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GSIS vs. Hon. V. A. Pacquing, et al.

GOVERNMENT SERVICE INSURANCE SYSTEM, Petitioner, versus HON. VICENTE A. PACQUING, Presiding Judge, Branch 28 and MARIO ANACLETO M. BA?EZ, JR., Clerk of Court, RTC, San Fernando City, La Union, Respondents.

A.M. No. RTJ-04-1831 (Formerly OCA IPI No. 99-796-RTJ) | 2007-02-02

R E S O L U T I O N
 

CORONA, J.

In 1971, Bengson Commercial Building, Inc. (Bengson) borrowed P4,250,000 from petitioner Government Service Insurance System (GSIS), secured by real estate and chattel mortgages. When Bengson defaulted in the payment of the amortizations, petitioner extrajudicially foreclosed the mortgaged properties and sold them at public auction where it emerged as the highest bidder.

In 1977, Bengson filed an action in the Regional Trial Court (RTC) of San Fernando, La Union, Branch 26[1] to annul the extrajudicial foreclosure. The trial court, through Judge Antonio Fineza, declared the foreclosure void and directed...