MANILA, Philippines - The Supreme Court (SC) has affirmed the ruling of the appellate court directing singer-businessman Ramon “RJ” Jacinto to return properties that have earlier been foreclosed by the Philippine National Bank (PNB) in connection with a loan.
In a 7-page resolution, the Court’s 2nd Division held that the Court of Appeals’ did not err in nullifying the writ of execution issued by Judge Rommel Baybay of the Regional Trial Court of Makati City, Branch 132 requiring PNB to return to Jacinto the subject properties.
“We resolve to deny the petition for lack of merit, as the petitioners failed to show any reversible error on the part of the CA in its ruling. We fully agree with the conclusion of the CA that the RTC, Makati City, Branch 132 had no jurisdiction to issue a writ of execution under the terms it granted…” the SC said.
Records showed that in 1996, First Women’s Credit Corporation (FWCC) won the bid on the sale of the Buendia property at the bid price of P3.68 million but due to its inability to come up with the entire purchase price, FWCC applied for financing with PNB.
Prior to the approval of the loan, FWCC transferred all its rights and title over the 8,000 square meter-Buendia property to Jacinto’s company RJ Ventures Realty and Development Corporation, which in turn assumed the right to purchase the Buendia property and the obligations of FWCC to pay PNB the balance of the purchase price.
In order to pay for the balance of the purchase price, RJ Ventures applied for, and was granted, a loan from PNB in the amount of P2.94 billion, equivalent to 80 percent of the purchase price, with the Buendia property as security.
However, before granting the loan, PNB required RJ Ventures to deposit an additional 10 percent downpayment or P368 million.
In order to pay the additional downpayment, Rajah Broadcasting borrowed P350 million from PNB for re-lending to RJ Ventures, which was secured by a pledge consisting of 70 percent shares of stock in Rajah Broadcasting and 40 percent shares of stock Jacinto in FWCC.
In addition, Rajah Broadcasting secured another loan from PNB in the amount of P100 million, which was secured by broadcasting equipment of the radio network, and a real estate mortgage over certain properties in Tagaytay of RFR Development, which held itself out as “accommodation mortgagor.”
Subsequently, PNB demanded from the two firms the payment of P5.40 billion and P841,46 million, respectively.
After Jacintos’ firms defaulted in their obligations, PNB instituted foreclosure proceedings on the Buendia and Tagaytay properties.
On March 10, 2009, Judge Baybay granted RJ Ventures and Rajah Broadcasting’s motion and subsequently issued a writ of execution directing PNB to return the Buendia and Tagaytay properties to the said firms.
Baybay’s writ of execution was issued supposedly in line with the final and executory decision of the Supreme Court last September 27, 2006 in the case entitled “Philippine National Bank versus RJ Ventures Realty Development Corporation and Rajah Broadcasting Network, Inc.
The appellate court, however, pointed out that the SC ruling covers only the broadcasting equipment of Rajah Broadcasting Network in several parts of the country and not the Buendia and Tagaytay properties.