Sps.

Cacayorin vs AFPMBAI
Recit Recall sabay: Petitioners applied for a loan to purchase a house. The
lender bank closed and was under receivership. The entity where petitioners
bought the property acquired documents of their loan and demanded payment
form petitioners. Petitioners did not know to whom should they pay, to the
receiver of the lender bank or to the entity that sold them the house.
Doctrine: Consignation is judicial. The civil code provides, Consignation shall be
made by depositing the thing or things due at the disposal of judicial authority.
Prior tender of payment is not necessary when 2 or more persons claim to be the
creditor.
FACTS:
Petitioners filed an application with AFPMBAI to purchase a piece of
property.
o A loan and mortgage agreement was made between the petitioners
and a Rural Bank.
o The Rural Bank issued a letter of guaranty to AFPMBAI that the
loan was approved.
o AFPMBAI issued a Deed of Absolute Sale in favor of petitioners.
o However, due to sudden turn of events, the Pag-IBIG loan facility
did not push through and the Rural Bank was placed under
receivership by the PDIC.
o AFPMBAI was able to take possession of the loan documents of
the petitioners and made oral and written demands from the
petitioners to pay for the load.
Petitioners, instead of paying, filed a case for consignation because they
did not know to whom should they pay. Kay PDIC ba or kay AFPMBAI,
ikaw, ano sa tingin mo?
o AFPMBAI filed a motion to dismiss claiming that jurisdiction should
fall with the HLURB not the RTC. Furthermore, they added that
since no prior valid tender of payment was made by petitioners, the
consignation case was fatally defective.
The RTC ruled for Petitioners.
CA reversed.
ISSUE: Whether the consignation case was the proper action?
RULING: YES!!!
Under Article 1256 of the Civil Code, the debtor shall be released from
responsibility by the consignation of the thing or sum due, without need of prior
tender of paymentwhen two or more persons claim the same right to collect.

The court finds that a case for consignation has been made out, as it now
appears that there are 2 entities which petitioners must deal with in order to fully
secure their title to the property.
Furthermore, no prior tender of payment is needed because of Article 1256.