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Case 2-B

1) PCIB and MBC jointly sold mining equipment to Atlas through a deed of sale requiring payments in installments. 2) A writ of garnishment was issued against Atlas to pay NAMAWU, which Atlas fully paid. However, Atlas claimed overpayment and sued PCIB for reimbursement. 3) The Supreme Court ruled that while Atlas overpaid NAMAWU, its remedy was against NAMAWU, not PCIB. The Court ordered Atlas to pay PCIB the remaining balance of P146,058.96 plus interest.

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61 views1 page

Case 2-B

1) PCIB and MBC jointly sold mining equipment to Atlas through a deed of sale requiring payments in installments. 2) A writ of garnishment was issued against Atlas to pay NAMAWU, which Atlas fully paid. However, Atlas claimed overpayment and sued PCIB for reimbursement. 3) The Supreme Court ruled that while Atlas overpaid NAMAWU, its remedy was against NAMAWU, not PCIB. The Court ordered Atlas to pay PCIB the remaining balance of P146,058.96 plus interest.

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gg
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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PCIB v.

COURT OF APPEALS

G.R. NO. 121989 January 31, 2006

FACTS: PCIB and MBC were joint bidders in a foreclosure sale held of assorted mining machinery and
equipment previously mortgaged to them by Philippine Iron Mines. Atlas agreed to purchase some of
these properties and the sale was evidenced by a Deed of Sale with a downpayment of P12,000,000 and
the balance of P18,000,000 payable in 6 monthly installments. In compliance with the contract, Atlas
issued HongKong and shanghai Bank check amounting to P12,000,000. Atlas paid to NAMAWU the
amount of P4,298,307.77 in compliance with the writ of garnishment issued against Atlas to satisfy the
judgment in favor of NAMAWU. Atlas alleged that there was overpayment, hence the suit against PCIB
to obtain reimbursement. PCIB contended that Atlas still owed P908,398.75 because NAAWU had been
partially paid in the amount of P601,260.00. RTC ruled against Atlas to pay P908,398.75 to PCIB. CA
reversed the decision.

ISSUE: Whether Atlas had complied with its obligation to PCIB

RULING: While the original amount sought to be garnished was P4,298,307,77, the partial payment of
P601,260 naturally reduced it to P3,697,047.77 Atlas overpaid NAMAWU, thus the remedy if Atlas would
be to proceed against NAAWU nut not against PCIB in relation to article 1236 of the Civil Code.

The petition is partly granted.CA decision is reversed and set aside and in lieu thereof Atlas is ordered to
pay PCIB the sum of P146,058.96, with the legal interest commencing from the time of first demand on
August 22, 1985.

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