Magdiwang Realty Corporation v. The Manila Banking Corporation

Summary

The Supreme Court denied petitioners' appeal of a collection case involving unpaid promissory notes worth P2.5 million. Manila Banking Corporation successfully collected against Magdiwang Realty Corporation and individual guarantors who were declared in default for failure to timely file responsive pleadings. The Court ruled that prescription was interrupted by written acknowledgments and demands between 1984-1999, rejecting defenses of prescription and novation. The petition was dismissed as it raised questions of fact improper for Rule 45 review. The case demonstrates consequences of procedural default and requirements for valid interruption of prescriptive periods in commercial loan collections.