22. metropolitan bankv. rural bank of gerona

8/9/2019 22. Metropolitan Bankv. Rural Bank of Gerona

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5orro0ers under t/e Centra" Ban*-Internationa" Ban* or Re4onstru4tion and

Deve"op!ent=s IBRD’s 3t/ Rura" Credit Pro>e4t. +/e a#ree!ent re?uired RB8 to

open a separate 5an* a44ount 0/ere t/e IBRD "oan pro4eeds s/a"" 5e

deposited. +/e RB8 a44ordin#"$ opened a spe4ia" savin#s a44ount 0it/

Metro5an*=s +ar"a4 Bran4/. As t/e depositor$ 5an* o RB8, Metro5an* 0asdesi#nated to re4eive t/e 4redit advi4e re"eased 5$ t/e Centra" Ban* representin#

t/e pro4eeds o t/e IBRD "oan o t/e ar!ers-5orro0ers@ Metro5an*, in turn,

4redited t/e pro4eeds to RB8=s spe4ia" savin#s a44ount or t/e "atter=s re"ease to t/e

ar!ers-5orro0ers.

On Septe!5er &6, (6;, t/e Centra" Ban* re"eased a 4redit advi4e in

Metro5an*=s avor and a44ordin#"$ 4redited Metro5an*=s de!and deposit a44ount

in t/e a!ount o P178,5!.00, or t/e a44ount o RB8. +/e a!ount, 0/i4/ 0as

4redited to RB8=s spe4ia" savin#s a44ount represented t/e approved "oan

app"i4ation o ar!er-5orro0er Do"#$%&o' &( )(*+*. RB8 0it/dre0

t/e P(6;,9%&.'' ro! its a44ount.

On t/e sa!e date, t/e Centra" Ban* approved t/e "oan app"i4ation o anot/er

ar!er-5orro0er, B%*##o P%$o-#o, or P189,05!.00, and 4redited t/e a!ount to

Metro5an*=s de!and deposit a44ount. Metro5an*, in turn, 4redited RB8=s spe4ia"

savin#s a44ount. Metro5an* 4"ai!s t/at t/e RB8 a"so 0it/dre0 t/e entire 4redited

a!ount ro! its a44ount.

On O4to5er 7, (6;, t/e Centra" Ban* approved Po$#%$o L%/"%$* "oanapp"i4ation or P!!0,000.00. As 0it/ t/e t0o ot/er IBRD "oans, t/e a!ount 0as

4redited to Metro5an*=s de!and deposit a44ount, 0/i4/ a!ount Metro5an* "ater

4redited in avor o RB8=s spe4ia" savin#s a44ount. O t/e P&&','''.'', RB8 on"$

0it/dre0 P6%,76%.''.

On Nove!5er 7, (6;, !ore t/an a !ont/ ater RB8 /ad !ade t/e a5ove

0it/dra0a"s ro! its a44ount 0it/ Metro5an*, 2( C($'% B%$3 #**+(& &(4#

%&#(*,reversing % 2( %--'o(& IBRD o%$*.192 +/e Centra" Ban* i!p"e!ented

t/e reversa" 5$ de5itin# ro! Metro5an*=s de!and deposit a44ount t/e a!ount4orrespondin# to a"" t/ree IBRD "oans.

pon re4eipt o t/e Nove!5er 7, (6; de5it advi4es, Metro5an*, in turn,

de5ited t/e o""o0in# a!ounts ro! RB8=s spe4ia" savin#s

a44ount: P(;,'%&.'', P((%,'''.'', and P;,'''.3(. Metro5an*, /o0ever, 4"ai!ed

t/at t/ese a!ounts 0ere insui4ient to 4over a"" t/e 4redit advi4es t/at 0ere

http://sc.judiciary.gov.ph/jurisprudence/2010/july2010/159097.htm#_ftn7




reversed 5$ t/e Centra" Ban*. It de!anded pa$!ent ro! RB8 0/i4/ 4ou"d !a*e

partia" pa$!ents. As o O4to5er (6, (6, Metro5an* 4"ai!ed t/at RB8 /ad an

outstandin# 5a"an4e o P773,&&'.''. +o 4o""e4t t/is a!ount, it i"ed a o"-%#$

6o' o(#o$ o6 *+" o6 "o$( a#ainst RB8 5eore t/e R+C, do4*eted as Civi"

Case No. 9'&;.

