THE Court of Appeals (CA) has nullified orders of the Regional Trial Court (RTC) of Pasig City in connection with a reformation and specific-performance case filed by Globe Asiatique Realty Holdings Corp. against Philippine National Bank (PNB).
In a 36-page decision penned by Associate Justice Pedro Corales and concurred in by Associate Justices Sesinando Villon and Rodil Zalameda, the CA’s 13th Division granted a petition for certiorari lodged by PNB, declaring null and void the October 31, 2012 and November 21, 2012 orders of Judge Rolando Mislang of RTC Branch 167, Pasig City (Metro Manila).
The first order granted Globe Asiatique’s prayer for issuance of a temporary restraining order (TRO), while the second directed issuance of writ of preliminary injunction (WPI).
On September 10, 2008, PNB agreed to sell, transfer and convey to Globe Asiatique 509 parcels of land in Santa Rosa Homes, Barangay Dila, Santa Rosa, Laguna, for a total consideration of P100 million and subject to certain terms–Globe Asiatique shall make an initial payment of P10 million in cash and the remaining P90 million shall be paid in quarterly instalments for four years with 10 percent interest per annum.
The parties also agreed that any amendment to the deed of conditional sale shall not be valid and binding except when put into writing signed by PNB and Globe Asiatique.
In October 2009 and January 2010, PNB executed deeds of absolute sale and released to Globe Asiatique titles of the 199 out of the total 509 parcels of land that were subject of the deed of conditional sale.
Thereafter, Globe Asiatique allegedly failed to pay the subsequent quarterly amortizations despite demand letters.
In September 2012, PNB sent a notarial notice of cancelation of the deed of conditional sale and declared that Globe Asiatique failed to pay its outstanding obligation in the amount of more than P51 million, exclusive of interests and penalties.
It forfeited the payments already made by Globe Asiatique and considered the same as rentals for occupancy of the parcels of land and liquidated damages.
Globe Asiatique then filed the reformation and specific performance case against PNB.
The RTC granted Globe Asiatique’s prayer for a TRO and directed the issuance of a WPI, prompting PNB to bring its case to the appellate court.
In its February 18, 2015 decision that was released to the media only recently, the CA held that the RTC gravely abused its discretion when it issued the two orders.
In nullifying these orders, the court said, “In the absence of a clear legal right, the issuance by the RTC of the injunctive relief constitutes grave abuse of discretion.”
“Furthermore, Globe Asiatique’s fear of impending suits from its disgruntled buyers should PNB initiate eviction proceedings in the future, as well as the loss of P372,445,113.42 receivables obtained in various contracts to sell with its buyers, are speculative and conjectural,” the CA held. “There is no proof to support these supposedly irreparable injuries.”