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Monday, February 21, 2005
High court upholds sale of RP shipyard
THE Supreme Court has ruled in favor of the sale of the National Government's 87.67 percent share, worth over P2 billion, in the Philippine Shipyard and Engineering Corp. to Kawasaki-Philyards Holdings, Inc.
In a 32-page decision dated January 31, 2005, the SC's Special First Division denied the motion for reconsideration of petitioner J.G. Summit Holdings Inc. to elevate the case to the SC en banc.
On September 24, 2003, the SC's Special First Division issued a resolution in upholding Kawasaki's acquisition of the disputed shares in Philseco. But J.G. summit appealed the ruling and asked that it be considered by the high court en banc.
"Again, we emphasize that a decision or resolution of a division is that of the Supreme Court and the court en banc is not an appellate court to which decisions or resolutions of a division may be appealed," the SC said.
The SC added that it found "no basis to elevate this case to the court en banc."
In rejecting J.G. Summit's motion, the High Tribunal said the case does not belong to those that can be elevated to the en banc since the case did not involve novel questions of law, having been decided on the basis of the basic principles of the right of first refusal in commercial and civil law.
The case began in December 1993 when J.G. Summit submitted the highest bidding for the shares. However, the shares were awarded to Kawasaki after the firm exercised its right to top by five percent the highest bid.
The right to top was given to Kawasaki in exchange for its right of first refusal to the same shares under its 1977 Joint Venture Agreement with the National Investment and Development Corporation for the construction, operation, and management of what eventually became Philseco.
J.G. Summit assailed before the CA the legal basis of the award of the disputed shares to Kawasaki and the firm's right to top the highest bid. The CA ruled against J.G. Summit.
On November 2000, the SC reversed the CA's ruling but upon a motion for reconsideration, the high court ruled on September 24, 2003 affirming the decision of the appellate court.
In its September 2003 ruling, the SC held that Philseco is not a public utility subject to national requirement because a shipyard is not a public utility. (Benjamin B. Pulta)
(February 21, 2005 issue)
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