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CIR VS. UNITED COCONUT PLANTERS BANK (di ko na dinigest kasi impotante s!a "a#at at mai"ke "ang s!a$ T#e %a&ts and t#e Case Respon Responden dentt United United Co&on' Co&on'tt P"ante P"antes s Bank Bank (UCPB$ (UCPB$ gante ganted d "oans "oans o P)*+* P)*+*,,-++----..-- and and P/ P/++----++----..-- to 0eo 0eoge ge C. Co+ Co+ 0o Tong E"e&ti&a" S'pp"! Co.+ In&.+ and Tes&o Rea"t! Co. t#at t#e 1oo2es &a'sed to 1e se&'ed 1! se3ea" ea" estate motgages. motgages. 4#en t#e "atte "atte "ate ai"ed to pa! t#ei "oans+ UCPB i"ed a petition o e5ta6'di&ia" oe&"os'e o t#e motgaged motgaged popeties popeties.. P's'ant P's'ant to t#at petition+ petition+ on De&em1e De&em1e 7+ 8--7 a nota nota! ! p'1" p'1"i& i& o o 9ani 9ani"a "a #e"d #e"d a p'1" p'1"i& i& a'&t a'&tio ion n sa"e sa"e o t#e t#e mot motga gage ged d popeties. UCPB made t#e #ig#est 2inning 1id o P/-,+:*/+---.-- o t#e 2#o"e "ot. On ;an'a! ,+ 8--8 t#e nota! p'1"i& s'1mitted t#e Cetii&ate o Sa"e to t#e E5e&'ti3e ;'dge o Regiona" Tia" Co't (RTC$ o 9ani"a o #is appo3a".<7= B't+ on %e1'a! %e1'a! 7*+ 8--8 t#e t#e e5e&'ti3e e5e&'ti3e 6'dge 6'dge et'ned et'ned it 2it# inst inst' '&t &tio ion n to t#e t#e nota nota! ! p'1" p'1"i& i& to e5p" e5p"ai ain n an in&o in&ons nsis iste ten& n&! ! in t#e t#e ta5 ta5 de&"aation o one motgaged motgaged popet!. T#e e5e&'ti3e 6'dge 't#e 't#e odeed t#e nota! p'1"i& to s#o2 poo o pa!ment o t#e S#ei>s pe&entage o t#e 1id pi&e. <8= T#e nota! p'1"i& &omp"ied. <= On 9a 9a 7+ 8--8 t#e e5e&'ti3e 6'dge ina""! signed t#e &etii&ate o sa"e and appo3ed its iss'an&e to UCPB as t#e #ig#est 1idde. <,= On ;'ne ;'ne 7*+ 7*+ 8--8 8--8 UCPB UCPB pes pesen ente ted d t#e t#e &et &eti ii& i&at atee o sa"e sa"e to t#e t#e Registe o Deeds o 9ani"a o annotation on t#e tanse &etii&ates o tit"e o t#e oe&" oe&"ose osed d pope popetie ties. s. On ;'"! ;'"! /+ 8--8 8--8 t#e 1ank 1ank paid paid &edit &edita1" a1"ee 2it##o"ding ta5es (C4T$ o P8*+),-+:--.-- and do&'menta! stamp ta5es (DST$ o P:+7)-+ P:+7)-+7)/.7)/.-- in e"ation e"ation to t#e e5ta6'di&ia" e5ta6'di&ia" oe&"os'e oe&"os'e sa"e. It t#en s'1mitted an aida3it o &onso"idation o o2nes#ip to t#e B'ea' o Intena" Re3en'e (BIR$ 2it# poo o ta5 pa!ments and ot#e do&'ments in s'pp s'ppo ott o t#e t#e 1ank 1ank>s >s app" app"i& i&at atio ion n o o a ta5 ta5 &"ea &"eaa an& n&ee &et &eti ii& i&at atee and and &etii&ate a't#oi?ing egistation.
