SMC QUARRY 2 WORKERS v.

STAR TWO
GR 244079 | June 19, 2019 | Stay Order

Facts:

SMC Quarry 2 Workers Union FSM Chapter (Petitioner) secured an alias writ of execution
against an alias writ of execution against Titans Mega Bags Industrial Corporation in a separate
labor case for the satisfaction of a judgment sought to be enforced in the amount P43, 158,
600. 50 and successfully levied on execution of the subject property, a parcel of land covered by
TCT #002-154845. The notice of levy dated November 9, 2012 was annotated on the TCT.

On May 27, 2014, a Motion to Cancel Encumbrances was filed by the creditor, DEG-Deutsche
Investitionsund Entwicklungsgeelschaft mbtl asking the rehabilitation in court in a special
proceeding entitled, “In the Matter of the Petition for Corporate Rehabilitation with prayer for
staying all claims, actions, and proceedings against Pacific Activated Carbon Co., Inc.” to order
the Register of Deeds of Manila to cancel the notice of levy on execution. The creditor argued
that the notice of levy was issued in violation of Sec. 16 of the FRIA of 2010 and the
Commencement Order issued by the rehabilitation court on September 5, 2011.

The RTC in its Aug. 8, 2014 Order cancelled the notice of levy on execution annotated on TCT
No. 002-154845. It was determined that the levy was made after the issuance of the
commencement order which suspends all actions for claims against the debtor under
receivership pending before any court, tribunal, board or body.

Petitioner filed a Petition for Certiorari to the Court of Appeals.

On May 10, 2018, the Court of Appeals dismissed the petition outright.

Issue:

Whether or not levy on execution is included in the stay order

Ruling:

Under Sections 15 and 16 of the FRIA, if the Court finds that the petition for rehabilitation is
sufficient in form and substance, it shall issue a Commencement Order which shall include a
stay order suspending all actions or proceedings, in court or otherwise, for the enforcement of
claims against the debtor as well as to enforce any judgment, attachment or other provisional
remedies against the debtor.

Wherefore, the instant petition for review on certiorari is hereby dismissed for lack of merit.