THIRD DIVISION

G.R. No. 200678, June 04, 2018

BANCO FILIPINO SAVINGS AND MORTGAGE

BANK, Petitioner, v. BANGKO SENTRAL NG PILIPINAS AND THE
MONETARY BOARD, Respondents.

DECISION

LEONEN, J.:

A bank which has been ordered closed by the Bangko Sentral ng Pilipinas
(Bangko Sentral) is placed under the receivership of the Philippine Deposit
Insurance Corporation. As a consequence of the receivership, the closed
bank may sue and be sued only through its receiver, the Philippine Deposit
Insurance Corporation. Any action filed by the closed bank without its
receiver may be dismissed.

This is a Petition for Review on Certiorari1 assailing the Court of Appeals July

28, 2011 Decision2 and February 16, 2012 Resolution3 in CA-G.R. SP No.
116905, which dismissed Civil Case No. 10-1042 and held that the trial court
had no jurisdiction over Bangko Sentral and the Monetary Board.

On December 11, 1991, this Court promulgated Banco Filipino Savings &

Mortgage Bank v. Monetary Board and Central Bank of the
Philippines,4 which declared void the Monetary Board's order for closure and
receivership of Banco Filipino Savings & Mortgage Bank (Banco Filipino). This
Court also directed the Central Bank of the Philippines and the Monetary
Board to reorganize Banco Filipino and to allow it to resume business under
the comptrollership of both the Central Bank and the Monetary Board.5

Banco Filipino subsequently filed several Complaints before the Regional

Trial Court, among them a claim for damages in the total amount of
P18,800,000,000.00.6

On June 14, 1993, Congress passed Republic Act No. 7653,7 providing for
the establishment and organization of Bangko Sentral as the new monetary
authority.

On November 6, 1993, pursuant to this Court's 1991 Banco Filipino Decision,

the Monetary Board issued Resolution No. 427, which allowed Banco Filipino
to resume its business.8
In 2002, Banco Filipino suffered from heavy withdrawals, prompting it to
seek the help of Bangko Sentral. In a letter dated October 9, 2003, Banco
Filipino asked for financial assistance of more than P3,000,000,000.00
through emergency loans and credit easement terms.9 In a letter10 dated
November 21, 2003, Bangko Sentral informed Banco Filipino that it should
first comply with certain conditions imposed by Republic Act No. 7653 before
financial assistance could be extended. Banco Filipino was also required to
submit a rehabilitation plan approved by Bangko Sentral before emergency
loans could be granted.

In a letter11 dated April 14, 2004, Banco Filipino submitted its Long-Term

Business Plan to Bangko Sentral. It also claimed that Bangko Sentral already
extended similar arrangements to other banks and that it was still awaiting
the payment of P18,800,000,000.00 in damage claims, "the entitlement to
which the Supreme Court has already decided with finality."12

In response, Bangko Sentral informed Banco Filipino that its business plan
could not be acted upon since it was neither "confirmed nor approved by
[Banco Filipino's Board of Directors]."13

On July 8, 2004, Banco Filipino filed a Petition for Revival of Judgment with
the Regional Trial Court of Makati to compel Bangko Sentral to approve its
business plan. The case was docketed as Civil Case No. 04-823 and was
raffled to Branch 62.14

During the pendency of its Petition, Banco Filipino entered into discussions
and negotiations with Bangko Sentral, which resulted to seven (7) revisions
in the business plan. Thus, Banco Filipino filed a Proposal for Settlement
dated September 21, 2007 before Branch 62, Regional Trial Court, Makati
City to settle the issues between the parties.15

On April 8, 2009, Banco Filipino submitted its 8th Revised Business Plan to

Bangko Sentral for evaluation.16 In this business plan, Banco Filipino
requested, among others, a P25,000,000,000.00 income enhancement loan.
Unable to come to an agreement, the parties constituted an Ad Hoc
Committee composed of representatives from both parties to study and act
on the proposals. The Ad Hoc Committee produced an Alternative Business
Plan, which was accepted by Banco Filipino, but was subject to the Monetary
Board's approval.17

In a letter18 dated December 4, 2009, Bangko Sentral informed Banco

Filipino that the Monetary Board issued Resolution No. 1668 granting its
request for the P25,000,000,000.00 Financial Assistance and Regulatory
Reliefs to form part of its Revised Business Plan and Alternative Business
Plan. The approval was also subject to certain terms and conditions, among
which was the withdrawal or dismissal with prejudice to all pending cases
filed by Banco Filipino against Bangko Sentral and its officials.19 The terms
also included the execution of necessary quitclaims and commitments to be
given by Banco Filipino's principal stockholders, Board of Directors, and duly
authorized officers "not to revive or refile such similar cases in the future."20

In a letter21 dated January 20, 2010, Banco Filipino requested

reconsideration of the terms and conditions of the P25,000,000,000.00
Financial Assistance and Regulatory Reliefs package, noting that the salient
features of the Alternative Business Plan were materially
modified.22 However, in a letter23 dated April 8, 2010, Banco Filipino
informed Bangko Sentral that it was constrained to accept the "unilaterally
whittled down version of the [P25,000,000,000.00] Financial Assistance
Package and Regulatory Reliefs."24 It, however, asserted that it did not agree
with the condition to dismiss and withdraw its cases since this would require
a separate discussion.25

In a letter26 dated April 19, 2010, Bangko Sentral informed Banco Filipino

that it was surprised by the latter's hesitation in accepting the terms and
conditions, in particular, the withdrawal of the cases against it, since this
condition had already been discussed from the start of the negotiations
between the parties.27

In a letter28 dated June 21, 2010, Banco Filipino informed Bangko Sentral

that it never accepted the condition of the withdrawal of the cases in prior
negotiations but was willing to discuss this condition as a separate and
distinct matter.

In a letter29 dated August 10, 2010, Bangko Sentral and the Monetary Board,
through counsel CVC Law, informed Banco Filipino that its rejection of
certain portions of Resolution No. 1668, particularly its refusal to withdraw
all cases filed against Bangko Sentral, was deemed as a failure to reach a
mutually acceptable settlement.

In a letter30 dated August 13, 2010, Banco Filipino questioned the legality of

referring the matter to private counsel and stated that it had not been
notified of the action taken on the acceptance of its Business Plan.

In a letter31 dated September 13, 2010, CVC Law told Banco Filipino that the
matter was referred to it as an incident of Civil Case No. 04-823, which it
was handling on behalf of Bangko Sentral. It also informed Banco Filipino
that the latter's rejection of the terms and conditions of Resolution No. 1668
made this Resolution legally unenforceable.
Banco Filipino sent letters32 dated September 22, 2010 and September 28,
2010, questioning the legality of Bangko Sentral's referral to private counsel
and reiterating that the terms and conditions embodied in Resolution No.
1668 were not meant to be a settlement of its P18,800,000,000.00 damage
claim against Bangko Sentral.

In a letter33 dated October 4, 2010, Bangko Sentral reiterated that its

referral of the matter to CVC Law was due to the matter being incidental to
the civil case pending before the Regional Trial Court.

