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[G.R. No.150146. September 10, 2003]

SOLAR ENTERTAINMENT, INC. vs. CA

SECOND DIVISION

Gentlemen:

Quoted hereunder, for your information, is a resolution of this Court dated SEP 10 2003.

G.R. No.150146.(Solar Entertainment, Inc. (Solar) vs. Hon. Court of Appeals, 4th Division (Presided by its Ponente, Mr. Justice R. Barrios), Domsat Inc.)

G.R. No. 150856.(The Privatization and Management Office vs. Hon. Court of Appeals, 4th Division, and Domestic Satellite Philippines, Inc.)

These two consolidated petitions for certiorari with prayer for temporary restraining order and/or preliminary injunction seek to annul and enjoin the implementation of the Court of Appeals' Resolutions in CA-G.R. SP No. 65322, dated August 2, 2001 [1] cralaw and October 5, 2001 [2] cralaw , respectively. The CA issued a writ of preliminary injunction against herein petitioners Solar Entertainment, Inc. and Privatization and Management Office, and ordered the latter to cease and desist from enforcing the Order [3] cralaw dated July 10, 2001 issued by the Regional Trial Court of Antipolo City, Branch 71 in Civil Case No. 91-1951-A.

DOMSAT applied for and was granted credit accommodations by the Philippine National Bank (PNB). As security therefor, DOMSAT executed real estate and chattel mortgage contracts in favor of PNB, covering its properties located in various parts of the country, together with its equipment, vehicles, machineries and other components. DOMSAT also executed a Deed of Assignment, [4] cralaw assigning in favor of PNB the right and authority to operate its franchise, in case of default and failure of DOMSAT to perform its obligations and comply with the provisions of the credit agreement.

In 1990, for failure of DOMSAT to settle its obligations to PNB, the Asset Privatization Trust (APT), which took over as trustee of certain assets and rights of PNB, filed an application for extrajudicial foreclosure of the chattel and real estate mortgages. On January 28, 1991, the sheriff foreclosed the chattel mortgage and awarded the properties to APT as highest bidder.

On January 31, 1991, DOMSAT filed a complaint for annulment of the chattel mortgage foreclosure sale before the RTC of Antipolo City, Branch 71 docketed as Civil Case No. 91-1951-A, with prayer for preliminary injunction to enjoin the sheriff from pursuing any action in relation to the foreclosure. DOMSAT alleged that the bulk of the items included in the sale are considered immovable property under the law and hence, cannot be the subject of a chattel mortgage.

The trial court issued a Temporary Restraining Order (TRO) prohibiting the execution of the certificate of sale or other instrument of conveyance arising from the foreclosure sale. Nonetheless, the sheriff proceeded with the foreclosure of real estate mortgage on February 28, 1991, and a certificate of sale was issued in favor of APT.

Later on, APT sold the property to petitioner Solar Entertainment, Inc. (SOLAR), transferring the government's rights and interests to the latter. SOLAR was allowed to intervene in Civil Case No. 91-1951-A and together with APT, it filed an Answer to DOMSAT's Complaint and a Third Party Complaint against Destiny Satellite Inc.

In an Order [5] cralaw dated June 19, 2001, the Antipolo Court issued a TRO against DOMSAT and Destiny enjoining them from interfering with SOLAR's operation of the telecommunications system, as well as from intimidating SOLAR's agents and security guards from exercising any act relative thereto, or from illegally entering the Antipolo Mother Station.

DOMSAT filed a petition for certiorari before the Court of Appeals (docketed as C.A. G.R. SP No. 65322) seeking the annulment of the TRO while the trial court heard SOLAR's application for injunction. The CA eventually issued a writ of preliminary injunction against DOMSAT and Destiny Satellite Inc. upon the filing of a P5,000,000.00 bond by SOLAR. It also granted the writ of preliminary injunction prayed for by DOMSAT, and with the filing of P5,000,000.00 bond, ordered SOLAR and Privatization Management Office (PMO, the successor of APT) to cease and desist from implementing and giving effect to the RTC Order dated July 10, 2001, pending termination and disposition of Civil Case No. 91-1951-A.

