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THIRD DI VISION [G.R. No. 106435. Ju ly 14, 1999.] PAMECA WOOD TREATMENT PLANT, INC., HERMINIO G. TEVES, VICTORIA V. TEVES and HIRAM DIDAY R. PULIDO , petitioners, vs. HON. COURT OF APPEALS and DEVELOPMENT BANK OF THE PHILIPPINES, responde nts . Americo H. Acosta for petitioners. Bonifacio M. Abad and Vicente Cuison for private respondent. SYNOPSIS This is a revie w on certiorari of a judgment of the Court of Appeals affirming in toto the decision of the Regional Trial Court of Makati to award respondent bank's deficiency claim, arising from a loan secured by a chattel mortgage. The Co urt denie d the p etition. It held that sinc e the Chattel Mortga g e La w bars the creditor-mortgagee from retaining the excess of the sale proceeds, there is a corollary obligation on the part of the debtor-mortgagor to pay the deficiency in case of a reduction in the price at public auction. As to petitioners' contention that the public auction sale is void on ground of fraud and inadequacy of price, the Court ruled that parties may not bring on appeal issues that w ere not raised on tri al. P etitioners never assailed the vali dity of the sale in the RTC and only in the Court of Appeals did they attempt to prove inadequacy of price. Moreover, fraud is a serious allegation that requires full and convincing evidence and may not be inferred from the lone circumstance that it was only respondent bank that bid in the sale of the foreclosed properties. TAaI DH SYLLABUS 1. CIVIL LA W; CHA TT EL MOR TGAGE L A W (ACT NO . 1508, AS AMENDED); DEBTOR-MORTGAGOR BARRED FROM RETAINING EXCESS OF SALE PROCEEDS AND OBLIGED TO PAY DEFICIENCY IN CASE OF REDUCTION IN PRICE AT PUBLIC AUCTION. — It is clear from Sec tion 14 of Act No. 1508, as amended that t he effects of forec losure under the Chatt el Mort ga ge L aw run i nco nsistent w ith those of pled ge under Article 2115. Whereas, in pledge, the sale of the thing pledged extinguishes the entire principal obligation, such that the pledgor may no longer recover proceeds of the sale in excess of the amount of the principal obligation, Section 14 of the Chattel Mortgage Law expressly entitles the mortgagor to the balance of the proceeds, upon satisfaction of the principal obligation and costs. Since the Chattel Mortgage Law bars the creditor-mortgagee from retaining the excess of the sale proceeds there is a corollary obligation on the part of the debtor-mortgagee to pay

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