CA stops P25B aid to Banco Filipino

by Ina Reformina, ABS-CBN News

Posted at Jul 30 2011 10:22 AM | Updated as of Jul 31 2011 02:22 AM

MANILA, Philippines - The Court of Appeals (CA) has reversed a decision of the Makati City Regional Trial Court (RTC) that ordered the Bangko Sentral ng Pilipinas (BSP) and its policy-making body, the Monetary Board (MB), to provide up to P25 billion in financial aid package and other regulatory relief to now closed Banco Filipino Savings and Mortgage Bank.

In a 25-page decision penned by Associate Justice Hakim Abdulwahid, the appellate court's Special 10th Division granted the petition of the BSP and MB that questioned the jurisdiction of Makati RTC Branch 66 in handing down the assailed order dated November 17, 2009.
“The RTC has no jurisdiction over the petition for certiorari and mandamus filed by Banco Filipino," the decision read.
Jurisdiction over the case belonged to the appellate court under the 1997 Revised Rules of Civil Procedure, the decision held.
The appellate court issued a writ of preliminary injunction last February against the trial court's assailed order to prevent the BSP and MB from suffering "grave and irreparable injury" pending a decision on the case.
The injunction order stopped the Makati Trial Court from conducting further proceedings on beleaguered Banco Filipino's civil case which was intended to get a rehabilitation package from the BSP.