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DAY 13 AND 14
PRESIDENTIAL DECREE No. 1067 December 31, 1976
A DECREE INSTITUTING A WATER CODE, THEREBY REVISING AND CONSOLIDATING THE LAWS GOVERNING THE OWNERSHIP, APPROPRIATION,
UTILIZATION, EXPLOITATION, DEVELOPMENT, CONSERVATION AND PROTECTION OF WATER RESOURCES
WHEREAS, Article XIV, Section 8 of the New Constitution of the Philippines provides, inter alia, that all waters of the Philippines belong to the State;
WHEREAS, existing water legislations are piece-meal and inadequate to cope with increasing scarcity of water and changing patterns of water use;
WHEREAS, there is a need for a Water Code based on rational concepts or integrated and multipurpose management of water resources and
sufficiently flexible to adequately meet future developments;
WHEREAS, water is vital to national development and it has become increasingly necessary for government to intervene actively in improving the
management of water resources;
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers in me vested by the Constitution, do hereby
order and decree the enactment of the water Code of the Philippines of 1976, as follows:
CHAPTER I
DECLARATION OF OBJECTIVES AND PRINCIPLES
Article 1. This Code shall be known as The Water Code of the Philippines.
Article 2. The objectives of this Code are:
(a) To establish the basic principles and framework relating to the appropriation, control and conservation of water resources to achieve
the optimum development and rational utilization of these resources;
(b) To define the extent of the rights and obligations of water users and owners including the protection and regulation of such rights;
(c) To adopt a basic law governing the ownership, appropriation, utilization, exploitation, development, conservation and protection of
water resources and rights to land related thereto; and
(d) To identify the administrative agencies which will enforce this Code.
Article 3. The underlying principles of this code are:
(a) All waters belong to the State.
(b) All waters that belong to the State can not be the subject to acquisitive prescription.
(c) The State may allow the use or development of waters by administrative concession.
(d) The utilization, exploitation, development, conservation and protection of water resources shall be subject to the control and
regulation of the government through the National Water Resources Council, hereinafter referred to as the Council.
(e) Preference in the use and development of waters shall consider current usages and be responsive to the changing needs of the
country.
Article 4. Waters, as used in this Code, refers to water under the grounds, water above the ground, water in the atmosphere and the waters of the
sea within the territorial jurisdiction of the Philippines.
CHAPTER II
OWNERSHIP OF WATERS
Article 5. The following belong to the State:
(a) Rivers and their natural beds;
(b) Continuous or intermittent waters of springs and brooks running in their natural beds and the beds themselves;
(c) Natural lakes and lagoons;
(d) All other categories of surface waters such as water flowing over lands, water from rainfall whether natural, or artificial, and water
from agriculture runoff, seepage and drainage;
(e) Atmospheric water;
(f) Subterranean or ground waters; and,
(g) Seawater.
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May 6, 2003
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In Laurel v. Garcia, cited in the Decision, the Court ruled that land devoted to public use by the Department of Foreign Affairs, when no longer
needed for public use, may be declared patrimonial property for sale to private parties provided there is a law authorizing such act. Well-settled is
the doctrine that public land granted to an end-user government agency for a specific public use may subsequently be withdrawn by Congress from
public use and declared patrimonial property to be sold to private parties. R.A. No. 7227 creating the BCDA is a law that declares specific military
reservations no longer needed for defense or military purposes and reclassifies such lands as patrimonial property for sale to private parties.
Government owned lands, as long they are patrimonial property, can be sold to private parties, whether Filipino citizens or qualified private
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corporations. Thus, the so-called Friar Lands acquired by the government under Act No. 1120 are patrimonial property which even private
corporations can acquire by purchase. Likewise, reclaimed alienable lands of the public domain if sold or transferred to a public or municipal
corporation for a monetary consideration become patrimonial property in the hands of the public or municipal corporation. Once converted to
patrimonial property, the land may be sold by the public or municipal corporation to private parties, whether Filipino citizens or qualified private
corporations.
We reiterate what we stated in the Decision is the rationale for treating PEA in the same manner as DENR with respect to reclaimed foreshore
lands, thus:
To allow vast areas of reclaimed lands of the public domain to be transferred to PEA as private lands will sanction a gross violation of the
constitutional ban on private corporations from acquiring any kind of alienable land of the public domain. PEA will simply turn around, as
PEA has now done under the Amended JVA, and transfer several hundreds of hectares of these reclaimed and still to be reclaimed lands
to a single private corporation in only one transaction. This scheme will effectively nullify the constitutional ban in Section 3, Article XII of
the 1987 Constitution which was intended to diffuse equitably the ownership of alienable lands of the public domain among Filipinos,
now numbering over 80 million strong.
