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Alemar Case Digest

This case involved a private respondent who filed a notice of strike against petitioner Alemar’s Sibal & Sons, Inc. raising charges of unfair labor practice and illegal dismissal. The Labor Arbiter ordered the petitioner to pay separation pay. The petitioner argued it could not comply as it was under rehabilitation receivership by the SEC. The NLRC ruled the Labor Arbiter's execution order had become final. The Supreme Court held that while a stay may be allowed due to receivership, the SEC order placing the petitioner into liquidation rendered the receivership proceedings ceased. As such, the petitioner's monetary obligation was long overdue and could not be delayed, though the private respondent must now present its claim to the rehabilitation receiver

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Lenel John Giban Bagunas
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41 views1 page

Alemar Case Digest

This case involved a private respondent who filed a notice of strike against petitioner Alemar’s Sibal & Sons, Inc. raising charges of unfair labor practice and illegal dismissal. The Labor Arbiter ordered the petitioner to pay separation pay. The petitioner argued it could not comply as it was under rehabilitation receivership by the SEC. The NLRC ruled the Labor Arbiter's execution order had become final. The Supreme Court held that while a stay may be allowed due to receivership, the SEC order placing the petitioner into liquidation rendered the receivership proceedings ceased. As such, the petitioner's monetary obligation was long overdue and could not be delayed, though the private respondent must now present its claim to the rehabilitation receiver

Uploaded by

Lenel John Giban Bagunas
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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Alemar’s Sibal & Sons, Inc. v. NLRC [G.R. No.

114761, January 10, 2000]


FACTS: Private respondent NLM Katipunan filed with the Dole a notice of strike raising
charges of ULP and illegal dismissal against petitioner. The charges were elevated to NLRC
for compulsory arbitration. The Labor Arbiter ordered petitioner to pay private respondent
separation pay of ½ month pay for every year of service. Private respondent filed a motion
for execution of the decision of the Labor Arbiter. The Rehabilitation Receiver of petitioner
submitted a Manifestation with Motion, alleging that petitioner was not yet in a position to
comply with the directive of the Labor Arbiter as it was still under Rehabilitation
Receivership by virtue of the order of the SEC. The Labor Arbiter granted the motion for
execution. Petitioner contends that public respondent should have denied the order of the
LA for the immediate payment of separation pay because of the order of the SEC
suspending all claims against petitioner pending before any court, tribunal or body.
However, the NLRC emphasized that the order of execution made by the LA had reached
finality and that petitioner’s succeeding motions had been filed out of time. At the time this
petition had been filed on May 4, 1984, petitioner had been placed under rehabilitation
receivership.

ISSUE: Whether or not the order of the SEC can stay the execution of judgment against
petitioner.

HELD: No. A stay of execution may be warranted by the fact that a petitioner corporation
has been placed under rehabilitation receivership. However, the Sec issued an order
approving the rehabilitation plan of petitioner and placing it under liquidation pursuant to PD
902-A. Since receivership proceedings have ceased and petitioner’s rehabilitation receiver
and liquidator, Ledesma, Saludo and Associates has been given the imprimatur to proceed
with corporate liquidation, the cited order of the Sec has been rendered functus oficio.
Petitioner’s monetary obligation to private respondent is long overdue and thus cannot
delay the satisfaction of private respondent’s claim. However, due to events subsequent to
the filing of this petition, private respondent must present its claim with the rehabilitation
receiver and liquidator in the SEC, subject to the rules on preference of credits.

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