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Power Commercial and Industrial Corporation (PCIC) vs. Court of Appeals

POWER COMMERCIAL AND INDUSTRIAL CORPORATION, petitioner vs. COURT OF APPEALS, SPOUSES REYNALDO and ANGELITA R. QUIAMBAO and PHILIPPINE NATIONAL BANK, respondents.

G.R. No. 119745 | 1997-06-20

D E C I S I O N

PANGANIBAN, J:

Is the seller's failure to eject the lessees from a lot that is the subject of a contract of sale with assumption of mortgage a ground (1) for rescission of such contract and (2) for a return by the mortgagee of the amortization payments made by the buyer who assumed such mortgage?

Petitioner posits an affirmative answer to such question in this petition for review on certiorari of the March 27, 1995 Decision 1 of the Court of Appeals, Eighth Division, in CA-G.R. CV Case No. 32298 upholding the validity of the contract of sale with assumption of mortgage and absolving the mortgagee from the liability of...