UNION BANK OF THE PHILIPPINES, petitioner, vs. DANILO L. CONCEPCION, respondent. G.R. No. 160727
June 26, 2007
Sept. 16, 1997 - EYCO Group of Cop!nies"EYCO or EYCO Group# fi$ed %it& t&e Se'urities !nd E('&!n)e Coission "SEC# ! *E++ON for t&e de'$!r!tion of suspension of p!ent, !ppointent of ! re&!i$it!tion re'eiver/'oittee !nd !pprov!$ of re&!i$it!tion p$!n %it& !n !$tern!tive pr!er for $iuid!tion !nd disso$ution of 'orpor!tions "*etition for Suspension of *!ent, &erein!fter#. *eition 'ont!ins - EYCO depi'tin) t&e Groups 'oposite 'orpor!tions !s &!vin) ! 'oined !ssets t&!t !re ore t&!n enou)& to p! off !$$ t&eir dets, ut nonet&e$ess un!$e to p! t&e !s t&e f!$$ due. Joinin) Joinin) EYCO !s 'o-petition 'o-petitioners ers %ere Eu$o)io Eu$o)io Yutin)'o Yutin)'o !nd t%o ot&er individu!$ individu!$ss &o$din) &o$din) 'ontro$$in) interests in t&e 'oposite 'orpor!tions "'o$$e'tive$, t&e Yutin)'os#.
8nion !n, %it&out !%!itin) for t&e SECs ru$in) on its otion to disiss SEC C!se No. 0997-B76<, fi$ed %it& t&e C5 ! petition for 'ertior!ri to nu$$if %&!t it t!))ed !s t&e pre'ipit!te Septeer 19, 1997 SEC suspension order !nd its 're!tion of t&e !nCo. •
Conseuen Conseuent$, t$, in order to )ive defend!nt-Sp defend!nt-Spouses ouses DYutin)'os DYutin)'os !p$e tie to prep!re prep!re for %&!tever defense t&e ! r!ise, t&e !re &ere )iven ! ne% fifteen "1B# d!s period fro re'eipt of t&is Order %it&in %&i'& to fi$e t&eir !ns%er to t&e 'op$!int !)!inst t&e. Another en banc order of March !, "##! fo$$o%ed, %&th the SEC th&' t&(e a))o&nt&n* re')onden re')ondentt Conce)c&on Conce)c&on to act, +&ce the d&''o$+ed L&-&dat&on L&-&dat&on Co((&ttee, Co((&ttee, a' ECO L&-&dator. •
SEC e!rin) *!ne$ 3 4indin) t&e petition to e suffi'ient in for !nd sust!n'e, !n order of Septeer 19, 1997, dire'ted t&e suspension of !$$ !'tions, '$!is !nd pro'eedin)s !)!inst EYCO, et !$. pendin) efore !n 'ourt, triun!$, o!rd or offi'e "t&e Suspension Order#. 5t t&e s!e tie, t&e *!ne$ set t&e petition for &e!rin). e!n%&i$e, ! 'onsortiu of priv!te !ns %&i'& &!d )r!nted 'redit f!'i$ities to EYCO, !on) t&e, 8nion !n, 'onvened to !p out t&eir 'o$$e'tive 'o$$e'tion options. +&e for!tion of ! !n!)eent 'oittee "!nCo# to represent t&e 'reditor !ns %!s !)reed upon in t&!t eetin). Suseuent$, 8nion !n de'ided to re! !%! fro t&e 'onsortiu !nd, %it&out notifin) its eers, fi$ed ! s$e% of 'ivi$ '!ses !)!inst EYCO. •
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Of re$ev!n'e is t&e 1 'op$!int of su of one efore t&e R+C of !!ti !)!inst EYCO Group !nd Spouses Eu$o)io !nd ee :u!n Yutin)'o !s sureties of 'orpor!te o$i)!tion
R+C 3 issued %rit of pre !tt!'&ent pursu!nt to %&i'& $ev on !tt!'&ent %!s !nnon!ted on 2 tit$es of $!nd "+C+ ;-<=192 !nd +C+ ;-<=19># of t&e R? of ;!$en@ue$! Cit -
5$so 5$so !tt!'&ed !tt!'&ed per per &erein &erein Respond Respondent ent ?!ni$ ?!ni$o o Con'ep'i Con'ep'ion, on, ! p!r'e$ p!r'e$ of $!nd +C+ ;<967= of t&e s!e re)istr !$$e)ed$ &e$d t&e Yutin)'os in trust.
