Co Unjieng v. Mabalacat Sugar
Co Unjieng v. Mabalacat Sugar
Co Unjieng v. Mabalacat Sugar
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Philippine Supreme Court Jurisprudence > Year 1933 > September 1933 Decisions > G.R. No. 37206 September
22, 1933 CU UNJIENG E HIJOS v. MABALACAT SUGAR COMPANY, ET AL.
058 Phil 439:
EN BANC
[G.R. No. 37206. September 22, 1933.]
CU UNJIENG E HIJOS, PlaintiffsAppellees, v. THE MABALACAT SUGAR COMPANY, ET AL.,
Defendants. THE MABALACAT SUGAR COMPANY, Appellant.
Eliseo Ymzon, for Appellant.
Araneta, De Joya, Zaragoza & Araneta, for Appellees.
SYLLABUS
1. MORTGAGE; SUGAR CENTRAL. — The mortgage constituted on a sugar central includes not only the
land on which it is built but also the buildings, machinery and accessories installed at the time the
mortgage was constituted as well as the buildings, machinery and accessories belonging to the mortgage
debtor, installed after the constitution thereof. (Bischoff v. Pomar and Compañia General de Tabacos, 12
Phil., 690.)
2. ID.; ID.; NOTICE OF AUCTION SALE. — The notice announcing the sale at public auction of all the
properties of a sugar central extends to the machinery and accessories acquired and installed in its mill
after the constitution of the mortgage.
3. ID.; ID.; PLACING OR MORTGAGED PROPERTIES IN THE HANDS OF A RECEIVER. — The court, that
DebtKollect Company, Inc. has ordered the placing of the mortgaged properties in the hands of a receiver in a foreclosure suit, has
jurisdiction to order their sale at public auction even before the termination of the receivership.
4. ID.; ID.; SALE PRICE. — The fact that the price at which the mortgaged properties were sold at public
auction is inadequate, is not in itself sufficient to justify the annulment of the sale.
D E C I S I O N
VILLA REAL, J.:
This is an appeal taken by the defendant, the Mabalacat Sugar Company from the order of the Court of
First Instance of Pampanga confirming the sale of the properties of the defendant entity, made by the
sheriff of the said province, by virtue of the writ of execution, issued by the Court of First Instance of
Pampanga, upon the judgment rendered by this court confirming that of the trial court in this case.
In support of its appeal, the appellant assigns 19 alleged errors as committed by the trial court in the
aforesaid order, which we shall discuss in the body of this decision.
The first question to decide in this appeal, raised in the first, second and third assignments of error, is
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ChanRobles Intellectual Property whether or not it is proper to order the sale at public auction of the mortgaged properties in the hands of
the receiver appointed by the same court which tried the action for foreclosure of said mortgage.
Division
The placing of the mortgaged properties in the hands of a receiver during the pendency of an action for
foreclosure is for no other purpose than to secure the income and products of the same to cover
expected deficit and to preserve them from deterioration. Although it is true that after paying the
expenses and obligations incurred by the receiver, the balance of the properties under receivership is
used to satisfy the mortgage debt, applying it first to the payment of the interest thereon and then of the
capital, in case there is a pronouncement to that effect or a deficiency judgment, and, therefore, it is
indispensable that the receiver first render an accounting of his receivership before the sale at public
auction of the mortgaged properties take place, in order to know whether the assets, if there by any in
the hands of the receiver, are sufficient to satisfy the amount of the judgment, however, inasmuch as
this court has already decided in the certiorari proceedings with a petition for a writ of preliminary
injunction, that the sale of the mortgaged properties could take place notwithstanding the fact that the
accounts of the receiver contained in his report which this court found satisfactory are still pending
approval, it is now unnecessary to discuss the propriety of ordering the execution sale of the mortgaged
properties pending the final approval of the accounts of the receiver and the termination of the
receivership.
The fact that the mortgaged properties are in the hands of a receiver appointed by the court which tried
the foreclosure suit does not prevent the same court from ordering the sale of the aforesaid mortgaged
properties, inasmuch as although the said properties are in custodia legis by virtue of the judicial
receivership, there cannot be any conflict of jurisdiction therein because the court that ordered the sale
thereof is the same which ordered that they be placed under receivership.
