- Petitioner
- Pntc Colleges
- Respondent
- Time Realty
- Citation
- G.R. No. 219698
- Court
- Supreme Court
- Division
- Second Division
- Ponente
- Hernando, J.
- Decided
- September 27, 2021
Summary
This case involves a lease dispute between PNTC Colleges and Time Realty over withheld personal properties. When PNTC vacated leased premises in 2007 without settling rental arrears and service charges, Time Realty retained PNTC's remaining properties as security pursuant to their lease contract. PNTC sued for delivery of properties while Time Realty counterclaimed for unpaid obligations and restoration costs. The Supreme Court ultimately affirmed Time Realty's right to retain properties under the contract but modified interest computations, reducing unconscionable penalty rates and applying legal interest rates. The decision emphasizes that contracts are law between parties and parties must perform obligations in good faith, while courts may equitably reduce unconscionable penalties under Civil Code Article 1229.
Intellegal Wiki · Key Holding
Upheld Time Realty's contractual right to retain the properties but reduced the unconscionable 3% monthly interest to 1% per month (12% per annum) under Article 1229; imposed 6% per annum on service charges.
An editorially maintained summary of the rule this Supreme Court decision is cited for — not legal advice.