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G.R. No. 72005 May 29, 1987 PHILIPPINE BRITISH ASSURANCE CO., INC., petitioner, vs.

HONORABLE INTERMEDIATE APPELLATE COURT; S C!IN COATING " !IRES, INC., a#$ DOMINADOR CACPAL, CHIE% DEPUT SHERRI% O% MANILA, respondents. This is a Petition for Review on certiorari of the Resolution dated September 12, 1985 of the ntermediate !ppellate "ourt in !"#$.R. %o. "R#&5'&9 1 (rantin( private respondent)s motion for e*ecution pendin( appeal and orderin( the issuance of the correspondin( writ of e*ecution on the counterbond to lift attachment filed b+ petitioner. The focal issue that emer(es is whether an order of e*ecution pendin( appeal of a ,ud(ment ma+be enforced on the said bond. n the Resolution of September 25, 1985 2 this "ourt as pra+ed for, without necessaril+ (ivin( due course to the petition, issued a temporar+ restrainin( order en,oinin( the respondents from enforcin( the order complaint of. The records disclose that private respondent S+cwin "oatin( - .ires, nc., filed a complaint for collection of a sum of mone+ a(ainst /arian ndustrial "orporation before the Re(ional Trial "ourt of 0ue1on "it+. 2urin( the pendenc+ of the suit, private respondent succeeded in attachin( some of the properties of /arian ndustrial "orporation upon the postin( of a supersedeas bond. & The latter in turn posted a counterbond in the sum of P1,'&&, &&&.&& ' thru petitioner Philippine 3ritish !ssurance "o., nc., so the attached properties were released. 4n 2ecember 28, 198', the trial court rendered a 2ecision, the dispositive portion of which reads5 .67R784R7, plaintiff)s 9otion for Summar+ :ud(ment is hereb+ $R!%T72, and ,ud(ment is rendered in favor of the plaintiff and a(ainst the defendant /arian ndustrial "orporation, and the latter is hereb+ ordered5 1. To pa+ plaintiff the amount of P1,'&1,';8.&&, the principal obli(ation with 12< interest per annum from the date of default until full+ paid= 2. To pa+ plaintiff 5< of the principal obli(ation as li>uidated dama(es= ?. To pa+ plaintiff P?&,&&&.&& as e*emplar+ dama(es= '. To pa+ plaintiff 15< of P1,'&1,';8.&&, the principal obli(ation, as and for attorne+)s fees= and 5. To pa+ the costs of suit. !ccordin(l+, the counterclaim of the defendant is hereb+ 2 S9 SS72 for lac@ of merit. S4 4R27R72. 5

/arian ndustrial "orporation appealed the decision to the respondent "ourt. S+cwin then filed a petition for e*ecution pendin( appeal a(ainst the properties of /arian in respondent "ourt. /arian was re>uired to file its comment but none was filed. n the Resolution of :ul+ 5, 1985, respondent "ourt ordered the e*ecution pendin( appeal as pra+ed for. ( 6owever, the writ of e*ecution was returned unsatisfied as /arian failed to deliver the previousl+ attached personal properties upon demand. n a Petition dated !u(ust 1?, 1985 filed with respondent "ourt S+cwin pra+ed that the suret+ Aherein petitionerB be ordered to pa+ the value of its bond. 7 n compliance with the Resolution of !u(ust 2?, 1985 of the respondent "ourt herein petitioner filed its comment. 8 n the Resolution of September 12, 1985, 9 the respondent "ourt (ranted the petition. 6ence this action. t is the submission of private respondent S+cwin that without a previous motion for reconsideration of the >uestioned resolution, certiorari would not lie. .hile as a (eneral rule a motion for reconsideration has been considered a condition sine qua non for the (rantin( of a writ of certiorari, this rule does not appl+ when special circumstances warrant immediate or more direct action. 10 t has been held further that a motion for reconsideration ma+ be dispensed with in cases li@e this where e*ecution had been ordered and the need for relief was e*tremel+ ur(ent. The counterbond provides5 .67R7!S, in the above#entitled case pendin( in the Re(ional Trial "ourt, %ational "apital :udicial Re(ion, 3ranch CDDD/, 0ue1on "it+, an order of !ttachment was issued a(ainst abovenamed 2efendant= .67R7!S, the 2efendant, for the purpose of liftin( andEor dissolvin( the order of attachment issued a(ainst them in the above#en#titled case, have offered to file a counterbond in the sum of P7S4S 4%7 9 CC 4% 84FR 6F%2R72 T64FS!