Petitione Commissione o Intena" Re3en'e (CIR$+ #o2e3e+ aged UCPB 2it# "ate pa!ment o t#e &oesponding DST and C4T+ &iting Se&tion 8./* o Re3en'e Reg'"ation 8@*+ 2#i stated t#at t#e C4T m'st 1e paid 2it#in 7- da!s ate t#e end o ea mont#+ and Se&tion / o Re3en'e Reg'"ation -)@-7+ 2#i e'ied pa!ment o DST 2it#in i3e da!s ate t#e &"ose o t#e mont# 2#en t#e ta5a1"e do&'ment 2as made+ signed+ a&&epted o tanseed. T#ese ta5es a&&'ed 'pon t#e "apse o t#e edemption peiod o t#e motgaged popeties. T#e CIR pointed o't t#at t#e motgago+ a 6'idi&a" peson+ #ad t#ee mont#s ate oe&"os'e 2it#in 2#i to edeem t#e popeties. = T#e CIR t#eoi?ed t#at t#e t#ee@mont# edemption peiod 2as to 1e &o'nted om t#e date o t#e oe&"os'e sa"e. ee+ #e said+ t#e edemption peiod "apsed t#ee mont#s om De&em1e 7+ 8--7 o on 9a 7+ 8--8. T#'s+ UCPB 2as in dea'"t o #a3ing paid t#e C4T and DST on"! on ;'"! /+ 8--8. %o t#is eason t#e CIR iss'ed a Pe@Assessment Noti&e<)= and+ s'1se'ent"!+ a %ina" Assessment Noti&e <:= to UCPB o dei&ien&! C4T o P*+)7:+87-.-- and dei&ien&! DST oP8+7:+-/7.:/. UCPB potested t#e assessment. It &"aimed t#at t#e edemption peiod "apsed on ;'ne 7+ 8--8 o t#ee mont#s ate t#e e5e&'ti3e 6'dge o 9ani"a appo3ed t#e iss'an&e o t#e &etii&ate o sa"e. %oe&"os'e 'nde Se&tion ,: o t#e 0enea" Banking La2+ said UCPB+ eeed to t#e date o appo3a" 1! t#e e5e&'ti3e 6'dge+ and not t#e date o t#e a'&tion sa"e. B't t#e CIR denied UCPB>s potest+ pompting UCPB to i"e a petition o e3ie2 2it# t#e CTA in CTA Case :7),. On ;'"! 8)+ 8--) t#e CTA Se&ond Di3ision set aside t#e de&ision o t#e CIR and #e"d t#at t#e edemption peiod "apsed t#ee mont#s ate t#e e5e&'ti3e 6'dge appo3ed t#e &etii&ate o sa"e. It said t#at oe&"os'e 'nde t#e "a2 eeed to t#e 2#o"e po&ess o oe&"os'e 2#i in&"'ded t#e appo3a" and iss'an&e o t#e &etii&ate o sa"e. T#ee 2as no sa"e to speak o 2#i &o'"d 1e ta5ed pio to s' appo3a" and iss'an&e. Sin&e t#e e5e&'ti3e 6'dge appo3ed t#e iss'an&e on"! on9a 7+ 8--8+ t#e edemption peiod e5pied on ;'ne 7+ 8--8. en&e+ UCPB>s pa!ments o C4T and DST in ea"! ;'"! 2ee 2e"" 2it#in t#e pes&i1ed peiod. On
appea" to t#e CTA En Banc in CTA EB 8,+ t#e "atte aimed t#e de&ision o t#e Se&ond Di3ision on ;'ne /+ 8--:. 4it# t#e denia" o its motion o e&onsideation+ petitione #as taken e&o'se to t#is Co't via a petition o e3ie2 on certiorari. Iss'e T#e ke! iss'e in t#is &ase is 2#et#e o not t#e t#ee@mont# edemption peiod o 6'idi&a" pesons s#o'"d 1e e&koned om t#e date o t#e a'&tion sa"e. R'"ing T#e CIR ag'es t#at #e #as t#e moe easona1"e positionF t#e edemption peiod s#o'"d 1e e&koned om t#e date o t#e a'&tion sa"e o+ ot#e2ise+ t#e ta5ing a't#oit! 2o'"d 1e "et at t#e me&! o t#e e5e&'ti3e 6'dge 2#o ma! 