Pilipinas Shell Petroleum Corporation, Petitioner, - versus - Royal Ferry Services, Inc.
G.R. No. 188146
February 1, 2017
Facts :
On August 28, 2005, Royal Ferry Services Inc. filed a petition for Voluntary Insolvency before the Regional Trial Court of Manila. In its Petition stated therein , in the year 2000, the company suffered business losses. Efforts were made to revive its financial condition but failed. The business ceased its operations. A special board meeting was held and was approved and authorized by the members of the board to allow the company to file a Petition for insolvency.
In retrospect of the company, it is a corporation duly organized and existing under the Philippine Laws and was holding its principal business office address in Bangkal Street, Makati City but holds its Office at Room 203 at Bf condominium Building , Intramuros , Manila at the time the Petition was filed.
On December 19, 2005, the Regional Trial Court of Manila issued an order, granting the petition declaring the Royal Ferry Services insolvent.
The Court orders :
- The Branch Sheriff to take possession of, and safely keep until the appointment, of an Assignee all the deeds, vouchers, books of accounts, papers, notes, bills and securities of the petitioner and all its real and personal properties, estates and effects not exempt from execution;
- All persons and entities owing money to petitioner are hereby forbidden to make payment for its accounts or to deliver or transfer any property to petitioner except to the duly elected Assignee;
- All civil proceedings against petitioner are deemed stayed;
- For purposes of electing an Assignee, a meeting of all creditors of the petitioner is hereby set on February 24, 2006 at 8:30 a.m. before this Court, at Room 435, Fourth Floor, Manila City Hall Building.
The said order was published in a newspaper of general circulation for three consecutive weeks furnishing copies to all creditors of the company in the schedule of creditors.
On December 23, 2005, Pilipinas Shell Petroleum filed before the Regional Trial Court of Manila a Formal Notice of Claim and a Motion to Dismiss claiming that the respondent Royal Ferry Services Inc owes them the amount of P 2,769,387.67 and the Petition for Insolvency was filed erroneously filed in a wrong venue. The petitioners argued that in Insolvency Law, a petition for Insolvency should be filed before he Court with territorial jurisdiction over the company's residence. In its Article of Incorporation, respondent's principal business address is situated in Makati City would it be the Petition for Insolvency should be filed before the Court of Makati.
The petitioners Motion was denied by the Court on January 30, 2006 for lack of merit. Thereafter, Pilipinas Shell moved for a reconsideration on February 24, 2006.
On June 15, 2006, Regional Trial Court reconsidered the denial of Pilipinas Shell Motion to Dismiss and reconsider its order dated January 30, 2006. The Petition for Voluntary Insolvency was ordered DISMISSED.
The respondent filed a Notice of Appeal on October 26, 2006 and the records was forwarded to the Court of Appeals.
The Appellate Court ruled reinstating the Insolvency proceedings setting aside the Trial Court order dated June 15, 2006.
ISSUES :
Whether or not the Petition for Voluntary Insolvency was filed in a proper venue where the company's residence is situated.
RULING:
The Supreme Court ruled, AFFIRMED the decision of the Court of Appeals reinstating the Petition for Voluntary Insolvency filed by the respondent before the Regional Trial Court of Manila.
The Petition for certiorari filed by Pilipinas Shell was ordered Denied.
The respondent Royal Ferry Services is a resident of Manila in its actual operations of its business when the Petition for Insolvency was filed. It was not opposed as stated in the Articles of Incorporation of the respondent that its principal business address is situated in Makati is no longer accurate and existing.
Facts has been proven that the actual use and venue of the respondent's business operations is in Manila when the Court Sheriff implemented the order of the Court dated December 19, 2005.
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