The second question to decide is whether or not the sheriff committed an irregularity by including in the
sale certain machinery and accessories alleged not to have been included in the mortgage nor in the
notice of sale at public auction.
The machinery and accessories which were the subject matter of a third party claim were acquired by the
Mabalacat Sugar Company and installed in the sugar mill known as Mabalacat Sugar Central after the
mortgage had already been constituted in favor of Cu Unjieng e Hijos on April 23, 1926. The aforesaid
mortgage was constituted on the following properties of the Mabalacat Sugar Company: "Two (2) parcels
of land with all the buildings, improvements, sugarcane mill, railway, telephone installations, apparatus,
utensils, and everything forming part or necessary to complete the said sugarcane mill, railway, or
telephone installation, actually existing or that may later exist on the said lots, belonging exclusively to
the mortgage debtor, the Mabalacat Sugar Company, by virtue of an order of the Court of First Instance
of Pampanga, free from all liens and incumbrances, and more particularly described as follows:"
Therefore, the machinery and accessories in question, are included in the aforesaid mortgage.
September-1933 Jurisprudence Furthermore, article 1877 of the Civil Code provides as follows: jgc:chanrobles.com.ph
"ART. 1877. A mortgage includes all natural accessions, improvements, growing fruits, and rents not
collected when the obligation falls due, and the amount of any indemnities paid or due the owner by the
C. E. PIATT v. PERFECTO ABORDO September 1, insurers of the mortgaged property or by virtue of the exercise of the power of eminent domain, with the
1933 058 Phil 350 declarations, amplifications, and limitations established by law, whether the estate continues in the
possession of the person who mortgaged it or whether it passes into the hands of a third person." cralaw virtua1aw library
G.R. No. 37850 September 6, 1933 MAN SHUNG "1. REALTY; MORTGAGE OF REAL ESTATE INCLUDES IMPROVEMENTS AND FIXTURES. — It is a rule,
LOONG CO., ET AL. v. MELECIO FABROS, ET AL. established by the Civil Code and also by the Mortgage Law, with which the decisions of the Courts of the
United States are in accord, that in a mortgage of real estate, the improvements on the same are
058 Phil 354 included; therefore, all objects, permanently attached to a mortgaged building or land, although they
may have been placed there after the mortgage was constituted, are also included. (Arts. 110 and 111 of
G.R. No. 40235 September 6, 1933 MARIANO CU the Mortgage Law, and 1877 of the Civil Code. Decision of the United States Supreme Court in the matter
UNJIENG, ET AL. v. JUAN POSADAS, ET AL. of Royal Insurance Co. v. R. Miller, liquidator, and Amadeo (26 Sup. Ct. Rep., 46; 199 U. S., 353).
058 Phil 360 "2. ID.; ID.; INCLUSION OR EXCLUSION OF MACHINERY, ETC. — In order that it may be understood that
the machinery and other objects placed upon and used in connection with a mortgaged estate are
JOSE R. PAÑGANIBAN v. ELIAS BORROMEO
excluded from the mortgage, when it was stated in the mortgage that the improvements, building, and
September 9, 1933 058 Phil 367
machinery that existed thereon were also comprehended, it is indispensable that the exclusion thereof be
G.R. No. 40133 September 12, 1933 ROBERT B. stipulated between the contracting parties." cralaw virtua1aw library
VAN STAVERN v. PEDRO MA. SISON, ET AL.
(See also Manresa, Commentaries on the Civil Code, 3d edition, vol. 12, pp. 528, 529).
058 Phil 370
As to whether or not the machinery and accessories in question were included in the notice of sale of
G.R. No. 39925 September 14, 1933 VALENTIN public auction, inasmuch as the sheriff stated therein that he would sell all the properties belonging to
MONTOJO v. CEFERINO HILARIO, ET AL. the Mabalacat Sugar Central said sugar central, they were included in the notice in question, following
the principle of law that the accessory follows the principal.
