G.R. No. 110844 - Ching vs. Court of Appeals

On February 4, 1992, Ching was charged before RTC-Makati, Branch 58, with four counts of estafa under Article 315(1)(b) RPC in relation to PD 115 (Trust Receipts Law).
Each information alleged that Ching executed trust receipts in favor of Allied Banking Corporation for imported goods, agreed to sell and remit proceeds or return unsold goods, but misappropriated or converted the goods/proceeds to his own use, to the bank’s prejudice.

February 10, 1992: Ching filed an omnibus motion to strike out the informations or require preliminary investigation and to suspend proceedings.
February 13, 1992: RTC-Makati ordered a preliminary investigation and suspended further criminal proceedings.
March 5, 1992: Ching, with Philippine Blooming Mills Co., Inc., filed Civil Case No. 92-60600 in RTC-Manila, Branch 53, for declaration of nullity of trust receipts and for damages.
August 7, 1992: Ching petitioned RTC-Makati to suspend criminal proceedings on ground of prejudicial question; RTC-Makati denied suspension on August 26, 1992, and denied reconsideration on September 4, 1992.

Ching filed a petition for certiorari and prohibition in the Court of Appeals (CA G.R. SP No. 28912), seeking to nullify RTC orders and suspend criminal proceedings.
January 27, 1993: CA dismissed the petition for lack of merit.
June 28, 1993: CA denied Ching’s motion for reconsideration.
November 19, 1993: RTC-Manila, Branch 53, admitted Ching’s amended complaint in the civil case, now alleging the trust receipts were mere side documents to a pure loan.

Whether the pendency of a civil action for nullity of trust receipts and for damages constitutes a prejudicial question warranting suspension of criminal proceedings under Rule 111, Section 5, of the Rules of Court.
Whether resolution of the civil case’s issue (nullity or true nature of trust receipts) necessarily determines Ching’s guilt or innocence in the criminal estafa trial.