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NDC v Agrix G.R. Nos. 84132-33 December 10, 1990

J. Cruz

res. Decree No. 1!1!, "#ic# or$ere$ %#e re#&bi'i%&%io( o) %#e Agrix Grou* o)

Com*&(ies %o be &$mi(is%ere$ m&i('+ b+ %#e N&%io(&' Deve'o*me(% Com*&(+,

ou%'i(e$ %#e *roce$ure )or 'i(g c'&ims &g&i(s% %#e Agrix com*&(ies &($ cre&%e$ &

C'&ims Commi%%ee %o *rocess %#ese c'&ims.

s*eci&''+ re'ev&(% %o %#is c&se is ec. 4/1 %#ereo) *rovi$i(g %#&% &'' mor%g&ges

&($ o%#er 'ie(s *rese(%'+ &%%&c#i(g %o &(+ o) %#e &sse%s o) %#e $isso've$

cor*or&%io(s &re #ereb+ ex%i(guis#e$.

e)ore %#is, %#e Agrix &re%i(g #&$ execu%e$ i( )&vor o) *e%i%io(er #i'i**i(e

5e%er&(s &( & re&' es%&%e mor%g&ge $&%e$ Ju'+ !, 19!8, over %#ree /3 *&rce's o)

'&($ si%u&%e$ i( 6os &7os, 6&gu(&. Duri(g %#e exis%e(ce o) %#e mor%g&ge, AGR

"e(% b&(ru*%. % "&s )or %#e ex*resse$ *ur*ose o) s&'v&gi(g %#is &($ %#e o%#er

Agrix com*&(ies %#&% %#e &)oreme(%io(e$ $ecree "&s issue$ b+ resi$e(% &rcos.

e%i%io(er 'e$ & c'&im "i%# %#e AGR C'&ims Commi%%ee )or %#e *&+me(% o) i%s 'o&(

cre$i%. ( %#e me&(%ime, %#e Ne" Agrix, (c. &($ %#e N&%io(&' Deve'o*me(%

Com*&(+, i(voi(g ec. 4 /1 o) %#e $ecree, 'e$ & *e%i%io( "i%# %#e Regio(&' :ri&'

Cour% o) C&'&mb&, 6&gu(&, )or %#e c&(ce''&%io( o) %#e mor%g&ge 'ie( i( )&vor o)

#i'i**i(e 5e%er&(s.

;or i%s *&r%, %#e #i'i**i(e 5e%er&(s %oo s%e*s %o ex%r&

/2 %#e '&" im*&ire$ %#e ob'ig&%io( o) co(%r&c%s> &($ /3 %#e $ecree vio'&%e$ %#e

e?u&' *ro%ec%io( c'&use.

:#e mo%io( )or reco(si$er&%io( o) %#is $ecisio( #&vi(g bee( $e(ie$, %#e *rese(%

*e%i%io( "&s 'e$ i( %#e u*reme Cour%.

:#e *e%i%io(ers co(%e($ %#&% %#e *riv&%e res*o($e(% is (o" es%o**e$ )rom

co(%es%i(g %#e v&'i$i%+ o) %#e $ecree. :#e+ ci%e$ e($oz& v. Agrix &re%i(g, (c.,1"#ere %#e co(s%i%u%io(&'i%+ o) res. Decree No. 1!1! "&s &'so r&ise$ bu% (o%

reso've$.

oreover %#e c'&ims commi%%ee $ismisse$ %#e 'i(g o) %#e *e%i%io( b+ #i'i**i(e

5e%er&(s o( %#e grou($ o) %#e &)oreme(%io(e$ es%o**e'.