058 Phil 373
Another irregularity alleged to have been committed by the sheriff in the sale at public auction of the
G.R. No. 39929 September 14, 1933 AGAPITO
mortgaged properties is that he sold them at an absolutely inadequate price.
RAMOS v. COURT OF FIRST INSTANCE OF TAYABAS,
ET AL.
B. A. Green, president of the defendant entity, the Mabalacat Sugar Company, testified that the
058 Phil 374 mortgaged properties were worth from P300,000 to P400,000, and that the price of P177,000 for which
they were auctioned is absolutely inadequate.
G.R. No. 40054 September 14, 1933 LA GRANJA,
INC. v. FELIX SAMSON, ET AL. On the other hand, Wyllie, manager of the Luzon Sugar Company, testified that the properties sold at
public auction were worth only P143,388, and Renton Hind, well known sugar centrals expert, testified
058 Phil 378 that said properties were worth only P130,000.
G.R. No. 38190 September 15, 1933 MANILA In the case of Bank of the Philippine Islands v. Green (52 Phil., 491), this court said:
YELLOW TAXICAB CO., INC. v. FRANCISCO JAVIER
jgc:chanrobles.com.ph
"Inasmuch as the opposition to the confirmation of the sale made by the sheriff pursuant to the
058 Phil 381
execution only alleged as a ground that the price for which the mortgaged property was sold was
G.R. No. 38286 September 15, 1933 MANILA absolutely inadequate and unreasonable, and whereas it has heretofore been held by this court that a
YELLOW TAXICAB CO., INC. v. FAUSTO BARREDO smaller price, for which the same property was sold at the first auction, notwithstanding that it was
inadequate, was not sufficient by itself alone to annul the order confirming the sale (which was annulled
058 Phil 385 for a different reason); therefore, the fact that the opponent was not given an opportunity to present
evidence in support of the allegations of his opposition does not constitute a prejudicial error which would
G.R. No. 38621 September 15, 1933 EULALIO nullify the order confirming the sale made by the sheriff."
POSAS v. TOLEDO TRANSPORTATION CO., INC.
Furthermore, at no time during or after the sale at public auction has it been claimed, and neither is it
058 Phil 390 now claimed, that there was any purchaser ready to offer an amount greater than that offered by the
plaintiffs, for which the mortgaged properties were adjudicated to them.
G.R. No. 38715 September 15, 1933 PEOPLE OF
THE PHIL. v. MARTIN NOYNAY, ET AL.
It has been intimated, but not proven, that the sheriff prevented a purchaser from bidding at the auction.
058 Phil 393 It has not been claimed, however, and neither is it now claimed, that said purchaser, if any, is at present
ready to offer a greater sum.
G.R. No. 38814 September 15, 1933
METROPOLITAN WATER DISTRICT v. PUBLIC SERVICE It is also pointed out that the sheriff committed the alleged irregularity of not selling the mortgaged
COMMISSION, ET AL. properties by lots or piece by piece.
058 Phil 397 Speaking of a sugar central, it is of value only when sold in its entirety, inasmuch as the pieces of which
it is composed, if sold separately, lose their intrinsic value and can only be sold as second hand articles
G.R. No. 39453 September 15, 1933 at a very cheap price. Therefore, the manner in which the mortgaged properties were sold by the sheriff
METROPOLITAN WATER DISTRICT v. PUBLIC SERVICE
was the most advantageous to the creditors as well to the mortgage debtors.
COMMISSION, ET AL.
058 Phil 402
In view of the foregoing considerations, we are of the opinion and so hold: (1) That a mortgage
constituted on a sugar central includes not only the land on which it is built but also the buildings,
machinery, and accessories installed at the time the mortgage was constituted as well as the buildings,
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G.R. No. 37265 September 18, 1933 CHINA machinery and accessories belonging to the mortgagor, installed after the constitution thereof (Bischoff
BANKING CORPORATION v. CHAN QUAN PANG, ET AL. v. Pomar and Compañia General de Tabacos, 12 Phil., 690); (2) that the notice announcing the sale at
public auction of all the properties of a sugar central extends to the machinery and accessories acquired
058 Phil 404 and installed in its mill after the constitution of the mortgage; (3) that the court, that has ordered the
placing of the mortgaged properties in the hands of a receiver in a foreclosure suit, has jurisdiction to
G.R. No. 38614 September 18, 1933 MIGUEL R.
