G.R. No. 181201 -

Ruling

Accordingly, the PDIC filed before the Regional Trial Court (RTC) of Davao City, Branch 12, a Petition [6] seeking from the said court assistance in the liquidation of the MSLA. On September 29, 1991, the trial court issued an Order [7] giving due course to PDIC's request for assistance. On January 23, 1993, the RTC of Davao City issued an Order [8] reminding the PDIC to submit a liquidation plan approved by the Board. On February 3, 1993, the PDIC submitted a copy of the Master Liquidation Plan for all Banks [9] issued by the Board. On March 31, 1993, the trial court issued another Order [10] directing the PDIC to take appropriate steps to hasten the liquidation of the MSLA. On June 18, 1993, the trial court issued an Order [11] directing the PDIC to take over and conduct an inventory of the assets, books, papers and properties of the MSLA. In addition, it directed the PDIC to cause to be published in a newspaper of general circulation a notice directing all claimants, depositors and creditors of the MSLA to file their respective claims. On November 22, 1993, the PDIC submitted to the RTC a copy of the Master Liquidation Plan [12] for general application in the liquidation of all closed banking institutions. On June 3, 1997, petitioner Atty. Reymundo Villarica (Villarica), one of the claimants of the MSLA, filed a motion to dismiss the PDIC's petition. [13] Villarica argued that the petition for liquidation should be dismissed because of the PDIC's failure to prosecute and/or to comply with the rules on liquidation of a bank, the PDIC's failure to comply with the lawful orders of the RTC, and the PDIC's unexplained delay in the liquidation of the MSLA. On September 30, 1997, acting on Villarica's motion to dismiss, the RTC issued an Order [14] directing the PDIC to submit a liquidation plan and for it to show its compliance with the requirements in the liquidation of a closed bank. Thereafter, on July 1, 2003, the PDIC filed with the RTC a Motion for Approval of Partial Project of Distribution. [15] In said motion, the PDIC classified, among others, the claims of the Bureau of Internal Revenue (BIR), Social Security System (SSS), PAG-IBIG and the National Home Mortgage and Finance Corporation (NHMFC), under the category of trust funds. [16] An Opposition [17] was filed by petitioners-stockholders Dolores P. Torres, [18] Dr. Guillermo P. Torres, University of Mindanao, Inc., Antonio M. Pilpil, Nancy C. Te Eng Fo, Fe Azucena Marcelino and Evangeline F. Magallanes against the PDIC's motion. In said Opposition, the petitioners-stockholders of the MSLA argued that the motion for the approval of the partial project of distribution was improper and that the PDIC should, instead, submit a project of distribution in compliance with its earlier master liquidation plan. On June 27, 2004, a Motion to Join as Claimants-Stockholders [19] was filed by petitioners-stockholders Saturnino Petalcorin, Reynaldo M. Petalcorin, Lilian M. Petalcorin-Castillo, Mary Ann