Philippine Business Bank Inc. (PBB) may now collect on debt of P75 million owed by CST Enterprises Inc. and exercise an option to foreclose a mortgaged property should payment not be made.
In a disclosure to the Philippine Stock Exchange (PSE), the lender said the case filed by Tomas G. Tan, et al. against PBB, under Civil Case 02-299, was dismissed based on court order dated December 5, 2014.
The Regional Trial Court in Makati City dismissed the complaint for declaration of unenforceability of promissory notes, and mortgage and injunction.
The RTC in Makati City ordered the dismissal of the case filed against PBB by CST Enterprises Inc. minority stakeholder Tomas Tan.
At the urging of PBB, a partial summary judgment was rendered by the court on July 27, 2005 making CST President Felipe Chua personally liable for the loan and ordering Chua to pay the sum of P75 million, representing the cross claim of PBB.
Execution was subsequently issued, one that Chua assailed through a petition for certiorari under Rule 65 of the Rules of Court.
The Court of Appeals (CA) granted the petition in a decision dated December 16, 2005, but the partial summary judgment was affirmed.
The Supreme Court sustained the CA in its decision dated November 15, 2010.
“This case is dismissed against plaintiffs, without prejudice to the right of PBB to proceed against the mortgaged properties. As such, the partial summary judgment dated July 27, 2005, on the cross claim of PBB against Felipe Chua may now be enforced,” the court said.
Genivi Factao