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L-49576
Issue:
WON the redemption of the questioned property
by herein private respondents wiped out and
extinguished the pre-existing mortgage obligation of
the judgment debtor, Iluminada M. Pulido for the
Facts:
A group of laborers obtained a favorable
judgment against the Marinduque Mining and
Industrial Corporation for the payment of
backwages amounting to P205,853 before the
National Labor Relations Commission. A writ of
execution was issued and the Deputy Sheriff
served the writ, but it was unsatisfied. The
sheriff prepared on his own a Notice of
Garnishment addressed to six banks in Bacolod
City, including petitioner PCIB, directing the
bank concerned to issue a check in satisfaction
of the judgment.
While the in house lawyer of the Corporation
warned the PCIB to withhold any release of its
deposit with the bank, the bank issued a
managers check in the amount of P37,466
which was the exact balance of the private
respondents account as of that day. The said
check was also encashed by the sheriff the next
day.
Marinduque Mining thus filed a complaint before
the RTC of Manila against PCIB and the deputy
sheriff, alleging that its current deposit with the
petitioner bank was levied upon, garnished, and
with undue haste unlawfully allowed to be
withdrawn, and notwithstanding the alleged
unauthorized disclosure of the said current
deposit and unlawful release thereof, the latter
have failed and refused to restore the amount of
P37,466 to the formers account despite
repeated demands.