G.R. No. 122725 - BIOGENERICS MARKETING AND RESEARCH CORPORATION AND WOLFGANG ROEHR, VS. NATIONAL LABOR RELATIONS COMMISSION AND SERAFIN G. PANGANIBAN.

Ruling

Accordingly, BIOGENERICS and Roehr were held solidarily liable to Panganiban for P330,000.00 representing his separation pay, P1,870,000.00 as back wages, P500,000.00 as moral damages, P500,000.00 as exemplary damages, and 10% of the total amount thereof as attorneys fees. [3] On 13 June 1994 BIOGENERICS filed before the NLRC a Memorandum of Appeal and Motion to Reduce Appeal Bond reiterating Panganibans voluntary resignation. BIOGENERICS stressed that the award of back wages was proper only when the dismissal of an employee was unjust or unlawful and not when the severance of employer-employee relationship was initiated by the employee. In strengthening their position to reduce the requisite appeal bond, petitioners argued that considering that the authorized capital stock of the corporation was only P2,000,000.00, an amount which was very much less than that awarded, posting the entire amount of the bond would necessarily put the corporation in a serious and precarious financial condition. Consequently, a cash bond of P50,000.00 only was initially posted by petitioners. On 17 August 1994 the NLRC, finding that petitioner corporation had no justification for a substantial reduction of the bond other than its limited authorized capital stock, ordered petitioners to post an additional cash or surety bond in the amount of P1,950,000.00 within a non-extendible period of ten (10) days from receipt, with a warning that their failure to comply therewith would result in the dismissal of the appeal. [4] On 15 September 1994 BIOGENERICS moved for reconsideration praying for further reduction of the bond. It averred that the P2,000,000.00 bond would still put a significant strain on its resources and derail its efforts to recover the business losses it sustained in 1993 as reflected in its financial statement. On 30 September 1994 the NLRC denied the motion for reconsideration and disregarded petitioners claim of serious business losses. It clarified that the bond required need not be in cash for the law and the implementing rules allowed the posting of a bond in the form of surety secured from reputable bonding insurance company. However, as a gesture of liberality, instead of dismissing the appeal, the NLRC granted petitioners another non-extendible period of five (5) days within which to post additional bond, again , with a warning that failure to post the same would mean a non-perfection of its appeal. On 22 November 1994 petitioners filed an Irrevocable Bank Guarantee No. GTE MNL 940027 in the amount of P1,950,000.00 as additional appeal bond which was entered into by and between BIOGENERICS and Hongkong and Shanghai Banking Corporation Limited. The instrument contained a statement that the Guarantee will remain in force up to 21 November 1995 [5] or only for a period of one (1) year from the signing of the agreement. As a consequence, the NLRC rejected the Bank Guarantee as a substitute for the bond holding that what is contemplated unde