Tec Bi & Co. v. The Chartered · G.R. 9802

Petitioner: Tec Bi & Co.
Respondent: The Chartered Bank of India
Citation: G.R. No. 9802
Court: Supreme Court En Banc
Division: En Banc
Ponente: Carson, J.
Decided: March 31, 1917

Summary

The Supreme Court En Banc denied defendant bank's motion for rehearing in attachment proceedings. Tec Bi & Co. successfully maintained an independent action against Chartered Bank as garnishee, seeking recovery on attached property. The Court rejected the bank's new contentions, ruling that: (1) independent actions against garnishees are permitted under attachment law; (2) statutory preferences under Civil Code articles 1922 and 1924 remain valid despite the Bankruptcy Act; and (3) pledges ineffective against third parties cannot limit creditor recovery. The decision affirmed creditors' rights to pursue garnishees and maintained the continuing validity of Civil Code statutory preferences in non-bankruptcy proceedings, establishing important precedent for attachment and preference law.

Statutes applied

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Chartered Bank of India v. Dionisio Constantino G.R. No. 35504
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By Intellegal Editorial Board · March 31, 1917

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