Case Digest (G.R. No. 126891)
Facts:
- Lim Tay extended loans of PHP 40,000 each to respondents Sy Guiok and Alfonso Sy Lim on January 8, 1980.
- To secure these loans, the respondents pledged 300 shares of stock in Go Fay & Co., Inc.
- The pledge contracts allowed Lim Tay to foreclose the pledge and sell the shares if the loans were not repaid within six months.
- The respondents did not repay the loans.
- In October 1990, Lim Tay filed a petition for mandamus with the SEC to compel the corporate secretary of Go Fay & Co., Inc. to register the stock transfers and issue new certificates in his name.
- The SEC dismissed the petition, stating that ownership of the shares was not established and that jurisdiction lay with the regular courts.
- The SEC en banc and the Court of Appeals upheld the SEC's decision.
- Lim Tay then brought the case to the Supreme Court.
Issue:
- (Unlock)
Ruling:
- The SEC does not have jurisdiction over the complaint.
- The petitioner is not enti...(Unlock)
Ratio:
- The Supreme Court ruled that the SEC lacked jurisdiction because ownership of the shares was not clearly established.
- The contracts of pledge did not transfer ownership automatically upon the respondents' failure to repay; they only authorized foreclosure and sale.
- No evidence of foreclosure and sale was presented, so the petitioner remained a pledgee, not an owner.
- Mandamus cannot be issued to establish a right but only to enforce one a...continue reading
Case Digest (G.R. No. 126891)
Facts:
The case of "Lim Tay v. Court of Appeals" revolves around a dispute concerning the ownership of pledged shares of stock in Go Fay & Co., Inc. On January 8, 1980, the petitioner, Lim Tay, extended loans of PHP 40,000 each to respondents Sy Guiok and Alfonso Sy Lim. To secure these loans, the respondents executed contracts of pledge, each pledging 300 shares of stock in Go Fay & Co., Inc. The contracts specified that if the loans were not repaid within six months, Lim Tay could foreclose the pledge and sell the shares at a public or private sale. The respondents failed to repay their loans. Consequently, in October 1990, Lim Tay filed a petition for mandamus with the Securities and Exchange Commission (SEC) to compel the corporate secretary of Go Fay & Co., Inc. to register the stock transfers and issue new certificates in his name. The SEC dismissed the petition, ruling that ownership of the shares had not been clearly established and that jurisdiction lay with the regular courts. This decision was upheld by the SEC en banc and late...