PROPERTY LAW
Serg’s Products,
Inc. v. PCI Leasing and Finance Inc.
G.R. No. 137705, August 22, 2000
Facts:
PCI Leasing and
Finance Inc. filed a case for collection of a sum of money as well as a writ of
replevin for the seizure of machineries subjected for a chattel mortgage
executed by the petitioner Serg’s Products, Inc in favor of the former.
Petitioner filed a
motion for special protective order. It asserts that machineries were real
property and could not be subject of chattel mortgage.
Issue:
Whether or not the
subject machineries are real property and could not be subject of a chattel
mortgage.
Ruling:
The machineries in
question have become immobilized by destination because they are essential and
principal elements in the industry and, thus, have become immovable in nature.
Nonetheless, they are still proper subjects for a chattel mortgage.
Contracting parties
may validly stipulate that a real property be considered as personal. After
such agreement, they are consequently estopped from claiming otherwise.
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