[ G.R. No. L-8377, August 28, 1956 ]
MANILA MOTOR COMPANY, INC., PLAINTIFF AND APPELLANT, VS. R. F. FERNANDEZ, DEFENDANT AND APPELLEE.
D E C I S I O N
PARAS, C.J.:
It is contended for the appellant that the debt moratorium interrupted the running of the statute of limitations. This contention finds support in Ma-ao Sugar Central Co. vs. Barrios, 45 Off. Gaz., 2444, wherein it was held:
"While the debt moratorium is in force the defendant-petitioner has no obligation yet to pay the plaintiffs, and the latter can not file a suit against him in the courts of justice requiring him to recognize his debts to the plaintiffs and to pay them (after the moratorium) not only the amount of the indebtedness, but the legal interest thereon from the filing of the complaint, the attorney's fees of ten per centum of the amounts due, and the costs of the suits. There is no such action to compel defendant to acknowledge or recognize his debt which is not yet payable, distinct and different from the action for recovery or payment of a debt already due and payable, against the debtor who refuses to pay it. * * *
"* * * Said Executive Order No. 25 as amended by Executiye Order No. 32 not only suspends the execution of the judgment that the court may render so far as it orders the payment of debts and other monetary obligations, as stated in the resolution in said case, but also suspends the filing of suit in the courts of justice for the enforcement of the payment of debts and other monetary obligations therein referred to, if timely objection is set up by the defendant debtor."
The complaint was filed on April 13, 1954, or 13 years, 1 month and 12 days after March 1, 1941 (assuming that this was the date when the judgment rendered in March 1941 became final). The debt moratorium lasted from November 18, 1944, when Executive Order No. 25 was promulgated, to July 26, 1948, when it was partially lifted by Republic Act No. 342, or 3 years, 8 months and 8 days. Deducting this from 13 years, 1 month and 12 days, or less than the 10-year prescriptive period for an action based on judgment.
The lower court erred in considering the present complaint as one based on a chattel mortgage. The following allegations sufficiently serve to make the judgment rendered in March 1941 as the basis of appellant's cause of action, or they would otherwise be unnecessary and meaningless:
"7. That because defendant was delinquent in the payment of his obligations, plaintiff was forced to institute court action against the defendant sometime in 1940; that, in due course, judgment was rendered against the defendant sometime in March, 1941;
"8. That to the best of plaintiff's knowledge and recollection, the said judgment ordered the defendant to pay plaintiff the amount of P775.17 plus interest thereon at the contract rate of 12 per cent per annum, until the whole account be fully paid, and an additional amount of 25 per cent of the total amount due owing the plaintiff, as liquidated damages and attorney's fees;
"9. That the said judgment was never executed due to the out break of the war and the Debt Moratorium orders;
"'10. That plaintiff's copy of the said judgment was lost or destroyed daring the Battle for Liberation of Manila." (Allegations 7-10, Complaint.)
Although a copy of the chattel mortgage was attached to the complaint and reference was made to certain provisions thereof, the purpose undoubtedly was to demonstrate the propriety of the judgment of 1941 and, as stated by counsel for appellant, to allow the introduction of secondary evidence of the contents of said judgment which Was not reconstituted.
The lower court likewise committed a mistake in assuming that the suit in 1940 was one of foreclosure. The allegations with reference to said suit and the corresponding judgment of 1941 do not contain any suggestion in support of the assumption. Upon the other hand, in appellee's motion to dismiss, it was stated that the car in question was commandeered from him by the Japanese occupation forces, thereby indicating that, even during the war period, the property was in appellee's possession and had not been sold at public auction. At any rate, it is the actual sale of the mortgaged chattel in accordance with section 14 of Act No. 1508 that would bar the creditor (who chooses to foreclose) from recovering any unpaid balance (Pacific Commercial Company vs. De la Rama, 72 Phil., 380).
Wherefore, the appealed order is reversed and the case will be as it is hereby remanded to the court of origin for further proceedings. So ordered with costs against the defendant-appellee.
Bengzon, Padilla, Montemayor, Bautista Angelo, Labrador, Concepcion, Reyes, J. B. L., and Endencia, JJ., concur.