On October 20, 2010, Banco Filipino filed a Petition For Certiorari and
Mandamus with prayer for issuance of a temporary restraining order and
writ of preliminary injunction34 before Branch 66, Regional Trial Court,
Makati City, docketed as Civil Case No. 10-1042. It assailed the alleged
"arbitrary, capricious and illegal acts"35 of Bangko Sentral and of the
Monetary Board in coercing Banco Filipino to withdraw all its present suits in
exchange of the approval of its Business Plan. In particular, Banco Filipino
alleged that Bangko Sentral and the Monetary Board committed grave abuse
of discretion in imposing an additional condition in Resolution No. 1668
requiring it to withdraw its cases and waive all future cases since it was
unconstitutional and contrary to public policy. It prayed that a writ of
mandamus be issued to compel Bangko Sentral and the Monetary Board to
approve and implement its business plan and release its Financial Assistance
and Regulatory Reliefs package.36

The trial court issued a Notice of Hearing on the prayer for a temporary
restraining order on the same day, setting the hearing on October 27,
2010.37

On October 27, 2010, Bangko Sentral and the Monetary Board filed their
Motion to Dismiss Ad Cautelam,38 assailing the Regional Trial Court's
jurisdiction over the subject matter and over the persons of Bangko Sentral
and the Monetary Board. Banco Filipino, on the other hand, filed its
Opposition39 to this Petition.

In its October 28, 2010 Order,40 the Regional Trial Court granted the request
for the issuance of a temporary restraining order against Bangko Sentral and
the Monetary Board. The dispositive portion of this Order read:

WHEREFORE, premises considered and pursuant to Rule 58 of the Revised

Rules of Court, Petitioner's prayer for a Temporary Restraining Order is
hereby GRANTED. Respondent[s] Ban[gk]o Sentral ng Pilipinas and [t]he
Monetary Board, as well as [their] representatives, agents, assigns and/or
third person or entity acting for and [their] behalf are hereby enjoined from
(a) employing acts inimical to the enforcement and implementation of the
approv[ed] Business Plan, (b) continuing and committing acts prejudicial to
Petitioner's operations, (c) withdrawing or threatening to withdraw the
approval of the Business Plan containing financial assistance, and package of
regulatory reliefs, and (d) otherwise enforcing other regulatory measures
and abuses calculated to coerce Banco Filipino Savings and Mortgage Bank
into agreeing to drop and/or withdraw its suits and damage claims against
BSP and MB, and to waive future claims against Respondents or their
official[s] and employees.

Further, the Court directs Sheriff Leodel N. Roxas to personally serve a copy
of this Order to the herein Respondent Ban[gk]o Sentral ng Pilipinas and
[t]he Monetary Board. Finally, let this case be set on November 11, 2010
and November 12, 2010 both at 2:00 in the afternoon for hearing on the
prayer for issuance of a Writ of Preliminary Mandatory Injunction.

SO ORDERED.41

On the same day or on October 28, 2010, summons was served on Bangko
Sentral through a staff member of the Office of the Governor, as certified by
the Process Server's Return dated November 4, 2010.42

On November 5, 2010, Bangko Sentral and the Monetary Board filed a

Petition For Certiorari with prayer for temporary restraining order and/or writ
of preliminary injunction43 with the Court of Appeals, assailing the Regional
Trial Court's October 28, 2010 Order for having been issued without
jurisdiction. The Petition was docketed as CA-G.R. SP No. 116627.44

On November 17, 2010, the trial court issued an Order45 denying the Bangko
Sentral and the Monetary Board's Motion to Dismiss Ad Cautelam, stating
that the acts complained of pertained to Bangko Sentral 's regulatory
functions, not its adjudicatory functions.46 It likewise stated that as
requested in the handwritten letter47 dated October 21, 2010 by Bangko
Sentral's general counsel requesting for an advanced copy of Banco Filipino's
Petition, it furnished Bangko Sentral a copy of the Petition. It also held that
Bangko Sentral's subsequent participation in the preliminary hearing and its
receipt of the summons on October 28, 2010 satisfied the requirements of
procedural due process.48

The trial court likewise found that litis pendencia and forum shopping were
not present in the case, that Bangko Sentral's verification and certification of
non-forum shopping were validly signed by the Executive Committee, and
that Banco Filipino's Petition did not fail to state a cause of action.49
On November 25, 2010, Bangko Sentral and the Monetary Board filed
another Petition for Certiorari50 with prayer for temporary restraining order
and writ of preliminary injunction with the Court of Appeals, this time
assailing the November 17, 2010 Order. The case was docketed as CA-G.R.
SP No. 116905. However, the trial court issued a writ of preliminary
injunction on November 18, 201051 so they filed their Urgent Motion to Admit
Attached Amended Petition52 with the Court of Appeals to include the
Issuance.

In the meantime, or on November 23, 2010, Bangko Sentral and the

Monetary Board filed a Motion to Admit Attached Supplemental Petition for
Certiorari with Application for Interim Relief53 in CA-G.R. SP No. 116627
seeking to include the trial court's October 28, 2010 Order.

In its December 28, 2010 Resolution,54 the Court of Appeals

granted55 Bangko Sentral and the Monetary Board's Urgent Motion to Admit
Attached Amended Petition in CA-G.R. SP No. 116905.

Meanwhile, Banco Filipino filed its Opposition dated January 18, 2011 in CA-
G.R. SP No. 116905.56

After oral arguments were held on February 7, 2011,57 the Court of Appeals

issued its February 14, 2011 Resolution58 in CA-G.R. SP No. 116905. It
granted the application for a writ of preliminary injunction and enjoined the
trial court from conducting further proceedings in Civil Case No. 10-1042
pending a decision on the merits.

On February 16, 2011, Banco Filipino filed an Urgent Motion for

Consolidation59 in CA-G.R. SP No. 116905, requesting for the consolidation of
the two (2) Petitions for Certiorari filed by Bangko Sentral and the Monetary
Board before the Court of Appeals. On March 1, 2011, it also filed a Motion
for Reconsideration60 of the Court of Appeals February 14, 2011 Resolution.

In its June 2, 2011 Resolution,61 the Court of Appeals in CA-G.R. SP No.

116905 denied Banco Filipino's Motion for Reconsideration, holding that
special civil actions against quasi-judicial agencies should be filed before the
Court of Appeals, not before a trial court.62 The Court of Appeals also denied
the Urgent Motion for Consolidation for the following reasons:

1) [I]t would cause not only further congestion of the already congested
docket of the ponente of CA-G.R. SP No. 116627, but also in the delay in the
disposition of both cases; 2) the subject matters and issues raised in the
instant petition are different from those set forth in CA-G.R. SP No. 116627,
hence, they can be the subject of separate: petitions; and 3) Since a writ of
preliminary injunction was earlier issued, Section 2 (d), Rule VI of the 2009
IRCA requires that the instant petition remain with the
undersigned ponente for decision on the merits with dispatch.63

On July 28, 2011, the Court of Appeals rendered its Decision64 in CA-G.R. SP
No. 116905 granting Bangko Sentral and the Monetary Board's Amended
Petition. According to the Court of Appeals, the trial court had no jurisdiction
over the Petition for Certiorari and Mandamus filed by Banco Filipino since
special civil actions against quasi-judicial agencies are only cognizable by the
Court of Appeals.65 It also found that the trial court gravely abused its
discretion in acquiring jurisdiction over Bangko Sentral and the Monetary
Board by reason of their voluntary appearance in the preliminary hearing
since their counsel had made it clear that the appearance was specifically to
question the absence of a service of summons.66

The Court of Appeals likewise found that the delegation of authority from
Banco Filipino's Board of Directors to the Executive Committee to sign
pleadings on its behalf validated the verification and certification of non-
forum shopping signed only by the Executive Vice Presidents.67 It also ruled
that there was no litis pendencia or forum shopping in the case docketed as
Civil Case No. 10-1042 despite the pendency of Civil Case No. 04-823 since
the causes of action and the reliefs prayed for were not the same.68 The
dispositive portion of the Court of Appeals July 28, 2011 Decision read:

WHEREFORE, the petition is GRANTED. The Order dated November 17, 2010
issued by respondent Judge Joselito C. Villarosa of the Regional Trial Court
(RTC), Branch 66, Makati City, in Civil Case No. 10-1042, is ANNULLED and
SET ASIDE. In lieu thereof, judgment is hereby rendered. DISMISSING Civil
Case No. 10-1042 on the ground of the RTC's lack of jurisdiction over the
same.

