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Phil. Trust Co., et al. vs. Mitchell, et al.

In the matter of the Involuntary Insolvency of Rafael Fernandez. PHILIPPINE TRUST COMPANY and SMITH, BELL & COMPANY, LTD., as Trustee of the properties of the San Nicolas Iron Works, Ltd., claimants-appellant, vs. L. P. MITCHELL ET AL., opponents-appellees.

G.R. No. 38398 | 1933-12-08

D E C I S I O N

MALCOLM, J. p:

The issue in this case is whether or not the claims of the Philippine Trust Company and Smith, Bell & Company, Ltd., in its capacity as trustee of the properties of the San Nicolas Iron Works, Ltd., presented in the involuntary insolvency proceedings of Rafael Fernandez, should be classified as ordinary or preferred. A resolution of the issue in turn depends on an answer to the question of whether or not claims not classified as preferred under the Insolvency Law, Act No. 1956, gain a special right of priority under the Civil Code. In passing it may be remarked that this is neither a new issue nor a new...