In the case of a petition for suspension of payments, Section
2 of the Insolvency Law provides that the debtor "may petition
that he be declared in the stateof suspension of payments by the
court, or the judge thereof in vacation, of the province or city
in which he has resided for six months next preceeding the filing
of this petition." Although, the SEC does not feel bound
by the provisions of the Insolvency Law on suspension of payments,
Presidential Decree No. 902-A expanding the powers of the SEC,
limits the powers of the SEC to "corporation, partnership
and all forms of association duly registered with it". This
would in effect limit petitions for suspension of payment to resident
corporation.
In the case of voluntary petitions for insolvency, the Insolvency
Law provides that an insolvent debtor "may apply to be discharged
from his debts and liabilities by petition to the Court of First
Instance [now the Reginal Trial Court] of the province or city
in which he has resided for six months next preceeding the filing
of such petition."
In the case of involuntary insolvency proceedings, Section 20
of the Insolvency Law contains the following requirements: (i)
the petition must be filed by three or more creditors, residents
fo the Philippine Islands, whose credts or demands accrude in
the Philippine Islands" and (ii) "[s]uch petition must
be filed inthe Court of First Instance [now Reginal Trial Court]
of the province or city in which the debtor resides or has his
principal place of business."
On the basis of the foregoing provisions, the primary consideration
for both petitions for suspension of payments and voluntary or
involuntary insolvency proceedings under the Insolvency Law in
the case of a corporate debtor, is where the principal office
of the corporate debtor is located at the time of filing of the
petition.
