Lamberto R. Castro vs. Isabelita S. Castro

[SEC CASE NO. 2783. October 19, 1987.] IN THE MATTER OF THE LIQUIDATION AND WINDING UP OF SOLID ENGINEERING AND MACHINE WORKS & CO., LAMBERTO R. CASTRO , petitioner , vs . ISABELITA S. CASTRO , respondent . O R D E R Acting upon the Omnibus Motion filed by the Liquidation Committee as well as the opposition thereto filed by the respondent, and in order that it (Liquidation committee ) may be able to effectively pursue the liquidation of the assets of the partnership Solid Engineering and Machine Works, & Co. in accordance with law, this Commission hereby allows the Liquidation Committee to take actual possession and the physical inventory of all the real and personal properties of the aforesaid partnership. However, anent movant's prayer for authority to file criminal, civil and/or administrative cases against respondent Isabelita S. Castro, Nemesio A. Arranzaso, Jr. and other persons who may be held liable for the fraudulent sale, disposal or dissipation of the partnership's assets, earnings and revenues, we are of the view that the Liquidation Committee, pursuant to the power vested in it, has the inherent and exclusive power to maintain whatever appropriate legal proceedings it may deem necessary for the effective prosecution of its functions without necessarily securing authority from this Commission. Thus, we consider movant's application for such an authority not a precedent setting requirement to warrant the Commission's favorable action on the same. The movant's prayer for such an authority should be, as it is hereby DENIED. ADHcTE As regards movant's prayer for an authority to seek assistance of the military and police agencies in the enforcement of the orders of this Commission, we are not inclined to favorably act on the same in view of the explicit provisions of Section 3, P.D. 902-A, as amended, granting such power only and exclusively to the Securities and Exchange Commission in the exercise of its authority. We believe that such power cannot be delegated. However, this Commission may, upon proper motion, made by the parties, enlist the aid and support of any and all agencies of the government, civil or military, in the enforcement of any orders issued by it in the course of the exercise of its functions under the law. Therefore, movant's prayer for an authority to seek the assistance of the military and police agencies in the enforcement of the orders of this Commission should be, as it is hereby DENIED. TAacHE SO ORDERED. (SGD.) ALBERTO P. ATAS Hearing Officer