Case Digest (G.R. No. 146197)
Facts:
Security Bank Corporation v. Indiana Aerospace University, G.R. No. 146197, September 27, 2005, the Supreme Court First Division, Carpio, J., writing for the Court.
On 20 September 1996, Security Bank (petitioner) and Innovatech Development and Management Corporation (mortgagor) executed a real estate mortgage securing a P25,000,000 loan with fourteen condominium units in Tito Jovy Tower, Muntinlupa City (Certificates of Title Nos. 41863–41873, 41875–41877) as collateral. Innovatech later informed Security Bank by letter dated 1 July 1997 that it had sold the condominiums to Indiana Aerospace University (Indiana) and furnished a Deed of Sale with Assumption of Mortgage and Indiana’s loan application with Bank of Southeast Asia; Innovatech represented that proceeds would be applied to Security Bank’s loan.
The loan matured on 19 September 1997 without payment. Security Bank instituted a notarial foreclosure under Act No. 3135 (as amended by Act No. 4118); the public auction on 29 January 1998 resulted in Security Bank’s acquisition of the units as highest and only bidder for P32,839,290. On 25 February 1998, Innovatech filed an action for annulment of the extrajudicial foreclosure sale and reconveyance and secured a writ of preliminary injunction from the Regional Trial Court (RTC) of Muntinlupa, Branch 256 on 26 March 1998.
Security Bank filed a petition for certiorari in the Court of Appeals (CA) in CA‑G.R. SP No. 49326 challenging the RTC’s injunction. The CA initially dismissed the petition in a Decision promulgated 24 August 1999, but in an Amended Decision dated 8 June 2000 set aside that dismissal and nullified the writ of preliminary injunction; Innovatech’s motion for reconsideration of the Amended Decision was denied by the CA on 19 February 2002, and Innovatech’s subsequent petition to this Court (G.R. No. 152157) was denied in April 2002.
Meanwhile, Indiana filed a Complaint-in-Intervention on 22 June 1998. On 1 February 1999, the RTC (Presiding Judge Alberto L. Lerma) issued an order granting a writ of preliminary mandatory injunction directing cancellation/annotation of the Certificate of Sale on the condominium titles, subject to a P1,000,000 bond, and enjoining the Register of Deeds of Makati City from registering the certificate until further order. Security Bank’s motion for reconsideration of that RTC order was denied on 3 November 1999.
Security Bank filed a petition for certiorari with the CA in CA‑G.R. SP No. 56534 challenging the RTC’s injunction. The CA issued Resolutions dated 22 February 2000 and 29 November 2000 denying due course and denying reconsideration of Security Bank’s petition on the ground that the petition failed to indicate the material dates required by Section 3, Rule 46 of the 1997 Rules of Civil Procedure, as amended by Supreme Cour...(Subscriber-Only)
Issues:
- Did the Court of Appeals err in dismissing Security Bank’s petition for certiorari on technical non‑compliance with Section 3, Rule 46 (Circular No. 39‑98) despite Security Bank’s substantial c...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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