People's Bank V Syvel's, Inc.

People’s Bank v Syvel’s, Inc.
the issuance of the writ of preliminary attachment

GR NO. L-29280 August 11, 1988 relied on the reports of credit investigators sent to the
field and not on the personal knowledge of the affiants.
FACTS: ISSUE: Whether or not the issuance of the writ of

This is an action for foreclosure of chattel mortgage attachment was proper – YES, the issuance was proper.
executed in favor of the plaintiff People’s Bank by the
RULING:
defendant Syvel's Incorporated on its stocks of goods,
Evidence adduced during the trial strongly shows that
personal properties and other materials owned by it
the witnesses have personal knowledge of the facts
and located at its stores or warehouses.
stated in their affidavits in support of the application for
the writ. Such testimonies and circumstances were
The chattel mortgage was in connection with a credit
given full credit by the trial court in its decision. Hence,
commercial line in the amount of P900,000.00 granted
the attachment sought on the ground of actual removal
the said defendant corporation, the expiry date of
of property is justified where there is physical removal
which was May 20, 1966. On May 20, 1965, defendants
thereof by the debtor, as shown by the records.
Antonio V. Syyap and Angel Y. Syyap executed an
undertaking in favor of the plaintiff whereby they both
The actuations of appellants were clearly seen by the
agreed to guarantee absolutely and unconditionally and
witnesses who "saw a Fiat Bantam Car-Fiat Car, a small
without the benefit of excussion the full and prompt
car and about three or four persons hurrying; they were
payment of any indebtedness to be incurred on account
carrying goods coming from the back portion of this
of the said credit line. Against the credit line granted
store of Syvels at the Escolta, between 5:30 and 6:00
the defendant Syvel's Incorporated the latter drew
o'clock in the evening." Therefore, "the act of debtor
advances in the form of promissory notes.
(appellant) in taking his stock of goods from the rear of
his store at night, is sufficient to support an attachment
In view of the failure of the defendant corporation to
upon the ground of the fraudulent concealment of
make payment in accordance with the terms and
property for the purpose of delaying and defrauding
conditions agreed upon in the Commercial Credit
creditors."
Agreement the plaintiff started to foreclose
extrajudicially the chattel mortgage. However, because
In any case, intent to defraud may be and usually is
of an attempt to have the matter settled, the extra-
inferred from the facts and circumstances of the case; it
judicial foreclosure was not pushed thru. As no payment
can rarely be proved by direct evidence. It may be
had been paid, this case was even tually filed in this
gleaned also from the statements and conduct of the
Court.
debtor, and in this connection, the principle may be
applied that every person is presumed to intend the
On petition based on the affidavits executed by Mr.
natural consequences of his acts.
Leopoldo R. Rivera, Assistant Vice President of the
plaintiff People’s Bank and Atty. Eduardo J. Berenguer
Appellants having failed to adduce evidence of bad faith
on January 12, 1967, to the effect, among others, that or malice on the part of appellee in the procurement of
the Syvels are disposing of their properties with intent the writ of preliminary attachment, the claim of the
to defraud their creditors, particularly People’s Bank former for damages is evidently negated. In fact, the
They testified that Syvel's Inc (debtor/appellant) had allegations in the appellee's complaint more than justify
disposed of all the articles covered by the chattel the issuance of the writ of attachment.
mortgage but had not remitted the proceeds to
People’s bank; that the Syvel's Stores at the Escolta,
Rizal Avenue and Morayta Street were no longer
operated by Syvel’s and that the latter were disposing
of their properties to defraud People’s Bank. A writ of
preliminary attachment was issued based on these
facts.
Appellants (Syvel’s, Inc.) contend that the affidavits of

Rivera and Berenguer on which the lower court based

People's Bank V Syvel's, Inc.

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People’s Bank v Syvel’s, Inc.

the issuance of the writ of preliminary attachment

FACTS: ISSUE: Whether or not the issuance of the writ of

Appellants (Syvel’s, Inc.) contend that the affidavits of

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