Case Digest (G.R. No. 182582)
Facts:
Rural Bank of San Miguel, Inc. and Hilario P. Soriano v. Monetary Board, Bangko Sentral ng Pilipinas and Philippine Deposit Insurance Corporation, G.R. No. 150886, February 16, 2007, First Division of the Supreme Court, Corona, J., writing for the Court.Petitioner Rural Bank of San Miguel, Inc. (RBSM) was a domestic rural bank with 15 branches in Bulacan; petitioner Hilario P. Soriano claimed to be the majority stockholder. On January 21, 2000 the Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) issued Resolution No. 105 prohibiting RBSM from doing business, placing it under receivership and designating the Philippine Deposit Insurance Corporation (PDIC) as receiver. The MB acted on a report by Wilfredo B. Domo-ong, Director, Department of Rural Banks, summarizing comptrollership findings as of October 31 and December 31, 1999 showing substantial deficits, depleted cash on hand, large deposits and borrowings, unpaid taxes and a required capital infusion RBSM did not make. The MB later directed PDIC to liquidate RBSM by Resolution No. 966 (June 9, 2000).
Prior to the MB action, RBSM had been granted emergency loans totalling P375 million from BSP; Land Bank of the Philippines had threatened to terminate clearing facilities because of clearing losses; RBSM declared a bank holiday on January 4, 2000; and BSP comptrollers submitted detailed reports indicating unaccounted funds and that depositors’ withdrawals were not being properly serviced. PDIC implemented the MB closure and took over management.
Petitioners first filed a certiorari/prohibition petition in the Regional Trial Court of Malolos (docketed Civil Case No. 66-M-2000) but withdrew that action on February 7, 2000 and instead filed a special civil action for certiorari and prohibition in the Court of Appeals (CA) under Rule 65. The RTC dismissed the original case pursuant to Section 1, Rule 17. The CA, in CA-G.R. SP No. 57112, dismissed petitioners’ Rule 65 petition by decision dated March 28, 2000 and a related resolution dated November 13, 2001, holding that the MB’s Resolution No. 1...(Subscriber-Only)
Issues:
- Procedural: Did the Court need to resolve petitioners’ ancillary procedural claims (Soriano’s legal personality to file, alleged forum shopping, and failure to formally offer evidence) before deciding the petition?
- Substantive: Whether Section 30 of Republic Act No. 7653 requires a current, thorough and complete examination by the head of the supervising or examining department before the MB may close a ...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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