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Abundio Barayoga, et al. vs. Asset Privatization Trust

ABUNDIO BARAYOGA and BISUDECO-PHILSUCOR CORFARM WORKERS UNION (PACIWU CHAP-TPC), Petitioners, versus ASSET PRIVATIZATION TRUST,* Respondent.

G.R. No. 160073 | 2005-10-24

D E C I S I O N 


PANGANIBAN, J.: 


Responsibility for the liabilities of a mortgagor towards its employees cannot be transferred via an auction sale to a purchaser who is also the mortgagee-creditor of the foreclosed assets and chattels. Clearly, the mortgagee-creditor has no employer- __________________ 

* The Privatization and Management Office has succeeded APT. Comment, p. 1; rollo, p. 480. 

employee relations with the mortgagor's workers. The mortgage constitutes a lien on the determinate properties of the employer-debtor, because it is a specially preferred credit to which the worker's monetary claims is deemed...