G.R. NO. 164548 - PHILIPPINE NATIONAL BANK, VS. RJ VENTURES REALTY & DEVELOPMENT CORPORATION AND RAJAH BROADCASTING NETWORK, INC.. D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, the Court of Appeals set the hearing on the application for the issuance of a preliminary injunction on 11 January 2000. On 10 January 2000, the PNB filed a Comment with the Court of Appeals, disputing the imputation of grave abuse of discretion on the part of the RTC when it lifted the preliminary injunction. The PNB opposed respondents' claim that there exists in their favor a right to be protected. According to PNB, the foreclosure of the collaterals shall be effective upon the default of RBN, which default had been established as RBN was unable to properly service the loan agreements without justifiable cause and despite due demand. Anent the issue on the existence of irreparable injury, PNB challenged respondents' contention by arguing that there is, in fact, a pecuniary standard by which RBN's damage can be measured per the testimony of RBN's witness that it will suffer a loss of P1.2 Billion for the next ten (10) years. PNB further posited that there were no judicial admissions on their part to the effect that RJVRD and RBN are not delinquent. In furtherance of its opposition, PNB averred that it acted in two separate capacities as seller and lender. As a seller, PNB owned the Buendia Property and offered it for sale to interested parties. PNB accepted the bid of RJVRD and the property was sold to the latter. As a lender, PNB supplied the credit facility to RJVRD as the latter needed to borrow money to finance the payment of the remaining balance. PNB insisted that these two transactions cannot be treated as one and the same; hence, there is nothing that prevents it from acting as a seller and lender at the same time. In fine, PNB maintained that RJVRD did not default on the payment of the purchase price for such was completely paid; rather, it defaulted on the payment of the loan, on its principal, and interest. On 4 February 2000, the Court of Appeals issued a Resolution, [59] granting the Writ of Preliminary Injunction, enjoining PNB and its agents from foreclosing the collaterals pledged and mortgaged by RJVRD and RBN and from taking over possession and control of RBN radio facilities in Baguio City. The appellate court, held, viz : The principal action in the petition at bar dwells on the controversy on whether or not the respondent court committed grave abuse of discretion in issuing the order lifting and setting aside the injunctive relief earlier issued in Civil Case No. 4592 (sic). If no preliminary injunction is issued in this case, pending resolution of such main petition, respondent will proceed to foreclose the pledged or mortgaged collaterals. In that eventuality, petitioners stand to sustain injury and irreparable damage, the loss of its properties, income[,] and clientele listeners in the subject radio broadcasting station in Baguio City, even before the instant certiorari proceeding could be resolved. To allow the impending foreclosure to proceed, at this point in time, will surely be violative of petitioners'