Friday, February 24, 2012

Integrated Realty Corp vs PNB Credit Digest


Integrated Realty Corp vs PNB
GR No. 60705, 28 June 1989
174 SCRA 295

FACTS
            Raul Santos made a time deposit with OBM in the amount of P500H and he was issued a certificate of time deposits. On another date, Santos again made a time deposit with OBM in the amount of P200H, he was again issued a CTD. IRC, thru its president Raul Santos, applied for a loan and/or credit line (P700H) with PNB. To secure such, Santos executed a Deed of Assignment of the 2 time deposits. After due dates of the time deposit certificates, OBM did not pay PNB. PNB then demanded payment from IRC and Santos, but they replied that the loan was deemed paid with the irrevocable assignment of the time deposit certificates.

            PB then filed with RTC to collect from IRC and Santos with interest. The trial court ruled in favor of PNB ordering IRC and Santos to pay PNB the total amount of P700H plus interest of 9% PA, 2% additional interest and 1& PA penalty interest. On appeal, the CA ordered OBM to pay IRC and Santos whatever amts they will to PNB with interest.

            IRC and Santos now claim that OBM should reimburse them for whatever amts they may be adjudged to pay PNB by way of compensation for damages incurred.

ISSUE
            Whether or not the claim of IRC and Santos will prosper.

HELD
            The Court held in the affirmative. The 2 time deposits matured on 11 January 1968 and 6 February 1968, respectively. However, OBM was not allowed and suspended to operate only on 31 July 1968 and resolved on 2 August 1968. There was a yet no obstacle to the faithful compliance by OBM of its liabilities. For having incurred in delay in the performance of its obligation, OBM should be held for damages. OBM contends that it had agreed to pay interest only up to the dates of maturity of the CTD and that Santos is not entitled to interest after maturity dates had expired.

            While it is true that under Article 1956 of the CC, no interest shall be due unless it has been expressly stipulated in writing, this applies only to interest for the use of money. It does not comprehend interest paid as damages. OBM is being required to pay such interest, not as interest income stipulated in the CTD, but as damages fro failure and delay in the payment of its obligations which thereby compelled IRC and Santos to resort to the courts.

            The applicable rule is that LI, in the nature of damages for non-compliance with an obligation to puy sum of money, is recoverable from the date judicially or extra-judicially demand is made.

1 comment:

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