GR L 43822; (April, 1939) (Digest)
G.R. No. L-43822; April 10, 1939
In the Matter of the Involuntary Insolvency of Ruiz and Rementeria, S. en C., Aniceto Ruiz and Bruno Rementeria. PHILIPPINE TRUST COMPANY, claimant-appellant, vs. THE HONGKONG & SHANGHAI BANKING CORPORATION, claimant-appellee; J. W. CAIRNS, assignee-appellee.
FACTS
On January 23, 1933, Philippine Trust Company and other creditors petitioned for the declaration of insolvency of the partnership Ruiz & Rementeria, S. en C. and its partners. On January 27, the court appointed J.W. Cairns as receiver and issued an order in Spanish, part of which directed the receiver to account for his management by May 2, 1933, and allowed him to retain funds collected by him “hasta esta fecha” (until this date) belonging to the partnership. The insolvency was declared on March 6, 1933. Cairns later became the assignee. His final report as receiver was approved by the court on June 10, 1933. Over a year later, on June 28, 1934, Philippine Trust Company moved for reconsideration, arguing that the receiver’s report failed to account for collections made from January 1 to 26, 1933, contending that the phrase “hasta esta fecha” in the January 27 order referred to the date of the order itself. The trial court denied the motion.
ISSUE
Whether the receiver was obligated to account for collections made prior to his appointment on January 27, 1933, based on the interpretation of the phrase “hasta esta fecha” in the court’s order.
RULING
No. The Supreme Court affirmed the trial court’s order. The phrase “hasta esta fecha” in the context of the order referred to the future accounting date of May 2, 1933, not the date of the order’s issuance. Furthermore, the receiver, appointed on January 27, 1933, had no responsibility for collections made prior to his appointment. The Court also noted that the appellant had been served with the report, raised no prior objection, and had even accepted its distributive share from the reported funds. Its objection, filed over a year after the report’s approval, was deemed untimely and constituted a waiver of the right to challenge the accounting.
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