT, AMENDING FOR THE dangerous drugs, plant sources of dangerous
PURPOSE SECTION 21 OF REPUBLIC ACT NO. 9165, drugs, and controlled precursors and essential
OTHERWISE KNOWN AS THE COMPREHENSIVE chemicals does not allow the completion of
DANGEROUS DRUGS ACT OF 2002 testing within the time frame, a partial
Be it enacted by the Senate and House of Representatives laboratory examination report shall be
of the Philippines in Congress assembled: provisionally issued stating therein the
quantities of dangerous drugs still to be
SECTION 1. Section 21 of Republic Act No. 9165, otherwise examined by the forensic laboratory: Provided,
known as the Comprehensive Dangerous Drugs Act of however, That a final certification shall be
2002, is hereby amended to read as follows: issued immediately upon completion of the
said examination and certification;
SEC. 21. Custody and Disposition of Confiscated,
Seized, and/or Surrendered Dangerous Drugs, xxxx
Plant Sources of Dangerous Drugs, Controlled
Precursors and Essential Chemicals, Instruments/ SEC. 2. Implementing Rules and Regulations (IRR).
Paraphernalia and/or Laboratory Equipment. The To implement effectively the provisions of Section 21,
PDEA shall take charge and have custody of all the Philippine Drug Enforcement Agency (PDEA) shall
dangerous drugs, plant sources of dangerous drugs, issue the necessary guidelines on the IRR for the
controlled precursors and essential chemicals, as purpose in consultation with the Department of Justice
well as instruments/paraphernalia and/or (DOJ) and relevant sectors to curb increasing drug
laboratory equipment so confiscated, seized and/ cases.
or surrendered, for proper disposition in the SEC. 3. Separability Clause. If any provision or part
following manner: hereof is held invalid or unconstitutional, the
(1) The apprehending team having initial custody remainder of the law or the provision not otherwise
and control of the dangerous drugs, controlled affected shall remain valid and subsisting.
precursors and essential chemicals, instruments/ S EC . 4. Repealing Clause. All laws, presidential
paraphernalia and/or laboratory equipment shall, decrees or issuances, executive orders, letters of
immediately after seizure and confiscation, conduct instruction, administrative orders, rules and regulations
a physical inventory of the seized items and contrary to or inconsistent with the provisions of this
photograph the same in the presence of the accused Act are hereby repealed, modified or amended
or the person/s from whom such items were accordingly.
confiscated and/or seized, or his/her representative
or counsel, with an elected public official and a SEC. 5. Effectivity. This Act shall take effect 15 days
representative of the National Prosecution Service after its complete publication in at least two
or the media who shall be required to sign the copies newspapers of general circulation.
of the inventory and be given a copy
thereof: Provided, That the physical inventory and
photograph shall be conducted at the place where Approved,
the search warrant is served; or at the nearest police
station or at the nearest office of the apprehending July 15, 2014
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APRIL - JUNE 2015
Annex A
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VOLUME XVII ISSUE NO. 66
42
APRIL - JUNE 2015
Circulars
OCA Circular No. 81-2015 (continued)
43
VOLUME XVII ISSUE NO. 66
44
APRIL - JUNE 2015
Circulars
OCA Circular No. 81-2015 (continued)
45
VOLUME XVII ISSUE NO. 66
TO: ALL JUDGES OF THE FIRST AND SECOND LEVEL COURTS TO: ALL COURT OFFICIALS AND PERSONNEL
SUBJECT: TEMPORARY RELEASE OF INMATES SUFFERING SUBJECT: CLARIFICATION AND AMENDMENT TO A.M. NO.
FROM COMMUNICABLE DISEASES AND OTHER HEALTH 04-7-02-SC (Re: Guidelines on Corporate Surety Bonds)
CONCERNS TO HOSPITALS FOR APPROPRIATE TREATMENT
In its April 21, 2015 Resolution in A.M. No. 04-7-02-SC (Re:
Acting on reports that motions filed by counselor officials of Guidelines on Corporate Surety Bonds), the Supreme Court
the Bureau of Jail Management and Penology to bring inmates En Banc resolved, among others, to:
suffering from serious ailments and other health concerns,
(b) CLARIFY that the obligation on the part of the
which cannot be properly treated by the jails clinics, to
accused/defendant to pay the annual premium
hospitals or clinics outside the detention facilities are not
necessary for the renewal of the surety bond
being expeditiously acted upon, all judges of the first and
previously approved by the court remains;
second level courts are REMINDED and ADVISED to be more
circumspect and considerate in acting on these motions which (c) AMEND the phrase Unless and until the Supreme
should be prioritized and immediately acted upon in a speedy Court directs otherwise appearing in the first
and efficient manner in accordance with the applicable rules. paragraph of Section VII of A.M. No. 04-7-02-SC to
read as Unless and until the court concerned directs
For strict compliance.
otherwise;
May 26, 2015.
(d) AMEND the second paragraph of Section VII of A.M.
(Sgd.) JOSE MIDAS P. MARQUEZ No. 04-7-02-SC to include the following statement:
Court Administrator If the surety company seeks to be discharged from
its obligation because of the failure/refusal of the
accused/defendant to pay premiums, it shall make
the same notice within 10 days from the occurrence
Form No. 1 of such fact and the court shall decide accordingly.
Pursuant to the above, it is hereby clarified that the
Inventory of Construction Disputes obligation on the part of the accused/defendant to pay the
annual premium necessary for the renewal of the surety bond
previously approved by the court remains.
Latest Status
No. Case No. Case Title Date Filed (If not yet Referred to Likewise, Section VII, A.M. No. 04-7-02-SC, shall now read
CIAC)
as follows:
VII. LIFETIME OF BONDS IN CRIMINAL AND
CIVILACTIONS/SPECIAL PROCEEDINGS
Unless and until the court concerned directs otherwise,
the lifetime or duration of the effectivity of any bond
issued in criminal and civil actions/special proceedings,
or in any proceeding or incident therein shall be from
its approval by the court, until the action or proceeding
is finally decided, resolved or terminated. This condition
must be incorporated in the terms and condition of
the bonding contract and shall bind the parties
Prepared by: _____________ Verified by: _______________ notwithstanding their failure to expressly state the
Clerk in Charge Clerk of Court/OIC
same in the said contract or agreement.
Noted: ___________________ The surety company shall notify the court
Presiding Judge
concerned and the parties to the action or proceeding
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APRIL - JUNE 2015
Circulars
OCA Circular No. 102-2015 (continued)
Work Orientation and Skills Enhancement Seminar 17th National Convention and Seminar of the
for PMC Unit Staff (Batch 2) Metropolitan and City Court Judges Association
August 2728, PTC, Tagaytay City of the Philippines
September 2325, Batangas City
Internship Program
(Oriental Mindoro Mediation Program) Basic Mediation Course
September 1October 31, Calapan City
September 2930, PTC, Tagaytay City PALAWAN MEDIATION PROGRAM
August 1114, Puerto Princesa City
Personal Security Training for Judges
September 13, PTC, Tagaytay City NORTH COTABATO AND SULTAN KUDARAT MEDIATION PROGRAMS
September 29October 2, Kidapawan City
Seminar-Workshop on Dangerous Drugs Law
September 13, Bacolod City