Committee to be sworn and may administer oaths.
SEC. 686. Committee to be sworn and may administer oaths. — The committee appointed to appraise the estate and to allow claims as hereinbefore provided, shall act under oath, and may administer oaths to parties and witnesses upon the trial of questions before them. They may try and decide upon claims, which by law survive against executors or administrators, except claims for the possession of or title to real estate; and may examine and allow claims at their present value, which are payable at a future day, although such claims are payable in specific articles; and they may set off demands in favor of the estate against demands against the estate, and determine the balance due either way.
To notify times and places of meetings.
SEC. 687. To notify times and places of meetings. — The committee so appointed shall appoint convenient times and places for the examination and allowance of claims, and, within sixty days from the time of their appointment, shall post a notice in four public places in the province stating the times and places of their meeting, and the time limited for creditors to present their claims, and shall publish the same three weeks successively in a newspaper of general circulation in the province, and give such other notice as the court directs. The court, in the commission issued to the committee, shall designate the paper in which the notice shall be published, and the number of places in the province in which it shall be posted, and any other mode of notice which the court directs.
Vacancy in committee.
SEC. 688. Vacancy in committee. — If a member of the committee dies, removes from the Islands, refuses to act, or becomes incapacitated to perform his duties, the court may appoint another member of the committee in his place; or, if a member by reason of interest, relationship, or otherwise, be adjudged by the court an improper person to act as such committee, the court may remove him and appoint another in his place. From such removal and appointment there shall be no appeal; when it is necessary to appoint an additional member of the committee, the court may make such appointment; and no further notice shall be required of the meeting of the committee in consequence of such appointment.
Court to limit time for presenting claims.
SEC. 689. Court to limit time for presenting claims. — The court shall allow such time as the circumstances of the case require for the creditors to present their claims to the committee for examination and allowance; but not, in the first instance, more than twelve months, or less than six months; and the time allowed shall be stated in the commission. The court may extend the time as circumstances require, but not so that the whole time shall exceed eighteen months.
When time may be extended.
SEC. 690. When time may be extended. — On application of a creditor who has failed to present his claim, if made within six months after the time previously limited, or, if a committee fails to give the notice required by this chapter, and such application is made before the final settlement of the estate, the court may, for cause shown, and on such terms as are equitable, renew the commission and allow further time, not exceeding one month, for the committee to examine such claim, in which case it shall personally notify the parties of the time and place of hearing, and as soon as may be make the return of their doings to the court.
Duty of executor or administrator upon hearing before the committee.
SEC. 691. Duty of executor or administrator upon hearing before the committee. — It shall be the duty of the executor or administrator to attend the sessions of the committee and to protect the estate against the allowance of unjust claims.
Admission and exclusion of evidence.
SEC. 692. Admission and exclusion of evidence. — The competency of witnesses to testify on hearings before the committee shall be determined by the provisions of this Code in relation to the competency of witnesses in action.
Committee to report.
SEC. 693. Committee to report. — At the expiration of the time limited or as soon thereafter as they are able to complete the hearing of the claims presented, the committee shall make report of their doings to the court, with lists of the claims presented, or exhibited in offset, stating how much was allowed, and how much disallowed, with the final balance, whether in favor of the creditor or the estate; and the report shall state the manner in which notice was given to the claimants.
Committee to notify certain claimants at the time of filing report.
SEC. 694. Committee to notify certain claimants at the time of filing report. — The committee shall give notice to claimants whose claims are disallowed to the amount of twenty dollars or more, of the time of filing their report in the clerk's office, which notice shall be given personally or by letter, addressed to such claimants, at their place of residence or post-office address, mailed, postage paid, on the day of filing such report.
Claims not presented barred.
SEC. 695. Claims not presented barred. — A person having a claim against a deceased person proper to be allowed by the committee, who does not, after publication of the required notice, exhibit his claim to the committee as provided in this chapter, shall be barred from recovering such demand or from pleading the same in offset to any action, except as hereinafter provided.
Estate's claims to be offset.
SEC. 696. Estate's claims to be offset. — When a creditor against whom the deceased has claims presents a claim to the committee, the executor or administrator shall exhibit the claims of the deceased in offset to the claims of the creditor, and the committee shall ascertain and allow the balance for or against the estate, as they find the same to be.
Claims in favor of the estate and against a creditor who presents a claim for allowance against the estate shall be barred, unless so presented by the executor or administrator as an offset; but the committee shall have no jurisdiction over claims in favor of the estate, except as offsets to claims presented against the estate.
Claim of executor or administrator against an estate.
SEC. 697. Claim of executor or administrator against an estate. — If the executor or administrator has a claim against the estate he represents, he shall give notice thereof, in writing, to the court, and the court shall appoint a special administrator who shall, in the adjustment of such claim, have the same power and be subject to the same liability as the general administrator or executor in the settlement of other claims. The court may order the executor or administrator to pay the special administrator necessary funds to defend such claim.
Estate of joint debtor liable for the whole claim.
SEC. 698. Estate of joint debtor liable for the whole claim. — When two or more persons are indebted on a joint contract, or upon a judgment founded on a joint contract, and either of them dies, his estate shall be liable therefor, and it shall be allowed by the committee, as if the contract had been with him alone or the judgment against him alone. But the estate shall have the right to recover contribution from the other joint debtor.
Executor or administrator not to be sued.
SEC. 699. Executor or administrator not to be sued. — When a committee is appointed as herein provided, no action or suit shall be commenced or prosecuted against the executor or administrator upon a claim against the estate to recover a debt due from the estate; but actions to recover the seizing and possession of real estate and personal chattels claimed by the estate may be commenced against him.
Suits pending against the estate to be discontinued.
SEC. 700. Suits pending against the estate to be discontinued. — All actions commenced against the deceased person, for the recovery of money, debt, or damages, and pending at the time the committee are appointed, shall be discontinued, and the property, if any, therein attached, shall be discharged from the attachment, and the claim embraced in such action may be presented to the committee, who shall allow the party prevailing the costs of such action to the time of its discontinuance.
An executor or administrator may sue.
SEC. 701. An executor or administrator may sue. — Nothing in this chapter shall prevent an executor or administrator from commencing and prosecuting an action commenced by the deceased in his lifetime, for the recovery of a debt or claim, to final judgment, or from having execution on a judgment, and in such case the defendant may plead in offset the claims he has against the deceased, instead of presenting them to the committee, and mutual claims may be offset in such action; and if final judgment is rendered in favor of the defendant, the judgment so rendered shall be considered the true balance against the estate, as though the claim had been presented before the committee.
Such actions shall be prosecuted in the same province and same court as they would have been if brought by the deceased person while alive.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
