BUSORG DIGEST - PRELIM

2 It having been proven that the partnership Campos Rueda & Co. failed for
G.R. No. L-18703 August 28, 1922 more than thirty days to pay its obligations to the petitioners the Pacific
INVOLUNTARY INSOLVENCY OF CAMPOS RUEDA & CO., S. en C., appellee, Commercial Co. the Asiatic Petroleum Co. and the International Banking
vs. Corporation, the case comes under paragraph 11 of section 20 of Act No.
PACIFIC COMMERCIAL CO., ASIATIC PETROLEUM CO., and INTERNATIONAL 1956, and consequently the petitioners have the right to a judicial decree
BANKING CORPORATION, petitioners-appellants. declaring the involuntary insolvency of said partnership.
The limited partnership Campos Rueda & Co. is and was on December 28,
PETITIONERS- have a right to a judicial degree declaring the involuntary 1921, insolvent and liable for having failed for more than thirty days to meet
insolvency of Campos Rueda. its obligations with the three petitioners herein.

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.