SOLAR and PMO moved for reconsideration of the foregoing Resolution and for the dismissal of the petition while DOMSAT filed an Omnibus Motion praying for clarification/amplification of the said Resolution. The CA denied the motion for reconsideration but granted DOMSAT's omnibus motion by clarifying the earlier Resolution that SOLAR/PMO immediately cease and desist from enforcing the trial court's TRO pending resolution of Civil Case No. 91-1951, including but not limited to the restoration of status quo ante litem motam, and reinstating DOMSAT to the exclusive possession and control of the Antipolo Mother Earth Station.

Hence, these two petitions filed by SOLAR and PMO docketed as G.R. Nos. 150146 and 150856, respectively, assailing the two CA Resolutions. On January 4, 2002, DOMSAT filed its Comment to the Petition in G.R. No. 150146 and adopted the same as its Comment in G.R. No. 150856. [6] cralaw

On May 13, 2002, SOLAR filed a Notice of Withdrawal/Dismissal of Petition in G.R. No. 150146 and prayed that it be allowed to withdraw its Petition for Certiorari considering that "the parties have seen positively the prospect of an amicable settlement". [7] cralaw DOMSAT also filed an Urgent Motion to Dismiss Petition [8] cralaw on July 18, 2002 praying for the dismissal of the petition.

On October 1, 2002, PMO filed its Reply with Manifestation [9] cralaw in G.R. No. 150856, manifesting and praying that the Petition be dismissed for having become moot and academic, in view of the Court of Appeals' Resolution [10] cralaw dated August 15, 2002 dismissing DOMSAT's petition in CA-G.R. SP No. 65322, due to the compromise agreement entered into by SOLAR and DOMSAT. The said Resolution reads as follows:

Petitioner filed a Manifestation and Motion (pp. 1526-1527) stating that pursuant to its compromise agreement with Solar, petitioner respectfully withdraws its Petition dated June 25, 2001, together with all the pleadings and motions filed in connection therewith, and moves to dismiss this action.

Subsequent thereto, respondent SOLAR filed a Motion to Dismiss Petition (pp. 1534-1536) asking too for the dismissal of the petition.

WHEREFORE, as prayed, the petition is DISMISSED.

SO ORDERED.

The foregoing resolution became final and executory on August 15, 2002 and had been recorded in the Book of Entries of Judgment. [11] cralaw

On October 7, 2002, SOLAR filed a Manifestation/Compliance [12] cralaw manifesting its submission to this Court of a written certification [13] cralaw of conformity on the withdrawal of the petition in G.R. No. 150146 issued by Mr. William Tieng, CEO of SOLAR. SOLAR also prayed for the dismissal of the two consolidated petitions, which have become moot and academic in view of the dismissal by the Court of Appeals of CA-G.R. SP No. 65322.

Considering that the Court of Appeals' dismissal of DOMSAT's Petition for Certiorari had become final and executory and the Notice of Withdrawal and Motion to Dismiss filed by the parties, praying for the dismissal of these petitions, we find it unnecessary to resolve these two petitions as they had become moot and academic.

WHEREFORE, the Notice of Withdrawal and the Motion to Dismiss are GRANTED. Accordingly, the petitions are DISMISSED and TERMINATED for having become moot and academic. No pronouncement as to costs.

SO ORDERED.

Very truly yours,

(Sgd.)TOMASITA B. MAGAY-DRIS
Clerk of Court


Endnotes:

[1] cralaw Rollo (G.R. No. 150146), pp. 80-82.

[2] cralaw Id. at 106-112.

[3] cralaw Id. at 332-335.

[4] cralaw Id. at 118-121.

[5] cralaw Id. at 222-223.

[6] cralaw Per Comment and Motion filed May 6,2002, Rollo (G.R. No. 150856), pp. 555-557.

[7] cralaw Rollo (G.R. No. 150146), pp. 926-928.

[8] cralaw Id. at 934-936.

[9] cralaw Rollo (G.R. No. 150856), pp. 762-789.

[10] cralaw Id. at 790-791.

[11] cralaw Id. at 793.

[12] cralaw Id. at 740-745.

[13] cralaw Id. at 756.


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