Asia Banking Corporation v. Asuncion Nable Jose

Summary

Asia Banking Corporation challenged a property conveyance from the insolvent Lichauco family corporation to Asuncion Nable Jose, claiming it was fraudulent. The Supreme Court En Banc found that the January 16, 1922 conveyance of 410 hectares of land worth P400,000-P600,000 for consideration of only P70,000 (effectively P34,000 after accounting for included shares) constituted a fraudulent transfer. The Court applied Civil Code Article 1292, noting the corporation was insolvent and the payment was made before the underlying obligation became enforceable. The grossly inadequate consideration was deemed a badge of fraud. The Court allowed Asia Banking Corporation to recover the property by paying Nable Jose P34,000 plus interest, demonstrating the application of fraudulent conveyance principles to protect creditor rights in corporate insolvency situations.