4/30/2021 E-Library - Information At Your Fingertips: Printer Friendly " P40 Million upon the signing hereof by the parties; (a) b) P10 Million within thirty (30) days from July 5, 1993 or on or before September 3, 1993; c) P15 Million within sixty (60) days from July 5, 1993 or on or before September 3, 1993; Choithram and/or Harish Ramnani shall issue to plaintiffs postdated checks on the amounts covered by paragraph (b and c above) immediately encashable on due dates."[1] There is also a specific agreement on default by the Choithram family, thus: "6. In the event of default of defendants Ortigas and Choithram Jethmal Ramnani to pay any of the amounts within the agreed period, proceedings in execution, including hearings on valuation, shall immediately resume and plaintiff shall be entitled to enforce and execute the Supreme Court's judgment against the defendants in accordance with the terms thereof and the final and total monetary entitlements described in paragraph 1 above, less whatever amounts plaintiffs may have partially recovered from the defendants. In case of execution of the balance due Ishwar as finally determined by the Court, plaintiffs shall proceeds to first sell the subject properties mentioned in par. 6 hereof."[2] The Choithram family paid spouses Ishwar 40,000,000.00, as agreed upon. However, when the payment of the P25,000,000.00 balance became due, they defaulted and again balked at complying with their commitments under the compromise agreement. On August 3, 1993, or one day before August 4, 1993, the due date of the second payment, the Choithram family wrote the Bureau of Internal Revenue, ostensibly requesting clarification whether or not, as payors of P65 million, they should pay the government any tax. Significantly, they did not inform the BIR that Ishwar is a permanent resident alien here and that the amount he will receive under the Tripartite Agreement is not subject to withholding tax at source. In response, the BIR Commissioner, in a letter dated August 6, 1993, informed Choithram and Ortigas that the 65 million compromise settlement is subject to 30% withholding tax collectible against spouses Ishwar and at the same time constituted Choithram and Ortigas as "withholding agents." The side issue arising from the Choithram family's report to BIR of alleged nonpayment of taxes due was eventually decided in favor of spouses Ishwar. But it gave the Choithram family a convenient excuse for not complying with their obligation to pay when due the balance under the compromise agreement. On September 3, 1993, the Choithram family filed a manifestation tendering payment of the balance of P25 million as evidenced by checks payable, not to spouses Ishwar, but to the Branch Clerk of Court of the RTC. Subsequently, or particularly on September 7, 1993, or three days after the maturity date of the second set of checks, spouses Ishwar filed with the court a quo an urgent motion for immediate resumption of https://elibrary.judiciary.gov.ph/thebookshelf/showdocsfriendly/1/52364 4/9