order the sale at public auction of the said mortgaged properties even before the termination of the
MATEO v. MANILA ELECTRIC COMPANY
receivership; and (4) that the fact that the price at which the mortgaged properties were sold at public
058 Phil 409 auction is inadequate, is not in itself sufficient to justify the annulment of the sale.
G.R. No. 39955 September 18, 1933 ANGELES Wherefore, finding no error in the order appealed from it is hereby affirmed in toto, with costs against
TAPIA VIUDA DE JONES v. FRANCISCO ZANDUETA, ET the appellant. So ordered.
AL.
Malcolm, Abad Santos, Hull and Imperial, JJ., concur.
058 Phil 411
G.R. No. 37046 September 19, 1933 IÑIGO S.
DAZA v. FELISA TOMACRUZ, ET AL.
058 Phil 414 Back to Home | Back to Main
G.R. No. 37310 September 19, 1933 PEOPLE OF
THE PHIL. v. DONATO DAZO, ET AL.
QUICK SEARCH
058 Phil 420
G.R. No. 37386 September 19, 1933 ANDRES
JAYME v. BUALAN
1901 1902 1903 1904 1905 1906 1907 1908
058 Phil 422
1909 1910 1911 1912 1913 1914 1915 1916
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058 Phil 426 1933 1934 1935 1936 1937 1938 1939 1940
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G.R. Nos. 39609 & 3964339649 September 20,
1933 MANILA ELECTRIC COMPANY v. CATALINO 1949 1950 1951 1952 1953 1954 1955 1956
BALAGTAS
1957 1958 1959 1960 1961 1962 1963 1964
058 Phil 429 1965 1966 1967 1968 1969 1970 1971 1972
1973 1974 1975 1976 1977 1978 1979 1980
G.R. No. 36602 September 22, 1933 CARMEN
PARDO DE TAVERA v. PAZ repuLOPEZ MANZANO 1981 1982 1983 1984 1985 1986 1987 1988
VIUDA DE PARDO DE TAVERA
1989 1990 1991 1992 1993 1994 1995 1996
058 Phil 436 1997 1998 1999 2000 2001 2002 2003 2004
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G.R. No. 37206 September 22, 1933 CU UNJIENG
E HIJOS v. MABALACAT SUGAR COMPANY, ET AL. 2013 2014 2015 2016 2017 2018
058 Phil 439
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058 Phil 445 Main Indices of the Library ‑‑‑> Go!
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058 Phil 448
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058 Phil 453
G.R. No. 40368 September 23, 1933 ANACLETO
PIIT v. VICENTE B. DE LARA
058 Phil 457
G.R. No. 36911 September 25, 1933 AURELIA
CONTUAN v. FORTUNATA RAMIREZ
058 Phil 458
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058 Phil 461
G.R. No. 37078 September 27, 1933 ENRIQUE
MONSERRAT v. CARLOS G. CERON, ET AL.
058 Phil 469
G.R. No. 37706 September 27, 1933 CU UNJIENG
E HIJOS v. L. P. MITCHELL
058 Phil 476
G.R. No. 38284 September 27, 1933 GUILLERMO
A. CU UNJIENG, ET AL. v. LEONARD S. GODDARD, ET
AL.
058 Phil 482
G.R. No. 38316 September 27, 1933 GUILLERMO
A. CU UNJIENG, ET AL. v. MARIANO A. ALBERT, ET AL.
058 Phil 495
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THE PHIL. v. ANTONIO YABUT
058 Phil 499
G.R. No. 39562 September 27, 1933 JUAN L.
ORBETA v. FILEMON SOTTO, ET AL.
058 Phil 505
G.R. No. 37125 September 30, 1933 MARIA
ARRIETE v. DIRECTOR OF PUBLIC WORKS, ET AL.
058 Phil 507
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