O'toer 22, 1997 - 8nion !n oved, on Aurisdi'tion!$ )round, for for t&e disiss!$ of SEC C!se No. 09-97-B76<. On t&e s!e d!te, EYCO suitted its re&!i$it!tion p$!n. +&e SEC e!rin) *!ne$ t&en !ppointed t&e re)u$!r eers of t&e ne%$ 're!ted !nCo for EYCO
8nion !n !$$e)ed t&!t t&e Aurisdi'tion over t&e !si' petition for de'$!r!tion of suspension of p!ent pert!ins to t&e R+C under 5't No. 19B6, !s !ended, or t&e nso$ven' !%.
5on) Con'ep'ions first !'t !s su'& $iuid!tor %!s to fi$e ! otion to ntervene !nd +o 5dit otion to Set 5side Order of 5tt!'&ent 16 "otion to ntervene, for revit#. +&ree d!s $!ter, Con'ep'ion suitted efore t&e SEC ! iuid!tion *$!n17 for t&e EYCO Group.
5pri$ 11, 2002 - 5fter due pro'eedin)s, t&e SEC !pproved, Con'ep'ion-suitted iuid!tion *$!n. *$!n.1= Con'ep'ions otion to intervene, &o%ever, et ! different f!te. 5u)ust =, 2002 / Ma0at& 1TC den&ed Conce)c&on2' (ot&on to &nter+en e on t&e )round of $!' of st!ndin) to intervene, &is !ppointent !s iuid!tor ein), !''ordin) to t&e 'ourt, of doutfu$ v!$idit. +&e order, in !ddition, )r!nted 8nion !ns e!r$ier otion to de'$!re EYCO in def!u$t, !nd set ! d!te for t&e e(-p!rte re'eption of 8nion !ns eviden'e. Con'ep'ion t&en oved for re'onsider!tion uestionin) t&e !sis of t&e deni!$ of &is otion to intervene. SS8EF SS8EF /N the co-rt %a' &n error &n fa+or&n* Conce)c&on2' r&*ht to &nter+ene &n 'a&d c&+&$ ca'e, de')&te h&' $ac0 of $e*a$ )er'ona$&t3, h&' a))o&nt(ent b3 the SEC a' $&-&dator of ECO be&n* n-$$ and +o&d for $ac0 of 4-r&'d&ct&on e$dF NO. 5a' to the 4-r&'c&t&on6
*etitioner *etitioner st!tes t&!t EYCO is !$re!d !$re!d inso$vent inso$vent !nd inso$ven' inso$ven' pro'eedin)s pro'eedin)s f!$$ under t&e Aurisdi'tion of re)u$!r 'ourts under under t&e nso$ven' !% "5't No. 19B6, 19B6, !s !ended# in re$!tion 1
to t&e pertinent provision of R.5. No. =799, ot&er%ise no%n !s t&e Se'urities Re)u$!tion Code. e !re not persu!ded. +&e under$in) petition EYCO fi$ed %it& !nd over %&i'& t&e SEC !ssued Aurisdi'tion %!s one for de'$!r!tion of suspension of p!ent, !ppointent of ! re&!i$it!tion re'eiver/'oittee, !pprov!$ of re&!i$it!tion p$!n %it& !$tern!tive pr!er for $iuid!tion !nd disso$ution. SEC, !$on) t&e %!, ord!ined EYCOs $iuid!tion !nd disso$ution did not, %it&out ore, strip t&e SEC of Aurisdi'tion over t&e $iuid!tion pro'ess. 5$eit Aurisdi'tion over ! petition to de'$!re ! 'orpor!tion in ! st!te of inso$ven' stri't$ $ies %it& re)u$!r 'ourts, t&e SEC possessed, durin) t&e period !teri!$, !p$e po%er under *.?. No. 902-5, !s !ended, to de'$!re ! 'orpor!tion inso$vent !s !n in'ident of !nd in 'ontinu!tion of its !$re!d !'uired Aurisdi'tion over t&e petition to e de'$!red in t&e st!te of suspension of p!ents in t&e t%o inst!n'es provided in Se'tion B"d# t&ereof. Se'tion B"d# vests t&e SEC %it& e('$usive !nd ori)in!$ Aurisdi'tion over petitions for suspension of p!ents %&i'& ! eit&er eF "!# ! sip$e petition for suspension of p!ents !sed on t&e provisions of t&e nso$ven' !%, i.e., t&e petitionin) 'orpor!tion &!s suffi'ient !ssets to 'over !$$ its dets, ut foresees t&e ipossii$it of eetin) t&e o$i)!tions !s t&e f!$$ due, or "# ! sii$!r petition fi$ed !n inso$vent 'orpor!tion !''op!nied ! pr!er for t&e 're!tion of ! !n!)eent 'oittee !nd/or re&!i$it!tion re'eiver !sed on t&e provisions of *.?. No. 902-5, !s !ended *.?. No. 17B=.