Accordingly, the writ of preliminary injunction issued by this Court on

February 14, 2011, enjoining respondent Judge, private respondent and
their representatives from conducting further proceedings in Civil Case No.
10-1042, is hereby made PERMANENT.

SO ORDERED.69

Banco Filipino filed a Motion for Reconsideration,70 which was denied by the

Court of Appeals in its February 16, 2012 Resolution.71 Hence, it filed this
Petition72 on April 10, 2012 against Bangko Sentral and the Monetary Board
before this Court.
Petitioner claims that it had the authority to file this Petition since the Court
of Appeals promulgated its January 27, 2012 Decision in CA-G.R. SP No.
118599, finding petitioner's closure and receivership to have been illegal.73 It
argues that to dismiss its Petition now pending before this Court for lack of
authority from its receiver Philippine Deposit Insurance Corporation would be
"an absurd and unjust situation."74 Petitioner admits, however, that this
decision was eventually overturned on reconsideration75 in the Court of
Appeals November 21, 2012 Amended Decision.76

Petitioner points out that there was nothing in the Philippine Deposit
Insurance Corporation Charter or in Republic Act No. 7653 that precludes its
Board of Directors from suing on its behalf. It adds that there was an
obvious conflict of interest in requiring it to seek Philippine Deposit
Insurance Corporation's authority to file the case considering that Philippine
Deposit Insurance Corporation was under the control of herein respondent
Monetary Board.77

Petitioner asserts that the trial court had jurisdiction over special civil actions
against respondents, accordingly with Merchants Rural Bank of Talavera v.
Monetary Board, et al.,78 a decision promulgated by the Court of Appeals in
2006.79

Petitioner likewise argues that the trial court acquired jurisdiction over
respondents considering that they were able to participate in the summary
hearing. It points out that respondents questioned before the trial court the
service of the petition on October 21, 2010 but never actually questioned the
service of summons on October 28, 2010 until it filed its petition with the
Court of Appeals.80 It argues that respondents' private counsel was present
during the raffle of the case on October 21, 2010 and even assisted
respondents' general counsel in receiving copies of the petition that the
latter requested, showing that respondents' due process was never
violated.81 It asserts that the Court of Appeals should have dismissed
outright respondents' Petition for Certiorari for "maliciously omitt[ing]" the
handwritten letter dated October 21, 2010 of their general counsel.82 It
likewise points out that respondents failed to file a motion for
reconsideration before the trial court before filing their petition for certiorari
with the Court of Appeals.83

Respondents, on the other hand, counter that the Petition should be

dismissed outright for being filed without Philippine Deposit Insurance
Corporation's authority. It asserts that petitioner was placed under
receivership on March 17, 2011, and thus, petitioner's Executive Committee
would have had no authority to sign for or on behalf of petitioner absent the
authority of its receiver, Philippine Deposit Insurance Corporation.84 They
also point out that both the Philippine Deposit Insurance Corporation Charter
and Republic Act No. 7653 categorically state that the authority to file suits
or retain counsels for closed banks is vested in the receiver.85 Thus, the
verification and certification of non-forum shopping signed by petitioner's
Executive Committee has no legal effect.86

Respondents likewise claim that the Court of Appeals did not err in finding
that the trial court had no jurisdiction over respondents. It cited this Court's
ruling in United Coconut Planters Bank v. E. Ganzon, Inc.87 and National
Water Resources Board v. A. L. Ang Network,88 where this Court
categorically stated that special civil cases filed against quasi-judicial
agencies must be filed before the Court of Appeals.89 They argue that there
was no showing that Merchants Rural Bank of Talavera was ever upheld by
this Court.90 They contend that petitioner should be estopped from raising
the issue of jurisdiction considering that during the pendency of this case, or
on March 21, 2011 and November 20, 2011, it filed two (2) separate
petitions for certiorari against respondent Monetary Board directly before the
Court of Appeals.91

Respondents maintain that the trial court did not acquire jurisdiction over
them since there was no valid service of summons. They argue that when
they filed their Motion to Dismiss on October 27, 2010, they could not have
validly argued the propriety of the summons on them on October 28,
2010.92 They likewise contend that their voluntary appearance in the
summary hearing before the trial court was not a submission to the trial
court's jurisdiction since they consistently manifested that their appearance
would be special and limited to raise the issues of jurisdiction.93 They also
assert that the service of summons to a staff member of the Office of the
Governor General is not equivalent to the service of summons to the
Governor General, making the service of summons ineffective.94

Respondents likewise claim that their filing of their Petition before the Court
of Appeals without a prior motion for reconsideration was justified by certain
exceptional circumstances. They mention, among others, the trial court's
lack of jurisdiction, the fact that the issues have already been raised and
passed upon by the trial court, the prejudice to government interest in
delaying the case, and their denied due process because of the improper
service of summons.95 They further argue that the only significance of the
October 21, 2010 handwritten letter was to show that respondents were
informed that a Petition was filed, and not that the trial court had. already
acquired jurisdiction over their persons.96

From the arguments of the parties, this Court is asked to resolve the
following issues:
First, whether or not trial courts have jurisdiction to take cognizance of a
petition for certiorari against acts and omissions of the Monetary Board;

Second, whether or not respondents Bangko Sentral ng Pilipinas and the

Monetary Board should have filed a motion for reconsideration of the trial
court's denial of their motion to dismiss before filing their petition for
certiorari before the Court of Appeals; and

Finally, whether or not the trial court validly acquired jurisdiction over
respondents Bangko Sentral ng Pilipinas and the Monetary Board.

However, before any of these issues can be addressed, this Court must first
resolve the issue of whether or not petitioner Banco Filipino, as a closed
bank under receivership, could file this Petition for Review without joining its
statutory receiver, the Philippine Deposit Insurance Corporation, as a party
to the case.

A closed bank under receivership can only sue or be sued through its
receiver, the Philippine Deposit Insurance Corporation.

Under Republic Act No. 7653,97 when the Monetary Board finds a bank
insolvent, it may "summarily and without need for prior hearing forbid the
institution from doing business in the Philippines and designate the Philippine
Deposit Insurance Corporation as receiver of the banking institution."98

Before the enactment of Republic Act No. 7653, an insolvent bank under
liquidation could not sue or be sued except through its liquidator.
In Hernandez v. Rural Bank of Lucena:99

[A]n insolvent bank, which was under the control of the finance
commissioner for liquidation, was without power or capacity to sue or be
sued, prosecute or defend, or otherwise function except through the finance
commissioner or liquidator.100

This Court in Manalo v. Court of Appeals101 reiterated this principle:

A bank which had been ordered closed by the monetary board retains its
juridical personality which can sue and be sued through its liquidator. The
only limitation being that the prosecution or defense of the action must be
done through the liquidator. Otherwise, no suit for or against an insolvent
entity would prosper.102
Under the old Central Bank Act, or Republic Act No. 265,103 as
amended,104 the same principle applies to the receiver appointed by the
Central Bank. The law explicitly stated that a receiver shall "represent the
[insolvent] bank personally or through counsel as he [or she] may retain in
all actions or proceedings for or against the institution." Section 29 of the old
law states:

Section 29. Proceedings upon insolvency. — Whenever, upon examination by

the head of the appropriate supervising or examining department or his
examiners or agents into the condition of any bank or non-bank financial
intermediary performing quasi-banking functions, it shall be disclosed that
the condition of the same is one of insolvency, or that its continuance in
business would involve probable loss to its depositors or creditors, it shall be
the duty of the department head concerned forthwith, in writing, to inform
the Monetary Board of the facts. The Board may, upon finding the
statements of the department head to be true, forbid the institution to do
business in the Philippines and designate an official of the Central Bank or a
person of recognized competence in banking or finance, as receiver to
immediately take charge of its assets and liabilities, as expeditiously as
possible collect and gather all the assets and administer the same for the
benefit of its creditors, and represent the bank personally or through counsel
as he [or she] may retain in all actions or proceedings for or against the
institution, exercising all the powers necessary for these purposes including,
but not limited to, bringing and foreclosing mortgages in the name of the
bank or non-bank financial intermediary performing quasi-banking functions.

