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    2.) National Sugar Trading V PNB - Castro

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    Malcolm Cruz
    1) The Philippine Sugar Commission created marketing agents to buy and sell sugar, with the Philippine Exchange Company financed by the Philippine National Bank. 2) The marketing agents accumulated debts to PNB totaling over $200 million. PNB received foreign remittances and applied them to offset these debts. 3) The petitioners claimed compensation was invalid since remittances were received by PNB not the marketing agents. However, the court ruled PNB and its marketing agents were effectively one entity, and compensation was valid since the remittances stemmed from sugar trading financed through PNB. The Court of Appeals decision upholding compensation was affirmed.

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    2.) National Sugar Trading V PNB - Castro

    Uploaded by

    Malcolm Cruz
    764 views2 pages
    1) The Philippine Sugar Commission created marketing agents to buy and sell sugar, with the Philippine Exchange Company financed by the Philippine National Bank. 2) The marketing agents accumulated debts to PNB totaling over $200 million. PNB received foreign remittances and applied them to offset these debts. 3) The petitioners claimed compensation was invalid since remittances were received by PNB not the marketing agents. However, the court ruled PNB and its marketing agents were effectively one entity, and compensation was valid since the remittances stemmed from sugar trading financed through PNB. The Court of Appeals decision upholding compensation was affirmed.

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    2.)national sugar trading v pnb- castro (1).docx

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    1) The Philippine Sugar Commission created marketing agents to buy and sell sugar, with the Philippine Exchange Company financed by the Philippine National Bank. 2) The marketing agents accumulated debts to PNB totaling over $200 million. PNB received foreign remittances and applied them to offset these debts. 3) The petitioners claimed compensation was invalid since remittances were received by PNB not the marketing agents. However, the court ruled PNB and its marketing agents were effectively one entity, and compensation was valid since the remittances stemmed from sugar trading financed through PNB. The Court of Appeals decision upholding compensation was affirmed.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    764 views2 pages

    2.) National Sugar Trading V PNB - Castro

    Uploaded by

    Malcolm Cruz
    1) The Philippine Sugar Commission created marketing agents to buy and sell sugar, with the Philippine Exchange Company financed by the Philippine National Bank. 2) The marketing agents accumulated debts to PNB totaling over $200 million. PNB received foreign remittances and applied them to offset these debts. 3) The petitioners claimed compensation was invalid since remittances were received by PNB not the marketing agents. However, the court ruled PNB and its marketing agents were effectively one entity, and compensation was valid since the remittances stemmed from sugar trading financed through PNB. The Court of Appeals decision upholding compensation was affirmed.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 2

    National Sugar Trading v PNB (2003) AS WELL as the 200M PHILEXCHANGE account still on

    Petitioner/s: NATIONAL SUGAR TRADING and/or the SUGAR PHILSUCOM’s books.


    REGULATORY ADMINISTRATION 8. The petitioners then filed a petition for arbitration with the DOJ.
    Respondent: PHILIPPINE NATIONAL BANK, The SOJ ruled for them, saying that PNB should refund the
    Petition: Petition For Certiorari 200M back to petitioners. Office of the President and CA
    Ponencia: Ynares-Santiago, J. reversed, thus this petition.

    DOCTRINE: A corporation that is wholly owned and controlled by the ISSUES:


    government does not have a separate juridical personality. 1. WON CA erred in upholding the legality of the compensation
    by PNB of the accounts of NASUTRA
    FACTS:
    1. Marcos issued PD 388, creating the Philippine Sugar RULING + RATIO:
    Commission (PHILSUCOM) as the sole buying and selling agent 1. NO.
    of sugar on the quedan permit level.  The important part here is the validity of the compensation of
    2. PD 579 was also issued, authorizing the Philippine Exchange the P200 Million PHILEXCHANGE account. Petitioners say that
    Company, Inc. (PHILEXCHANGE), a wholly owned subsidiary compensation is not possible, since the subject remittances
    of Philippine National Bank (PNB) to serve as the marketing were received by PNB and not PHILEXCHANGE, a corporation
    agent of PHILSUCOM. PHILEXCHANGE’s purchases of sugar clothed with a separate and distinct corporate personality from
    shall be financed by PNB and the proceeds of sugar trading PNB.
    operations of PHILEXCHANGE shall be used to pay its liabilities  HOWEVER, it was clear that PHILEXCHANGE and PNB were
    with PNB. treated as one entity.
    3. With the fall of world sugar prices, PHILEXCHANGE could  Purchases of sugar of PHILEXCHANGE as the exclusive sugar
    not pay and owed PNB P200M. trading arm of PHILSUCOM were financed by PNB pursuant to
    4. In 1977, the National Sugar Trading Corporation (NASUTRA) PD 579.
    replaced PHILEXCHANGE as the marketing agent of  PNB, a wholly owned bank of the government at that time,
    PHILSUCOM. However, NASUTRA and PHILSUCOM still failed in turn wholly owned and controlled PHILEXCHANGE.
    to pay the sugar stocks covered by quedans to PHILEXCHANGE  Also, Section 2 (a), PD 659 declared as illegal the sale, transfer
    eventually amounted to P498,828,845.03 and assignment of sugar by any planter, producer, miller,
    5. To finance its sugar trading operations, NASUTRA applied for central, or refinery to any person or entity other than
    and was granted a P408 Million Revolving Credit Line by PNB in Philippine Exchange, Inc. and/or the PNB.
    1981. Still, NASUTRA wound up with another 65M in interest  To reiterate, PHILEXCHANGE failed to pay its loans with PNB
    payments. because of the fall of the sugar prices in the world market.
    6. Thus, NASUTRA was dissolved and its assets were When NASUTRA substituted PHILEXCHANGE as marketing
    transferred to the SRA. Still, NASUTRA (and consequently agent of PHILSUCOM, 1,485,532.47 metric tons of export sugar
    the SRA) defaulted in its loans, ended up owing a total of were turned over by PHILEXCHANGE to NASUTRA. To
    P380 Million. reiterate, the foreign remittances constituted proceeds of the
    7. PNB then received remittances from the foreign banks sale of the sugar covered by quedans transferred by
    amounting to P690 Million. PNB applied these remittances to the PHILEXCHANGE to NASUTRA.
    380 Million NASUTRA account and 65M in interest payments,
    DISPOSITION: DENIED

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