'nne&essai"! de"a! t#e appo3a" o t#e &etii&ate o sa"e and t#'s pe3ent t#e ea"! pa!ment o ta5es. B't t#e S'peme Co't #ad o&&asion 'nde its eso"'tion in Administati3e 9atte @7-@-/@- <*= to '"e t#at t#e &etii&ate o sa"e s#a"" iss'e on"! 'pon appo3a" o t#e e5e&'ti3e 6'dge 2#o m'st+ in t#e inteest o ainess+ ist detemine t#at t#e e'iements o e5ta6'di&ia" oe&"os'es #a3e 1een sti&t"! o""o2ed. %o instan&e+ in United Coconut Planters Bank v. Yap+<= t#is Co't s'stained a 6'dge>s eso"'tion e'iing pa!ment o notaia" &ommission as a &ondition o t#e iss'an&e o t#e &etii&ate o sa"e to t#e #ig#est 1idde. ee+ t#e e5e&'ti3e 6'dge appo3ed t#e iss'an&e o t#e &etii&ate o sa"e to UCPB on 9a 7+ 8--8. Conse'ent"!+ t#e t#ee@mont# edemption peiod ended on"! on ;'ne 7+ 8--8. On"! on t#is date t#en did t#e dead"ine o pa!ment o C4T and DST on t#e e5ta6'di&ia" oe&"os'e sa"e 1e&ome d'e. Unde Se&tion 8./* o Re3en'e Reg'"ation 8@*+ t#e C4T et'n and pa!ment 1e&ome d'e 2it#in 7- da!s ate t#e end o ea mont#+ e5&ept o
ta5es 2it##e"d o t#e mont# o De&em1e o ea !ea+ 2#i s#a"" 1e i"ed on o 1eoe ;an'a! 7/ o t#e o""o2ing !ea. On t#e ot#e #and+ 'nde Se&tion / o Re3en'e Reg'"ation -)@-7+ t#e DST et'n and pa!ment 1e&ome d'e 2it#in i3e da!s ate t#e &"ose o t#e mont# 2#en t#e ta5a1"e do&'ment 2as made+ signed+ a&&epted+ o tanseed. T#e BIR &onimed and s'mmai?ed t#e a1o3e po3isions 'nde Re3en'e 9emoand'm Ci&'"a /*@8--* in t#is manneF
UCPB #ad+ t#eeoe+ 'nti" ;'"! 7-+ 8--8 to pa! t#e C4T and ;'"! /+ 8--8 to pa! t#e DST. Sin&e it paid 1ot# ta5es on ;'"! /+ 8--8+ it is not "ia1"e o dei&ien&ies. T#'s+ t#e Co't inds no eason to e3ese t#e de&ision o t#e CTA. Besides+ on A'g'st 7/+ 8--*+ t#e B'ea' o Intena" Re3en'e iss'ed Re3en'e 9emoand'm Ci&'"a /*@8--* <7-= 2#i &"aiied among ot#es+ t#e time 2it#in 2#i to e&kon t#e edemption peiod o ea" estate motgages. It eadsF %o p'poses o e&koning t#e one@!ea edemption peiod in t#e &ase o indi3id'a" motgagos+ o t#e t#ee@mont# edemption peiod o 6'idi&a" pesonsGmotgagos+ t#e same s#a"" 1e e&koned from the date of the confirmation of the auction sale which is the date when the certificate of sale is issued.
T#e CIR m'st #a3e in t#e meantime &on&eded t#e 'neasona1"eness o t#e pe3io's position it #ad taken on t#is matte.