Mode of Appeal in Cases Formerly Cognizable by the Securities and Exchange Commission

September 14, 2004

EN BANC

A.M. No. 04-9-07-SC

RE : Mode of Appeal in Cases Formerly Cognizable by the Securities and Exchange Commission

RESOLUTION

WHEREAS, to implement the provisions of Section 5.2 of Republic Act No. 8799 (The Securities Regulation Code), and in the interest of a speedy and efficient administration of justice, the Supreme Court En Banc promulgated (1) A.M. No. 00-8-10-SC, on Transfer of Cases from the Securities and Exchange Commission to the Regional Trial Courts which took effect on October 1, 2001; and (2) SC Adm. Memo. No. 01-2-04, or the Interim Rules of Procedure Governing Intra-Corporate Controversies under Republic Act No. 8799 which took effect on April 1, 2001;

WHEREAS, the Supreme Court En Banc designated certain regional trial courts as commercial courts to decide cases falling under both Interim Rules;

WHEREAS, under both Interim Rules, all decisions and orders issued shall immediately be executory and no appeal or petition taken therefrom shall stay the enforcement or implementation of the decision or order, unless restrained by an appellate court;

WHEREAS, lawyers and litigants are in a quandary on how to prevent under appropriate circumstances the execution of decisions and orders in cases involving corporate rehabilitation and intra-corporate controversies;

WHEREAS, in A.M. No. 00-8-10-SC, dated 4 September 2001, the Supreme Court En Banc clarified the period of appeal for cases involving corporate rehabilitation and intra-corporate controversies;

WHEREAS, there is a need to clarify the proper mode of appeal in these cases in order to prevent cluttering the dockets of the courts with appeals and/or petitions for certiorari; TAIaHE

WHEREFORE, the Court Resolves:

1. All decisions and final orders in cases falling under the Interim Rules of Corporate Rehabilitation and the Interim Rules of Procedure Governing Intra-Corporate Controversies under Republic Act No. 8799 shall be appealable to the Court of Appeals through a petition for review under Rule 43 of the Rules of Court.

2. The petition for review shall be taken within fifteen (15) days from notice of the decision or final order of the Regional Trial Court. Upon proper motion and the payment of the full amount of the legal fee prescribed in Rule 141 as amended before the expiration of the reglementary period, the Court of Appeals may grant an additional period of fifteen (15) days within which to file the petition for review. No further extension shall be granted except for the most compelling reasons and in no case to exceed fifteen (15) days.

3. This Resolution shall apply to all pending appeals filed within the reglementary period from decisions and final orders in cases falling under the Interim Rules of Corporate Rehabilitation and the Interim Rules of Procedure Governing Intra-Corporate Controversies under Republic Act No. 8799, regardless of the mode of appeal or petition resorted to by the appellant or petitioner.

4. These pending appeals or petitions shall be treated in the following manner:

a. In case a notice of appeal and/or record on appeal was filed with the Regional Trial Court within the period provided in A.M. No. 00-8-10-SC, and the original record or the approved record on appeal has not been transmitted to the Court of Appeals, the appealing party shall have fifteen (15) days from the effectivity of this Resolution to file a petition for review under Rule 43 with the Court of Appeals, without prejudice to filing a motion for extension in accordance with 1 hereof. ADCEaH

The notice of appeal and/or record on appeal shall remain in the original record but the Regional Trial Court and/or its clerk shall not transmit the original record or the approved record on appeal to the Court of Appeals anymore.

An appealing party who fails to file a petition for review with the Court of Appeals within the prescribed period shall not be deemed to have abandoned his appeal, in which case the appeal shall run its due course.

b. In case a notice of appeal and/or record on appeal was filed with the Regional Trial Court within the period provided in A.M. No. 00-8-10-SC, and the original record or the approved record on appeal has been transmitted to the Court of Appeals, the case shall continue as an appeal.

c. In case a petition appealing or assailing the decision and/or final order is filed directly with the Court of Appeals within the reglementary period, such petition shall be considered a petition for review under Rule 43.

d. In case a notice of appeal and/or record on appeal is filed with the Regional Trial Court and a petition appealing or assailing the decision and/or final order is likewise filed with the Court of Appeals, the cases shall be consolidated and treated as a petition for review under Rule 43.

e. No docket fees shall be required for the filing of a petition for review filed in substitution of a pending appeal and/or petition as the appellate fees have already been collected by the Regional Trial Court and/or Court of Appeals. However, should a prayer for temporary restraining order and/or writ of preliminary injunction, not included in the original petition, be included in the substitute petition for review, the Court of Appeals may assess additional docket fees for such prayer.

This Resolution shall take effect on the 15th day of October 2004 and shall be published on a newspaper of general circulation not later than 30 September 2004.

Promulgated this 14th day of September 2004.

(SGD.) HILARIO G. DAVIDE, JR.Chief Justice

(SGD.) REYNATO S. PUNOAssociate Justice

(SGD.) LEONARDO A. QUISUMBINGAssociate Justice

(SGD.) ANGELINA SANDOVAL-GUTIERREZAssociate Justice

(SGD.) MA. ALICIA AUSTRIA-MARTINEZAssociate Justice

(on official leave)CONCHITA CARPIO-MORALESAssociate Justice

(SGD.) ADOLFO S. AZCUNAAssociate Justice

(SGD.) ARTEMIO V. PANGANIBANAssociate Justice

(SGD.) CONSUELO YNARES-SANTIAGOAssociate Justice

(SGD.) ANTONIO T. CARPIOAssociate Justice

(SGD.) RENATO C. CORONAAssociate Justice

(SGD.) ROMEO J. CALLEJO, SR.Associate Justice

(SGD.) DANTE O. TINGAAssociate Justice

(on leave)MINITA V. CHICO-NAZARIOAssociate Justice