GR. No.

165142 December 10, 2007

EDUARDO RAYO
v.
METROBANK
Quisumbing, J.
FACTS:
Midas Diversified Export obtained loans from Metrobank. To secure the
payment of the loan, a mortgage was executed in favor of Metrobank over three
parcels of land. When Midas failed to pay, Metrobankextrajudiciallyforclosed the
real estate mortgage. At the bidding, Metrobank acquired the property. Metrobank
posted a bond required for issuance of a writ of possession. Rayo, a co-assignee of
the property filed an action for nullification of the sale. Metrobank opposed for the
motion contending that he is not real party in interest.
ISSUE:
Whether or not petitioner has a legal personality in the suit.
HELD:
Initially, it is recognized herein petitioner as the co-assignee of the subject
real properties. However, while petitioner would be injured by the judgment in this
suit, that the petitioner has no present substantial interest to institute the annulment
of judgment proceedings and nullify the order granting the writ of possession.
Rayo would not be injured by the judgment. An ex-parte application for a writ of
possession not strictly judicial process contemplated in article 443of the new civil
code. It is a judicial proceeding for the enforcement of ones right of possession.
DISPOSITION:
Wherefore the petition is denied for lack of merit. The assailed resolutions
dated June 15, 2004 and August 23, 2004 of the Court of Appeals in CA-GR. SP
No. 83895 are hereby affirmed. Cost against the petitioner.