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PAL vs. CA 2005
PAL vs. CA 2005
Invoking Section 6(c) of P.D. No. 902-A and the case of Bank of the Philippine
Islands v. Court of Appeals,[13] petitioner contends that upon the appointment of a
management committee or rehabilitation receiver, all actions for claims against
corporations, partnerships or associations are automatically stayed. It likewise
argued that the suspension of the proceedings will enable the rehabilitation
receiver to effectively exercise his powers, free from any judicial or extrajudicial
interference that might unduly hinder its recovery.
On 02 April 1990, after trial, the trial court rendered a decision finding
petitioner liable for damages.[3]
On the other hand, private respondents opposed the motion on the following
grounds:
dismissal, unfair labor practice, damages and payment of other benefits. On the
strength of the SEC order placing it under a management committee, Rubberworld
(Phils.) moved to suspend the proceedings of the labor cases. The labor arbiter
denied the motion holding that the injunction contained in the SEC order applied
only to the enforcement of established rights and did not include suspension of
proceedings involving claims against Rubberworld (Phils.) which have yet to be
ascertained. The Labor Arbiter further held that the order of the SEC suspending
all actions for claims against Rubberworld (Phils.) did not cover the claims of
employees in the labor cases because said claims, and the concomitant liability of
Rubberworld (Phils.), are still to be determined, thus carrying no dissipation of the
assets of the latter. This Court brushed aside the Labor Arbiter's posture and held
that the actions of the workers before the labor arbiter are among the actions that
are suspended upon the placing of the employer-corporation under management
committee. The Court in unequivocal language enunciated:
Clearly, the applicable law is P.D. 902-A, as amended, the relevant provisions of which
read:
...
It is plain from the foregoing provisions of law that "upon the appointment by the SEC of a
management committee or rehabilitation receiver," all actions for claims against the
corporation pending before any court, tribunal or board shall ipso jure be
suspended. (underlining supplied)
The Court continued:
. . . The law is clear: upon the creation of a management committee or the appointment of a
rehabilitation receiver, all claims for actions "shall be suspended accordingly." No
exception in favor of labor claims is mentioned in the law. Since the law makes no
distinction or exemptions, neither should this Court. Ubi lex non distinguit nec nos
distinguere debemos.
In light of these powers, the reason for suspending actions for claims against the
corporation should not be difficult to discover. It is not really to enable the management
committee or rehabilitation receiver to substitute the defendant in any pending action
against it before any court, tribunal, board or body. Obviously, the real justification is to
enable the management committee or rehabilitation receiver to effectively exercise its/his
powers free from any judicial or extra judicial interference that might unduly hinder or
prevent the "rescue" of the debtor company. To allow such other action to continue would
only add to the burden of the management committee or rehabilitation receiver, whose
time, effort and resources would be wasted in defending claims against the corporation
instead of being directed toward its restructuring and rehabilitation. (Emphasis supplied)
On all fours with the instant motion is our Resolution in Philippine Airlines, Inc.
v. NLRC, et al.[18] PAL assailed via petition for certiorari under Rule 65 of the Rules
of Court the decision of the NLRC awarding separation pay to Aida Quijano, an
employee of PAL. During the pendency of the petition, PAL filed a Motion for
Suspension of Proceedings by virtue of the SEC order which appointed an Interim
Rehabilitation Receiver for PAL. The First Division of this Court noted the motion.
The case was subsequently unloaded to the Third Division of the Court. The Third
Division required the parties to submit memoranda and to address the question of
whether or not the Court should render judgment during the state of suspension of
claims. In its memorandum, PAL was of the position that the continuance of actions
for claims during receivership would add to the burden of the rehabilitation
receiver. It maintained that if such claim were granted, the employee, as a money
judgment creditor, would be in a position to assert a preference over other
creditors. On the other hand, the employee contended that the claim for separation
pay may be awarded despite the existence of receivership since said claim was
secured by the supersedeas bond posted by petitioner. The employee also argued
that the suspension of proceedings provided in Section 6(c) of P.D. 902-A pertains
to actions for claims against corporations placed under receivership and not to
petitions for certiorari initiated by the corporation under receivership. In a resolution
dated 04 September 2000, the Court granted PAL's motion ratiocinating in this
manner:
In Rubberworld (Phils.), Inc. v. NLRC, we held that worker's claim before the NLRC and
labor arbiters are included among the actions suspended upon the placing under
receivership of the employer-corporations. Although strictly speaking, the ruling in
Rubberworld dealt with actions for claims pending before the NLRC and labor arbiters, we
find that the rationale for the automatic suspension therein set out would apply to the
instant case where the employee's claim was elevated on certiorari before this Court. . . .
The Court holds that rendition of judgment while petitioner is under a state of receivership
could render violence to the rationale for suspension of payments in Section 6 (c) of P.D.
902-A, if the judgment would result in the granting of private respondent's claim to
separation pay, thus defeating the basic purpose behind Section 6 (c) of P.D. 902-A which
is to prevent dissipation of the distressed company's resources. (Underlining supplied)