This scheme, if allowed, can even be applied to alienable agricultural lands of the public domain since PEA can "acquire x x x any and all kinds of
lands." This will open the floodgates to corporations and even individuals acquiring hundreds, if not thousands, of hectares of alienable lands of the
public domain under the guise that in the hands of PEA these lands are private lands. This will result in corporations amassing huge landholdings
never before seen in this country - creating the very evil that the constitutional ban was designed to prevent. This will completely reverse the clear
direction of constitutional development in this country. The 1935 Constitution allowed private corporations to acquire not more than 1,024
hectares of public lands. The 1973 Constitution prohibited private corporations from acquiring any kind of public land, and the 1987 Constitution
has unequivocally reiterated this prohibition.
Finally, the Office of the Solicitor General and PEA argue that the cost of reclaiming deeply submerged areas is "enormous" and "it would be
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difficult for PEA to accomplish such project without the participation of private corporations." The Decision does not bar private corporations
from participating in reclamation projects and being paid for their services in reclaiming lands. What the Decision prohibits, following the explicit
constitutional mandate, is for private corporations to acquire reclaimed lands of the public domain. There is no prohibition on the directors,
officers and stockholders of private corporations, if they are Filipino citizens, from acquiring at public auction reclaimed alienable lands of the
public domain. They can acquire not more than 12 hectares per individual, and the land thus acquired becomes private land.
Despite the nullity of the Amended JVA, Amari is not precluded from recovering from PEA in the proper proceedings, on a quantum meruit basis,
whatever Amari may have incurred in implementing the Amended JVA prior to its declaration of nullity.
WHEREFORE, finding the Motions for Reconsideration to be without merit, the same are hereby DENIED with FINALITY. The Motion to Inhibit and
for Re-Deliberation and the Motion to Set Case for Hearing on Oral Argument are likewise DENIED.
SO ORDERED.
EN BANC
G.R. No. 103882 November 25, 1998
REPUBLIC OF THE PHILIPPINES, petitioner,
vs.
THE HONORABLE COURT OF APPEALS AND REPUBLIC REAL ESTATE CORPORATION, respondents, CULTURAL CENTER OF THE PHILIPPINES,
intervenor.
G.R. No. 105276 November 25, 1998
PASAY CITY AND REPUBLIC REAL ESTATE CORPORATION, petitioners,
vs.
COURT OF APPEALS and REPUBLIC OF THE PHILIPPINES, respondents.
PURISIMA, J.:
At bar are two consolidated petitions for review on certiorari under Rule 45 of the Revised Rules of Court. Here, the Court is confronted with a case
commenced before the then Court of First Instance (now Regional Trial Court) of Rizal in Pasay City, in 1961, more than 3 decades back, that has
spanned six administrations of the Republic and outlasted the tenure of ten (10) Chief Justices of the Supreme Court.
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On April 24, 1959, Pasay City and RREC entered into an Agreement for the reclamation of the foreshore lands in Pasay City.
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On December 19, 1961, the Republic of the Philippines ("Republic") filed a Complaint for Recovery of Possession and Damages with Writ of
Preliminary Preventive injunction and Mandatory Injunction, docketed as Civil Case No. 2229-P before the former Court of First Instance of Rizal,
(Branch 7, Pasay City).
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On March 5, 1962, the Republic of the Philippines filed an Amended Complaint questioning subject Agreement between Pasay City and RREC
(Exhibit "P") on the grounds that the subject-matter of such Agreement is outside the commerce of man, that its terms and conditions are violative
of RA 1899, and that the said Agreement was executed without any public bidding.
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The Answers of RREC and Pasay City, dated March 10 and March 14, 1962, respectively, averred that the subject-matter of said Agreement is
within the commerce of man, that the phrase "foreshore lands" within the contemplation of RA 1899 has a broader meaning than the cited
definition of the term in the Words and Phrases and in the Webster's Third New International Dictionary and the plans and specifications of the
reclamation involved were approved by the authorities concerned.
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On April 26,1962, Judge Angel H. Mojica, (now deceased) of the former Court of First Instance of Rizal (Branch 7, Pasay City) issued an Order the
dispositive portion of which was to the following effect:
WHEREFORE, the court hereby orders the defendants, their agents, and all persons claiming under them, to refrain from
"further reclaiming or committing acts of dispossession or dispoilation over any area within the Manila Bay or the Manila Bay
Beach Resort", until further orders of the court.
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On the following day, the same trial court issued a writ of preliminary injunction which enjoined the defendants, RREC and Pasay City, their
agents, and all persons claiming under them "from further reclaiming or committing acts of dispossession."
