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    Campus Rueda & Co. vs. Pacific Commercial & Co., 44 Phil. 916

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    The limited partnership Campos Rueda & Co. voluntarily filed for insolvency after failing to pay obligations to three creditors for over 30 days. The lower court denied the application, stating that a partnership's insolvency requires proving the partners themselves are insolvent. However, the Philippine statutes recognize a limited partnership as a separate juridical entity from its partners. As such, a partnership's failure to pay debts for over 30 days constitutes an act of bankruptcy allowing for an involuntary insolvency decree against the partnership itself, regardless of the partners' solvency. The court therefore reversed the lower court's judgment, declaring Campos Rueda & Co. insolvent as of December 28, 1921 based on its failure

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    Campus Rueda & Co. vs. Pacific Commercial & Co., 44 Phil. 916

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    Julio
    92 views1 page
    The limited partnership Campos Rueda & Co. voluntarily filed for insolvency after failing to pay obligations to three creditors for over 30 days. The lower court denied the application, stating that a partnership's insolvency requires proving the partners themselves are insolvent. However, the Philippine statutes recognize a limited partnership as a separate juridical entity from its partners. As such, a partnership's failure to pay debts for over 30 days constitutes an act of bankruptcy allowing for an involuntary insolvency decree against the partnership itself, regardless of the partners' solvency. The court therefore reversed the lower court's judgment, declaring Campos Rueda & Co. insolvent as of December 28, 1921 based on its failure

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    The limited partnership Campos Rueda & Co. voluntarily filed for insolvency after failing to pay obligations to three creditors for over 30 days. The lower court denied the application, stating that a partnership's insolvency requires proving the partners themselves are insolvent. However, the Philippine statutes recognize a limited partnership as a separate juridical entity from its partners. As such, a partnership's failure to pay debts for over 30 days constitutes an act of bankruptcy allowing for an involuntary insolvency decree against the partnership itself, regardless of the partners' solvency. The court therefore reversed the lower court's judgment, declaring Campos Rueda & Co. insolvent as of December 28, 1921 based on its failure

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    92 views1 page

    Campus Rueda & Co. vs. Pacific Commercial & Co., 44 Phil. 916

    Uploaded by

    Julio
    The limited partnership Campos Rueda & Co. voluntarily filed for insolvency after failing to pay obligations to three creditors for over 30 days. The lower court denied the application, stating that a partnership's insolvency requires proving the partners themselves are insolvent. However, the Philippine statutes recognize a limited partnership as a separate juridical entity from its partners. As such, a partnership's failure to pay debts for over 30 days constitutes an act of bankruptcy allowing for an involuntary insolvency decree against the partnership itself, regardless of the partners' solvency. The court therefore reversed the lower court's judgment, declaring Campos Rueda & Co. insolvent as of December 28, 1921 based on its failure

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    G.R. No.

    L-18703, August 28, 1922

    INVOLUNTARY INSOLVENCY OF CAMPOS RUEDA & CO., S. en C., appellee,

    vs.

    PACIFIC COMMERCIAL CO., ASIATIC PETROLEUM CO., and INTERNATIONAL BANKING CORPORATION,
    petitioners-appellants.

    Facts: The partnership Campos Rueda & Co. (“the Firm”) voluntarily filed an application for a judicial
    decree of insolvency in the lower court in December 1921 for failing to pay its obligations with three
    creditors for more than 30 days. The application was denied by the lower court for the reason that the
    members of the Firm were not proven to be insolvent. The lower court said that since the partners are
    personally and solidarily liable for the consequences of the transactions of the partnership, the Firm
    cannot be adjudged as insolvent so long as the partners are not alleged and proven to be insolvent.

    Issue: Whether or not limited partnerships may be adjudged as insolvent given that the partners
    themselves were not insolvent.

    Ruling: The Philippine statutes consider a limited partnership as a juridical entity for all intents and
    purposes, which personality is recognized in all its acts and contracts (art. 116, Code of Commerce). This
    being so and the juridical personality of a limited partnership being different from that of its members, it
    must, on general principle, answer for, and suffer, the consequence of its acts as such an entity capable
    of being the subject of rights and obligations. If, as in the instant case, the limited partnership of Campos
    Rueda & Co. Failed to pay its obligations with three creditors for a period of more than thirty days,
    which failure constitutes, under our Insolvency Law, one of the acts of bankruptcy upon which an
    adjudication of involuntary insolvency can be predicated, this partnership must suffer the consequences
    of such a failure, and must be adjudged insolvent.

    Although in the particular case under consideration it can be added that the liability of the limited
    partners for the obligations and losses of the partnership is limited to the amounts paid or promised to
    be paid into the common fund except when a limited partner should have included his name or
    consented to its inclusion in the firm name (arts. 147 and 148, Code of Commerce).

    Therefore, it having been proven that the partnership Campos Rueda & Co. failed for more than thirty
    days to pay its obligations to the petitioners the Pacific Commercial Co. the Asiatic Petroleum Co. and
    the International Banking Corporation, the case comes under paragraph 11 of section 20 of Act No.
    1956, and consequently the petitioners have the right to a judicial decree declaring the involuntary
    insolvency of said partnership.

    Wherefore, the judgment appealed from is reversed, and it is adjudged that the limited partnership
    Campos Rueda & Co. is and was on December 28, 1921, insolvent and liable for having failed for more
    than thirty days to meet its obligations with the three petitioners herein, and it is ordered that this
    proceeding be remanded to the Court of First Instance of Manila with instruction to said court to issue
    the proper decrees under section 24 of Act No. 1956, and proceed therewith until its final disposition.

    It is so ordered without special finding as to costs.

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