- Petitioner
- Thos. N. Powell
- Respondent
- The Philippine National Bank
- Citation
- G.R. No. 31339
- Court
- Supreme Court En Banc
- Division
- En Banc
- Ponente
- Villa-Real, J.
- Decided
- November 27, 1929
Summary
The Supreme Court affirmed a judgment requiring Philippine National Bank to pay P7,926.18 to Thomas N. Powell. The case arose from a complex property dispute involving execution sales, redemption rights, and lien priorities. Severino Aldeguer mortgaged lands to PNB, which were later sold to Asia Banking Corporation at execution sale. PNB held promissory notes for fertilizer used on the lands and collected sugar crops, but applied them to the mortgage debt rather than the fertilizer notes. The Court held PNB waived its preferential lien on crops under Civil Code Article 1922(6) by this application. After the redemption period expired, Asia Banking Corporation became entitled to the fruits and rents, making PNB's subsequent collection improper. This decision clarifies important principles regarding execution sales, redemption periods, preferential liens, and the rights of purchasers versus judgment debtors during redemption periods.