G.R. No. 125838 - DEVELOPMENT BANK OF THE PHILIPPINES, VS. COURT OF APPEALS AND EMERALD RESORT HOTEL CORPORATION.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, the trial court enjoined DBP from enforcing the legal effects of the foreclosure of both the chattel and real estate mortgages. Thereafter, trial on the merits ensued. After the parties presented their evidence, the trial court rendered a Decision [8] dated 28 January 1992, the dispositive portion of which reads: WHEREFORE, premises considered, judgment is hereby rendered in favor of the plaintiff corporation and against the defendants: 1. Declaring as null and void the foreclosure and auction sale of the personal properties of plaintiff corporation held on July 10, 1986; 2. Declaring as null and void the foreclosure and auction sale of the real properties of plaintiff corporation covered by TCT No. RT-1075 (19980); TCT No. RT-1076 (19981); TCT No. RT-1077 (22367) and TCT No. 10244 of the Register of Deeds of Camarines Sur (now Iriga City) in the auction sale thereof held on September 11, 1986, and all the improvements therein; 3. Ordering the Register of Deeds of Camarines Sur (now Iriga City) to cancel the annotations of the Sheriff's Certificate of Sale on the aforestated titles as null and void and without any legal effect; 4. Ordering the defendant Development Bank of the Philippines to comply with the restructuring of plaintiff corporation's loans retroactively as though the foreclosure had not taken place in the interest of justice and equity; and 5. Ordering the defendant DBP to pay plaintiff corporation moral damages in the amount of P500,000.00 for initiating what was a clearly illegal foreclosure and causing the said plaintiff corporation to suffer needlessly anguish, opprobrium and disrepute as a consequence thereto. SO ORDERED.