G.R. No. 109373 and G.R. No. 112991 March 27, 1998.
PACIFIC BANKING CORPORATION EMPLOYEES ORGANIZATION, PAULA S. PAUG, and its officers and members, petitioners, vs. THE HONORABLE COURT OF APPEALS and VITALIANO N. NAÑAGAS II, as Liquidator of Pacific Banking Corporation, respondents. ( G.R. No. 109373 )

THE PRESIDENT OF THE PHILIPPINE DEPOSIT INSURANCE CORPORATION, as Liquidator of the Pacific Banking Corporation, petitioner, vs. COURT OF APPEALS, HON. JUDGE REGINO T. VERIDIANO, II, DEPUTY SHERIFF RAMON ENRIQUEZ and ANG ENG JOO, ANG KEONG LAN and E.J. ANG INT’L. LTD., represented by their Attorney-in-fact, GONZALO C. SY, respondents. (G.R. No. 112991)

FACTS

These consolidated cases arose from the liquidation proceedings of the Pacific Banking Corporation (PaBC). On March 20, 1995, the Supreme Court rendered a decision holding that a petition for liquidation under the Central Bank Act is a special proceeding, thus requiring a record on appeal to perfect an appeal. The Court held that the appeal in G.R. No. 109373 was duly perfected, but the appeal in G.R. No. 112991 was not perfected due to the petitioner’s (PDIC Liquidator) failure to file a record on appeal. The PDIC Liquidator moved for reconsideration, which was denied by the Court in its October 9, 1995 resolution, citing several grounds: certifications from the RTC and CA clerks that no record on appeal was filed; the branch clerk’s denial of his signature on the alleged copy; denials from private respondents’ counsel and clerk regarding service; the unestablished identity of the alleged recipient; and the lack of an RTC receipt stamp on the alleged copy. In a separate October 13, 1995 resolution, the Court found Judge Veridiano, a sheriff, and a counsel guilty of indirect contempt but absolved branch clerk Antonio Valencia, Jr. of wrongdoing. The PDIC Liquidator then filed an Omnibus Motion seeking to reopen the case and/or reconsider the October 9, 1995 resolution, insisting a record on appeal was filed and presenting a photocopy with a handwritten receipt notation and initials. The matter was referred to the Office of the Court Administrator (OCA) for investigation. The OCA’s initial report, based on hearing the branch clerk’s evidence, recommended believing the clerk’s claim that no record on appeal was filed. The Supreme Court then directed the OCA to also hear the PDIC Liquidator’s evidence. The subsequent OCA report, after hearing both sides, found the evidence of the PDIC Liquidator insufficient to prove filing and concluded that the alleged record on appeal was not filed with the trial court. Concurrently, the Land Bank of the Philippines (LBP) filed manifestations regarding garnishment of PaBC’s funds deposited with it, seeking clarification from the Court.

ISSUE

The primary issue for resolution in the Omnibus Motion was whether the PDIC Liquidator in G.R. No. 112991 had perfected its appeal by filing a record on appeal, thereby warranting a reconsideration of the Court’s October 9, 1995 resolution which declared the appeal not perfected.

RULING

The Supreme Court DENIED the petitioner’s Omnibus Motion for lack of merit. The Court upheld the findings and recommendation of the OCA that the PDIC Liquidator failed to prove the filing of the record on appeal. The OCA found the testimony of the PDIC’s witness, Atty. Pablo Romero, insufficient and unreliable, as it was based on a “mistaken belief” and lacked corroboration. The OCA gave credence to the consistent denials and explanations of branch clerk Atty. Antonio Valencia, who maintained that no record on appeal was filed and that if it had been, it would have been acted upon by the judge and included in the court calendar. The Court found no compelling reason to disturb its earlier resolutions, as the issues raised had already been fully considered. The Court also noted that the manifestations and motions filed by the Land Bank of the Philippines, concerning garnishment of funds, related to execution matters over which the Court no longer had jurisdiction, as its decision was final. These manifestations were merely noted.