Republic of the Philippines
REGIONAL TRIAL COURT
Fourth Judicial Region
BRANCH 70
Binangonan, Rizal

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ORDER

Before this court is a Petition for Assistance in the Liquidation of Growers Rural Bank, Inc., filed by the petitioner Philippine Deposit Insurance Corporation (“PDIC”) on the basis of Monetary Board Resolution No. 219 dated February 9, 2012 designating PDIC as the liquidator of Growers Rural Bank (“Growers RB”) and directing it to proceed with the liquidation of the bank, pursuant to the provisions of Section 30 of Republic Act No. 7653 (The New Central Bank Act).

In the Order dated March 14, 2012, this court, after finding the petition sufficient in form and in substance, set the petition for initial hearing on October 22, 2012. It required, among others, that copies of the said Order “be published at the expense of the petitioner once a week for two (2) consecutive weeks in a newspaper of general circulation at least ninety (90) days before the date of hearing on October 22, 2012.” ¹

At the initial hearing on October 22, 2012, to show compliance with jurisdictional requirements, petitioner’s counsel, among others, marked the Affidavit of Publication executed by Marme M. Lucaylucay, as “Publisher of Rizal Konneksyon, a newspaper of a (sic) general circulation in the Province of Rizal” attesting that the Order of the Court dated May 14, 2012 in this case was published in the newspaper on June 25 and July 2, 2012 (Exhibit “C”). ² Petitioner likewise marked on June 25 to July 2, 2012 and July 2 to 8, 2012 issues of the same newspaper (Exhibits “D” and “E”)³ and the respective pages of the said issues where copies of the Order of the court were printed (Exhibits “D – 1” and “E-1”). ⁴ Upon motion of the petitioner’s counsel, this court, in its Order dated October 22, 2012, gave due course to the petition, and set the pre-marking of documentary exhibits on December 10, 2012 and presentation of evidence on January 14, 2013. Pre-marking was eventually conducted on December 17, 2012.

On January 14, 2013, petitioner presented the testimony of their lone witness, Mr. Apolonio Matabang, given through his Judicial Affidavit, pursuant to the new Judicial Affidavit Rule. Later in the day, petitioner submitted its Formal Offer of Evidence. Pending submission of the OIC’s written Report on the pre-marking held on December 17, 2012, the court deferred issuance of the Order on the Formal Offer of Evidence and the resolution as to whether or not to grant the petition.

Upon a re-examination of the records, however, this court found that not all of the jurisdictional requirements have been sufficiently complied with. Rizal Konneksyon is a newspaper of general circulation only in the Province of Rizal as admitted by the publisher in her Affidavit of Publication (Exhibit “C”) and also on the second pages of both issues of the newspaper marked Exhibits “D” and “E” which states that “RIZAL KONNEKSYON is published weekly as a regional newspaper of general circulation in the City and province of Rizal.” ⁵ The deficiency is not within the discretion of the court to disregard or set aside as it is jurisdictional and may affect its acquisition of jurisdiction over certain persons or properties affected by the instant petition, in the course of liquidation of the subject bank.

WHEREFORE, premises considered, the Order dated October 22, 2012 resolving to consider petitioner to have complied with the jurisdictional requirements and giving due course to the petition is hereby WITHDRAWN. Petitioner is REQUIRED to cause the publication of this Order once in a newspaper of general circulation in the Philippines, at least ninety (90) days before the hearing set to determine petitioner’s compliance with this jurisdictional requirement on August 12, 2013 at 8:30 a.m at the Session Hall of this Court.

All creditors or entities who/which may have a claim against the assets of the bank are directed to file their respective claims with the petitioner, Philippine Deposit Insurance Corporation, within ninety (90) days from the date of publication of this Order.

Let a copy of this Order be furnished the Bangko Sentral ng Pilipinas.

SO ORDERED.
April 25, 2013. Binangonan, Rizal.

Ss_SCC_Banks
Kinblu_Comm_Banks

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¹ Records, p.92
² Id., p.96
³ Records p. 102-A and 102-B
⁴ Id., pp. 102-A-6 and 102-B-6
Sp. Proc. No. 12-011 Philippine Deposit Insurance Corporation-Petitioner
Order-Page 2
⁵ Note: See pages 2 of Exhibits “D” and “E”