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China Banking Corp. vs. Dyne-Sem etc

CHINA BANKING CORPORATION, Petitioner, versus DYNE-SEM ELECTRONICS CORPORATION, Respondent.

G.R. No. 149237 | 2006-07-11

SECOND DIVISION

D E C I S I O N 

CORONA, J.: 

On June 19 and 26, 1985, Dynetics, Inc. (Dynetics) and Elpidio O. Lim borrowed a total of P8,939,000 from petitioner China Banking Corporation. The loan was evidenced by six promissory notes.[1] 

The borrowers failed to pay when the obligations became due. Petitioner consequently instituted a complaint for sum of money[2] on June 25, 1987 against them. The complaint sought payment of the unpaid promissory notes plus interest and penalties. 

Summons was not served on Dynetics, however, because it had already closed down. Lim, on the other hand, filed his answer on December 15,...