BUSORG DIGEST - PRELIM

2
G.R. No. L-18703

August 28, 1922

INVOLUNTARY INSOLVENCY OF CAMPOS RUEDA & CO., S.

en
C., appellee,
vs.
PACIFIC COMMERCIAL CO., ASIATIC PETROLEUM CO., and
INTERNATIONAL BANKING CORPORATION, petitionersappellants.

PETITIONERS- have a right to a judicial degree declaring the

involuntary insolvency of Campos Rueda.
The question raised in this case is not purely moot one.
The fact that a man was insolvent on a certain day does not
justify an inference that he was sometime prior thereto.

A decree of insolvency begins to operate on the date it is issued.

It is one thing to adjudge Campos Rueda insolvent in December,
1921, (this case) and another to declare it insolvent in July,
1922 (motion).

This limited partnership was, and is, indebted to the appellants

in various sums amounting to not less than P1,000, which
were not paid more than thirty days prior to the date of the
filing by the petitioners of the application for involuntary
insolvency.

ISSUE:
Whether or not a limited partnership (appellee) which has failed
to pay its obligation with three creditors for more than thirty
days, may be held to have committed an act of insolvency,
and thereby be adjudged insolvent against its will.
A limited partnership is a juridical entity for all intents and
purposes, which personality is recognized in all its acts and
contracts.
This juridical personality of a limited partnership being different
from that of its members must, answer for, and suffer, the
consequence of its acts as such an entity capable of being the
subject of rights and obligations.
If the limited partnership of Campos Rueda & Co. Failed to pay
its obligations with three creditors for a period of more than
thirty days, which failure constitutes, under our Insolvency
Law, one of the acts of bankruptcy upon which an adjudication
of involuntary insolvency can be predicated, this partnership
must suffer the consequences of such a failure, and must be
adjudged insolvent.
It having been proven that the partnership Campos Rueda & Co.
failed for more than thirty days to pay its obligations to the
petitioners the Pacific Commercial Co. the Asiatic Petroleum
Co. and the International Banking Corporation, the case comes
under paragraph 11 of section 20 of Act No. 1956, and
consequently the petitioners have the right to a judicial decree
declaring the involuntary insolvency of said partnership.

The limited partnership Campos Rueda & Co. is and was on

December 28, 1921, insolvent and liable for having failed for
more than thirty days to meet its obligations with the three
petitioners herein.