PNB v Phil. Vegetable Oil

G.R. No. L-25400  January 14, 1927 PNB v Phil. Vegea!le "il Doctrine: #he

!roa$ vie% i& ha he 'aue o( )rau$& )rau$& a**lie& only o agree+en& no no o !e *er(o *er(or+ r+e$ e$ on eih eiher er &i$e &i$e %ihi %ihin n a year year (ro+ (ro+ he he +ain +aing g her hereo eo((. gree+en& o !e (ully *er(or+e$ on one &i$e %ihin he year are aen ou o(  he o*eraion o( he &aue. & inervenor& heory *ro/ee$& on he a&&u+*ion ha r. hiaer ha& enirely *er(or+e$ hi& *ar o( he agree+en, euiy %oul$ argue ha all evi$en/e !e a$+ie$ o *rove he allege$ agree+en. 'urely &in/e he 'aue o( )rau$& %a& ena/e$ (or he *ur*o&e o( *revening (rau$&, i &houl$ no !e +a$e he in&ru+en o (urher he+.

)a/&3  #he Phili**ine Vegea!le Vegea!le "il o., n/. (oun$ i&el( in 6nan/ial &rai&.   %a& in $e! o he een o( a**roi+aely P80,000,000. #he Phili**ine Naional Ban %a& he large& /re$ior. #he Vegea!le "il o+*any o%e$ he !an P17,000,000. "ver P18,000,000 %ere $ue he oher /re$ior&. #he Phili**ine Naional Ban %a& &e/ure$ *rin/i*ally !y a real an$ /hael +orgage (or P8,500,000. "n January 10, 1921, 1921, he Vegea!l egea!le e "il o+*an o+*any y ee/u ee/ue$ e$ anohe anoherr /hae /haell +orga +orgage ge in (avor o( he !an on i& ve&&el& Tankerville an$ H. S. Everett o guaranee he *ay+en o( &u+& no o e/ee$ P4,000,000. r. hiaer General anager o( Phil Veg: +a$e hi& 6r& o;er o *le$ge /erain *rivae *ro*erie& o &e/ure he /re$ior& o( he "il o+*any.  re/eiver (or he Vegea!le "il o+*any %a& a**oine$ !y he ) o( anila. . a he en$ o( he 6nal $ra(. Ne, Ne, he !an %a& o o!ain a ne% +orgage (ro+ he Vegea!le "il o+*any on )e!ruary e!ruary 20, 1922. 1922. 'horly 'horly herea herea( (er, er, he re/ei re/eiver ver&hi &hi* * (or he he Vegea!l egea!le e "il o+*any %a& er+inae$. #he !an &u&*en$e$ he o*eraion o( he Vegea!le "il o+*any in ay, 1922, an$ $e6niely /lo&e$ he "il o+*any& *lan on ugu& 14, 1922. PNB (ore/lo&e$ he +orgage over Phil Veg.?& *ro*ery. #he @u$g+en ren$ere$ %a& in (avor o( he *laini; an$ again& he $e(en$an %hi/h %a& or$ere$ o *ay. *ay. &&ue3 AN he PNB PNB enere$ ino any vali$ agree+en !y %hi/h %hi/h i !oun$ i&el( o *rovi$e he ne/e&&ary o*eraing /a*ial o( he Phili**ine Vegea!le Vegea!le "il o., n/. >a&i hu+ihingi ng $a+age& &i inervenor, i( %alang vali$ /onra/ e$i %alang $a+age&: Cel$3 No.  #he ue&ion *re&en& !oh legal an$ (a/ual a&*e/&. #he legal inuiry relae& o he a**li/a!iliy or non-a**li/a!iliy o( he 'aue o( )rau$& a& (oun$ in &e/ion 885 o( our o$e o( ivil Pro/e$ure. #he ue&ion o( (a/ goe& on he a&&u+*ion ha he oral evi$en/e /an !e re/eive$ %ihou violaing he 'aue o( )rau$& an$ hen, o( /our&e, /o+e& $o%n o he %eighing o( he evi$en/e.

 #he !roa$ vie% i& ha he 'aue o( )rau$& a**lie& only o agree+en& no o !e *er(or+e$ on eiher &i$e %ihin a year (ro+ he +aing hereo(. gree+en& o !e (ully *er(or+e$ on one &i$e %ihin he year are aen ou o( he o*eraion o(  he &aue. & inervenor& heory *ro/ee$& on he a&&u+*ion ha r. hiaer ha& enirely *er(or+e$ hi& *ar o( he agree+en, euiy %oul$ argue ha all evi$en/e !e a$+ie$ o *rove he allege$ agree+en. 'urely &in/e he 'aue o( )rau$& %a& ena/e$ (or he *ur*o&e o( *revening (rau$&, i &houl$ no !e +a$e he in&ru+en o (urher he+. & *reli+inary o a *re&enaion o( he evi$en/e, i i& %ell o have an un$er&an$ing o( he a**li/a!le la%. #he harer o( he Phili**ine Naional Ban, / No. 2D12, &e/ion 20, a& a+en$e$ !y / No. 298E, *rovi$e& ha F#he General anager o( he Ban, &hall, a+ong oher&, have he (ollo%ing *o%er& an$ $uie&3 . . .  b: #o +ae, %ih a$vi/e an$ /on&en o( he !oar$ o( $ire/or&, all /onra/& on !ehel$ o( he &ai$ !an an$ o ener ino all ne/e&&ary o!ligaion& !y hi& / reuire$ or *er+ie$.F Pre$i/ae$ on our general li!eral *oin o( vie%, %e (eel (ree o ae ino /on&i$eraion he a**li/a!le la% alhough no &*e/ial $e(en&e o hi& e;e/ %a& iner*o&e$ !y he Phili**ine Naional Ban o inervenor& /o+*lain. Logi/ally, our revie% o( he evi$en/e &houl$ &o* here. No /onra/ enere$ ino !y he General anager o( he Ban %oul$ !e vali$ unle&& +a$e %ih he a$vi/e an$ /on&en o( i& Boar$ o(