G.R. No. 200642 - BANCO FILIPINO SAVINGS AND MORTGAGE BANK, VS. BANGKO SENTRAL NG PILIPINAS AND THE MONETARY BOARD.

Ruling

Accordingly, we adopt a portion of the factual antecedents in the said case: On December 11, 1991, this Court promulgated Banco Filipino Savings & Mortgage Bank v. Monetary Board and Central Bank of the Philippines , which declared void the Monetary Board's order for closure and receivership of Banco Filipino Savings & Mortgage Bank (Banco Filipino). This Court also directed the Central Bank of the Philippines and the Monetary Board to reorganize Banco Filipino and to allow it to resume business under the comptrollership of both the Central Bank and the Monetary Board. Banco Filipino subsequently filed several Complaints before the Regional Trial Court, among them a claim for damages in the total amount of P18,800,000,000.00. On June 14, 1993, Congress passed Republic Act No. 7653, providing for the establishment and organization of Bangko Sentral as the new monetary authority. On November 6, 1993, pursuant to this Court's 1991 Banco Filipino Decision, the Monetary Board issued Resolution No. 427, which allowed Banco Filipino to resume its business. In 2002, Banco Filipino suffered from heavy withdrawals, prompting it to seek the help of Bangko Sentral. In a letter dated October 9, 2003, Banco Filipino asked for financial assistance of more than P3,000,000,000.00 through emergency loans and credit easement terms. In a letter dated November 21, 2003, Bangko Sentral informed Banco Filipino that it should first comply with certain conditions imposed by Republic Act No. 7653 before financial assistance could be extended. Banco Filipino was also required to submit a rehabilitation plan approved by Bangko Sentral before emergency loans could be granted. In a letter dated April 14, 2004, Banco Filipino submitted its Long-Term Business Plan to Bangko Sentral. It also claimed that Bangko Sentral already extended similar arrangements to other banks and that it was still awaiting the payment of P18,800,000,000.00 in damage claims, "the entitlement to which the Supreme Court has already decided with finality." In response, Bangko Sentral informed Banco Filipino that its business plan could not be acted upon since it was neither "confirmed nor approved by [Banco Filipino's Board of Directors]." On July 8, 2004, Banco Filipino filed a Petition for Revival of Judgment with the Regional Trial Court of Makati to compel Bangko Sentral to approve its business plan. The case was docketed as Civil Case No. 04-823 and was raffled to Branch 62. During the pendency of its Petition, Banco Filipino entered into discussions and negotiations with Bangko Sentral, which resulted [in] seven (7) revisions in the business plan. Thus, Banco Filipino filed a Proposal for Settlement dated September 21, 2007 before Branch 62, Regional Trial Court, Makati City to settle the issues between the parties. On April 8, 2009, Banco Filipino submitted its 8th Revised Business Plan to Bangko Sentral for evaluation. In this business plan, Banco Filipino requested, among others, a P25,000,000,0