In Republic Act No. 7653, this provision is substantially altered. Section 30

now states, in part:

The receiver shall immediately gather and take charge of all the assets and
liabilities of the institution, administer the same for the benefit of its
creditors, and exercise the general powers of a receiver under the Revised
Rules of Court but shall not, with the exception of administrative
expenditures, pay or commit any act that will involve the transfer or
disposition of any asset of the institution: Provided, That the receiver may
deposit or place the funds of the institution in non-speculative investments.
The receiver shall determine as soon as possible, but not later than ninety
(90) days from take-over, whether the institution may be rehabilitated or
otherwise placed in such a condition so that it may be permitted to resume
business with safety to its depositors and creditors and the general public:
Provided, That any determination for the resumption of business of the
institution shall be subject to prior approval of the Monetary Board.
If the receiver determines that the institution cannot be rehabilitated or
permitted to resume business in accordance with the next preceding
paragraph, the Monetary Board shall notify in writing the board of directors
of its findings and direct the receiver to proceed with the liquidation of the
institution. The receiver shall:

(1) file ex parte with the proper regional trial court, and without requirement
of prior notice or any other action, a petition for assistance in the liquidation
of the institution pursuant to a liquidation plan adopted by the Philippine
Deposit Insurance Corporation for general application to all closed banks. In
case of quasi-banks, the liquidation plan shall be adopted by the Monetary
Board. Upon acquiring jurisdiction, the court shall, upon motion by the
receiver after due notice, adjudicate disputed claims against the institution,
assist the enforcement of individual liabilities of the stockholders, directors
and officers, and decide, on other issues as may be material to implement
the liquidation plan adopted. The receiver shall pay the cost of the
proceedings from the assets of the institution.

(2) convert the assets of the institution to money, dispose of the same to
creditors and other parties, for the purpose of paying the debts of such
institution in accordance with the rules on concurrence and preference of
credit under the Civil Code of the Philippines and he may, in the name of the
institution, and with the assistance of counsel as he may retain, institute
such actions as may be necessary to collect and recover accounts and assets
of, or defend any action against, the institution. The assets of an institution
under receivership or liquidation shall be deemed in custodia legis in the
hands of the receiver and shall, from the moment the institution was placed
under such receivership or liquidation, be exempt from any order of
garnishment, levy, attachment, or execution. (Emphasis supplied)

The relationship between the Philippine Deposit Insurance Corporation and a

closed bank is fiduciary in nature. Section 30 of Republic Act No. 7653
directs the receiver of a closed bank to "immediately gather and take
charge of all the assets and liabilities of the institution" and "administer the
same for the benefit of its creditors."105

The law likewise grants the receiver "the general powers of a receiver under
the Revised Rules of Court."106 Under Rule 59, Section 6 of the Rules of
Court, "a receiver shall have the power to bring and defend, in such
capacity, actions in his [or her] own name."107 Thus, Republic Act No. 7653
provides that the receiver shall also "in the name of the institution, and with
the assistance of counsel as [it] may retain, institute such actions as may be
necessary to collect and recover accounts and assets of, or defend any
action against, the institution."108 Considering that the receiver has the
power to take charge of all the assets of the closed bank and to institute for
or defend any action against it, only the receiver, in its fiduciary capacity,
may sue and be sued on behalf of the closed bank.

In Balayan Bay Rural Bank v. National Livelihood Development

Corporation,109 this Court explained that a receiver of a closed bank is tasked
with the duty to hold the assets and liabilities in trust for the benefit of the
bank's creditors.

As fiduciary of the insolvent bank, Philippine Deposit Insurance Corporation

conserves and manages the assets of the bank to prevent the assets'
dissipation. This includes the power to bring and defend any action that
threatens to dissipate the closed bank's assets. Balayan Bay Rural
Bank explained that Philippine Deposit Insurance Corporation does so, not
as the real party-in-interest, but as a representative party, thus:

As the fiduciary of the properties of a closed bank, the PDIC may prosecute
or defend the case by or against the said bank as a representative party
while the bank will remain as the real party in interest pursuant to Section 3,
Rule 3 of the Revised Rules of Court which provides:

SEC. 3. Representatives as parties. — Where the action is allowed to be

prosecuted or defended by a representative or someone acting in a fiduciary
capacity, the beneficiary shall be included in the title of the case and shall be
deemed to be the real party in interest. A representative may be a trustee of
an express trust, a guardian, an executor or administrator, or a party
authorized by law or these Rules. An agent acting in his own name and for
the benefit of an undisclosed principal may sue or be sued without joining
the principal except when the contract involves things belonging to the
principal.

The inclusion of the PDIC as a representative party in the case is therefore

grounded on its statutory role as the fiduciary of the closed bank which,
under Section 30 of R.A. 7653 (New Central Bank Act), is authorized to
conserve the latter's property for the benefit of its creditors.110 (Citation
omitted)

For this reason, Republic Act No. 3591,111 or the Philippine Deposit Insurance
Corporation Charter, as amended,112 grants Philippine Deposit Insurance
Corporation the following powers as a receiver:

(c) In addition to the powers of a receiver pursuant to existing laws, the

Corporation is empowered to:
(1) bring suits to enforce liabilities to or recoveries of the closed bank;

....

(6) hire or retain private counsels as may be necessary;

....

(9) exercise such other powers as are inherent and necessary for the
effective discharge of the duties of the Corporation as a receiver.113

Balayan Bay Rural Bank summarized, thus:

[T]he legal personality of the petitioner bank is not ipso facto dissolved by

insolvency; it is not divested of its capacity to sue and be sued after it was
ordered by the Monetary Board to cease operation. The law mandated,
however, that the action should be brought through its statutory
liquidator/receiver which in this case is the PDIC. The authority of the PDIC
to represent the insolvent bank in legal actions emanates from the fiduciary
relation created by statute which reposed upon the receiver the task of
preserving and conserving the properties of the insolvent for the benefit of
its creditors.114

Petitioner contends that it was not a closed bank at the time of the filing of
this Petition on April 10, 2012 since the Court of Appeals January 27, 2012
Decision, docketed as CA-G.R. SP No. 118599, found the closure to have
been illegal.115

This Court of Appeals Decision, however, was not yet final since the
Monetary Board filed a timely motion for reconsideration.116 There is also
nothing in its dispositive portion which states that it was immediately
executory.117 Through its November 21, 2012 Amended Decision, the Court
of Appeals reversed its January 27, 2012 Decision,118 confirming petitioner's
status as a closed bank under receivership. It was, therefore, erroneous for
petitioner to presume that it was not a closed bank on April 10, 2012 when it
filed its Petition with this Court considering that there was no final
declaration yet on the matter.

