INJUNCTION

AIR MATERIEL WING SAVINGS AND LOAN ASSOCIATION, INC v. Manay

G.R. No. 175338, October 9, 2007
An injunction or restraining order must be obeyed while it remains in full force and effect
until the injunction or restraining order has been set aside, vacated, or modified by the
court which granted it, or until the order or decree awarding it has been reversed on appeal. The
injunction must be obeyed irrespective of the ultimate validity of the order, and no matter how
unreasonable and unjust the injunction may be in its terms.
As correctly claimed by the petitioners, we declared in the early case of Auyong Hian v. Court of
Tax Appeals] that a restraining order, like an injunction, operates upon a person. It is granted in
the exercise of equity jurisdiction and has no in rem effect to invalidate an act done in contempt
of an order of the court except where by statutory authorization, the decree is so framed as to
act in rem on property. However, in the same case, we also held that the act is ordinarily valid
and legally effective, except as to the person who obtained the injunction and those claiming
under him, and as to them, the act is valid unless and until they attack it in a proper manner.
Stated in another way, transfers and contracts, or agreements in violation of injunction are
invalid as to the complainant or those claiming under him and may be set aside except as
against innocent third persons or when it appears on final hearing that there was no ground for
granting injunction.[40] Clearly, there is no proscription to invalidating the act, but only with
respect to the parties. The effect of invalidity shall in no way apply to persons who do not have
notice of the existence and enforcement of the injunction/restraining order.

JURISDICTION IN INDIRECT CONTEMPT

Power of Securities and Exchange Commission