G.R. No. 138291 - HECTOR C. VILLANUEVA, VS. UNITED COCONUT PLANTERS BANK (UCPB), DUMAGUETE BRANCH.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, IN VIEW OF THE FOREGOING , this appeal is hereby GRANTED. The Decision of the lower [c] ourt dated November 6, 1995 is REVERSED and SET ASIDE , and the complaint for damages in the court below is ordered DISMISSED . No pronouncement as to costs." The assailed Resolution denied the petitioners Motion for Reconsideration. [5] The Facts The Court of Appeals, in its assailed Decision, related the antecedents of this case in this wise: [6] "Sometime in December 1978, Hermenegildo Villanueva, father of [herein Petitioner] Hector C. Villanueva, applied for and was granted a loan by [Respondent] United Coconut Planters Bank (UCPB), Dumaguete City Branch, which at that time was managed by one Bobby Cafe. The loan was for the alleged purpose of agricultural coconut production and for processing under the Coconut Production Loan Program. As security therefor, Hermenegildo Villanueva mortgaged to the bank a parcel of land registered in his name located at Mauban, Quezon. "In the course of a bank audit, certain fraud, anomalies and irregularities were discovered in the application, processing and granting of said loan prompting UCPB to conduct further investigation on the matter. "After due inquiry, the [respondent] bank found and concluded that [petitioner], together with his father, Hermenegildo Villanueva, Bobby Cafe (UCPB Dumaguete City Branch Manager) and a certain Reynaldo Ramos, confederated and conspired with each other in perpetrating the fraud, anomalies and irregularities to the detriment of the bank. "On June 8, 1979, UCPB, through its counsel, filed the following criminal complaints with the Office of the City Fiscal (now Prosecutor) of Dumaguete City, to wit: Against Bobby B. Cafe, Hermenegildo G. Villanueva, Hector Villanueva and Reynaldo Ramos, for violation of Section 77 of the General Banking Act, Republic Act (RA) No. 337, as amended by Presidential Decree (PD) No. 71, in relation to Central Bank Circular No. 517, Series of 1976, and Section 87 of the General Banking Act (Exh. "1", pp. 8-9, Defendants Folder of Exhibit); Against Hermenegildo Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Section 87-A-2(d) of the General Banking Act, RA No. 337, as amended by PD No. 71 (Exh. "2", pp. 33-34, ibid. ); Against Bobby B. Cafe for violation of Section 87-A-1 (c) of the General Banking Act, RA No. 337, as amended by PD No. 71 (Exh "3", pp. 46-47, ibid. ); Against Bobby B. Cafe, Hermenegildo G. Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Section 87-A-2(b) of the General Banking Act, RA No. 337, as amended by PD No. 71 (Exh. "4", pp. 59-60, ibid. ); Against Bobby B. Cafe, Hermenegildo G. Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Articles 315(2)(a) and 316(2) of the Revised Penal Code (Exh. "5", pp. 72-73, ibid. ); and Against Bobby B. Cafe, Hermenegildo G. Villanueva, Hector Villanueva and Reynaldo Ramos for violation of Section 87-A-1(d) and Section 87-A-2(a) of the Gener