Petitioner should have attempted to comply after the promulgation of the

November 21, 2012 Amended Decision. Its substantial compliance would
have cured the initial defect of its Petition.

Petitioner likewise claims that there was "an obvious conflict of interest"119 if
it was required to sue respondents only through Philippine Deposit Insurance
Corporation, considering that respondent Monetary Board appointed
Philippine Deposit Insurance Corporation as petitioner's receiver. This is a
fact, however, that petitioner failed to address when it filed its Petition,
signifying that petitioner had no intention of complying with the law when it
filed its Petition or anytime after.

It was speculative on petitioner's part to presume that it could file this

Petition without joining its receiver on the ground that Philippine Deposit
Insurance Corporation might not allow the suit. At the very least, petitioner
should have shown that it attempted to seek Philippine Deposit Insurance
Corporation's authorization to file suit. It was possible that Philippine Deposit
Insurance Corporation could have granted its permission to be joined in the
suit. If it had refused to allow petitioner to file its suit, petitioner still had a
remedy available to it. Under Rule 3, Section 10 of the Rules of
Court,120 petitioner could have made Philippine Deposit Insurance
Corporation an unwilling co-petitioner and be joined as a respondent to this
case.

Petitioner's suit concerned its Business Plan, a matter that could have
affected the status of its insolvency. Philippine Deposit Insurance
Corporation's participation would have been necessary, as it had the duty to
conserve petitioner's assets and to examine any possible liability that
petitioner might undertake under the Business Plan.

Philippine Deposit Insurance Corporation also safeguards the interests of the

depositors in all legal proceedings. Most bank depositors are ordinary people
who have entrusted their money to banks in the hopes of growing their
savings. When banks become insolvent, depositors are secure in the
knowledge that they can still recoup some part of their savings through
Philippine Deposit Insurance Corporation.121 Thus, Philippine Deposit
Insurance Corporation's participation in all suits involving the insolvent bank
is necessary and imbued with the public interest.

In any case, petitioner's verification and certification of non-forum shopping

was signed by its Executive Vice Presidents Maxy S. Abad and Atty.
Francisco A. Rivera, as authorized by its Board of Directors.122 Under Section
10(b) of the Philippine Deposit Insurance Corporation Charter, as amended:

b. The Corporation as receiver shall control, manage and administer the

affairs of the closed bank. Effective immediately upon takeover as receiver
of such bank, the powers, functions and duties, as well as all allowances,
remunerations and prerequisites of the directors, officers, and stockholders
of such bank are suspended, and the relevant provisions of the Articles of
Incorporation and By-laws of the closed bank are likewise deemed
suspended.123 (Emphasis supplied)

When petitioner was placed under receivership, the powers of its Board of
Directors and its officers were suspended. Thus, its Board of Directors could
not have validly authorized its Executive Vice Presidents to file the suit on its
behalf. The Petition, not having been properly verified, is considered an
unsigned pleading.124 A defect in the certification of non-forum shopping is
likewise fatal to petitioner's cause.125

Considering that the Petition was filed by signatories who were not validly
authorized to do so, the Petition does not produce any legal effect.126 Being
an unauthorized pleading, this Court never validly acquired jurisdiction over
the case. The Petition, therefore, must be dismissed.

II

Even assuming that the Petition did not suffer from procedural infirmities, it
must still be denied for lack of merit.

Unless otherwise provided for by law and the Rules of Court, petitions for
certiorari against a quasi-judicial agency are cognizable only by the Court of
Appeals. The Regional Trial Court had no jurisdiction over the Petition for
Certiorari filed by petitioner against respondents.

Pursuant to Article XII, Section 20 of the Constitution,127 Congress

constituted Bangko Sentral128 as an independent central monetary authority.
As an administrative agency, it is vested with quasi-judicial powers, which it
exercises through the Monetary Board. In United Coconut Planters Bank v.
E. Ganzon, Inc.:129

A quasi-judicial agency or body is an organ of government other than a court

and other than a legislature, which affects the rights of private parties
through either adjudication or rule-making. The very definition of an
administrative agency includes its being vested with quasi-judicial powers.
The ever increasing variety of powers and functions given to administrative
agencies recognizes the need for the active intervention of administrative
agencies in matters calling for technical knowledge and speed in countless
controversies which cannot possibly be handled by regular courts. A "quasi-
judicial function" is a term which applies to the action, discretion, etc., of
public administrative officers or bodies, who are required to investigate
facts, or ascertain the existence of facts, hold hearings, and draw
conclusions from them, as a basis for their official action and to exercise
discretion of a judicial nature.
Undoubtedly, the BSP Monetary Board is a quasi-judicial agency exercising
quasi-judicial powers or functions. As aptly observed by the Court of
Appeals, the BSP Monetary Board is an independent central monetary
authority and a body corporate with fiscal and administrative autonomy,
mandated to provide policy directions in the areas of money, banking and
credit. It has power to issue subpoena, to sue for contempt those refusing to
obey the subpoena without justifiable reason, to administer oaths and
compel presentation of books, records and others, needed in its
examination, to impose fines and other sanctions and to issue cease and
desist order. Section 37 of Republic Act No. 7653, in particular, explicitly
provides that the BSP Monetary Board shall exercise its discretion in
determining whether administrative sanctions should be imposed on banks
and quasi-banks, which necessarily implies that the BSP Monetary Board
must conduct some form of investigation or hearing regarding the same. 130

Bangko Sentral's Monetary Board is a quasi-judicial agency. Its decisions,

resolutions, and orders are the decisions, resolutions, and orders of a quasi-
judicial agency. Any action filed against the Monetary Board is an action
against a quasi-judicial agency.

This does not mean, however, that Bangko Sentral only exercises quasi-
judicial functions. As an administrative agency, it likewise exercises "powers
and/or functions which may be characterized as administrative,
investigatory, regulatory, quasi-legislative, or quasi-judicial, or a mix of
these five, as may be conferred by the Constitution or by statute."131

In this case, the issue between the parties was whether the trial court had
jurisdiction over petitions for certiorari against Bangko Sentral and the
Monetary Board. Rule 65, Section 4 of the Rules of Court provides:

Section 4. Where and when petition to be filed. — The petition shall be filed
not later than sixty (60) days from notice of the judgment, order or
resolution. In case a motion for reconsideration or new trial is timely filed,
whether such motion is required or not, the sixty (60) day period shall be
counted from notice of the denial of said motion.

The petition shall be filed in the Supreme Court or, if it relates to the acts or
omissions of a lower court or of a corporation, board, officer or person, in
the Regional Trial Court exercising jurisdiction over the territorial area as
defined by the Supreme Court. It may also be filed in the Court of Appeals
whether or not the same is in aid of its appellate jurisdiction, or in the
Sandiganbayan if it is in aid of its appellate jurisdiction. If it involves the
acts or omissions of a quasi-judicial agency, unless otherwise provided by
law or these Rules, the petition shall be filed in and cognizable only by the
Court of Appeals. (Emphasis supplied)

The Rules of Court categorically provide that petitions for certiorari involving
acts or omissions of a quasi-judicial agency "shall be filed in and cognizable
only by the Court of Appeals."

