- Petitioner
- Spouses Ramon Sy
- Respondent
- Westmont Bank (Now United Overseas Bank Philippines)
- Citation
- G.R. No. 201074
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Mendoza, J.
- Decided
- October 19, 2016
Summary
This case involved a loan collection suit filed by Westmont Bank against the Sy spouses and others based on two promissory notes totaling P6,429,500.00. The borrowers claimed their loan applications were disapproved and they obtained funds from a third party instead. The RTC and CA ruled for the bank, finding the borrowers failed to properly deny the promissory notes under procedural rules. However, the Supreme Court reversed, holding that the borrowers substantially complied with denial requirements and that the bank failed to prove delivery of loan proceeds. Since delivery is essential to perfect a loan contract under the Civil Code, the Court dismissed the complaint, emphasizing that substance should prevail over procedural technicalities in achieving substantial justice.