MANILA – The Court of Appeals (CA) ruled in favor of publicly-listed developer Megaworld Corp. in its legal dispute over the land where Lucky Chinatown Mall and The City Place condominium stands in Binondo, Manila.
In a seven-page decision, the appellate court's second division turned down the petition filed by local firm Nesco International Development Corp. questioning the validity of Megaworld's land title over the 2.5-hectare land.
Nesco was the owner of a two-storey commercial building demolished by the city government of Manila from the property bought by Megaworld.
The CA ruling upheld the decision of the Securities and Exchange Commission (SEC) last April, citing as basis previous rulings of the Supreme Court (SC) on similar cases which held that the SEC has no jurisdiction in determining validity of certificates of title.
"In holding that the SEC's judgment was void, the Supreme Court noted that proper adjudication of the controversy requires, at the very least, a consideration of the indefeasibility of a Torrens title and propriety of a collateral attack on a certificate of title, among others. Thus, it concluded that the SEC is not the appropriate forum to delve into these civil law concepts," read the ruling penned by Associate Justice Ma. Luisa Quijano-Padilla.
"Applying these principles in the present case, we resolve that the SEC was correct in ruling that although the reliefs prayed for by petitioner do not directly seek the nullification of the questioned titles, the resolution of this issue would still involve an inquiry into the validity or genuineness of said titles -- a matter which is civil in nature and is therefore within the exclusive jurisdiction of regular courts," the CA said.
Nesco alleged that Megaworld executives were involved in "unsound business practices" and should be investigated and prosecuted.
Nesco had asked SEC to cancel or revoke Megaworld's certificate of incorporation, file civil and criminal cases against its officers and directors and delist the firm in the Philippine Stock Exchange.
The SEC dismissed the complaint in a decision dated April 13, 2018. (PNA)