As previously discussed, respondent Bangko Sentral exercises a myriad of

functions, including those that may not be necessarily exercised by a quasi-
judicial agency. It is settled, however, that it exercises its quasi judicial
functions through respondent Monetary Board. Any petition for certiorari
against an act or omission of Bangko Sentral, when it acts through the
Monetary Board, must be filed with the Court of Appeals. Thus, this Court
in Vivas v. Monetary Board and Philippine Deposit Insurance
Corporation132 held that the proper remedy to question a resolution of the
Monetary Board is through a petition for certiorari filed with the Court of
Appeals.

The Court of Appeals, therefore, did not err in dismissing the case before the
Regional Trial Court since the trial court did not have jurisdiction over the
Petition for Certiorari filed by petitioner against respondents.

This Court cannot subscribe to petitioner's contention that a Court of Appeals

decision already provided for an exception to Rule 65. A Court of Appeals
decision, no matter how persuasive or well written, does not function
as stare decisis.133 Neither can a Court of Appeals decision amend the Rules
of Court.134 As it stands, Rule 65 and jurisprudence hold that petitions for
certiorari against the Monetary Board must be filed with the Court of
Appeals.

III

While this Petition is considered dismissed, this Court takes the opportunity
to address other lingering procedural issues raised by the parties in their
pleadings.

Petitioner assails respondents' failure to file a motion for reconsideration of

the trial court's denial of its motion to dismiss before filing a petition for
certiorari with the Court of Appeals.135

Rule 65, Section 1 of the Rules of Court requires that there be "no appeal, or
any plain, speedy, and adequate remedy in the ordinary course of law"
available before a petition for certiorari can be filed. An order denying a
motion to dismiss is merely an interlocutory order of the court as it does not
finally dispose of a case.136 In BA Finance Corporation v. Pineda,137 a case
citing the 1964 Rules of Court:

It must be remembered that, normally, when an interlocutory order is

sought to be reviewed or annulled by means of any of the extra legal
remedies of prohibition or certiorari, it is required that a motion for
reconsideration of the question[ed] order must first be filed, such being
considered a speedy and adequate remedy at law which must first be
resorted to as a condition precedent for filing of any of such proceedings
(Secs. 1 and 2, Rule 65, Rules of Court).138

In contrast, Rule 41, Section 1(c) of the Revised Rules of Court now
provides:

Section 1. Subject of appeal. — An appeal may be taken from a judgment or

final order that completely disposes of the case, or of a particular matter
therein when declared by these Rules to be appealable.

No appeal may be taken from:

....

(c) An interlocutory order;

....

In all the above instances where the judgment or final order is not
appealable, the aggrieved party may file an appropriate special civil action
under Rule 65.

It would appear that the Revised Rules of Court allow a direct filing of a
petition for certiorari of an interlocutory order without need of a motion for
reconsideration. However, in Estate of Salvador Serra Serra v. Primitivo
Hernaez,139 a case decided after the Rules of Court were revised in 1997:

The settled rule is that a motion for reconsideration is a sine qua non
condition for the filing of a petition for certiorari. The purpose is to grant an
opportunity to public respondent to correct any actual or perceived error
attributed to it by the re-examination of the legal and factual circumstances
of the case.140

This rule evolved from several labor cases of this Court. Estate of Salvador
Serra Serra cited Interorient Maritime Enterprises v. National Labor
Relations Commission141 as basis for this rule, which in turn, cited Palomado
v. National Labor Relations Commission142 and Pure Foods Corporation v.
National Labor Relations Commission.143 This Court, in formulating the rule
in Palomado, declared:

The unquestioned rule in this jurisdiction is that certiorari will lie only if there
is no appeal or any other plain, speedy and adequate remedy in the ordinary
course of law against the acts of public respondent. In the instant case, the
plain and adequate remedy expressly provided by [Sec. 9, Rule X, New
Rules of the National Labor Relations Commission] was a motion for
reconsideration of the assailed decision, based on palpable or patent errors,
to be made under oath and filed within ten (10) calendar days from receipt
of the questioned decision.144

Pure Foods Corporation, on the other hand, stated:

In the present case, the plain and adequate remedy expressly provided by
law was a motion for reconsideration of the assailed decision and the
resolution thereof, which was not only expected to be but would actually
have provided adequate and more speedy remedy than the present petition
for certiorari. This remedy was actually sought to be availed of by petitioner
when it filed a motion for reconsideration albeit beyond the 10-day
reglementary period. For all intents and purposes, petitioner cannot now be
heard to say that there was no plain, speedy and adequate remedy available
to it and that it must, therefore, be allowed to seek relief by certiorari. This
contention is not only untenable but would even place a premium on a
party's negligence or indifference in availing of procedural remedies afforded
by law.145

In labor cases, it was necessary to first file a motion for reconsideration

before resorting to a petition for certiorari since the National Labor Relations
Commission's rules of procedure provided for this remedy. The same rule
has since applied to civil cases through Estate of Salvador Serra Serra,
regardless of the absence of a provision in the Rules of Court requiring a
motion for reconsideration even for interlocutory orders.

Thus, the general rule, in all cases; "is that a motion for reconsideration is
a sine qua non condition for the filing of a petition for certiorari."146 There
are, however, recognized exceptions to this rule, namely:

(a) where the order is a patent nullity, as where the Court a quo had no
jurisdiction; (b) where the questions raised in the certiorari proceeding have
been duly raised and passed upon by the lower court, or are the same as
those raised and passed upon in the lower court; (c) where there is an
urgent necessity for the resolution of the question and any further delay
would prejudice the interests of the Government or of the petitioner or the
subject matter of the action is perishable; (d) where, under the
circumstances, a motion for reconsideration would be useless; (e) where
petitioner was deprived of due process and there is extreme urgency for
relief; (f) where, in a criminal case, relief from an order of arrest is urgent
and the granting of such relief by the trial court is improbable; (g) where the
proceedings in the lower court are a nullity for lack of due process; (h)
where the proceedings [were] ex parte or in which the petitioner had no
opportunity to object; and (i) where the issue raised is one purely of law or
where public interest is involved.147 (Citations omitted)

In this instance, the trial court had no jurisdiction over the petition filed by
petitioner against respondents, an issue which respondents properly
asserted before the Court of Appeals when they filed their Petition for
Certiorari.148 They were, thus, excused from filing the requisite motion for
reconsideration.

Considering that there is sufficient basis to dismiss this Petition outright, this
Court finds it unnecessary to address the other issues raised.

In sum, this Court holds that petitioner did not have the legal capacity to file
this Petition absent any authorization from its statutory receiver, Philippine
Deposit Insurance Corporation. Even assuming that the Petition could be
given due course, it would still be denied. The Court of Appeals did not err in
dismissing the action pending between the parties before the trial court since
special civil actions against quasi-judicial agencies must be filed with the
Court of Appeals.

WHEREFORE, the Petition is DISMISSED on the ground of petitioner's lack

of capacity to sue.

SO ORDERED.

Velasco, Jr., (Chairperson), Bersamin, Martires, and Gesmundo, JJ., concur.

