Facts:

• Petitioner, Asian Footwear & Rubber Corporation, challenges the enforcement of an Alias Writ of Execution against them.
• The writ of execution was issued by respondent Benigno L. Vivar, Jr., Executive Labor Arbiter, in NLRC NCR case no. AB-9-8414-80; 8415-80; AB-12-9286-80; 9287-80; 9288-80; 9289-80; 9290-80; 9291-80; and AB-9-10596-80, entitled 'Jacinto Rubber Free Workers Association versus Jacinto Rubber & Plastics Co. Inc.'
• Petitioner claims that the properties sought to be levied were their own and not the respondent's.
• Petitioner, Asian Footwear and Rubber Corporation (ASIAN), is engaged in the manufacture of footwear.
• On November 10, 1980, ASIAN bought eight parcels of land with permanent improvements from Jacinto Rubber and Plastics Co., Inc. (JACINTO).
• The purchase price included assuming JACINTO's obligation to the Philippine Banking Corporation.
• ASIAN obtained transfer certificates of title to the lands by November 28, 1980.
• On May 16, 1985, respondent Deputy Sheriff Antonio P. Soriano, together with some policemen and other persons, went to the premises of ASIAN to enforce the Alias Writ of Execution issued by respondent Vivar.
• ASIAN resisted the execution, claiming that the properties sought to be levied were their own and not JACINTO's.

Issue:

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Ruling:

• The Supreme Court ruled in favor of the petitioner, ASIAN Footwear & Rubber Corporation.
• The court held that the labor arbiter, respondent Vivar, was incompetent to determine if the sale of the JACINTO properties to ASIAN was made in fraud of creditors.
• The court emphasized that such determination is a judicial task and the proceedings must be adversary.
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Ratio:

• The court based its decision on the fact that at the time of the sale, JACINTO had already stopped its business operations and applied for clearance...continue reading