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Chartered Bank of India et al. vs. C.A. Imperial

CHARTERED BANK OF INDIA, AUSTRALIA AND CHINA, HONGKONG & SHANGHAI BANKING CORPORATION, and W. F. STEVENSON & CO., LTD., Plaintiffs, v. C. A. IMPERIAL, Judge of the Court of First Instance of Manila, and PHILIPPINE NATIONAL BANK, Defendants. Gibbs, McDonough & Johnson, for plaintiff Chartered Bank of India, Australia and China. Fisher & DeWitt for plaintiffs Hongkong & Shanghai Banking Corporation and W. F. Stevenson & Co. Roman J. Lacson for defendant Philippine National Bank. Crossfield & O’Brien for assignee Henry Hunter Bayne.

G.R. No. 17222 | 1921-03-15

SYLLABUS
 

1. INSOLVENCY; ACTION TO RECOVER DEBT; GENERAL RULE; EXCEPCION. — While the general rule is that all actions pending against a debtor, adjudged insolvent in an insolvency proceeding, must be suspended upon the adjudication of insolvency, yet, to this general rule there is an exception, and that is that the action of a creditor holding a mortgage, pledge or lien, or who has obtained an attachment or execution upon the property mortgaged for the security of his credit, is exempt from the operation of this rule, and the court has no power to suspend said action or dissolve said attachment, unless the creditor voluntarily...