VOL. 164, AUGUST 11, 1988 247: People's Bank and Trust Co. vs. Syvel's Incorporated
VOL. 164, AUGUST 11, 1988 247: People's Bank and Trust Co. vs. Syvel's Incorporated
VOL. 164, AUGUST 11, 1988 247: People's Bank and Trust Co. vs. Syvel's Incorporated
*
No. L-29280. August 11, 1988.
_______________
* SECOND DIVISION.
248
249
PARAS, J.:
250
251
bly and to that end a conference was held in which Mr. Antonio de
las Alas, Jr., Vice President of the Bank, plaintiff, defendant
Antonio V. Syyap and Atty. Mendoza were present. Mr. Syyap
requested that the plaintiff dismiss this case because he did not
want to have the goodwill of Syvel’s Incorporated impaired, and
offered to execute a real estate mortgage on his real property
located in Bacoor, Cavite. Mr. De las Alas consented, and so the
Real Estate Mortgage, marked as Exhibit A, was executed by the
defendant Antonio V. Syyap and his wife Margarita Bengco Syyap
on June 22, 1967. In that deed of mortgage, defendant Syyap
admitted that as of June 16, 1967, the indebtedness of Syvel’s
Incorporated was P601,633.01, the breakdown of which is as
follows: P568,577.76 as principal and P33,055.25 as interest.
Complying with the promise of the plaintiff thru its Vice
President to ask for the dismissal of this case, a motion to dismiss
this case without prejudice was prepared, Exhibit C, but the
defendants did not want to agree if the dismissal would mean also
the dismissal of their counterclaim against the plaintiff. Hence,
trial proceeded.
“As regards the liabilities of the defendants, there is no dispute
that a credit line to the maximum amount of P900,000.00 was
granted to the defendant corporation on the guaranty of the
merchandise or stocks in goods of the said corporation which were
covered by chattel mortgage duly registered as required by law.
There is likewise no dispute that the defendants Syyap
guaranteed absolutely and unconditionally and without the
benefit of excussion the full and prompt payment of any
indebtedness incurred by the defendant corporation under the
www.central.com.ph/sfsreader/session/00000171ec757ceddcda4ff7003600fb002c009e/t/?o=False 5/10
5/7/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 164
The lower court erred in not holding that the obligation secured
by the Chattel Mortgage sought to be foreclosed in the above-
entitled case was novated by the subsequent execution between
appellee and appellant Antonio V, Syyap of a real estate mortgage
as additional collateral to the obligation secured by said chattel
mortgage.
252
II
III
IV
“That the chattel mortgage executed by Syvel’s Inc. (Doc. No. 439,
Book No. I, Series of 1965, Notary Public Jose C. Merris, Manila);
www.central.com.ph/sfsreader/session/00000171ec757ceddcda4ff7003600fb002c009e/t/?o=False 7/10
5/7/2020 SUPREME COURT REPORTS ANNOTATED VOLUME 164
254
——o0o——
www.central.com.ph/sfsreader/session/00000171ec757ceddcda4ff7003600fb002c009e/t/?o=False 10/10