You are on page 1of 1

PHILIPPINE DEPOSIT INSURANCE CORPORATION, petitioner, vs.

THE HONORABLE COURT OF APPEALS and JOSE ABAD, LEONOR ABAD, SABINA ABAD, JOSEPHINE "JOSIE" BEATA ABAD-ORLINA, CECILIA ABAD, PIO ABAD, DOMINIC ABAD, TEODORA ABAD, respondents. G.R. No. 126911 April 30, 2003 CARPIO MORALES, J.:

NATURE: Petition for review FACTS: 1. 2. Prior to May 22, 1997, respondents had 71 certificates of time deposits denominated as "Golden Time Deposits" (GTD) with an aggregate face value of P1,115,889.96.1 May 22, 1987, a Friday, the Monetary Board (MB) of the Central Bank of the Philippines, now Bangko Sentral ng Pilipinas, issued Resolution 5052 prohibiting Manila Banking Corporation to do business in the Philippines, and placing its assets and affairs under receivership. The Resolution, however, was not served on MBC until Tuesday the following week, or on May 26, 1987, when the designated Receiver took over. May 25, 1987 - the next banking day following the issuance of the MB Resolution, respondent Jose Abad was at the MBC at 9:00 a.m. for the purpose of pre-terminating the 71 aforementioned GTDs and re-depositing the fund represented thereby into 28 new GTDs in denominations of P40,000.00 or less under the names of herein respondents individually or jointly with each other. a. Of the 28 new GTDs, Jose Abad pre-terminated 8 and withdrew the value thereof in the total amount of P320,000.00. Respondents thereafter filed their claims with the PDIC for the payment of the remaining 20 insured GTDs. February 11, 1988, PDIC paid respondents the value of 3 claims in the total amount of P120,000.00. a. PDIC, however, withheld payment of the 17 remaining claims after Washington Solidum, Deputy Receiver of MBC-Iloilo, submitted a report to the PDIC that there was massive conversion and substitution of trust and deposit accounts on May 25, 1987 at MBC-Iloilo. Because of the report, PDIC entertained serious reservation in recognizing respondents' GTDs as deposit liabilities of MBC-Iloilo. a. Thus, PDIC filed a petition for declaratory relief against respondents with the RTCof Iloilo City, for a judicial declaration determination of the insurability of respondents' GTDs at MBC-Iloilo. b. In their Answer respondents set up a counterclaim against PDIC whereby they asked for payment of their insured deposits. c. TC: court ordered petitioners to pay the balance of the deposit insurance to respondents. d. CA: AFFIRMED. Petitioner posits that the trial court erred in ordering it to pay the balance of the deposit insurance to respondents, maintaining that the instant petition stemmed from a petition for declaratory relief which does not essentially entail an executory process, and the only relief that should have been granted by the trial court is a declaration of the parties' rights and duties. As such, petitioner continues, no order of payment may arise from the case as this is beyond the office of declaratory relief proceedings.

3.

4.

5.

6.

ISSUE: Can the trial court order the payment of the balance even if the petition stemmed from a petition for declaratory relief which does not essentially entail an executory process? HELD: YES, CA ruling AFFIRMED. 1. 2. Without doubt, a petition for declaratory relief does not essentially entail an executory process. There is nothing in its nature, however, that prohibits a counterclaim from being set-up in the same action. There is nothing in the nature of a special civil action for declaratory relief that proscribes the filing of a counterclaim based on the same transaction, deed or contract subject of the complaint. A special civil action is after all not essentially different from an ordinary civil action, which is generally governed by Rules 1 to 56 of the Rules of Court, except that the former deals with a special subject matter which makes necessary some special regulation. But the identity between their fundamental nature is such that the same rules governing ordinary civil suits may and do apply to special civil actions if not inconsistent with or if they may serve to supplement the provisions of the peculiar rules governing special civil actions.

You might also like