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:#e *e%i%io(ers s%ress %#&% i( %#&% %#e *riv&%e res*o($e(% &'so i(voe$ %#e *rovisio(s

o) res. Decree No. 1!1! b+ 'i(g & c'&im "i%# %#e AGR C'&ims Commi%%ee. ;&i'i(g

%o ge% resu'%s, i% soug#% %o )orec'ose %#e re&' es%&%e mor%g&ge execu%e$ b+ AGR i(

i%s )&vor, "#ic# #&$ bee( ex%i(guis#e$ b+ %#e $ecree. % "&s o('+ "#e( %#e

*e%i%io(ers c#&''e(ge$ %#e )orec'osure o( %#e b&sis o) ec. 4 /1 o) %#e $ecree, %#&%

%#e *riv&%e res*o($e(% &%%&ce$ %#e v&'i$i%+ o) %#e *rovisio(. A% %#&% s%&ge,#o"ever, co(sis%e(% "i%# e($oz&, %#e *e%i%io(ers &''ege$ %#&% *riv&%e res*o($e(%

"&s &'re&$+ es%o**e$ )rom ?ues%io(i(g %#e co(s%i%u%io(&'i%+ o) %#e $ecree.

ssues=

1. s es%o**e' &**'ic&b'e@

2. s D 1!1! co(s%i%u%io(&'@

e'$= No. Bes. *e%i%io( $ismisse$

R&%io=

1. :o ru'e (o" %#&% %#e *riv&%e res*o($e(% is es%o**e$ )or #&vi(g &bi$e$ "i%# %#e

$ecree i(s%e&$ o) bo'$'+ &ss&i'i(g i% is %o c'ose our e+es %o & c+(ic&' )&c% o) 'i)e

$uri(g %#e &rcos %ime.

:#is c&se mus% be $is%i(guis#e$ )rom e($oz&, "#ere %#e *e%i%io(ers, &)%er 'i(g

%#eir c'&ims "i%# %#e AGR C'&ims Commi%%ee, receive$ i( se%%'eme(% s#&res o)

s%oc v&'ue$ &% 40,000.00 "i%#ou% *ro%es% or reserv&%io(.

:#e *riv&%e res*o($e(% #&s (o% bee( *&i$ & si(g'e ce(%&vo o( i%s c'&im, "#ic# "&s

e*% *e($i(g )or more %#&( seve( +e&rs )or &''ege$ '&c o) su**or%i(g *&*ers.

ig(ic&(%'+, %#e v&'i$i%+ o) %#&% c'&im "&s (o% ?ues%io(e$ b+ %#e *e%i%io(er "#e( i%

soug#% %o res%r&i( %#e ex%r&

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e%i%io(ers &rgue %#&% *ro*er%+ rig#%s, 'ie &'' rig#%s, &re sub

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C. 4. :#e &%&s&(g &mb&(s& s#&'' (o%, exce*% b+ ge(er&' '&", *rovi$e )or %#e

)orm&%io(, org&(iz&%io(, or regu'&%io( o) *riv&%e cor*or&%io(s, u('ess suc#

cor*or&%io(s &re o"(e$ or co(%ro''e$ b+ %#e Gover(me(% or &(+ sub$ivisio( or

i(s%rume(%&'i%+ %#ereo).

:#e (e" cor*or&%io( is (ei%#er o"(e$ (or co(%ro''e$ b+ %#e gover(me(%.

The Court also feels that the decree impairs the obligation of the contract

between AGRIX and the private respondent without justication. #i'e i% is

%rue %#&% %#e *o'ice *o"er is su*erior %o %#e im*&irme(% c'&use, %#e *ri(ci*'e "i''

&**'+ o('+ "#ere %#e co(%r&c% is so re'&%e$ %o %#e *ub'ic "e')&re %#&% i% "i'' be

co(si$ere$ co(ge(i%&''+ susce*%ib'e %o c#&(ge b+ %#e 'egis'&%ure i( %#e i(%eres% o)

%#e gre&%er (umber.

% c&( be see( %#&% %#e co(%r&c%s o) 'o&( &($ mor%g&ge execu%e$ b+ AGR &re

*ure'+ *riv&%e %r&(s&c%io(s &($ #&ve (o% bee( s#o"( %o be &Eec%e$ "i%# *ub'ic

i(%eres%.