162

In its u"$ 6, (3 de4ision,1;2 t/e RTC '+(& 6o' M('o4%$3 , indin# t/at

"e#a" su5ro#ation /ad ensued:

1Metro5an*2 /ad a""o0ed re"eases o t/e a!ounts in t/e 4redit advi4es it 4reditedin avor o 1RB8=s spe4ia" savin#s a44ount2 0/i4/ 4redit advi4es and deposits

0ere under its supervision. Bein# au"ted in t/ese a4ts or o!issions, t/e Centra"

Ban* 1 sic2 de5ited t/ese a!ounts a#ainst 1Metro5an*=s2 de!and 1deposit2 reserve@t/us1, Metro5an*=s2 de!and deposit reserves di!inis/ed 4orrespondin#"$,

1Metro5an* as o t/is ti!e,2 suers pre>udi4e in 0/i4/ 4ase "e#a" su5ro#ation /as

ensued.12

It t/us ordered RB8 to pa$ Metro5an* t/e su! o P773,&''.'', p"us interest at

(3 per annu! unti" t/e a!ount is u""$ paid.

On appea", t/e CA noted t/at t/is 0as not a 4ase o "e#a" su5ro#ation under

Arti4"e (7'& o t/e Civi" Code. Nevert/e"ess, t/e CA re4o#ni<ed t/at Metro5an*

/ad a ri#/t to 5e rei!5ursed o t/e a!ount it /ad paid and ai"ed to re4over, as it

suered "oss in an a#ree!ent t/at invo"ved on"$ t/e Centra" Ban* and t/e RB8. It

4"ariied, /o0ever, t/at a deter!ination sti"" /ad to 5e !ade on 0/o s/ou"drei!5urse Metro5an*. Notin# t/at no eviden4e e)ists 0/$ t/e Centra" Ban*

reversed t/e 4redit advi4es it /ad previous"$ 4onir!ed, 2( CA &(%'(& 2% 2(

C($'% B%$3 *2o+& 4( #"-(%&(& %* % $((**%' -%' so it 4ou"d s/ed "i#/t

on t/e IBRD "oan reversa"s. +/us, t/e CA set aside t/e R+C de4ision, and

re!anded t/e 4ase to t/e tria" 4ourt or urt/er pro4eedin#s ater t/e Centra" Ban*

is i!p"eaded as a ne4essar$ part$.1('2 Ater t/e CA denied its !otion or

re4onsideration, Metro5an* i"ed t/e present petition or revie0 on certiorari.

THE PETITION FOR REIE ON CERTIORARI

Metro5an* disa#rees 0it/ t/e CA=s ru"in# to i!p"ead t/e Centra" Ban* as a

ne4essar$ part$ and to re!and t/e 4ase to t/e R+C or urt/er pro4eedin#s. It

ar#ues t/at t/e in4"usion o t/e Centra" Ban* as part$ to t/e 4ase is unne4essar$

sin4e RB8 /as a"read$ ad!itted its "ia5i"it$ or t/e a!ount Metro5an* ai"ed to

re4over. In t0o "etters,1((2 RB8=s PresidentMana#er !ade proposa"s to Metro5an*













or t/e repa$!ent o t/e a!ounts invo"ved. Even assu!in# t/at no "e#a"

su5ro#ation too* p"a4e, Metro5an* 4"ai!s t/at RB8=s "etters !ore t/an sui4ient"$

proved its "ia5i"it$.

Metro5an* additiona""$ 4ontends t/at a re!and o t/e 4ase 0ou"d undu"$de"a$ t/e pro4eedin#s. +/e transa4tions invo"ved in t/is 4ase too* p"a4e in (6;,

and t/e 4ase 0as 4o!!en4ed 5eore t/e R+C !ore t/an &' $ears a#o. +/e R+C

reso"ved t/e 4o!p"aint or 4o""e4tion in (3, 0/i"e t/e CA de4ided t/e appea" in

&''&. +o i!p"ead Centra" Ban*, as a ne4essar$ part$ in t/e 4ase, !eans a return to

s?uare one and t/e restart o t/e entire pro4eedin#s.

THE COURTS RULING

T2( -(##o$ #* #"-'(**(& #2 "('#.

A 5asi4 irst step in reso"vin# t/is 4ase is to deter!ine 0/o t/e "ia5"e parties

are on t/e IBRD "oans t/at t/e Centra" Ban* e)tended. +/e +er!s and Conditions

o t/e IBRD 3t/ Rura" Credit Pro>e4t1(&2 Project Terms an Conitions e)e4uted 5$

t/e Centra" Ban* and t/e RB8 s/o0s t/at t/e ar!ers-5orro0ers to 0/o! 4redits

/ave 5een e)tended, are pri!ari"$ "ia5"e or t/e pa$!ent o t/e 5orro0ed

a!ounts. +/e "oans 0ere e)tended t/rou#/ t/e RB8 0/i4/ a"so too* 4are o t/e

4o""e4tion and o t/e re!ittan4e o t/e 4o""e4tion to t/e Centra" Ban*. RB8,

/o0ever, 0as not a !ere 4onduit and 4o""e4tor. /i"e t/e ar!ers-5orro0ers 0ere

t/e prin4ipa" de5tors, RB8 assu!ed "ia5i"it$ under t/e Pro>e4t +er!s andConditions 5$ so"idari"$ 5indin# itse" 0it/ t/e prin4ipa" de5tors to u"i"" t/e

o5"i#ation.

