CEBU, Philippines - Cebu City Hall cannot close the 28 branches of BDO Unibank, Inc. here while the civil case the bank filed against the Cebu City government is pending in court.

This was the ruling of Regional Trial Court Executive Judge Gilbert Moises who said the bank’s motion for a writ of preliminary injunction is meritorious.

“As is jurisprudentially settled, a writ of preliminary injunction is issued upon the satisfaction of two requisites namely; 1) the existence of a right to be protected; and 2) acts which are violative of said right. After a careful sampling of the evidences presented as appearing on record, the court finds both requisites present in the case at bar,” reads his March 28 order.

BDO sought refuge with the court after Mayor Tomas Osmeña threatened to close its branch on Magallanes Street and for stalling the processing of its application to renew its business permit.

Osmeña has said the bank allegedly under-declared and falsified its documents to make it appear it only has P400,000 in gross sales. In his order, Moises prohibited Osmeña from issuing closure statements because the same reportedly violates the right of the bank. Moises said BDO has the right to have its business permits acted upon immediately.

“The inaction of the respondents (city) to petitioner’s (BDO) application for renewal has left petitioner and its depositors in limbo as to the fate of the branches of the bank,” the order reads.

BDO has said it has complied with all the requirements to renew its business permit for its 28 branches, which have over 200,000 depositors.

Moises said the court recognizes that the “sterling reputation is crucial to any business and even more so for a bank as large as BDO.”

“To this day, the court deems it proper and imperative that the status quo be maintained and that the respondents be enjoined from doing any of the acts mentioned in the petition while the merits of the main case of Mandamus is being heard,” the order reads.

According to BDO, the provisions of the Anti-Red Tap Act of 2007 (ARTA) mandate the action by the government agency like the city government to process its application within the prescribed period under the Citizen’s Charter.

“After a careful study of the pleadings and memoranda of both parties, the court finds that the petitioner (BDO) has indeed an ostensible right to the final relief prayed for,” the order reads.

Moises said the court cannot agree with the city’s claim that the one day period is merely a standard processing time in acting upon the application of business permit of the bank.

The city government has argued that BDO has no right to be protected by a writ of preliminary injunction because its business permit has expired on December 31, 2016.

Moises pointed out that the local government unit’s power to tax springs from the Local Government Code, which provides that in the event taxes may not have been paid correctly, the first stop of the LGU is to assess and issue notices.

“In the event that a delinquency in the payment of taxes does not exist, the same shall constitute a lien and the LGU may avail of civil or judicial remedies. The LGC does not provide for refusal of payment of taxes, nor a refusal to act upon application for business permit, and more so the closure of a business among the remedies for delinquency in the payment of taxes,” the order reads.

Moises said the city government’s failure to act upon BDO’s business permit renewal is “unwarranted.”

In a press statement, BDO said the bank looks forward for the city government to process its pending business permit applications, reiterating that it has submitted all documents the city requires.

“BDO assures its Cebu City branch personnel and clients that it has complied with legal requirements in ensuring continuing business and uninterrupted service in Cebu City, and this Injunction Order is an affirmation of its compliance,” the press statement sent to The FREEMAN reads.

The city’s lawyer, Joseph Bernaldez, they will ask the court to reconsider its ruling. The city received a copy of Moises’ nine-page order yesterday morning.

To recall, the city also filed a separate case against the bank on the same issue. (FREEMAN)