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National Electrification Adm, et al. Vs. Hon. Feliciano V. Buena Ventura, et al

NATIONAL ELECTRIFICATION ADMINISTRATION (NEA), represented by its Administrator, TEODORICO SANCHEZ, and NEA MANAGEMENT TEAM, represented by its Project Manager, DANILO CRUZ, Petitioners, versus HON. FELICIANO V. BUENAVENTURA as Judge of the RTC, Br. 27, Cabanatuan City, DOMINADOR SALUDARES and ANTONIO T. DATU, Respondents.

G.R. No. 132453 | 2008-02-14

D E C I S I O N


CARPIO MORALES, J.:

Petitioner National Electrification Administration (NEA) is a government-owned and controlled corporation exercising supervision and control over electric cooperatives pursuant to Presidential Decree No. 269, as amended.

From 1986 to 1988, the Nueva Ecija III Electric Cooperative, Inc. (NEECO III) experienced serious institutional problems due to its failure to pay its maturing bills from the National Power Corporation (NPC). To bail it out, NEA extended loans to NEECO III, to secure which it mortgaged its entire electric system or entire property to NEA.

NEECO III failed to pay its amortizations to...