o0 RB8 proited ro! t/e transa4tion is not 4"ear ro! t/e re4ords and is

not part o t/e issues 5eore us, 5ut i it de"a$s in re!ittin# t/e a!ounts due, t/e

Centra" Ban* i!posed a (3 per annu! pena"t$ rate on RB8 unti" t/e a!ount is

a4tua""$ re!itted. +/e Centra" Ban* 0as urt/er aut/ori<ed to dedu4t t/e a!ount

due ro! RB8=s de!and deposit reserve s/ou"d t/e "atter 5e4o!e de"in?uent in

pa$!ent. On t/ese points, para#rap/s % and 9 o t/e Pro>e4t +er!s andConditions read:

%. Co""e4tion re4eived representin# repa$!ents o 5orro0ers s/a"" 5e

i!!ediate"$ re!itted to t/e Centra" Ban*, ot/er0ise1,2 t/e Rura" Ban*SLA s/a"" 5e 4/ar#ed a pena"t$ o ourteen 1per4ent2 (3 p.a. unti" date o re!ittan4e.





9. I$ %*( 2( '+'% 4%$3 4(o"(* &(#$;+($ #$ 2( -%"($ o6

%"o'#<%#o$* &+(=,> 2( C($'% B%$3 #* %+2o'#<(& o &(&+ 2(

o''(*-o$&#$/ %"o+$ 6'o" 2( '+'% 4%$3* &("%$& &(-o*# '(*('( 1(72 %

%$ #"( o o(' %$ &(#$;+($. 1E!p/asis supp"ied.2

Based on t/ese arran#e!ents, t/e Centra" Ban*=s i!!ediate re4ourse,t/ereore s/ou"d /ave 5een a#ainst t/e ar!ers-5orro0ers and t/e RB8@ t/us, it

erred 0/en it dedu4ted t/e a!ounts 4overed 5$ t/e de5it advi4es ro! Metro5an*=s

de!and deposit a44ount. nder t/e Pro>e4t +er!s and Conditions, Metro5an* /ad

no responsi5i"it$ over t/e pro4eeds o t/e IBRD "oans ot/er t/an servin# as a

4onduit or t/eir transer ro! t/e Centra" Ban* to t/e RB8 on4e 4redit advi4e /as

5een issued. +/us, 0e a#ree 0it/ t/e CA=s 4on4"usion t/at t/e a#ree!ent

#overned on"$ t/e parties invo"ved F t/e Centra" Ban* and t/e RB8. Metro5an*

0as si!p"$ an outsider to t/e a#ree!ent. Our disa#ree!ent 0it/ t/e appe""ate

4ourt is in its 4on4"usion t/at no "e#a" su5ro#ation too* p"a4e@ t/e present 4ase, ina4t, e)e!p"iies t/e 4ir4u!stan4e 4onte!p"ated under para#rap/ &, o Arti4"e (7'&

o t/e Civi" Code 0/i4/ provides: Art. (7'&. It is presu!ed t/at t/ere is "e#a" su5ro#ation:

( /en a 4reditor pa$s anot/er 4reditor 0/o is preerred, even 0it/out t/ede5tor=s *no0"ed#e@

?!@ 2($ % 2#'& -('*o$, $o #$('(*(& #$ 2( o4#/%#o$, -%* #2 2(

(-'(** o' %# %--'o% o6 2( &(4o'

7 /en, even 0it/out t/e *no0"ed#e o t/e de5tor, a person interested in

t/e u"i""!ent o t/e o5"i#ation pa$s, 0it/out pre>udi4e to t/e ee4ts o 4onusion as to t/e "atter=s s/are. 1E!p/asis supp"ied.2

As dis4ussed, Metro5an* 0as a t/ird part$ to t/e Centra" Ban*-RB8

a#ree!ent, /ad no interest e)4ept as a 4onduit, and 0as not "e#a""$ ans0era5"e or

t/e IBRD "oans. Despite t/is, it 0as Metro5an*=s de!and deposit a44ount, instead

o RB8=s, 0/i4/ t/e Centra" Ban* pro4eeded a#ainst, on t/e assu!ption per/aps

t/at t/is 0as t/e !ost 4onvenient !eans o re4overin# t/e 4an4e""ed "oans. +/at

Metro5an*=s pa$!ent 0as invo"untari"$ !ade does not 4/an#e t/e rea"it$ t/at it

0as Metro5an* 0/i4/ ee4tive"$ ans0ered or RB8=s o5"i#ations.

as t/ere e)press or ta4it approva" 5$ RB8 o t/e pa$!ent enor4ed a#ainst

Metro5an*G Ater Metro5an* re4eived t/e Centra" Ban*=s de5it advi4es in

Nove!5er (6;, it Metro5an* a44ordin#"$ de5ited t/e a!ounts it 4ou"d ro!

