8/12/2019 DBP vs. NLRC & Malayang Samahan
1/1
DEVELOPMENT BANK OF THE PHILIPPINES, petitioner,
vs.
THE NATIONAL LABOR RELATIONS COMMISSION and MALAYANG SAMAHAN NG
MGA MANGAGAWA SA
ATLAS TEXTILE DEVELOPMENT CORPORATION, respondents.
FACTS:
The private respondents were employees of ATLAS, a textile firm,
which hypothecated its certain assets to DB.After ATLAS defa!lted
in its o"li#ations, DB foreclosed on the mort#a#e in $arch
%&'(. The latter ac)!ired themort#a#ed assets "y virt!e of the
foreclos!re sale.
The private respondents filed their aforementioned claim, on *+
cto"er %&'(, a#ainst "oth ATLAS and DB. TheLa"or Ar"iter r!led
for the private respondents. n appeal "y DB, the decision was
s!stained "y the -LC.
/SS01:
2hether or not the it is an error on the part of -LC to consider
the wor3ers4 preference !nder Article %%+ of the
La"or Code over that of DB4s mort#a#e lien.
51LD:
Beca!se of its impact on the entire system of credit, Article
%%+ of the la"or Code cannot "e viewed in isolation "!t
m!st "e read in relation to the Civil Code scheme on
classification and preference of credits. /n the event of
insolvency, a principal o"6ective sho!ld "e to effect an
e)!ita"le distri"!tion of the insolvent4s property amon# his
creditors. To accomplish this there m!st first "e some
proceedin# where notice to all of the insolvent4s creditors may
"e #iven and where the claims of preferred creditors may "e
"indin#ly ad6!dicated.
1ven if Article %%+ and its /mplementin# !le, as amended, sho!ld
"e interpreted to mean 7a"sol!te preference,7 the
same sho!ld "e #iven only prospective effect in line with the
cardinal r!le that laws have no retroactive effect, !nless
the contrary is provided 8Article 9, Civil Code. There"y, any
infrin#ement on the constit!tional #!arantee on non;
impairment of the o"li#ation of contracts 8Section %+, Article
///, %&'< Constit!tion is also avoided. /n point of
fact,
DB4s mort#a#e credit antedated "y several years the amendatory
law, A -o. =overnment and other creditors7 may "e
paid. But, fo an od!"# $!tt"!%!nt of a d!&to'$ a$$!t$, a""
(!d)to$ %u$t &! (on*!n!d, t+!) ("a)%$
a$(!ta)n!d and )n*!nto)!d, and t+!!aft! t+! !f!!n(!$ d!t!%)n!d
)n t+! (ou$! of -ud)()a" o(!!d)n.$
/+)(+ +a*! fo t+!) o&-!(t t+! $u&-!(t)on of t+! o!t# of
t+! d!&to of t+! a#%!nt of +)$ d!&t$ and ot+!
"a/fu" o&").at)on$0 T+!!, an od!"# d!t!%)nat)on of !f!!n(!
of (!d)to$' ("a)%$ )$ a$$u!d0 t+!
ad-ud)(at)on %ad! /)"" &! &)nd)n. on a""
at)!$1)n1)nt!!$t, $)n(! t+o$! o(!!d)n.$ a! o(!!d)n. in rem2and t+!
"!.a" $(+!%! of ("a$$)f)(at)on, (on(u!n(! and !f!!n(! of (!d)t$ )n
t+! C)*)" Cod!, t+!
In$o"*!n(# La/, and t+! La&o Cod! )$ !$!*!d )n +a%on#0
