Vol. XXII, No. 166 [ BusinessWorld Online ]
Wednesday, March 25, 2009 | MANILA, PHILIPPINES
THE PHILIPPINE National Bank (PNB) is refusing to return a Makati property to the company owned by businessman Ramon "RJ" P. Jacinto, claiming an order to turn over the prime lot issued by the Makati Regional Trial Court was out of line.
The Lucio C. Tan-led bank said the writ of execution issued by Judge Rommel O. Baybay of the Makati Regional Trial Court covering the 8,000-square meter lot and another property in Tagaytay could "not be justified."
PNB said an injunction issued by the Court of Appeals, affirmed by the Supreme Court, to stop the foreclosure of the Jacinto firm’s properties referred to the television and radio facilities of Rajah Broadcasting Network, Inc. and not the properties in Makati and Tagaytay.
The bank also argued that a writ of execution may only take effect on final judgments, and should not be used to enforce injunctions.
Mr. Jacinto could not be reached for comment.
Last week, the Supreme Court was reported to have ordered PNB to hand back the 8,000-square meter prime property on Sen. Gil Puyat Ave. (formerly Buendia Avenue) in Makati City to Mr. Jacinto’s firm.
This was supposed to have ended a court battle that dragged on for eight years.
RJ Ventures Realty & Development Corp., the property development firm owned by Mr. Jacinto, won a bidding for the Makati property in 1996 for $140 million.
Payment for the property was financed by a 20% down payment, while the remaining 80% was supposed to be paid through a loan from PNB.
But financial woes as a result of the Asian crisis a decade ago resulted in a loan restructuring, with the debt converted to pesos from dollars.
However, Mr. Jacinto claimed that the bank had failed to fulfill stipulations on the restructured deal. This led to the foreclosure of the property.
The ruling of the high court, which upheld the decision of Justice Conrado M. Vasquez of the Court of Appeals, said PNB should not have foreclosed the property.
But PNB pointed out that there was no judgment that nullified its rights over the properties in Makati and Tagaytay.
"It must be emphasized that no judgment has been rendered by the RTC nullifying the title of PNB over the Buendia and Tagaytay properties. A writ of execution may only be issued to enforce a final judgment," the bank said in a statement.
"PNB is going to avail [itself] of all legal remedies to vacate the Order of the Regional Trial Court authorizing the issuance of a writ of execution and to nullify the writ of execution issued," the bank added.
The property has been identified as among the real and other properties acquired by the bank that would soon be developed by Eton Properties, Inc., the Tan real estate firm. — Gerard S. de la Peña
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