FACTS: Petitioner Rubberworld, Inc filed with the DOLE a notice of temporary shutdown of operation; but even before the effectivity of such, was forced to prematurely shutdown its operation. Private Respondents filed with the NLRC a petition for illegal dismissal and non- payment of separation pay. Rubberworld then filed the SEC a petition for declaration of suspension of payments with a proposed rehabilitation plan. SEC then ordered an order, stating that “all action for claims against Rubberworld Philippines, Inc. pending before any court, tribunal, office, board, body, Commission or sheriff are hereby deemed SUSPENDED.’’ Petitioner submitted to the labor arbiter a motion to suspend the proceedings invoking the SEC order. The Labor arbiter ignored the motion and thereafter rendered a decision finding Rubberworld quality of illegal shutdown ordering it to pay separation pay; and moral and exemplary damages. On appeal, the NLRC affirmed the decision with modification deleting the award for moral and exemplary damages.
ISSUE: W/N the DOLE, Labor arbiter, or NLRC may legally act on claims despite an order of the SEC suspending all actions against a company under rehabilitation by a management committee.
HELD: Yes. PD 902-A is clear that “ all action for claims against corporation, partnerships or association under management or receivership pending before any court, tribunal, board or body shall be suspended accordingly.’’ The law did not make any exception in favor of labor claims. The justification for such to enable the management committee to exercise its powers free from interference that might hinder or prevent the “rescue’’ of the debtor company. To allow the labor case to proceed would open the defeat the rescue effort of the management committee. Even if an award is given, the ruling could not enforce as long as petitioner is under management committee.
0 comments:
Post a Comment