BACOLOD City – The Twentieth Division of the Court of Appeals in Cebu City granted the 60-day Temporary Restraining Order (TRO) sought by SM Prime Holdings, Inc. (SMPHI) against the Ayala Land Inc. purchase and lease of the Negros Occidental provincial government’s 7.7-hectare prime property.
The TRO came a day after the Sangguniang Panlalawigan approved the endorsement of the Committee on Awards and Disposal of Real Property (CADRP) of the provincial government awarding the sale and lease of the property to Ayala Land.
In its resolution dated July 20 signed by Associate Justices Victoria Isabel Paredes, Edgardo Delos Santos and Ramon Paul Hernando, the CA stated that “after a careful scrutiny of the record, the court finds petitioner’s prayer for a temporary restraining order to be meritorious. Hence, so as to preserve the rights of the parties during the pendency of the instant petition, as well as to prevent the judgment that may be promulgated in this case from being rendered ineffectual, the application for the issuance of a TRO is granted.”
SMPHI filed the petition for certiorari with prayer for TRO and or writ of preliminary injunction against respondents Judge Estefanio Libutan Jr. in his capacity as Presiding Judge of Regional Trial Court Branch 50, Governor Alfredo Marañon Jr. as chairman of of the CADRP, CADRP members Patrick Lacson, Atty. Mary Ann Manayon-Lamis, Nelda Generoso, Lucille Chavez-Pines, Merlita Caelian, Enrique Pinongan, Ernie Mapa and SP members.
The CA further stated, “Consequently, respondents are required to file their comments on the petition (not a motion to dismiss), within ten 10 days from notice thereof, and to show cause why the writ of preliminary injunction prayed for by the petitioner should not be granted. Should the petition be given due course, the comments may be treated as the answer. Petitioners may file its reply within five days from receipt of the comments.”
The TRO is effective for 60 days, unless sooner lifted, conditioned upon the posting of a bond in the amount of P50 million by the petitioner.
The CA enjoined all parties concerned to refrain from enforcing and/or implementing the July 14, 2011 ruling of the RTC denying the TRO application of SMPHI.
SMPHI claims that it won the July 7 competitive bidding for the 7.7-hectare property. Such bidding was declared a failure by the CADRP because the bid price of both SMPHI and Ayala Land fell below the floor price certified by the Commission on Audit.
Thereafter, CADRP held a negotiated bidding but only Ayala Land participated, thus it was declared winner by the committee.
Both Ayala and SMPHI envision multi-billion investments in the property with Ayala offering a more attractive development package and bigger capital exposure.
Ayala Land promised to pour in P6.6 billion to develop the property which is several billions bigger that what SMPHI offered.
Ayala Land plans to build hotels, buildings for the business process outsourcing industry, and other commercial and business infrastructures in the area.