Case Digest (G.R. No. 204226)
Facts:
In Bureau of Internal Revenue (BIR) vs. TICO Insurance Company, Inc., Glowide Enterprises, Inc., and Pacific Mills, Inc. (G.R. No. 204226, April 18, 2022), TICO Insurance Company, Inc. was placed under liquidation by the Insurance Commission in April 2002 with Atty. Rommel A. Frias as liquidator. Prior to its liquidation, TICO had issued fire insurance policies to Glowide Enterprises, Inc. and Pacific Mills, Inc. for certain properties that were destroyed by fire in 1997. After TICO failed to pay the full insurance proceeds, Glowide and PMI secured a money judgment in October 2001 before the Regional Trial Court (RTC) of Quezon City, Branch 98, and obtained a writ of preliminary attachment on December 22, 2000, over two condominium units (Units 7A and 7B of Trafalgar Plaza, CCT Nos. 39452 and 39453) registered under TICO’s name. The judgment was executed in June 2002, the units were sold at auction to Glowide and PMI in April 2004, and the final deed of sale was issued on AprilCase Digest (G.R. No. 204226)
Facts:
- Parties and Background
- TICO Insurance Company, Inc. – life insurer placed under liquidation by the Insurance Commission on April 22, 2002.
- Glowide Enterprises, Inc. and Pacific Mills, Inc. – policyholders under a 1997 fire insurance policy covering Condominium Units 7A & 7B of Trafalgar Plaza (CCT Nos. 39452 & 39453).
- Glowide & PMI’s Insurance Claim
- A conflagration destroyed insured properties; TICO failed to pay proceeds despite demand. Glowide & PMI sued in RTC Quezon City (Q-00-42328), obtained on October 3, 2001 a judgment for ₱5,442,209.97 plus interest, attorney’s fees, and costs.
- RTC QC granted preliminary attachment (notice of levy on attachment annotated December 22, 2000); upon motion for execution, writ issued June 3, 2002; certificate of sale issued April 15, 2004; final deed of sale executed April 15, 2005 after redemption period lapsed.
- BIR’s Tax Assessment and Lien
- On January 31, 2000 the BIR served TICO final deficiency assessments (1996–1997) totaling ₱73,020,590.12, reduced to ₱69,479,440.59 after protest, which remained unpaid.
- The BIR issued a warrant of distraint/levy and notice of tax lien on TICO’s properties; lien was annotated on CCT Nos. 39452 & 39453 on February 15, 2005.
- Interpleader Proceedings and Prior Rulings
- On August 7, 2006 TICO filed an interpleader in RTC Makati (SC 06-667) to determine whether the BIR or Glowide & PMI had superior right over the units. RTC Makati on March 25, 2008 held BIR’s claim preferred; motion for reconsideration denied July 19, 2008.
- The Court of Appeals on December 16, 2011 reversed, finding Glowide & PMI’s attachment/execution rights (retroactive to December 22, 2000) superior to the BIR’s lien (annotated February 15, 2005); CA denied BIR’s motion for reconsideration October 22, 2012. BIR then elevated the case to the Supreme Court.
Issues:
- Whether the BIR’s petition should be dismissed on technical grounds for untimely filing of a motion for reconsideration.
- Whether TICO’s interpleader complaint was improper as a collateral attack on a final and executory judgment in favor of Glowide & PMI.
- Which party—BIR or Glowide & PMI—has the superior claim over the condominium units.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)