%2 4%CG AP1,'&&,&&&.&&B, Philippine "urrenc+, as provided for in Section 5, Rule 5H of the Revised Rules of "ourt. %4., T67R784R7, we, /!R !% %2FSTR !C "4RP4R!T 4%, as Principal and the P6 C PP %7 3R T S6 !SSFR!%"7 "49P!%G, %"., a corporation dul+ or(ani1ed and e*istin( under and b+ virtue of the laws of the Philippines, as Suret+, in consideration of the above and of the liftin( or dissolution of the order of attachment, hereb+ ,ointl+ and severall+, bind ourselves in favor of the above Plaintiff in the sum of P7S4S 4%7 9 CC 4% 84FR 6F%2R72 T64FS!%2 4%CG AP1,'&&,&&&.&&B, Philippine "urrenc+, under the condition that in case the Plaintiff recovers ,ud(ment in the action, and 2efendant will, on demand, re#deliver the attached propert+ so released to the 4fficer of the "ourt and the same shall be applied to the pa+ment of the ,ud(ment, or in default thereof, the defendant and Suret+ will, on demand, pa+ to the Plaintiff the full value of the propert+ released. 7D7"FT72 at 9anila, Philippines, this 28th da+ of :une, 198'. Sections 5, 12, and 1H of Rule 5H of the Revised Rules of "ourt also provide5

S7". 5. 9anner of attachin( propert+. I The officer e*ecutin( the order shall without dela+ attach, to await ,ud(ment and e*ecution in the action, all the properties of the part+ a(ainst whom the order is issued in the province, not e*empt from e*ecution, or so much thereof as ma+ be sufficient to satisf+ the applicant)s demand, unless the former ma@es a deposit with the cler@ or ,ud(e of the court from which the order issued, or (ives a counter#bond e*ecuted to the applicant, in an amount sufficient to satisf+ such demand besides costs, or in an amount e>ual to the value of the propert+ which is about to be attached, to secure payment to the applicant of any judgement ment which he may recover in the action. The officer shall also forthwith serve a cop+ of the applicant)s affidavit and bond, and of the order of attachment, on the adverse part+, if he be found within the province. S7". 12. 2ischar(e of attachment upon (ivin( counterbond. I !t an+ time after an order of attachment has been (ranted, the part+ whose propert+ has been attached, or the person appearin( on his behalf, ma+, upon reasonable notice to the applicant, appl+ to the ,ud(e who (ranted the order, or to the ,ud(e of the court in which the action is pendin(, for an order dischar(in( the attachment wholl+ or in part on the securit+ (iven. The ,ud(e shall, after hearin(, order the dischar(e of the attachment if a cash deposit is made, or a counter#bond e*ecuted to the attachin( creditor is filed, on behalf of the adverse part+, with the cler@ or ,ud(e of the court where the application is made, in an amount e>ual to the value of the propert+ attached as determined b+ the ,ud(e, to secure the payment of any judgment that the attaching creditor may recover in the action. Fpon the filin( of such counter#bond, cop+ thereof shall forthwith be served on the attachin( creditor or his law+er. Fpon the dischar(e of an attachment in accordance with the provisions of this section the propert+ attached, or the proceeds of an+ sale thereof, shall be delivered to the part+ ma@in( the deposit or (ivin( the counterbond aforesaid standin( in place of the propert+ so released. Should such counterbond for an+ reason be found to be, or become, insufficient, and the part+ furnishin( the same fail to file an additional counterbond, the attachin( creditor ma+ appl+ for a new order of attachment. S7". 