Filipino Pipe And Foundry Corporation v. Central Bank Of The Philippines

MAKALINTAL, J.:

This is an appeal from the decision of the Court of First Instance of Manila ordering the appellant to pay the appellee P40,837.59 as refund of the margin fees paid by the latter to the former and P8,000.00 as attorneys fees and costs. In the Court below the parties filed a partial stipulation of facts, as follows: 1. That the plaintiff Filipino Pipe & Foundry Corporation is a domestic corporation duly organized and existing under the laws of the Republic of the Philippines; 2.

That the defendant Central Bank of the Philippines is a body corporate created under Republic Act No. 265 and charged with the duties of maintaining monetary stability, preserving the international value of the Philippine peso and promoting a high level of production, employment and real income in the country; 3. That on January 5, 1959, the Philippine National Bank, Manila, established "L/C No. 590051" for the account of the plaintiff in the amount of $115,203.19 in favor of the United Export Clothing Co., Inc. for the importation of Pig Iron, Foundry Coke, Firebricks, Cupola Blocks and Fireclay to be shipped from any USA or European Ports to C & F Manila, which credit was to expire originally in New York on June 23, 1959 (Annex "1", Motion to Dismiss); 4.

That on January 27, 1959, L/C No. 590051 was amended to include shipment of Centrifugal Cast Iron Pipe Machine or their Accessories and to add "and/or assignees" after beneficiary's name (Annex "2", Motion to Dismiss); 5. That on May 27, 1959, "L/C No. 590051 was amended to "extend expiry date to December 23"

(Annex "3", Motion to Dismiss); 6. That on July 16, 1959, Republic Act No. 2609 (AN ACT TO AUTHORIZE THE CENTRAL BANK OF THE PHILIPPINES TO ESTABLISH A MARGIN OVER BANKS' SELLING RATES OF FOREIGN EXCHANGE) was approved and became effective: 7. That on July 17, 1959, in accordance with Section 7 of the Republic Act No. 2609 which authorizes the Monetary Board of the Central Bank to prescribe rules and regulations, necessary to carry out the provisions of this Act, said Monetary Board also fixed the margin at 25% on the value in Philippine pesos of foreign exchange sold by Authorized Agent Banks (Annex "17", Motion to Dismiss); 8.

That on August 20, 1959, L/C No. 590051 was amended such that 'payment on shipment of centrifugal cast iron pipe machine or their accessories should be against surrender of certificates in triplicate issued by P.M. Silva representing the buyer approving the good working condition of the machine and other component parts' (Annex "4", Motion to Dismiss); 9. That on August 24, 1959, L/C No. 590051 was amended to include 'foundry equipments' in the shipment (Annex "5", Motion to Dismiss); 10. That on December 18, 1959, L/C No. 590051 was amended to 'extend expiry date on December thirty-first for negotiation purposes provided shipment made on or before December twenty-third' (Annex "10", Motion to Dismiss); 11.

That on the dates indicated below, the defendant through the Philippine National Bank, Manila, collected from the plaintiff over his protest the following amounts in the total sum of P40,837.59 representing the 25% margin fee on costs of the shipments authorized under L/C No. 590051, as amended, to wit: Date of Payment Amount of Margin fee Collected Shipment October 15, 1959 P3,827.91 Foundry equipment, pig iron, fireclay, firebricks and cupola blocks December 1, 1959 12,527.93 Foundry Coke January 29, 1960 24,481.75