G.R. No. L-19891 - J.R.S. Business Corp. vs. Imperial Insurance, Inc.

Petitioner: J. R. S. Business Corporation, a duly franchised establishment by Congress to conduct messenger and delivery express service.
Key individual: J. R. Da Silva, President of the corporation.
Respondents:

On July 12, 1961, Imperial Insurance, Inc. filed a complaint (Civil Case No. 47520) against the petitioner for a sum of P61,172.32, itemized as:

Subsequent to the filing and after the defendants submitted their answer, both parties, with counsel assisting, entered into a Compromise Agreement containing the following key terms:

Acknowledgment by the defendants of their debt amounting to P61,172.32.
Joint and several liability for the payment by the defendants.
Payment to be made at the petitioner’s business address within sixty (60) days from March 16, 1962, effectively on or before May 14, 1962.
Provision that, upon failure to pay in full by the due date, the petitioner would have the right to execute the judgment rendered based on the compromise agreement.

On March 17, 1962, the lower court rendered judgment approving the compromise agreement and entered a judgment enjoining the parties to comply faithfully with its terms.
On May 15, 1962, following the missed payment deadline (May 14, 1962), Imperial Insurance, Inc. filed a Motion for the Issuance of a Writ of Execution.
Subsequent developments included:

May 23, 1962 – A Writ of Execution was issued by the Sheriff of Manila.
May 26, 1962 – Notices of Sale were sent out for the auction of the personal properties of the petitioner corporation.
June 2, 1962 – A Notice of Sale specifically covering the whole capital stocks, business name, right of operation, and other corporate assets was issued.

June 9, 1962 – Petitioner, through counsel, filed an “Urgent Petition for Postponement of Auction Sale and for Release of Levy on the Business Name and Right to Operate” asserting:

They were in the process of negotiating a loan to discharge the judgment.
The judgment was for a monetary sum only, and thus the business name or franchise could not be appropriated by the plaintiff.
The right to operate under the legislative franchise was non-transferable and, therefore, not subject to levy and sale.

June 10, 1962 – A Supplemental Motion for Release of Execution was filed, contending that the capital stocks could not be levied upon and sold.
June 20, 1962 – An additional pleading titled “Very Urgent Motion for Postponement of Public Auction Sale and for Ruling on Motion for Release of Levy on the Business Name, Right to Operate and Capital Stocks” was submitted, asserting that within ten (10) days, a secured loan would enable payment of the judgment.
June 21, 1962 – The lower court denied the motion for postponement and proceeded with the auction sale.

The auction sale was held at the premises of the JRS Business Corporation (1341 Perez St., Paco, Manila).
All properties covered under the Notices of Sale (from May 26 and June 2, 1962) were sold, with the highest bid amounting to P10,000.00 offered by Imperial Insurance, Inc.
Immediately after the sale, Imperial Insurance, Inc. took possession of the acquired properties and assumed operational control of JRS Business Corporation’s affairs, prompting the present appeal.

Whether the respondent judge acted without or in excess of his jurisdiction or with grave abuse of discretion when he denied the motion for postponement of the public auction sale of the petitioner’s properties.

Whether the petitioner’s business name (or trade name), legislative franchise (right to operate), and capital stocks constitute properties or property rights that can be subjected to levy, execution, and sale.