Sy Chin vs. The Court of Appeals

SY CHIN vs.
THE COURT OF APPEALS

This is a petition for review on certiorari of the August 18, 1998 decision of the Court of
Appeals which ruled that the SEC acted in excess of its jurisdiction and annulled its decision
dated December 6, 1995 and the Resolution dated July 25, 1997 .
KAPUNAN, J.:
FACTS: Sometime in 1952, the brothers Tang Chin, Feliciano Tang, Ricardo Alonzo a.k.a. Tang
Kong Suy, Tang Chin Heng and William Tang a.k.a. Tang Kong Sia formed a partnership under
the name of Tan Chin Heng & Company. After the death of Tang Chin, Feliciano Tang and Tang
Kong Suy, conflicts arose from their heirs (herein petitioners) and the surviving partners (private
respondents) because of the companys failure to render an accounting and non-distribution of
profits. In order to settle their differences, the parties agreed to refer the matter to the
Federation of Filipino Chinese Chamber of Commerce and executed an agreement with respect
to the distribution of properties on n March 11, 1975.
On February 5, 1991, the petitioners filed a petition for dissolution and liquidation of the
partnership with the SEC. The petitioners prayed that the manager, Tang Chin Heng render an
accounting, and that a receiver be appointed. As prayed for, Atty. Joaquin Garaygay was
appointed Receiver of the company.
On February 9, 1993, the Hearing Officer of the SEC rendered a decision. Based on the
report of the Receiver, he affirmed that certain partnership properties shall be distributed to the
partners/heirs in proportion to their contribution in accordance to the Articles of the Partnership.
The petitioners moved for a partial reconsideration of the decision. The motion was denied by
the hearing officer in an Order dated August 11, 1993. The petitioners filed a Notice of Appeal
but this was not perfected due to their failure to file the Memorandum on Appeal and to pay the
docket fees within the period provided for by the Revised Rules of Procedure of the SEC.
Consequently, a motion for execution was filed by the private respondents on October 28, 1993
which was granted by the hearing officer on January 5, 1995. Petitioners filed an opposition
thereto. Thus, petitioners went up to the Commission En Banc. Private respondents filed an
opposition asserting that the SEC no longer had jurisdiction over the case considering that the
decision of the hearing officer had already become final and executory.
The SEC, nonetheless, took cognizance of the case and remanded the case to the
department of origin. A Motion for Reconsideration/Clarification was filed by the private
respondents but this was denied by the SEC Commission en banc. A petition for certiorari was
consequently filed with the Court of Appeals assailing the SEC decision. On August 18, 1998,
the CA ruled that the SEC acted in excess of its jurisdiction. The subsequent motion for
reconsideration was, likewise, denied. Hence, this petition.
ISSUE: Whether or not it was proper for the Hearing Officer to have granted the
respondents motion for a writ of execution on January 5, 1995 after the petitioners have failed to
perfect their appeal.
RULING: Yes. As can be gleaned from the records, the Decision of the Hearing Officer
rendered on February 9, 1993 to which a timely motion for partial reconsideration was filed had
already become final and executory for petitioners failure to perfect their appeal to the SEC en
banc. The Court quote the respondent courts finding on this matter:
The most critical incidents that transpired in the respondent Commission were these: The SEC
Hearing Officer rendered on February 9, 1993 a decision. However petitioners failed to pay the
docket fee and file a Memorandum on Appeal.
In the light of said rule, it is as clear as a dew that the appeal to the SEC en banc was not
perfected and resultantly, the Decision of February 9, 1993 has become final and
executory. There was, therefore, nothing for the SEC en banc to review. The latter implicitly
conceded that the appeal was not perfected but it nonetheless took cognizance of it upon the
justification that the same can be treated as a direct attack against the orders of the hearing
officer, the purpose of which is to annul the same.
Secs. 1 and 2, Rule XV of the SEC requires a verified petition and the payment of a docket
fee. In the case at bench, there was no such a verified petition nor payment of docket fees. This
Court rules that under the circumstances, the Commission en banc acted without jurisdiction or
at least in excess of jurisdiction when it rendered the Decision on December 6, 1995 and
Resolution dated July 25, 1997.
xxx
It is the well-established rule that the perfection of an appeal in the manner and within the
period prescribed by law is not only mandatory but jurisdictional and the failure to perfect the
appeal has the effect of rendering the judgment final and executory. As such, execution shall
issue as a matter of right to the winning party. Rule 39, Section 1 of the 1997 Rules on Civil
Procedure explicitly provides that Execution shall issue as a matter of right, on motion, upon a
judgment or order that disposes of the action or proceeding, upon the expiration of the period to
appeal therefrom if no appeal has been duly perfected. Pursuant to this rule, it was proper for
the Hearing Officer to have granted the respondents motion for a writ of execution on January 5,
1995 after the petitioners have failed to perfect their appeal.
It must be noted that petitioners appeal to the Commission en banc was an appeal on the
order of execution which is not permissible under the rules. The order granting the motion for
writ of execution is not appealable as provided under Rule 41, Section 1.
Clearly, therefore, the SEC committed grave abuse of discretion tantamount to lack of
jurisdiction when it entertained petitioners appeal and treated it as a direct attack against the
orders of the hearing officer. This in effect re-opened the case that has already become final
and executory. Time and again, this Court has made the pronouncement that there must be an
end to every litigation. Once a judgment becomes final, executory and unappealable, the
prevailing party should not be denied the fruits of his victory by some subterfuge devised by the
losing party.

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SY CHIN vs.

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