Producers Bank of the Philippines v. Bank of the Philippine Islands

Summary

This case involves a dispute over pledged shares of stock in Producers Bank. AIDC held a pledge over shares owned by several individuals to secure a P4.5 million debt. When the debt went unpaid, AIDC acquired the shares through public auction but Producers Bank refused to register the transfer. After BPI acquired AIDC through merger, BPI sued for specific performance. The trial court dismissed the case as time-barred, but the Court of Appeals reversed. The Supreme Court affirmed, holding that the action was based on a written contract subject to a 10-year prescriptive period under the Civil Code, and since suit was filed within this period, the case was not barred by prescription and should proceed on the merits.