Corporation Law Digested Cases

5291 Words Jun 27th, 2013 22 Pages
1. Tayag vs. Benguet consolidated INC
26 SCRA 242

Facts: Idonah Slade Perkins died in New York on March 1960, the domestic administrator in New York refused to give the Stock Certificates owned by Perkins in the Benguet Consolidated Inc. to the Ancillary administrator here in the Philippines for the purpose of satisfying the legitimate claims of local creditors. The Court of First Instance of Manila decided that the Stock Certificates was considered lose because of the refusal of the domestic administrator in New York to give such certificates to the ancilliary administrator here in the Philippines and ordered Benguet Consolidated Inc to issue New Stock Certificates to the Ancilliary administrator. Benguet refuses to obey the order of
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Hence this petition.

Issue:

Is the respondent estopped from questioning the constitutionality of the law since they first abided by it by filing a claim with the Committee? Is PD 1717 unconstitutional?

Ruling:

On the issue of estoppel, the Court held that it could not apply in the present case since when the respondent filed his claim, President Marcos was the supreme ruler of the country and they could not question his acts even before the courts because of his absolute power over all government institutions when he was the President. The creation of New Agrix as mandated by the decree was also ruled as unconstitutional since it violated the prohibition that the Batasang Pambansa (Congress) shall not provide for the formation, organization, or regulation of private corporations unless such corporations are owned or controlled by the government. PD 1717 was held as unconstitutional on the other grounds that it was an invalid exercise of police power, It had no lawful subject and no lawful method. It violated due process by extinguishing all mortgages and liens and interests which are property rights unjustly taken. It also violated the equal protection clause by lumping together all secured and unsecured creditors. It also impaired the obligation of contracts, even though it only involved purely private interests. 4. JRS Business

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