SERG’S PRODUCTS AND GOQUIOLAY V. PCI LEASING AND FINANCE
338 SCRA 499
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.
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.