GR 46478; (July, 1939) (Digest)
G.R. No. 46487; July 31, 1939
CARMEN VILLAMAR, in her capacity as administratrix of the intestate of Ty Seng, petitioner, vs. CONRADO BARRIOS, Judge of First Instance of Iloilo, and ROQUE E. ESCAĂ‘AN, assignee, respondents.
FACTS
The insolvent partnership “El 55 Boon Bieng Co.” executed a chattel mortgage in favor of Ty Seng. After the partnership was declared insolvent, Ty Seng’s administratrix, Carmen Villamar, filed a motion in the insolvency proceedings for the delivery of the mortgaged properties to her, invoking Section 59 of the Insolvency Act. The assignee opposed, alleging the chattel mortgage was null and void. The insolvency court (respondent Judge Barrios) denied the motion, declared the mortgage void, and authorized the sale of the properties. Villamar filed a mixed petition for mandamus and certiorari, arguing the insolvency court had no power to declare the mortgage void and that the assignee must deliver the properties or their proceeds.
ISSUE
1. Whether the insolvency court has jurisdiction to rule on the validity of a chattel mortgage in an incidental motion for delivery of mortgaged properties.
2. Whether certiorari or mandamus is the proper remedy against the insolvency court’s order denying the motion.
RULING
1. Yes. The insolvency court has authority and jurisdiction to pass upon an incidental motion filed by an alleged mortgagee for the delivery of mortgaged goods and to determine the validity of the mortgage. This is in accordance with the doctrine in Chase de Krafft vs. Velez, which allows such determinations within insolvency proceedings without requiring a separate independent action.
2. No. The proper remedy against the insolvency court’s order denying the motion for delivery—which is tantamount to a claim for goods not belonging to the insolvent—is an appeal under Section 82, case 3 of the Insolvency Act, as held in Paguia vs. Del Rosario. Since an appeal was available, the special civil actions for certiorari and mandamus are not appropriate. The petition was therefore denied and dismissed.
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