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DEVELOPMENT BANK OF PHILIPPINES v. WEST NEGROS COLLEGE

This case has been cited 3 times or more.

	GR No. 180439 2009-12-23	RESORT HOTELS CORPORATION v. DEVELOPMENT BANK OF PHILIPPINES NACHURA, J.
We likewise agree with the CA's holding that RHC cannot use the fire insurance proceeds of the Baguio Pines Hotel to redeem the said property. The appellate court, citing Development Bank of the Philippines v. West Negros College, Inc.,[11] correctly ruled that petitioners must pay respondent DBP the entire obligation of RHC, and not merely the purchase price of the said hotel.
	GR No. 174103 2008-12-23	DEVELOPMENT BANK OF PHILIPPINES v. WEST NEGROS COLLEGE TINGA, J.
The above-quoted provision is substantially a re-enactment of Sec. 31 of Commonwealth Act No. 459, creating DBP's predecessor agency, the Agricultural and Industrial Bank. Sec. 31 thereof explicitly set the redemption price as the total indebtedness plus contractual interest as of the date of the auction sale, "with interest on the total indebtedness at the rate agreed upon in the obligation from said date."[3] The phrase "with interest on the total indebtedness at the rate agreed upon in the obligation from said date" was, however, deleted in Sec. 16 of E.O. No. 81 which fixed the redemption price as "all of the latter's (Bank's) claims against him, as determined by the Bank." This deletion, together with the Court's Decision dated October 28, 2002 and Resolution dated May 21, 2004 in G.R. No. 152359, both of which held that WNC, "as the assignee of Bacolod Medical Center should pay the balance of the amount owed by the latter to DBP with interest thereon at the rate agreed upon as of the date of the public auction on 24 August 1989,"[4] led the Court to conclude in the Resolution dated September 16, 2008 that contractual interest shall no longer accrue and form part of the total redemption price.
	GR Nos. 152359 & 174103 2008-09-16	DEVELOPMENT BANK OF PHILIPPINES v. WEST NEGROS COLLEGE TINGA, J.
In its 28 October 2002 Decision, the Court held that in redeeming the foreclosed property, WNC, as assignee of BMC, should pay the balance of the amount owed by the latter to DBP with interest thereon at the rate agreed upon as of the date of the public auction on 24 August 1989.[12] This was reiterated in the Resolution dated 21 May 2004.[13]