Emil Ong, et al. vs. Sps. Emerito M. Salva, et al.

[SEC-SICD * CASE NO. 1840. January 30, 1987.] EMIL ONG, ET AL. , petitioners , vs . SPS. EMERITO M. SALVA, ET AL. , respondents . D E C I S I O N This petition seeks to compel the respondents to cede, transfer, and assign to petitioners 700 shares of common stock of the Rural Bank of Laoang (Northern Samar), Inc., and if not, that they (respondents) pay jointly and severally the sum of P166,000.00 representing the book value of 700 shares of common stock of the bank with the interest thereon at the rate of 12% per annum from the date of the filing of this petition. The petitioners are enforcing this right by reason of an agreement entered into between the spouses on February 22, 1973, and also by the supplementary agreement on March 5, 1973. LibLex The respondents are incorporators of the Rural Bank of Laoang (Northern Samar), Inc. and they alleged that while their agreement (Exhibit 1) was not yet fully implemented, pars. 3 and 4, were already implemented. The position of President and /or Manager of the bank was/were occupied by men of petitioners precisely to protect and safeguard their interests. They claim that both parties were at fault for the financial problem of the bank and that the difficulties in its operations were by reason of the mismanagement of petitioners' nominee-managers. The disposition of this case has lagged for some time due to efforts exerted by the parties to settle the issue amicably. Unfortunately, while in this process the bank became bankrupt beyond rehabilitation. In fact, the Supervision and Licensing Department III, Central Bank of the Philippines, issued a certification on January 16, 1986, that the Rural Bank of Laoang (Northern Samar), Inc. was placed under receivership and subsequently ordered to undergo liquidation by the Monetary Board (Exhibit 3). In view of this development, the respondents are no longer in a position to abide by the agreement insofar as the issuance of common stocks to them by the bank is concerned. However, the petitioners can file whatever monetary claims they may have with the Monetary Board which is the body that handles the liquidation proceedings of the Rural Bank of Laoang (Northern Samar), Inc. WHEREFORE, premises considered, the petition is hereby DISMISSED. No pronouncement as to costs. SO ORDERED. (SGD.) MINVILUZ C. ASTUDILLO Hearing Officer