STATE INVESTMENT HOUSE VS. CA Facts: Cheng Ban Yek (CBY) is a d !estic c "#. engaged in $%siness & !

p; !an%&act%"ing edi$'e i' $ea"ing the $"and (BA)UIO OI* + and in the c nd%ct & its $%siness, it inc%""ed !i''i ns & #es s $'igati n t# -et. SIHI and A**IE. BAN/IN) CO0- 1h is the c"edit " & SIHI. CBY and SIHI ente"ed int an Ag"ee!ent & " the "est"%ct%"ing & CBY2s $'igati ns t its c"edit "s $%t e3c'%ding A**IE.. M "tgage Indent%"e 1as e3ec%ted $4 CBY and FOU0 SEAS as ! "tgag "s and SIHI as ! "tgagees in5 '5ing 67 #a"ce's & "egiste"ed 'and and i!#" 5e!ents. CBY de&a%'ted in the #a4!ent & its $'igati ns 1hich a"e d%e and de!anda$'e. SIHI n ti&ied the c"edit "2s c !!ittee & CBY that it 1 %'d instit%te #" ceedings & " the en& "ce!ent & the "e!edies %nde" the M "tgage indent%"e and 'ate" n the c !!ittee a%th "i8ed SIHI t instit%te the a##" #"iate & "ec' s%"e #" ceedings. SIHI instit%ted 1ith the 0es# ndent C %"t an acti n & " & "ec' s%"e & ! "tgage. A**IE. #"a4ed & " the dis!issa' & the c !#'aint. SIHI then ente"ed int a .EE. OF ASSI)NMENT 1ith FI* NI--ON t"ans&e""ing a'' "ights, inte"ests, c'ai!s and ca%se & acti n a"ising %t &" ! the ag"ee!ent, 1hich the 'atte" ag"eed t ass%!e a'' $'igati ns & SIHI. FI* NI--ON 'ate" n &i'ed a (M ti n & " S%$stit%ti n & -a"t4 -'ainti&& 1hich 1as ## sed $4 A**IE. n the g" %nds that it has a c %nte"c'ai! against SIHI a"ising &" ! i""eg%'a"ities, e3cesses, a$%ses and ini!ica' acts c !!ited $4 CBY. The "es# ndent c %"t (0TC)&inding n 'ega' $asis & " the $9ecti n & A**IE., the MOTION 1as g"anted. A**IE. M0 1as denied. CA: g"anted the #etiti n & " ce"ti "a"i &i'ed $4 A**IE.. Hence this #etiti n & " "e5ie1 n ce"ti "a"i.

ISSUE:

:ON the s%$stit%ti n & SIHI $4 its assignee FI* NI--ON i!#" #e"; HE*.: NE)ATIVE. Sec <=, 0%'e 7: t"ans&e" & inte"est in case & an4 t"ans&e" & inte"est, the acti n !a4 $e c ntin%ed $4 " against the "igina' #a"t4, %n'ess the c %"t %# n ! ti n di"ects the #e"s n t 1h ! the inte"est is t"ans&e""ed t $e s%$stit%ted in the acti n " 9 ined 1ith the "igina' #a"t4. It has $een he'd that a t"ans&e"ee -EN.ENTE *ITE d es n t ha5 t $e inc'%ded " i!#'eaded $4 na!e in "de" t $e $ %nd $4 9%dge!ent $eca%se the acti n " s%it !a4 $e c ntin%ed & " " against the "igina' #a"t4 " t the t"ans&e" " and sti'' $e $inding n the t"ans&e"ee. FI* NI--ON as t"ans&e"ee & SIHI2s inte"ests #endente 'ite, is n t e5en an indis#ensa$'e #a"t4 in the case.