Traders Royal Bank… · G.R. 78412

Petitioner: Traders Royal Bank
Respondent: The Honorable Court of Appeals
Citation: G.R. No. 78412
Court: Supreme Court
Division: First Division
Ponente: Griño-Aquino, J.
Decided: September 26, 1989

Summary

Traders Royal Bank sued Philippine Blooming Mills (PBM) and its surety Alfredo Ching to collect P22.2 million. When SEC placed PBM under rehabilitation receivership, the Court of Appeals ruled that this suspended all related claims including those against individual sureties. The Supreme Court reversed, holding that SEC jurisdiction under P.D. 902-A and P.D. 1758 extends only to corporations, not individual sureties. The Court emphasized the separate legal personality of corporations from their officers/stockholders and applied Civil Code Article 1216 allowing creditors to pursue solidary debtors separately. This established that corporate rehabilitation receivership does not shield individual guarantors from separate collection suits, preventing sureties from escaping liability by co-filing corporate suspension petitions.

Statutes applied

Civil Code, Art. 1216

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By the Intellegal Editorial Board · September 26, 1989

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