G.R. NO. 139912 - YUPANGCO COTTON MILLS, INC., VS. RODRIGO SY MENDOZA, BOY RAYMUNDO, ANAM TIMBAYAN, RENE MASILUNGAN AND ELPIDIO CERVANTES.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, premises considered, the assigned Sheriff in this case and his assistants are hereby ordered with the assistance of the police or military, if they deem necessary for an orderly implementation of this Order, to gain access to the premises/compound of the respondent corporation where the properties may be found by breaking open doors, windows, gates and other obstacles leading to said properties. [9] An Alias Writ of Execution was issued on 25 April 1995. On 04 May 1995, Yupangco filed a Notice of Third Party Claim [10] with the NLRC, claiming ownership over the Artex Compound and praying for the stay of any break-open order until further hearing of the case. Thereafter, on 12 May 1995, Yupangco filed an Urgent Motion to Quash the Alias Writ of Execution. [11] On 03 July 1995, Sheriff Lago levied all the properties found inside the Artex Compound. [12] A day later, or on 04 July 1995, Yupangco filed an Affidavit of Adverse Claim, [13] alleging, among others, that Yupangco is the owner in fee simple of all the properties of Artex. In the 30 August 1995 Order of Labor Arbiter Reyes, Yupangcos notice of adverse claim was dismissed for lack of merit. [14] Aggrieved, Yupangco filed a petition for certiorari and prohibition with the Regional Trial Court (RTC) of Manila, docketed as Civil Case No. 95-75628, entitled Yupangco Cotton Mills, Inc. v. Hon. Ramon Valentin Reyes, et al., maintaining that it was the owner of all the properties previously belonging to Artex. [15] The petition was dismissed on 11 October 1995, with the trial court ruling that the dismissal of Yupangcos third party claim is appealable to the NLRC and recourse to the regular court does not lie. In view of the dismissal of the petition for certiorari and prohibition, SAMAR moved for the issuance of an alias writ of execution. On 18 October 1995, a third alias writ of execution was issued. [16] After the filing of an indemnity bond of P10,000,000.00 [17] by SAMAR, and upon due publication and notice, the sheriff sold the levied properties in a public auction held on 13 November 1995, wherein SAMAR, as represented by its President, Rustico Cortez, emerged as the winning bidder. [18] Thereafter, SAMAR sold the properties to Rodrigo Sy Mendoza. [19] On 14 November 1995, the sheriff started to withdraw from Artex Compound the levied properties sold at the execution sale. [20] On 16 November 1995, Yupangco filed a petition for mandatory injunction, docketed as NLRC NCR IC No. 0000602-95 and entitled Yupangco Cotton Mills, Inc. v. Hon. Ramon Valentin Reyes, et al . [21] Acting on the petition, the NLRC issued a temporary restraining order enjoining the enforcement of the final judgment. [22] Meanwhile, on 08 December 1995, the NLRC issued a resolution dismissing Yupangcos appeal from the denial of its adverse claim. [23] In view of this dismissal, on 09 December 1995, SAMAR and Mendoza, with the assistance of sheriffs Timbayan and Masilungan and some members of the Malabon