Endnotes:

1
Rollo, pp. 38-82.
2
 Id. at 8-33. The Decision was penned by Associate Justice Hakim S.
Abdulwahid and concurred in by Associate Justices Noel G. Tijam (now an
Associate Justice of this Court) and Ricardo R. Rosario of the Former Special
Tenth Division, Court of Appeals, Manila.
3
 Id. at 35-36. The Resolution was penned by Associate Justice Hakim S.
Abdulwahid and concurred in by Associate Justices Noel G. Tijam (now an
Associate Justice of this Court) and Ricardo R. Rosario of the Former Special
Tenth Division, Court of Appeals, Manila.
4
 281 Phil. 847 ( 1991) [Per J. Medialdea, En Banc].
5
 Id. at 893.
6
Rollo, p. 9. The various Complaints are outlined in Central Bank Board of
Liquidators v. Banco Filipino, G.R. No. 173399, February 21, 2017 <
http://sc.judiciary.gov.ph/pdf/web/viewer.html?
file=/jurisprudence/2017/february2017/173399.pdf > [Per C.J. Sereno, En
Banc].
7
 Rep. Act No. 7653 (1993). The New Central Bank Act.
8
Rollo, p. 9.
9
 Id.
10
 Id. at 112-114.
11
 Id. at 115-116.
12
 Id. at 115. The damages suit is still pending before the Regional Trial
Court of Makati, Branch 136 as per Central Bank Board of Liquidators v.
Banco Filipino, G.R. No. 173399, February 21, 2017 <
http://sc.judiriary.gov.ph/pdf/web/viewer.html?
file=/jurisprudence/2017/february2017/173399.pdf > 4 [Per CJ Sereno, En
Banc].
13
 Id.at 117.
14
 Id. at 10
15
 Id. at 10-11.
16
 Id. at 144.
17
 Id. at 11.
18
 Id. at 160.
19
 Id. at 161-166.
20
 Id. at 165.
21
 Id. at 167-168.
22
 Id. at 167.
23
 Id. at 176-177.
24
 Id. at 176.
25
 Id. at 177.
26
 Id. at 178-179.
27
 Id. at 179.
28
 Id. at 180-181.
29
 Id. at 186-187.
30
 Id. at 188-192.
31
 Id. a 193-195.
32
 Id. at 196-203.
33
 Id. at 204-205.
34
 Id. at 207-253.
35
 Id. at 207.
36
 Id. at 227.
37
 Id. at 13.
38
 Id. at 257-301.
39
 Id. at 394-412.
40
 Id. at 303-305. The Order was penned by Judge Joselito C. Villarosa of the
Regional Trial Court of Makati City, Branch 66.
41
 Id. at 305.
42
 Id. at 302.
43
 Id. at 306-393.
44
 Id. at 21.
45
 Id. at 417-420. The Order, docketed as Civil Case No. 10-1042, was
penned by Presiding Judge Joselito C. Villarosa of Branch 66, Regional Trial
Court, Makati City.
46
 Id. at 417.
47
 Id. at 413-415.
48
 Id. at 418.
49
 Id. at 418-420.
50
 Id. at 421-505.
51
 Id. at 596-598. The Order was penned by Judge Joselito C. Villarosa of the
Regional Trial Court of Makati City, Branch 66.
52
 Id. at 506-594.
54
 Id. at 4073-4074. The Resolution was penned by Associate Justice Hakim
S. Abdulwahid and concurred in by Associate Justices Ricardo R. Rosario and
Samuel H. Gaerlan of the Tenth Division, Court of Appeals, Manila.
54
 Id. at 4073-4074. The Resolution was penned by Associate Justice Hakim
S. Abdulwahid and concurred in by Associate Justices Ricardo R. Rosario and
Samuel H. Gaerlan of the Tenth Division, Court of Appeals, Manila.
55
 Id. at 14.
56
 Id. at 732-803.
57
 Id. at 804-845.
58
 Id. at 847-851. The Resolution was penned by Associate Justice Hakim S
Abdulwahid and concurred in by Associate Justice Noel G. Tijam (now an
Associate Justice of this Court) and Ricardo R. Rosario of the Special Tenth
Division, Court of Appeals, Manila.
59
 Id. at 852-860.
60
 Id. at 861-871.
61
 Id. at 873-881. The Resolution was penned by Associate Justice Hakim S.
Abdulwahid and concurred in by Associate Justices Noel G. Tijam (now an
Associate Justice of this Court) and Associate Justice Ricardo R. Rosario of
the Special Tenth Division, Court of Appeals, Manila.
62
 Id. at. 876-877.
63
 Id. at 877-878.
64
 Id. at 8-33. The Decision was penned by Associate Justice Hakim S.
Abdulwahid (Chair) and concurred in by Associate Justice Noel G. Tijam (now
an Associate Justice of this Court) and Associate Justice Ricardo R. Rosario
of the Former Special Tenth Division.
65
 Id. at 21-24.
66
 Id. at 24-27.
67
 Id. at 27-28.
68
 Id. at 28-30.
69
 Id. at 31-32.
70
 Id. at 882-897.
71
 Id. at 35-36. The Resolution was penned by Associate Justice Hakim S.
Abdulwahid and concurred in by Associate Justices Noel G. Tijam (now an
Associate Justice of this Court) and Ricardo R. Rosario of the Former Special
Tenth Division, Court of Appeals, Manila.
72
 Id. at 38-82. Respondents were ordered to comment on April 25, 2012
(Rollo, pp. 1035-1036). On May 8, 2012, however, respondents filed a
Motion for Leave to File and to Admit Attached Motion to Dismiss (Rollo, pp.
898-902) and a Motion to Dismiss (Rollo, pp. 903-915) assailing the Petition
for having been filed without authority from the Philippine Deposit Insurance
Corporation. On July 11, 2012, this Court granted the Motion for Leave and
ordered petitioner to comment on the Motion to Dismiss (Rollo, pp. 1036-A-
1036-B). Respondents filed their Comment Ad Cautelam (Rollo, pp. 1407-
1465) on August 1, 2012. Petitioner, meanwhile, filed its Opposition to the
Motion to Dismiss (Rollo, pp. 3618-3622) on October 25, 2012 and a Motion
for Leave to Admit Attached Reply (Rollo, pp. 3625-3628) and Reply (Rollo,
pp. 3629-3643) on November 20, 2012. The parties were directed to file
their respective Memoranda (Rollo, pp. 3649-3708 and 4245-4284) on
January 30, 2013 (Rollo, pp. 3647-3648).
73
 Id. at 4278.
74
 Id.
75
 Id. at 4279-4280.
76
 Id. at 4219-4236. The Amended Decision was penned by Associate Justice
Noel G. Tijam (now an Associate Justice of this Court) and concurred in by
Associate Justices Ramon A. Cruz and Eduardo B. Peralta, Jr. of the Special
Seventh Division, Court of Appeals, Manila.
77
 Id. at 4280-4281.
78
 CA-G.R. SP No. 93118, August 3, 2006.
79
Rollo, pp. 4268-4270.
80
 Id. at 4271-4274.
81
 Id. at 4274-4275.
82
 Id. at 4276.
83
 Id. at 4267-4268.
84
 Id. at 3668-3670.
85
 Id. at 3671-3673.
86
 Id. at 3676-3680.
87
 609 Phil. 104 (2009) [Per J. Chico-Nazario, Third Division].
88
 632 Phil. 22 (2010) [Per J. Carpio Morales, First Division].
89
Rollo, pp. 3681-3684.
90
 Id. at 3685-3686.
91
 Id. at 3688-3689.
92
 Id. at 3680-3683.
93
 Id. at 3690-3696.
94
 Id. at 3697-3699.
95
 Id. at 3701-3703.
96
 Id. at 3704-3705.
97
 Rep. Act No. 7653 (1993). The New Central Bank Act.
98
 Rep. Act No. 7653 (1993), sec. 30(d).
99
 171 Phil. 70 (1978) [Per J. Aquino, Second Division].
100
 Id. at 84, citing Wauer vs. Bank of Pendleton, 65 S.W. 2nd 167 228 Mo.
App. 1150.
101
 419 Phil. 215 (2001) [Per J. Puno, First Division].
102
 Id. at 230-231, citing Hernandez v. Rural Bank of Lucena, Inc., 171 Phil.
70 (1978) [Per J. Aquino, Second Division] and Wauer v. Bank of Pendleton,
65 S.W. 2nd 167.
103
 Republic Act No. 265 (1948). An Act Establishing The Central Bank Of The
Philippines, Defining Its Powers In The Administration Of The Monetary And
Banking System, Amending The Pertinent Provisions Of The Administrative
Code With Respect To The Currency And The Bureau Of Banking, And For
Other Purposes, as amended by Exec. Order No. 289 (1987).
104
See Exec. Order No. 289 (1987).
105
 Rep. Act No. 7653 (1993), sec. 30.
106
 Rep. Act No. 7653 (1993), sec. 30.
107
 RULES OF COURT, Rule 59, sec. 6 provides:

