SC junks Banco Filipino bid for P25-billion aid from Bangko Sentral

Ina Reformina, ABS-CBN News

Posted at Aug 15 2018 06:19 PM

MANILA- Banco Filipino Savings and Mortgage Bank has failed in its bid to ask the Supreme Court (SC) to reverse a Court of Appeals (CA) ruling that prevented the now-closed bank from receiving P25-billion in financial assistance from the Bangko Sentral ng Pilipinas (BSP). 

In a 26-page decision penned by Associate Justice Marvic Leonen, the high court’s Third Division junked Banco Filipino’s plea for its “lack of capacity to sue.”

On July 28, 2011, the CA granted the petition filed by the BSP and the Monetary Board that questioned the order of the Makati City Regional Trial Court Branch 66 stopping them from withdrawing their approval of Banco Filipino’s business plan and financial aid plea. 

The decision to withdraw was grounded on Banco Filipino’s refusal to agree to the condition that it shall withdraw, and cease to file, cases in court, including its P18.8-billion damage claim.

The damage claim was in light of the Monetary Board’s order for its closure and receivership by the Philippine Deposit Insurance Corporation (PDIC).

Banco Filipino’s damage claim and other cases it filed were grounded on the top court's Dec. 11, 1991 decision declaring void the Monetary Board’s order. 

The SC decision also ordered the Monetary Board to reorganize and allow Banco Filipino to resume business under the comptrollership of BSP and the board.

In junking Banco Filipino’s plea for a reversal of the CA ruling, the high court explained that “[a]s a consequence of the receivership, the closed bank may sue and be sued only through its receiver, the [PDIC].”

“In sum, this Court (SC) holds that petitioner did not have the legal capacity to file this petition absent any authorization from its statutory receiver, [PDIC]," the top court's decision stated.

"Even assuming that the petition could be given due course, it would still be denied. The [CA] 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,” it added.

In its ruling, the CA explained that the RTC had no jurisdiction over Banco Filipino’s case against BSP and the Monetary Board.