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Tala Realty Corp vs Banco Filipino Savings & Mortgage Bank

TALA REALTY SERVICES CORP., petitioner, vs. BANCO FILIPINO SAVINGS AND MORTGAGE BANK, respondent.

G.R. No. 137980 | 2000-06-20

D E C I S I O N


YNARES-SANTIAGO, J.:

The instant Petition presents a classic example where the application of the principle of stare decisis comes into play.

The facts may be summarized as follows:

Sometime in 1979, respondent Banco Filipino Savings and Mortgage Bank faced a legal problem with respect to its branch site holdings. Republic Act No. 337, otherwise known as the General Banking Act, provides that banks may only invest in real estate up to fifty percent (50%) of their net worth.1 [Sections 25 and 34 of which provide, as follows:

"Sec. 25. Any commercial bank may purchase, hold and convey real estate for the following...