4/7/2021
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THIRD DIVISION
[ G.R. No. 197022, January 15, 2020 ]
PHILIPPINE-JAPAN ACTIVE CARBON CORPORATION, PETITIONER,
VS. HABIB BORGAILY, RESPONDENT.
DECISION
CARANDANG, J.:
Before Us is a Petition for Review on Certiorari[1] filed by petitioner Philippine-Japan
Active Carbon Corporation assailing, the Decision[2] dated Feb1uary 25, 2011 of the
Court of Appeals (CA) in CA-G.R. SP No. 01315 dismissing the complaint of petitioner
for lack of jurisdiction.
Antecedents
On July 17, 2002, Philippine-Japan Active Carbon Corporation (petitioner) leased two
apartment units from Habib Borgaily (respondent) for P15,000.00 each unit. The two
lease contracts[3] have a lease period from August 1, 2002 to August 1, 2003. To
secure faithful compliance of the obligations of petitioner under the lease contracts, a
security deposit was required, to wit:
19. Upon signing hereof, the LESSEE shall pay a deposit of FORTY FIVE
THOUSAND PESOS (P45,000.00) as a security for the faithful performance
by the LESSEE of his obligations herein provide[d], as well as to answer for
any liability or obligation that the LESSEE may incur to third parties arising
from or regarding the use of the subject premises. Accordingly, said deposit
may not be applied to any rental due under this contract and shall be
refunded to the LESSEE only upon termination hereof after ascertaining that
the latter has no further obligations under this contract or to any person or
entity from or regarding the use of the premises.[4]
Petitioner deposited the amount of P90,000.00 as security deposit for the two
apartment units.
The lease contract was not renewed after the expiration of the lease on August 1, 2003.
However, petitioner still occupied the premises until October 31, 2003.
After vacating the premises, petitioner asked respondent to return the amount of
P90,000.00. Petitioner alleged that it has no outstanding obligation to any person or
entity relative to the use of the apartment units to which the security deposit may be
held accountable.
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