RB8=s spe4ia" savin#s a44ount 0it/out an$ o5>e4tion ro! RB8.1(32 RB8=s

President and Mana#er, Dr. A?ui"es A5e""ar, even 0rote Metro5an*, on Au#ust (3,







(6, 0it/ proposa"s re#ardin# possi5"e !eans o sett"in# t/e a!ounts de5ited 5$

Centra" Ban* ro! Metro5an*=s de!and deposit a44ount. 1(%2 +/ese instan4es are

a"" indi4ative o RB8=s approva" o Metro5an*=s pa$!ent o t/e IBRD "oans. +/at

RB8=s ta4it approva" 4a!e ater pa$!ent /ad 5een !ade does not 4o!p"ete"$

ne#ate t/e "e#a" su5ro#ation t/at /ad ta*en p"a4e.

Arti4"e (7'7 o t/e Civi" Code states t/at su5ro#ation transers to t/e person

su5ro#ated t/e 4redit 0it/ a"" t/e ri#/ts t/ereto appertainin#, eit/er a#ainst t/e

de5tor or a#ainst t/ird persons. As t/e entit$ a#ainst 0/i4/ t/e 4o""e4tion 0as

enor4ed, Metro5an* 0as su5ro#ated to t/e ri#/ts o Centra" Ban* and /as a 4ause

o a4tion to re4over ro! RB8 t/e a!ounts it paid to t/e Centra" Ban*, p"us (3

per annu! interest.

nder t/is situation, i!p"eadin# t/e Centra" Ban* as a part$ is 4o!p"ete"$

unne4essar$. e note t/at t/e CA erroneous"$ 5e"ieved t/at t/e Centra" Ban*=s

presen4e is ne4essar$ Hin order ) ) ) to s/ed "i#/t on t/e !atter o reversa"s !ade

5$ it 4on4ernin# t/e "oan app"i4ations o t/e end users and to /ave a 4o!p"ete

deter!ination or sett"e!ent o t/e 4"ai!.1(92 In so ar as Metro5an* is 4on4erned,

/o0ever, t/e Centra" Ban*=s presen4e and t/e reasons or its reversa"s o t/e IBRD

"oans are i!!ateria" ater su5ro#ation /as ta*en p"a4e@ Metro5an*=s interest is

si!p"$ to 4o""e4t t/e a!ounts it paid t/e Centra" Ban*. /atever 4ause o a4tion

RB8 !a$ /ave a#ainst t/e Centra" Ban* or t/e une)p"ained reversa"s and an$

undue dedu4tions is or RB8 to venti"ate as a t/ird-part$ 4"ai!@ i it /as not done

so at t/is point, t/en t/e !atter s/ou"d 5e dea"t 0it/ in a separate 4ase t/at s/ou"dnot in an$ 0a$ urt/er de"a$ t/e disposition o t/e present 4ase t/at /ad 5een

pendin# 5eore t/e 4ourts sin4e (;'.

/i"e 0e 0ou"d "i*e to u""$ and ina""$ reso"ve t/is 4ase, 4ertain a4tua"

!atters prevent us ro! doin# so. Metro5an* 4ontends in its petition t/at it

4redited RB8=s spe4ia" savin#s a44ount 0it/ t/ree a!ounts 4orrespondin# to t/e

t/ree 4redit advi4es issued 5$ t/e Centra" Ban*: t/e P178,5!.00 or Do!inador de

esus@ t/e P189,05!.00 or Basi"io Panopio@ and t/e P!!0,000.00 or Pon4iano

La#!an. Metro5an* 4"ai!s t/at a"" o t/e t/ree 4redit advi4es 0ere su5se?uent"$reversed 5$ t/e Centra" Ban*, eviden4ed 5$ t/ree de5it advi4es. +/e re4ords,

/o0ever, 4ontained on"$ t/e 4redit and de5it advi4es or t/e a!ounts set aside or

de esus and La#!an@1(62 not/in# in t/e indin#s o a4t 5$ t/e R+C and t/e CA

reerred to t/e a!ount set aside or Panopio.







22. metropolitan bankv. rural bank of gerona

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