- Petitioner
- Adriano Panlilio
- Respondent
- Esteban Victorio
- Citation
- G.R. No. 10953
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Torres, J.
- Decided
- December 12, 1916
Summary
This 1916 Supreme Court case involved a fraudulent sale of a drug store executed to defraud creditors. Mariano Torres Pamintuan, owner of a drug store in Bacolor, Pampanga, owed money to pharmaceutical suppliers Stahl & Rumcker and other creditors. Facing judgment and attachment proceedings, he executed a backdated sale contract to Adriano Panlilio, claiming the sale occurred on January 10, 1914, but evidence showed it was actually executed on March 25, 1914—eleven days after a judgment was rendered against him. The Supreme Court affirmed the trial court's finding that the sale was fraudulent under Civil Code Articles 1291 and 1297, which create a presumption of fraud when property is alienated after a condemnatory judgment. The Court ordered rescission of the contract and restitution to the defrauded creditors, establishing important precedent on fraudulent transfers and creditor protection under Philippine civil law.