Board Of Liquidators v. Floro

J.B.L., J.:

From the order of the Court of First Instance of Manila, dated August 10, 1955, denying its petition to exclude certain pieces of steel matting from the assets of the insolvent M. P. Malabanan, the Board of Liquidators appealed to the Court of Appeals. The latter certified the case to this Court on the ground that only questions of law are involved. The Board of Liquidators (hereinafter referred to as the Board) is an agency of the Government created under Executive Order No. 372 (November 24, 1950), and, pursuant to Executive Order No. 377 (December 1, 1950), took over the functions of the defunct Surplus Property Liquidating Committee.

On June 14, 1952 Melecio Malabanan entered into an agreement with the Board for the salvage of surplus properties sunk in territorial waters off the provinces of Mindoro, La Union, and Batangas (Exhibit "A"). By its terms, Malabanan was to commence operations within 30 days from execution of said contract, which was to be effective for a period of one (1) year from the start of operations, extendible for a total period of not more than six (6) months. On June 10, 1953, Malabanan requested for an extension of one (1) year for the salvage in waters of Mindoro and Batangas; and the Board extended the contract up to November 30, 1953.

On November 18, 1953, Malabanan requested a second extension of one more year for the waters of Occidental Mindoro, and Board again extended the contract up to August 31, 1954. Malabanan submitted a recovery report dated July 26, 1954, wherein it is stated that he had recovered a total of 13,107 pieces of steel mattings, as follows: 1. December, 1953-April 30, 1954 2,5552 2.

May 1, 1954-June 30, 1954 10,552