FACTS: On August
28, 2005, Royal Ferry Services Inc. filed a petition for Voluntary Insolvency
before the Regional Trial Court of Manila. In its Petition stated therein, in
the year 2000, the company suffered business losses. Efforts were made to
revive its financial condition but failed. The business ceased its
operations. A special board meeting was
held and was approved and authorized by the members of the board to allow the
company to file a Petition for insolvency.
In retrospect of the company, it is a corporation duly
organized and existing under the Philippine Laws and was holding its principal
business office address in Bangkal Street, Makati City but holds its Office at
Room 203 at Bf condominium Building, Intramuros, Manila at the time the
Petition was filed.
On December 19, 2005, the Regional Trial Court of Manila
issued an order, granting the petition declaring the Royal Ferry Services
insolvent.
The Court orders:
1.
The Branch Sheriff to take possession of, and safely
keep until the appointment, of an Assignee all the deeds, vouchers, books of
accounts, papers, notes, bills and securities of the petitioner and all its
real and personal properties, estates and effects not exempt from execution;
2.
All persons and entities owing money to petitioner are
hereby forbidden to make payment for its accounts or to deliver or transfer any
property to petitioner except to the duly elected Assignee;
3.
All civil proceedings against petitioner are deemed
stayed;
4.
For purposes of electing an Assignee, a meeting of all
creditors of the petitioner is hereby set on February 24, 2006 at 8:30 a.m.
before this Court, at Room 435, Fourth Floor, Manila City Hall Building.
The said order was published in a newspaper of general
circulation for three consecutive weeks furnishing copies to all creditors of
the company in the schedule of creditors.
On December 23, 2005, Pilipinas Shell Petroleum filed
before the Regional Trial Court of Manila a Formal Notice of Claim and a Motion
to Dismiss claiming that the respondent Royal Ferry Services Inc owes them the
amount of P 2,769,387.67 and the Petition for Insolvency was filed erroneously
filed in a wrong venue. The petitioners argued that in Insolvency Law, a
petition for Insolvency should be filed before he Court with territorial
jurisdiction over the company's residence. In its Article of Incorporation,
respondent's principal business address is situated in Makati City would it be
the Petition for Insolvency should be filed before the Court of Makati.
The petitioners Motion was denied by the Court on January
30, 2006 for lack of merit. Thereafter, Pilipinas Shell moved for a
reconsideration on February 24, 2006.
On June 15, 2006, Regional Trial Court reconsidered the
denial of Pilipinas Shell
Motion to Dismiss and reconsider its order dated January
30, 2006. The Petition for Voluntary Insolvency was ordered DISMISSED.
The respondent filed a Notice of Appeal on October 26, 2006
and the records was forwarded to the Court of Appeals.
The Appellate Court ruled reinstating the Insolvency
proceedings setting aside the Trial Court order dated June 15, 2006.
ISSUE: Whether
or not the Petition for Voluntary Insolvency was filed in a proper venue where
the company's residence is situated.
HELD: The
Supreme Court ruled, AFFIRMED the decision of the Court of Appeals reinstating
the Petition for Voluntary Insolvency filed by the respondent before the
Regional Trial Court of Manila.
The Petition for certiorari filed by Pilipinas Shell was
ordered Denied.
The respondent Royal Ferry Services is a resident of Manila
in its actual operations of its business when the Petition for Insolvency was
filed. It was not opposed as stated in the Articles of Incorporation of the
respondent that its principal business address is situated in Makati is no
longer accurate and existing.
Facts has been proven that the actual use and venue of the
respondent's business operations is in Manila when the Court Sheriff
implemented the order of the Court dated December 19, 2005.
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