Yuseco v. PDIC, as statutory liquidator of Unitrust Bank, G.R. No. 217890

 

According to Section 30 of the NCBA, the determination of the propriety of receivership or liquidation proceedings is under the exclusive prerogative of the Monetary Board. The RTC, acting as liquidation court, has no power to overrule the findings of the MB. As a liquidation court, the power of the RTC is limited to adjudicating claims against the institution, assisting the enforcement of individual liabilities of stockholders and deciding on essential issues relevant to the liquidation plan. In the case at bar, the RTC, acting as liquidation court, did not have jurisdiction to decide on the propriety and validity of the proceedings. The trial court failed to consider Sec. 30 of the NCBA when it decided on the validity of the proceeding. Hence, the RTC committed grave abuse of discretion when it ordered the PDIC to cease and desist in the liquidation proceeding.