1H. .hen e*ecution returned unsatisfied, recover+ had upon bond. I f the e*ecution be returned unsatisfied in whole or in part, the surety or sureties on any counter-bond given pursuant to the provisions of this rule to secure the payment of the judgment shall become charged on such counter- bond, and bound to pay to the judgement creditor upon demand, the amount due under the judgment, which amount ma+ be recovered from such suret+ or sureties after notice and summar+ hearin( in the same action. A7mphasis supplied.B Fnder Sections 5 and 12, Rule 5H above reproduced it is provided that the counterbond is intended to secure the pa+ment of "any judgment" that the attachin( creditor ma+ recover in the action. Fnder Section 1H of same rule it provides that when Jthe e*ecution be returned unsatisfied in whole or in partJ it is onl+ then that Jpa+ment of the judgment shall become char(ed on such counterbond.J The counterbond was issued in accordance with the provisions of Section 5, Rule 5H of the Rules of "ourt as provided in the second para(raph aforecited which is deemed reproduced as part of the counterbond. n the third para(raph it is also stipulated that the counterbond is to be Japplied for the pa+ment of the ,ud(ment.J %either the rules nor the provisions of the counterbond limited its application to a final and e*ecutor+

,ud(ment. ndeed, it is specified that it applies to the pa+ment of any judgment that ma+be recovered b+ plaintiff. Thus, the onl+ lo(ical conclusion is that an e*ecution of an+ ,ud(ment includin( one pendin( appeal if returned unsatisfied ma+be char(ed a(ainst such a counterbond. t is well reco(ni1ed rule that where the law does not distin(uish, courts should not distin(uish. Ubi lex non distinguish nec nos distinguere debemos. JThe rule, founded on lo(ic, is a corollar+ of the principle that (eneral words and phrases in a statute should ordinaril+ be accorded their natural and (eneral si(nificance. The rule re>uires that a (eneral term or phrase should not be reduced into parts and one part distin(uished from the other so as to ,ustif+ its e*clusion from the operation of the law. 15 n other words, there should be no distinction in the application of a statute where none is indicated.1( 8or courts are not authori1ed to distin(uish where the law ma@es no distinction. The+ should instead administer the law not as the+ thin@ it ou(ht to be but as the+ find it and without re(ard to conse>uences. ! corollar+ of the principle is the rule that where the law does not ma@e an+ e*ception, courts ma+ not e*cept somethin( therefrom, unless there is compellin( reason apparent in the law to ,ustif+ it.18 Thus where a statute (rants a person a(ainst whom possession of Jan+ landJ is unlawfull+ withheld the ri(ht to brin( an action for unlawful detainer, this "ourt held that the phrase Jan+ landJ includes all @inds of land, whether a(ricultural, residential, or mineral.19 Since the law in this case does not ma@e an+ distinction nor intended to ma@e an+ e*ception, when it spea@s of Jan+ ,ud(mentJ which ma+be char(ed a(ainst the counterbond, it should be interpreted to refer not onl+ to a final and e*ecutor+ ,ud(ment in the case but also a ,ud(ment pendin( appeal. !ll that is re>uired is that the conditions provided for b+ law are complied with, as outlined in the case of Towers ssurance !orporation v. "rorama #upermart, 20 Fnder Section 1H, in order that the ,ud(ment creditor mi(ht recover from the suret+ on the counterbond, it is necessar+ A1B that the e*ecution be first issued a(ainst the principal debtor and that such e*ecution was returned unsatisfied in whole or in part= A2B that the creditor ma@e a demand upon the suret+ for the satisfaction of the ,ud(ment, and A?B that the suret+ be (iven notice and a summar+ hearin( on the same action as to his liabilit+ for the ,ud(ment under his counterbond. The rule therefore, is that the counterbond to lift attachment that is issued in accordance with the provisions of Section 5, Rule 5H, of the Rules of "ourt, shall be char(ed with the pa+ment of any judgment that is returned unsatisfied. t covers not onl+ a final and e*ecutor+ ,ud(ement but also the e*ecution of a ,ud(ment pendin( appeal. .67R784R7, the petition is hereb+ 2 S9 SS72 for lac@ of merit and the restrainin( order issued on September 25, 1985 is hereb+ dissolved with costs a(ainst petitioner. S4 4R27R72.