Komatsu Industries (Phils.) · G.R. 127682

Petitioner: Komatsu Industries (Phils.) Inc.
Respondent: Court of Appeals
Citation: G.R. No. 127682
Court: Supreme Court
Division: Second Division
Ponente: Regalado, J.
Decided: April 24, 1998

Summary

This case involves a mortgage dispute between Komatsu Industries (KIPI), Philippine National Bank (PNB), and National Investment and Development Corporation (NIDC). KIPI obtained loans secured by real estate mortgage in favor of both PNB and NIDC on pari-passu basis. When KIPI paid its NIDC obligations, NIDC released the mortgage, but PNB claimed separate unpaid obligations and foreclosed the property. The Supreme Court affirmed the Court of Appeals ruling that NIDC's release did not bind PNB due to separate corporate personalities and the principle of relativity of contracts. The Court applied Civil Code provisions on indivisible mortgages, allowing PNB to foreclose the entire property. The case is significant for clarifying mortgage law principles, corporate separate personality doctrine, and Supreme Court procedural rules on minute resolutions versus full decisions.

Statutes applied

Related cases

Other Philippine cases on the same provisions and issues.

Spouses Benjamin C. Mamaril v. The Boy Scout of the Philippines G.R. No. 179382
William Ong Genato v. Benjamin Bayhon G.R. No. 171035
A & C Minimart Corporation v. Patricia S. Villareal G.R. No. 172268
Siredy Enterprises v. Hon. Court of Appeals G.R. No. 129039
William Uy v. Court of Appeals G.R. No. 120465
Rodrigo B. Bangayan v. The Honorable Court of Appeals G.R. No. 123581

By Intellegal Editorial Board · April 24, 1998

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