G.R. No. 168258 - RICARDO V. QUINTOS, VS. DEVELOPMENT BANK OF THE PHILIPPINES AND PHILIPPINE NATIONAL BANK.

Ruling

accordingly adding DBP as party and the amount of loan extended by DBP as consideration. The proceeds of both NIDC and DBP loans were released. Thereafter, Armando T. Romualdez (Romualdez) took over management of GCFI as President, but Quintos continued to serve as Director of the corporation. By the end of the 1970s, GCFI was suffering from financial problems due to poor sales, low production, and weak liquidity problems. Of its loan obligations to NIDC and DBP, GCFI was only able to pay P2,200,000.00. On August 1, 1980, NIDC and DBP took over management of GCFI. The EDSA People Power Revolution took place in February 1986, which resulted in the ouster of former President Ferdinand E. Marcos and the assumption to power of former President Corazon C. Aquino. As of June 30, 1986, the loan obligations of GCFI to NIDC and DBP totaled P364,938,010.00. Upon Quintos's initiative, Terms of Reference (TOR) [4] were drawn up allowing him to assume the positions of Director and President of GCFI for 90 days, subject to several conditions. Quintos signed his conforme to the TOR. With the planned dissolution of NIDC on November 30, 1986, a Deed of Transfer [5] was executed on November 28, 1986 by which NIDC assigned, transferred, and conveyed all its rights, title, and interests in and to all of its assets to PNB. The account of GCFI was listed as an investment of NIDC. Proclamation No. 50 dated December 8, 1986 and its amendment by Proclamation No. 50-A dated December 15, 1986 then created the Asset Privatization Trust (APT) to take over title to and possession of, conserve, provisionally manage, and dispose of the non-performing assets of the National Government. Administrative Order No. 14 dated February 3, 1987 approved the identification of and transfer to the National Government of certain assets and liabilities of PNB and DBP. Through separate Deeds of Transfer [6] executed on February 27, 1987, PNB and DBP assigned, transferred, and conveyed in favor of the National Government all their rights, titles, and interests in and to certain assets, in consideration of the assumption by the National Government of certain liabilities of the said banks. The loans of GCFI were among the non-performing assets of PNB and DBP transferred to the National Government. A Trust Agreement was executed on February 28, 1987 whereby the National Government constituted APT as its trustee over the Trust Properties, which included the loans to GCFI. On July 27, 1987, the Presidential Commission on Good Government (PCGG) issued a Writ of Sequestration [7] in I.S. No. 01, with the following directive: [A]ll assets, properties, records and documents, including all the shareholdings, rights and interests therein, of the following stockholders in GOLDEN COUNTRY FARMS, INC. are hereby sequestered: RICARDO V. QUINTOS ARMANDO T. ROMUALDEZ VILMA A. ROMUALDEZ ALFREDO T. ROMUALDEZ NELIA T. GONZALEZ it appearing from the evidence at hand that all the foregoing assets, properties and stoc