SERG’S PRODUCTS AND GOQUIOLAY V. PCI  LEASING  AND FINANCE

338 SCRA 499

FACTS:

PCI  filed  a  case  for  collection  of  a  sum  of  money  as  well  as  a  writ  of replevin  for  the  seizure  of  machineries,  subject  of  a  chattel  mortgage executed by petitioner in favor of PCI.
 
Machineries  of  petitioner  were  seized  and  petitioner  filed  a  motion  for special protective order.  It asserts that the machineries were real property and could not be subject of a chattel mortgage.
 

HELD:

The  machineries  in  question  have  become  immobilized  by  destination because they are essential and principal elements in the industry, and thus have become immovable in nature.
 
Nonetheless, they are still proper subjects for a chattel mortgage.
 
Contracting parties may validly stipulate that a real property be considered as  personal.    After  agreement,  they  are  consequently  estopped  from claiming otherwise.