The Court of Appeals (CA) ruled that there was no grave abuse of discretion on the part of the Regional Trial Court of Makati (RTC) Branch 146 when it denied for lack of jurisdiction the application for temporary restraining order (TRO)/injunction filed by Pacific Rehouse Corp., Forum Holdings Corp., East Asia Oil Company, Inc., Pacific Concorde Corp., and Mizpah Holdings, Inc. (Pacific Rehouse et al.) against the Philippine Deposit Insurance Corporation (PDIC) and the closed Export and Industry Bank (EIB) that aimed to stop the bidding for the rehabilitation of the shuttered bank.

PDIC President Valentin A. Araneta said that this affirmed the PDIC’s authority as Receiver of closed banks under the law.

The same RTC also denied the motion for reconsideration filed by Pacific Rehouse et al., citing that the RTC has no authority to restrain or enjoin the PDIC as receiver of EIB, in accordance with Republic Act 3591, as amended or the PDIC Charter. The denial of the TRO/injunction application was elevated to the CA by petitioners Pacific Rehouse et al. The appellate court’s Special Fifth Division, in its decision dated May 7, 2013, denied the petition of Pacific Rehouse et al. against RTC Branch 146, and ruled that the RTC order was correct.

The petitioners earlier sued the stock brokerage subsidiary of EIB, E-Securities, and demanded the return of more than 32 million DMCI shares which the former sold without the petitioners’ consent. The courts had earlier ruled that EIB and E-Securities are two different entities.

The bidding for the rehabilitation of EIB failed in October 2012 and again in March 2013 due to the failure of any qualified investor to bid. The Monetary Board on April 4, 2013 directed the PDIC to proceed with the liquidation of EIB after it was determined that the bank could no longer be rehabilitated. The PDIC, as Liquidator of EIB, is set to file a petition for assistance in the liquidation of EIB with the liquidation court.