Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases
OCA Circular No. 105-2021 addresses concerns regarding delays in the resolution of rehabilitation, insolvency, and liquidation cases in Philippine courts. The Office of the Court Administrator (OCA) emphasizes the need for judges in Special Commercial Courts to adhere strictly to the one-year deadline for confirming rehabilitation plans, as mandated by the Financial Rehabilitation and Insolvency Act. Judges are urged to maintain control over proceedings and to minimize postponements, as failure to decide cases within the designated time frame may lead to administrative sanctions. This circular serves as a reminder to ensure compliance and efficiency in handling commercial cases.
Quick Answers
- What is Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases about?
- OCA Circular No. 105-2021 addresses concerns regarding delays in the resolution of rehabilitation, insolvency, and liquidation cases in Philippine courts. The Office of the Court Administrator (OCA) emphasizes the need for judges in Special Commercial Courts to adhere strictly to the one-year deadline for confirming rehabilitation plans, as mandated by the Financial Rehabilitation and Insolvency Act. Judges are urged to maintain control over proceedings and to minimize postponements, as failure to decide cases within the designated time frame may lead to administrative sanctions. This circular serves as a reminder to ensure compliance and efficiency in handling commercial cases.
- What type of law is OCA Circular No. 105-2021?
- Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases (OCA Circular No. 105-2021) is a Philippine Supreme Court Issuances enacted by the Congress of the Philippines.
- When was Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases enacted?
- Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases (OCA Circular No. 105-2021) was enacted on Jul 27, 2021.
- What is the citation for Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases?
- Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases, OCA Circular No. 105-2021, Jul 27, 2021 (Philippines)
Law Information
- Reference Number
- OCA Circular No. 105-2021
- Date Enacted
- Category
- Supreme Court Issuances
- Subcategory
- Office of the Court Administrator Circulars
- Jurisdiction
- Philippines
- Enacting Body
- Congress of the Philippines
Full Law Text
July 27, 2021
OCA CIRCULAR NO. 105-2021
| TO | : | All Judges of the Regional Trial Courts Designated as Special Commercial Courts and Courts Hearing Commercial Cases |
| RE | : | Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases |
The Office of the Court Administrator (OCA) received a letter from Hon. Carlos G. Dominguez, Secretary, Department of Finance, urging the OCA to "ensure that courts comply with their mandate," considering "the delay in resolution of various commercial cases filed in courts such as rehabilitation, insolvency, and liquidation cases, among others." Cited is the case of the Land Bank of the Philippines, "a creditor-party in numerous rehabilitation and insolvency proceedings where there appears to be a questionable trend of unwarranted delay and/or circumvention of court proceedings," suggesting that "some case proceedings may have been deliberately delayed" and "have remained pending for more than one (1) year without any approved rehabilitation plans."
In view of the foregoing, all judges of the Special Commercial Courts and those handling commercial cases are hereby STRONGLY REMINDED that pursuant to Sec. 72, Republic Act No. 10142, 1 courts "shall have a maximum period of one (1) year from the date of the filing of the petition to confirm a Rehabilitation Plan."
Judges are likewise enjoined to "remain in full control of the proceedings in (their) sala and should adopt a firm policy against improvident postponements. More importantly, (they) should follow the time limit set for deciding cases," 2 and that "failure to decide cases and other matters within the reglementary period constitutes gross inefficiency and warrants the imposition of administrative sanctions against the erring magistrate." 3
For the guidance and compliance of all concerned.
(SGD.) JOSE MIDAS P. MARQUEZCourt Administrator
Footnotes
1. Financial Rehabilitation and Insolvency Act (FRIA) of 2010.
2.Hernandez v. de Guzman, 322 Phil. 65, 22 January 1996.
3.Gallego v. Doronila, 389 Phil. 677, 26 June 2000.
Cite This Law
Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases, OCA Circular No. 105-2021, Jul 27, 2021 (Philippines)
Delay in the Resolution of Rehabilitation, Insolvency, and Liquidation Cases, OCA Circular No. 105-2021 (Phil. 2021)
Related Laws
- Inventory and Report of All Pending Rehabilitation, Insolvency, and Liquidation CasesOCA Circular No. 215-2022 • Aug 19, 2022 • Supreme Court Issuances
- Amendment of A.M. No. 03-03-03-Sc Dated June 17, 2003, for the Expansion of the Coverage of Cases Cognizable by the Special Commercial Courts to Include All Cases on Insolvency and Liquidation under the FRIA<--!06162015-->A.M. No. 03-03-03-SC • Jun 16, 2015 • Supreme Court Issuances
- Amendment of A.M. No. 03-03-03-SC Dated June 17, 2003, for the Expansion of the Coverage of Cases Cognizable by Special Commercial Courts to Include All Cases on Insolvency and Liquidation under the FRIA<--!11162015-->A.M. No. 03-03-03-SC • Nov 16, 2015 • Supreme Court Issuances
- Amendment of A.M. No. 03-03-03-SC Dated June 17, 2003, for the Expansion of the Coverage of Cases Cognizable by Special Commercial Courts to Include All Cases Governed by the Fria, Liquidation Cases Emanating from Administrative Proceedings, and Dissolution and Liquidation of Partnerships under the Civil Code<--!06212016-->A.M. No. 03-03-03-SC • Jun 21, 2016 • Supreme Court Issuances
- The Legal Fees to be Collected in Cases of Liquidation of Solvent Juridical Debtors, Liquidation of Insolvent Juridical and Individual Debtors, Conversion from Rehabilitation to Liquidation Proceedings, Suspension of Payments of Insolvent Individual Debtors and Petitions in an out of Court Restructuring Agreement Provided under A.M. Nos. 12-12-11-SC and 15-04-06-SC<--!10052016-->A.M. No. 04-02-04-SC • Oct 5, 2016 • Supreme Court Issuances
- Resolution Dated 16 November 2015 in A.M. No. 03-03-03-SC (Amendment of A.M. 03-03-03-SC Dated June 17, 2003, For the Expansion of the Coverage of Cases Cognizable by the Special Commercial Courts to Include All Cases on Insolvency and Liquidation under the FRIA)OCA Circular No. 11-2016 • Jan 14, 2016 • Supreme Court Issuances
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