Title
Global Holiday Ownership Corp. vs. Metropolitan Bank and Trust Co.
Case
G.R. No. 184081
Decision Date
Jun 19, 2009
The Supreme Court ruled that Metrobank's lack of personal notice to the mortgagor invalidated the foreclosure proceedings, upholding the injunction to protect Global's rights.
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Timeline (G.R. No. 184081)

  1. Loan Acquisition: Global Holiday Ownership Corporation (Global) obtained several loans from Metropolitan Bank & Trust Company (Metrobank) totaling P5,700,000.00, secured by a real estate mortgage.

  2. First Default: Global defaulted on the loan payments and requested a loan restructuring, which Metrobank granted, increasing the total principal to P6,375,000.00 as of September 3, 2001.

  3. Second Default: After defaulting again, Global requested another restructuring, leading to a Debt Settlement Agreement executed on November 15, 2001, detailing a payment schedule.

  4. Non-Compliance: Global failed to comply with the terms of the Debt Settlement Agreement, despite demands for payment on December 22, 2005, and May 18, 2006.

  5. Foreclosure Initiation: On May 22, 2006, Metrobank requested the Clerk of Court to initiate the sale of the mortgaged property at public auction, scheduled for July 10, 2006.

  6. Complaint Filed: On July 6, 2006, four days before the auction, Global filed a complaint for annulment of the foreclosure proceedings, seeking damages and an injunction.

  7. Temporary Restraining Order: The trial court granted Global a temporary restraining order on July 7, 2006, and set a hearing for a writ of preliminary injunction on July 14, 2006.

  8. Preliminary Injunction Granted: On July 26, 2006, the trial court issued a writ of preliminary injunction in favor of Global, preventing the foreclosure.

  9. Metrobank's Motion for Reconsideration: Metrobank filed a motion for reconsideration against the injunction, which the trial court denied on October 6, 2006.

  10. Appeal to Court o...continue reading


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