G.R. No. 169846 - SPS. NESTOR AND MA. NONA BORROMEO, vs. HONORABLE COURT OF APPEALS and EQUITABLE SAVINGS BANK . D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE , in view of the foregoing, the assailed Orders dated March 3, 2004 and April 29, 2004 issued by the Regional Trial Court of Quezon City, Branch 215 in Civil Case No. Q-03-51184 are hereby ANNULLED and SET ASIDE. Petitioners filed a Motion for Reconsideration of the foregoing Decision, which the Court of Appeals denied in a Resolution dated 16 September 2005. [30] Hence, the present Petition, in which the following issues are raised [31] : I WHETHER OR NOT THE PRIVATE RESPONDENT SAVINGS BANK IS THE REAL PARTY-IN-INTEREST. II WHETHER OR NOT PETITIONERS ARE ENTITLED TO THE RELIEF DEMANDED, THAT THE FORECLOSURE AND PUBLIC AUCTION OF THE PROPERTY BELONGING TO PETITIONERS DURING THE LITIGATION PROCEEDINGS IN THE LOWER COURT WOULD PROBABLY WORK INJUSTICE TO THEM SUCH THAT THE JUDGMENT WHICH MAY BE ISSUED BY THE SAID COURT WILL BE RENDERED INEFFECTUAL BY SUCH FORECLOSURE AND PUBLIC AUCTION OF SAID PROPERTY. III WHETHER OR NOT THE LOWER COURT WAS CORRECT IN GRANTING THE WRIT OF PRELIMINARY INJUNCTION, ALL REQUISITES BEING PRESENT The petition is meritorious. The only issue that needs to be determined in this case is whether or not a writ of preliminary injunction should be issued to enjoin the foreclosure and public auction of petitioner's property during the proceedings and pending determination of the main cause of action for annulment of the REM on said property. By no means is this a final determination of the merits of the main case still before the RTC. [32] Section 3, Rule 58 of the Rules of Court provides that: SEC. 3. Grounds for issuance of preliminary injunctions.--A preliminary injunction may be granted when it is established: (a) That the applicant is entitled to the relief demanded, and the whole or part of such relief consists in restraining the commission or continuance of the act or acts complained of, or in requiring the performance of an act or acts, either for a limited period or perpetually; (b) That the commission, continuance or non-performance of the act or acts complained of during the litigation would probably work injustice to the applicant; or (c) That a party, court, agency or a person is doing, threatening, or is attempting to do, or is procuring or suffering to be done, some act or acts probably in violation of the rights of the applicant respecting the subject of the action or proceeding, and tending to render the judgment ineffectual. As such, a writ of preliminary injunction may be issued only upon clear showing of an actual existing right to be protected during the pendency of the principal action. The twin requirements of a valid injunction are the existence of a right and its actual or threatened violations. Thus, to be entitled to an injunctive writ, the right to be protected and the violation against that right must be shown. [33] In this case, petitioners' rights to their property is restricted by the REM they executed over it. Upon their default on the mortgage debt, the right to foreclose the property w