G.R. No. L-3226; August 30, 1949

DOMINADOR S. PONGOS, petitioner, vs. HIDALGO ENTERPRISES, INC., BIENVENIDO A. TAN, Judge of the Court of First Instance of Rizal (Rizal City Branch) and THE SHERIFF OF RIZAL, respondents.

FACTS

Petitioner Dominador S. Pongos filed an action (Civil Case No. 472) against respondent Hidalgo Enterprises, Inc. to rescind a contract where he turned over the management and possession of the Pasay Ice Plant and Cold Storage and conveyed its machineries and equipment to the respondent by way of chattel mortgage as security for advances. During the suit, the court initially issued a writ of mandatory injunction ordering Pongos to surrender possession to Hidalgo Enterprises, but later appointed a receiver who took possession. After the receiver died, Hidalgo Enterprises amended its answer to include a counterclaim for money due and foreclosure of the chattel mortgage, and asked the court to order Pongos to deliver the properties to it. Respondent Judge Bienvenido A. Tan granted the order for delivery. Pongos filed this certiorari action to set aside the order.

ISSUE

Whether the respondent judge acted in excess of jurisdiction in ordering the delivery of the mortgaged personal properties to Hidalgo Enterprises.

RULING

No, the respondent judge did not exceed his jurisdiction. First, the properties were not in custodia legis in a manner that would bar the order. The appointment of a receiver is merely an exercise of the court’s control for preservation and does not determine the rights of the parties or displace vested liens. Second, a defendant who sets up a counterclaim is, with respect to that counterclaim, in the position of a plaintiff. Under the Rules of Court, a plaintiff may secure an order for the delivery of personal property. Since Hidalgo Enterprises’ counterclaim is in the nature of a cross-complaint seeking foreclosure and recovery, it may properly obtain such an order. The petition for certiorari was dismissed.

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