Section 6. General powers of receiver. — Subject to the control of the court

in which the action or proceeding is pending, a receiver shall have the power
to bring and defend, in such capacity, actions in his own name; to take and
keep possession of the property in controversy; to receive rents; to collect
debts due to himself as receiver or to the fund, property, estate, person, or
corporation of which he is the receiver; to compound for and compromise
the same; to make transfers; to pay outstanding debts; to divide the money
and other property that shall remain among the persons legally entitled to
receive the same; and generally to do such acts respecting the property as
the court may authorize. However, funds in the hands of a receiver may be
invested only by order of the court upon the written consent of all the
parties to the action.
108
 Rep. Act No. 7653 (1993), sec. 30.
109
 770 Phil. 30 (2015) [Per J. Perez, First Division].
110
 Id. at 35.
111
 Rep. Act No. 3591 (I963). An Act Establishing the Philippine Deposit
Insurance Corporation, Defining Its Powers And Duties And For Other
Purposes.
112
See Rep. Act No. 9302 (2004).
113
 Rep. Act No. 9302 (2004), sec. 10, amending Rep. Act No. 3591 (1963),
sec. 9-A.
114
Balayan Bay Rural Bank v. National Livelihood Development Corporation,
770 Phil. 30, 39 (2015) [Per J. Perez, First Division].
115
Rollo, pp. 4278-4280.
116
 Id. at 3674-3675.
117
 Id. at 4278-4279.
118
 Id. at 3674-3675.
119
 Id. at 4280.
120
 RULES OF COURT, Rule 3, sec. 10 provides:

Section 10. Unwilling co-plaintiff. — If consent of any party who should be

joined as plaintiff cannot be obtained, he may be made a defendant and the
reason therefor shall be stated in the complaint.
121
See Rep. Act No. 9302 (2004), sec. 16.
122
Rollo, pp. 79-80.
123
See Rep. Act No. 9302.(2004), sec. 10, amending Rep. Act No. 3591
(1963).
124
See RULES OF COURT, Rule 7, sec. 4, which provides:

Section 4. Verification. — Except when otherwise specifically required by law

or rule, pleadings need not be under oath, verified or accompanied by
affidavit.

A pleading is verified by an affidavit that the affiant has read the pleading
and that the allegations therein are true and correct of his personal
knowledge or based on authentic records.

A pleading required to be verified which contains a verification based on

"information and belief," or upon "knowledge, information and belief," or
lacks a proper verification, shall be treated as an unsigned pleading.
125
See Altres v. Empleo, 594 Phil. 246 (2008) [Per J. Carpio Morales, En
Banc].
126
See Tamondong v. Court of Appeals, 486 Phil. 730 (2004) [Per J. Callejo,
Sr., Second Division].
127
 CONST., art. XII, sec. 20 provides:

Section 20. The Congress shall establish an independent central monetary

authority, the members of whose governing board must be natural-born
Filipino citizens, of known probity, integrity, and patriotism, the majority of
whom shall come from the private sector. They shall also be subject to such
other qualifications and disabilities as may be prescribed by law. The
authority shall provide policy direction in the areas of money, banking, and
credit. It shall have supervision over the operations of banks and exercise
such regulatory powers as may be provided by law over the operations of
finance companies and other institutions performing similar functions.

Until the Congress otherwise provides, the Central Bank of the Philippines,
operating under existing laws, shall function as the central monetary
authority.
128
 See Rep. Act No. 7653 (1993).
129
 609 Phil. 104 (2009) [Per J. Chico-Nazario, Third Division].
130
 Id. at 122-124, citing The Presidential Anti-Dollar Salting Task Force v.
Court of Appeals, 253 Phil. 344 (1989) [Per J. Sarmiento, En Banc]; Tropical
Homes, Inc. v. National Housing Authority, 236 Phil. 580 (1987) [Per J.
Gutierrez Jr., En Banc]; Villarosa v. Commission on Elections, 377 Phil. 497,
506 (1999) [Per J. Gonzaga-Reyes, En Banc]; Rep. Act No. 7653 (1993), Ch.
I, art. I, sec. 3; Rep. Act No. 7653 (1993), Ch. I, art. IV, sec. 23; Rep. Act
No. 7653 (1993) Ch. I, art. IV, sec. 25; Rep. Act No. 7653 (1993), Ch. I,
art. IV, secs. 36-37.
131
Bank of Commerce v. Planters Development Bank and Bangko Sentral Ng
Pilipinas, 695 Phil. 627, 660 (2012) [Per J. Brion, Second Division].
132
 716 Phil. 132 (2013) [Per J. Mendoza, Third Division].
133
See Government Service Insurance System v. Cadiz, 453 Phil. 384 (2003)
[Per J. Ynares-Santiago, First Division].
134
 CONST., art. VIII, sec. 5(5) provides:

Section 5. The Supreme Court shall have the following powers:

(5) Promulgate rules concerning the protection and enforcement of

constitutional rights, pleading, practice, and procedure in all courts, the
admission to the practice of law, the Integrated Bar, and legal assistance to
the underprivileged. Such rules shall provide a simplified and inexpensive
procedure for the speedy disposition of cases, shall be uniform for all courts
of the same grade, and shall not diminish, increase, or modify substantive
rights. Rules of procedure of special courts and quasi-judicial bodies shall
remain effective unless disapproved by the Supreme Court.
135
Rollo, pp. 4267-4268.
136
See Rayos v. City of Manila, 678 Phil. 952 (2011) [Per J. Carpio, Second
Division].
137
 204 Phil. 813 (1982) [Per J. Vasquez, First Division].
138
 Id. at 824.
139
 503 Phil. 736 (2005) [Per J. Ynares-Santiago, First Division].
140
 Id. at 743 citing Interorient Maritime Enterprises, Inc. v. National Labor
Relations Commission, 330 Phil. 493 (1996) [Per J. Panganiban, Third
Division].
141
 330 Phil. 493 ( 1996) [Per J. Panganiban, Third Division].
142
 327 Phil. 472 (1996) [Per J. Panganiban, Third Division].
143
 253 Phil. 411 ( 1989) [Per J. Regalado, Second Division].
144
Palomado v. National Labor Relations Commission, 327 Phil. 281 (1996)
[Per J. Panganiban, Third Division].
145
Pure Foods Corporation v. National Labor Relations Commission, 253 Phil.
411, 420 (1989) [Per J. Regalado, Second Division] citing Plaza v. Mencias,
116 Phil. 875 (1962) [Per J. Labrador, En Banc].
146
Estate of Salvador Serra Serra v. Heirs of Hernaez, 503 Phil. 736, 743
(2005) [Per J. Ynares-Santiago, Third Division]
147
Tan v. Court of Appeals, 341 Phil. 576 ( 1997) [Per J. Francisco, Third
Division].
148
Rollo, p. 3703.