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Lim Vs CA

The petitioners obtained loans from the private respondent bank and used real estate and chattel as security. When petitioners were unable to pay some loans, the bank filed for foreclosure of the mortgages. Petitioners then filed a case claiming overpayment if excessive interest and penalties were excluded. The RTC initially issued a writ to stop foreclosure, but later ruled for the bank. The CA denied the petition for a temporary restraining order and preliminary injunction. The Supreme Court upheld the CA's decision, finding the petitioners did not prove great and irreparable injury would occur before the matter could be heard, nor did they prove a clear right to protection under the ancillary relief of a temporary restraining order.

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0% found this document useful (0 votes)
157 views1 page

Lim Vs CA

The petitioners obtained loans from the private respondent bank and used real estate and chattel as security. When petitioners were unable to pay some loans, the bank filed for foreclosure of the mortgages. Petitioners then filed a case claiming overpayment if excessive interest and penalties were excluded. The RTC initially issued a writ to stop foreclosure, but later ruled for the bank. The CA denied the petition for a temporary restraining order and preliminary injunction. The Supreme Court upheld the CA's decision, finding the petitioners did not prove great and irreparable injury would occur before the matter could be heard, nor did they prove a clear right to protection under the ancillary relief of a temporary restraining order.

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G.R. No.

190134, July 08, 2015


SPOUSES ROGELIO AND SHIRLEY T. LIM, AGUSAN INSTITUTE OF TECHNOLOGY vs. HONORABLE COURT
OF APPEALS AND FIRST CONSOLIDATED BANK
PERALTA, J.

Facts: Petitioner obtained several loans from respondent First Consolidated Bank (private respondent
bank) and executed several real estate mortgages and chattel mortgage as security. Petitioners were
unable to pay some of the loans, hence private respondent bank filed for an application for foreclosure
of the mortgages.

Petitioners filed an action for revocation and annulment of real estate mortgage and chattel mortgage
with plea for the issuance of a temporary restraining order and preliminary injunction with the RTC.
They alleged that Agusan Institute of Technology had already fully paid its obligation with private
respondent Bank if the latter did not charge exorbitant and excessive interests and penalties and that
the total payments they tendered constituted overpayments to the loan.

RTC: Issued the writ ordering private respondent Bank to desist from foreclosing the said contracts of
mortgage. After trial on the merits, RTC lifted the writ of preliminary injunction and ruled in favor of
private respondent Bank.

CA: Denied petitioners' appeal with prayer for the issuance "of a TRO and/or Writ of Preliminary
Injunction.

Issues: Whether or not the CA should grant the writ of preliminary injunction.

Ruling: No. Section 5, Rule 58 of the Rules of Court provides that a TRO may be issued only if it appears
from the facts shown by affidavits or by verified application that great or irreparable injury would be
inflicted on the applicant be-fore the writ of preliminary injunction could be heard.

To be entitled to an injunctive writ, the applicant must show that there exists a right to be protected
which is directly threatened by an act sought to be enjoined. Furthermore, there must be a showing that
the invasion of the right is material and substantial, and that there is an urgent and paramount necessity
for the writ to prevent serious damage.

Australian Professional Realty, Inc. v. Municipality of Padre Garcia: A writ of preliminary injunction and a
TRO are injunctive reliefs and preservative remedies for the protection of substantive rights and
interests. Essential to granting the injunctive relief is the existence of an urgent necessity for the writ in
order to prevent serious damage. A TRO issues only if the matter is of such extreme urgency that grave
injustice and irreparable injury would arise unless it is issued immediately.

Pahila-Garrido v. Tortogo: Injunctive relief is resorted to only when there is a pressing necessity to avoid
injurious consequences that cannot be redressed under any standard of compensation. The controlling
reason for the existence of the judicial power to issue the writ of injuction is that the court may thereby
prevent a threatened or continuous injury to some of the parties before their claims can be thoroughly
investigated and advisedly adjudicated. A writ of preliminary injunction is an extraordinary event and is
the strong arm of equity, or a transcendent remedy. It is granted only to protect actual and existing
substantial rights.

In the present Case, CA did not commit grave abuse of discretion in denying petitioners' application for
preliminary injunction and TRO. As aptly held by the CA, it neither appears from the facts shown by the
TRO application that' great or irreparable injury would result to petitioners before the matter can be
heard, nor did they show any clear and positive right to be entitled to the protection of the ancillary
relief of TRO as they only claim that their debts would have been paid had respondent bank not impose
astronomical interests on its loans.

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