s%! in t&e present '!se, !rise %&en t&e st!tute e(press$ so provides or %&en t&e st!tute is '$e!r$ intended to !pp$ to !'tions pendin) efore its en!'tent. 5a' to $e*a$ )er'ona$&t3 of )art3 to &nter+ene6
tervention is ! pro'edure %&i'& ! t&ird person, not ori)in!$$ p!rt to t&e suit, ut '$!iin) !n interest in t&e suAe't !tter, 'oes into t&e '!se, in order to prote't &is ri)&t or interpose &is '$!i. ts !in purpose is to sett$e in one !'tion !nd ! sin)$e Aud)ent !$$ 'onf$i'tin) '$!is of or t&e %&o$e 'ontrovers !on) t&e persons invo$ved. +o %!rr!nt intervention under Ru$e 19, Se'tion 1 of t&e Ru$es of Court, 2 reuisites ust 'on'urF "!# t&e ov!nt &!s ! $e)!$ interest in t&e !tter in $iti)!tion, !nd "# intervention ust not undu$ de$! or preAudi'e t&e !dAudi'!tion of t&e ri)&ts of t&e p!rties, nor s&ou$d t&e '$!i of t&e intervenor e '!p!$e of ein) proper$ de'ided in ! sep!r!te pro'eedin). +&e interest, %&i'& entit$es one to intervene, ust invo$ve t&e !tter in $iti)!tion !nd of su'& dire't !nd iedi!te '&!r!'ter t&!t t&e intervenor %i$$ eit&er )!in or $ ose t&e dire't $e)!$ oper!tion !nd effe't of t&e Aud)ent Just $ie t&e C5, t&e Court &!s no dout !out t&e respondent, !s t&e du$-!ppointed $iuid!tor of EYCOs re!inin) !ssets, &!vin) ! $e)!$ interest in t&e !tter $iti)!ted in Civi$ C!se No. 97-21=<. +&is is p!rti'u$!r$ true %it& respe't to t&e p!r'e$s of $!nd 'overed t&e %rit of !tt!'&ent %&i'&, in t&e ip$eent!tion of t&e SEC-!pproved iuid!tion *$!n for EYCO, &!d een 'onveed to t&e respondentD<0 in trust for t&e enefit of 'reditors, EYCOs sto'&o$ders !nd ot&er persons in interest. 5t t&e ver $e!st, t&e respondent, !s $iuid!tortrustee, is so situ!ted !s to e !ffe'ted t&e distriution or disposition of t&e !tt!'&ed properties %&i'& %ere under t&re!t of ein) $evied on e(e'ution !nd so$d !t pu$i' !u'tion.
n t&e '!se !t en'&, EYCOs petition for suspension of p!ent %!s, !t otto, ! i( of ot& situ!tions !dverted to !ove. 4or, %&i$e EYCO, in t&e s!id petition, !$$e)ed ein) so$vent ut i$$iuid, it nonet&e$ess p$e!ded for t&e 'onstitution of ! re&!i$it!tion re'eiver/'oittee, %it& !n !$tern!tive pr!er for $iuid!tion, if %!rr!nted. C$e!r$ t&en, t&e SEC &!s, fro t&e st!rt, Aurisdi'tion over EYCOs petition for suspension of p!ent, su'& Aurisdi'tion. &en t&e $!% spe!s of Hunti$ fin!$$ disposed,I t&e referen'e s&ou$d in'$ude t&e fin!$ disposition of t&e $iuid!tion !nd disso$ution pro'esses sin'e it is %it&in t&e po%er of t&e SEC $!% or !s in'ident of or in 'ontinu!tion of its !$re!d !'uired Aurisdi'tion over t&e petition for suspension of p!ent, to order t&e disso$ution/$iuid!tion of ! 'orpor!tion !nd !''ordin)$ !ppoint ! $iuid!tor. n fine, t&e 'ontinuin) e(er'ise of Aurisdi'tion t&e SEC over t&e $iuid!tion !nd disso$ution of t&e EYCO Group is %!rr!nted. On'e Aurisdi'tion !tt!'&es, t&e 'ourt '!nnot e ousted fro t&e '!se !n suseuent events, su'& !s ! ne% $e)is$!tion p$!'in) su'& pro'eedin)s under t&e Aurisdi'tion of !not&er od. +&e on$ re'o)ni@ed e('eptions to t&e ru$e, %&i'& find no 2
