Reliance Agricultural Development Corporation vs. Reliance Feeds Milling Co., et al.

[SEC CASE NO. 2974. August 6, 1987.] RELIANCE AGRICULTURAL DEVELOPMENT CORPORATION , petitioner , vs . RELIANCE FEEDS MILLING CO., INC. , respondent . [SEC CASE NO. 2975. August 6, 1987.] RELIANCE AGRICULTURAL DEVELOPMENT CORPORATION , petitioner , vs . CHAN CHENG & SONGS, INC. , respondent . O R D E R For resolution is the Petition For Contempt filed by petitioner dated May 20, 1987 against respondents for refusing to comply with the Decision of the Commission dated January 15, 1987. HEaCcD On June 8, 1987, respondents were directed to appear before this Commission on June 30, 1987 at 10:00 o'clock in the morning and to show cause why they should not be cited for contempt by the Commission. Despite notice, respondents and counsel failed to appear nor submit any comment and/or opposition to said petition for contempt. Petitioner allege, among others, that on January 15, 1987, this Honorable Commission issued a decision in these cases, the dispositive portion of which reads as follows: "WHEREFORE, respondent Reliance Feeds Milling Co., thru its President and corporate secretary, is hereby directed to record the transfer of the shares of Chua Pek Ki in stock certificate No. 16 consisting of 505 shares in its Stock and Transfer Book. Chan Cheng & Sons, Inc., thru its president and corporate secretary, is similarly directed to record in its Stock and Transfer Book the transfer of Stock Certificate No. 024 owned by Chua Pek Ki consisting of 810 shares; Stock Certificate No. 025 owned by Brandon Chan consisting of 120 shares owned by Quinevere Chan and that both respondents must issue new certificates of stock corresponding to the aforementioned shares of stock all in the name of the petitioner Reliance Agricultural Development Corporation within thirty (30) days after finality of this decision." That a copy of the decision was served upon both respondents corporation on January 17, 1987; that the decision having been final, the Commission issued a Writ of Execution dated March 30, 1987 upon motion of the petitioner. That up to this date, despite the finality of the decision and receipt of the Writ of Execution by the respondents on April 27, 1987, both respondents still failed and refused to comply with the Commission's Decision dated January 15, 1987. AEcIaH After considering the petition, the Commission hereby rules that respondents' continuous disobedience of or resistance to the lawful orders issued by this Honorable Commission constitutes contempt under Section 2 par. (a) of Rule XIX of the New Rules of Procedure in the Securities and Exchange Commission. WHEREFORE, respondents Reliance Feeds Milling Co., Inc. and Chan Cheng and Sons, Inc. are hereby declared in contempt of this Commission and for which a fine in the amount of Five Hundred (P500.00) Pesos is hereby imposed upon each of them, with an additional fine of Fifty (P50.00) pesos a day for every day of failure to comply with the Decision dated January 15, 1987, but not to exceed One Thousand (P1,000.00) Pesos, from receipt of this Order. Should the respondents still persist in disobeying the aforesaid Decision, this Commission, upon motion, will not hesitate to impose other penalties provided for by law. SO ORDERED. (SGD.) JAMES K. ABUGAN Hearing Officer