MANILA The Court of Appeals has stopped the auction and transfer of properties of the defunct Banco Filipino Savings and Mortgage Bank (Banco Filipino).
In a decision penned by Associate Justice Ronaldo Roberto B. Martin, the CA's 10th division ruled to allow the plea of the Banco Filipino's stockholder, Ekistics Philippines, Inc., challenging the Philippine Deposit Insurance Corporation (PDIC)'s actions while the bank's receivership issue is still pending with the Supreme Court (SC).
The CA said PDIC's precipitate haste in attempting to sell the assets of Banco Filipino is tantamount to grave abuse of discretion on its part.
In the instant case, the status quo wherein the assets are not sold pending the ruling of the Supreme Court as to the validity of placing Banco Filipino under receivership is but safe and proper. Should it be otherwise and allow the sale even if the Supreme Court has yet to decide on its validity would render Banco Filipino without any asset and money if the Supreme Court later on rules that placing it under receivership was invalid," the CA noted.
PDIC was ordered to cease and desist from selling the assets of Banco Filipino covered under the liquidation proceeding before the Makati City Regional Trial Court Branch 66, pending final determination of the SC.
Another division of the CA earlier stopped the Bangko Sentral ng Pilipinas (BSP) from disposing of Banco Filipino's assets.
In 1985, regulators closed the bank and was ordered reopened by the SC in 1994.
On March 17, 2011, the BSP and the Monetary Board (MB) again placed Banco Filipino under the receivership of the PDIC which ordered its liquidation on Oct. 27, 2011. (PNA)
Source: Philippine News Agency