GR 38139; (October, 1932) (Digest)
G.R. No. 38139 ; October 27, 1932
WESTMINSTER BANK, LIMITED, petitioner, vs. LUIS P. TORRES, Judge of First Instance of Manila, and K. NASSOOR, INC., respondents.
FACTS
Petitioner Westminster Bank, Ltd., a foreign corporation, filed an action in the Court of First Instance of Manila against respondent K. Nassoor, Inc., a domestic corporation, to recover on five bills of exchange drawn by N. Jureidini, Ltd. of Manchester, England, and accepted by K. Nassoor, Inc. The bank, as the named payee and holder, presented the bills at maturity, but payment was refused. After the case was set for trial, K. Nassoor, Inc. filed a motion claiming it had a set-off and counterclaim for damages against the drawer, N. Jureidini, Ltd., and alleging that the bank was merely a holder for collection and not the real owner. It moved to have N. Jureidini, Ltd. joined as a party. The trial judge granted the motion and ordered the bank to include N. Jureidini, Ltd. as a party plaintiff or defendant. The bank filed this original action for certiorari and mandamus, arguing the order was illegal and impossible to comply with.
ISSUE
Whether the trial judge committed a grave abuse of discretion in ordering the joinder of N. Jureidini, Ltd. as an indispensable party to the suit on the negotiable instruments.
RULING
Yes. The Supreme Court granted the writ of certiorari. Under the Negotiable Instruments Law, the petitioner, as the named payee and holder of the bills of exchange, had the clear right to sue in its own name. The acceptor, K. Nassoor, Inc., became directly obligated to the holder upon its unconditional acceptance. The alleged claims or disputes between the acceptor and the drawer (N. Jureidini, Ltd.) are separate from the bank’s right to enforce the instruments. Joining the foreign drawer was legally impossible for the bank and would improperly encumber and delay the proceedings. The order to join constituted an abuse of judicial discretion. The orders of the respondent judge were vacated and declared null and void, and the judge was commanded to proceed to trial on the merits.
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