ALEMAR'S SIBAL V. NLRC (REMEDIAL)

Petitioner contends that public respondent should have denied the order of the Labor Arbiter for the immediate payment of separation pay in favor of private respondent. Petitioner insists that s stay of execution of monetary award is justified in this case because of the order of the SEC suspending all claims against petitioner pending before any court, tribunal, or body.

We note that at the time this petition had been filed, petitioner had been placed under rehabilitation receivership. Jurisprudence has established that a stay of execution may be warranted by the fact that a petitioner corporation has been placed under rehabilitation receivership. However, it is undisputed that the SEC issued an order approving the proposed rehabilitation plan of petitioner and placing it under liquidation.

Petitioner pointed out that the SEC order suspending all claims against it pending before any other court, tribunal, or body was pursuant to the rehabilitation receivership proceedings. Such order was necessary to enable the rehabilitation receiver to effectively exercise its powers free from any judicial or extra-judicial interference that might unduly hinder the rescue of the distressed company. Since receivership proceedings have ceased and petitioner's receiver and liquidator has been given the imprimatur to proceed with corporate liquidation, the cited order of the SEC has been rendered functus officio. Thus, there is no legal impediment for the execution of the decision of the Labor Arbiter for the payment of separation pay.

Considering that petitioner's monetary obligation to private respondent is long overdue and that petitioner has signified its willingness to comply with such obligation by entering into an agreement with private respondent as to the amount and manner of payment, petitioner cannot delay satisfaction of private respondent's claim. However, due to events subsequent to the filing of its petition, private respondent must present its claim with the rehabilitation receiver and liquidator of petitioner, subject to the rules on preference of credits.