- Petitioner
- Paray
- Respondent
- Rodriguez
- Citation
- G.R. No. 132287
- Court
- Supreme Court
- Division
- Third Division
- Ponente
- Tinga, J.
- Decided
- January 24, 2006
Summary
Respondents pledged shares of stock to secure loans with 5% monthly interest. When they defaulted, petitioners sought foreclosure which was authorized by final RTC judgment. Before the scheduled auction, respondents consigned amounts with court claiming tender to creditors was refused. Despite consignations, auction proceeded with Espeleta bidding P6.2 million for all shares. Court of Appeals nullified auction applying redemption principles. Supreme Court reversed, holding no right of redemption exists over personal property like pledged shares. Consignations were insufficient to cover principal plus accrued interest. The extrajudicial notarial sale was valid under Civil Code provisions governing pledge contracts. The decision clarifies that redemption rights apply only to real property, not personal property sold at auction.
Intellegal Wiki · Key Holding
Granted the petition and reversed the CA, holding that no right of redemption exists over personal property such as pledged shares, that redemption rules apply only to real-property execution sales, and that the extrajudicial notarial sale of the shares was valid where the debtors' consignations failed to cover both principal and accrued interest.
An editorially maintained summary of the rule this Supreme Court decision is cited for — not legal advice.