G.R. NO. 168071 - LUCIANO TAN, VS. RODIL ENTERPRISES

Ruling

Accordingly, the DENR was directed to award the lease contract in favor of the Ides O'Racca Building Tenants Association, Inc. of which Luciano Tan is a member. He, thus, prayed for the dismissal of the Complaint, and for the return of whatever amount Rodil Enterprises had collected from 1987 to 1997, or during such time when he was still paying rentals to the latter. On 27 June 2000, the MeTC issued an Order, recognizing an agreement entered into in open court by Luciano Tan and Rodil Enterprises. The Order, inter alia , declared, thus: On second call, the parties and counsel agreed in principle in open court to the following terms to put an end to this civil case for ejectment between them: 1.) that [Luciano Tan] will pay P440,000.00 representing rentals from September, 1997 up to the present, which is the outstanding obligation of [Luciano Tan] as of June, 2000, on or before June 30, 2000; and 2.) [Luciano Tan] will pay the monthly rentals computed at P13,750.00 on or before the 5th day of each month after June 30, 2000. [8] On 14 August 2000, Luciano Tan filed a Motion to Allow Defendant to Deposit Rentals, [9] averring therein that he had agreed to pay all the rentals due on the subject premises and to pay the subsequent monthly rentals as they fall due; that the rentals in arrears from September 1997 amounted to P467,500.00; and in line with his good faith in dealing with Rodil Enterprises, he would like to deposit the aforesaid amount, and the subsequent monthly rentals as they fall due. He prayed that he be allowed to deposit the Manager's Check for the amount of P467,500.00, made payable to the City Treasurer of Manila. However, on 15 August 2000, the MeTC denied the Motion on the rationalization that Luciano Tan's prayer to deposit the specified sum with the City Treasurer of Manila contravenes Section 19, [10] Rule 70 of the 1997 Rules of Civil Procedure. Subsequently, the issues for the resolution of the MeTC were synthesized by the court in its Order, dated 25 July 2000, to wit: [T]he issue insofar as [Rodil Enterprises], revolved on: "Whether [Rodil Enterprises] is legally entitled to collect from [Luciano Tan] the amount of rentals and interest thereon as prayed for in the complaint and to ask for the ejectment of the defendant from the leased premises." On the other hand, [Luciano Tan]'s counsel formulated the issues of the case in the following manner[,] to wit: 1) Whether or not under the circumstances[,][Luciano Tan] could be ejected from the premises in question; 2) Whether or not under the circumstances[,] [Rodil Enterprises] should be made to return the amounts collected from [Luciano Tan] from 1987 to 1997 amounting to P988,650.00. [11] On 6 October 2000, the MeTC rendered a Decision in favor of Rodil Enterprises. The court said that Luciano Tan did not contest the sublease on a monthly basis, and in fact admitted in judicio, viz: 1) That [Luciano Tan] will pay P440,000.00 representing rentals from September 1997 up to the