G.R. No. 150886 - Rural Bank of San Miguel, Inc. vs. Monetary Board

Petitioners Rural Bank of San Miguel, Inc. (RBSM), a domestic bank operating since 1962 with 15 branches in Bulacan, and Hilario P. Soriano, its alleged majority stockholder.
Respondents: Monetary Board (MB) of the Bangko Sentral ng Pilipinas (BSP) and the Philippine Deposit Insurance Corporation (PDIC).

Based on the Comptrollership/Monitoring Report as of October 31, 1999 by the BSP’s Department of Rural Banks, showing RBSM’s (a) inability to pay liabilities in the ordinary course, (b) insufficient realizable assets, and (c) need for fresh capital infusion which was not made.
MB’s action: prohibited RBSM from doing business, placed it under receivership under Section 30 of RA 7653, and designated PDIC as receiver.

Petitioners filed a petition for certiorari and prohibition in RTC Malolos (Civil Case No. 66-M-2000) on January 31, 2000; withdrew it on February 7 and filed a special civil action in the CA the same day; RTC dismissed the original case on February 8, 2000 under Rule 17, Sec. 1.
CA-G.R. SP No. 57112: On March 28, 2000, the CA dismissed the petition, finding MB’s Resolution No. 105 supported by substantial evidence—emergency loans totaling ₱375 million, clearing losses, misapplication of last ₱26.18 million tranche, RBSM’s unilateral bank holiday on January 4, 2000, and adverse comptrollership reports for October 31 and December 31, 1999.

MB Resolution No. 966 (June 9, 2000) directed PDIC to liquidate RBSM under Section 30 of RA 7653.
Petitioners elevated the matter to the Supreme Court via Rule 45 petition for review on certiorari.

Whether Section 30 of RA 7653 requires a current, thorough and complete examination of a bank prior to its closure and receivership, or whether a report by the head of the supervising/examining department suffices.