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Thereafter, a Motion to Intervene , dated June 27, 1962, was filed by Jose L. Bautista, Emiliano Custodio, Renato Custodio, Roger de la Rosa, Belen
Gonzales, Norma Martiner, Emilia E. Paez, Ambrosio R. Parreno, Antolin M. Oreta, Sixto L. Orosa, Pablo S. Sarmiento, Jesus Yujuico, Zamora
Enterprises, Inc., Industrial and Commercial Factors, Inc., Metropolitan Distributors of the Philippines, and Bayview Hotel, Inc. stating inter alia that
they were buyers of lots in the Manila Bay area being reclaimed by RREC, whose rights would be affected by whatever decision to be rendered in
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the case. The Motion was granted by the trial court and the Answer attached thereto admitted.
The defendants and the intervenors then moved to dismiss
which reads:
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the Complaint of the Republic, placing reliance on Section 3 of Republic Act No. 5187,
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Meanwhile, the Pasay Law and Conscience Union, Inc. ("PLCU") moved to intervene , alleging as legal interest in the matter in litigation the
avowed purpose of the organization for the promotion of good government in Pasay City. In its Order of June 10, 1969, the lower court of origin
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allowed the said intervention .
On March 24, 1972, the trial court of origin came out with a Decision, disposing, thus:
WHEREFORE, after carefully considering (1) the original complaint, (2) the first Amended Complaint, (3) the Answer of Defendant Republic
Real Estate Corporation to the first Amended Complaint, (4) the Answer of Defendant Pasay City to the first Amended Complaint, (5) the
Second Amended Complaint, (6) the Answer of Defendant Republic Real Estate Corporation to the Second Amended Complaint, (7) the
Answer of Defendant Pasay City to the Second Amended Complaint, (8) the Memorandum in Support of Preliminary Injunction of Plaintiff,
(9) the Memorandum In Support of the Opposition to the Issuance of Preliminary Injunction of Defendant Pasay City and Defendant
Republic Real Estate Corporation, (10) the Answer in Intervention of Intervenors Bautista, et. al., (11) Plaintiff's Opposition to Motion to
Intervene, (12) the Reply to Opposition to Motion to Intervene of Intervenors Bautista, et. al., (13) the Stipulation of Facts by all the parties,
(14) the Motion for Leave to Intervene of Intervenor Pasay Law and Conscience Union, Inc., (15) the Opposition to Motion For Leave to
Intervene of Intervenors Bautista, et. al., (16) the Reply of Intervenor Pasay Law and Conscience Union, Inc., (17) the Supplement to
Opposition to Motion to Intervene of Defendant Pasay City and Republic Real Estate Corporation (18) the Complain in Intervention of
Intervenor Pasay Law and Conscience Union, Inc., (19) the Answer of Defendant Republic Real Estate Corporation, (20) the Answer of
Intervenor Jose L. Bautista, et. al., to Complaint in Intervention, (21) the Motion to Dismiss of Defendant Republic Real Estate Corporation,
and Intervenors Bautista, et. al., (22) the Opposition of Plaintiff to said Motion to Dismiss, (23) the Opposition of Intervenor Pasay Law and
Conscience Union, Inc., (24) the Memorandum of the Defendant Republic Real Estate Corporation, (25) the Memorandum for the
Intervenor Pasay Law and Conscience Union, Inc., (26) the Manifestation of Plaintiff filed by the Office of the Solicitor General, and all the
documentary evidence by the parties to wit: (a) Plaintiff's Exhibits "A" to "YYY- 4", (b) Defendant Republic Real Estate Corporation's Exhibits
"1-RREC" to "40-a" and (c) Intervenor Pasay Law and Conscience Union, Inc's., Exhibits "A-PLACU" to "C-PLACU", the Court hereby:
(1) Denies the "Motion to Dismiss" filed on January 10, 1968, by Defendant Republic Real Estate Corporation and Intervenors Bautista, et. al.,
as it is the finding of this Court that Republic Act No. 5187 was not passed by Congress to cure any defect in the ordinance and agreement in
question and that the passage of said Republic Act No. 5187 did not make the legal issues raised in the pleadings "moot, academic and of no
further validity or effect;" and
(2) Renders judgment:
(a) dismissing the Plaintiff's Complaint;
(b) Dismissing the Complaint in Intervention of Intervenor Pasay Law and Conscience Union, Inc.,
(c) Enjoining Defendant Republic Real Estate Corporation and Defendant Pasay City to have all the plans and specifications in the
reclamation approved by the Director of Public Works and to have all the contracts and sub-contracts for said reclamation awarded by
means of, and only after, public bidding; and
(d) Lifting the preliminary Injunction issued by the Court on April 26, 1962, as soon as Defendant Republic Real Estate Corporation and
Defendant Pasay City shall have submitted the corresponding plans and specifications to the Director of Public Works, and shall have
obtained approval thereof, and as soon as the corresponding public bidding for the award to the contractor and sub-contractor that will
undertake the reclamation project shall have been effected.
No pronouncement as to costs.
SO ORDERED. (See Court of Appeals' Decision dated January 28, 1992; pp. 6-8)
Dissatisfied with the said judgment, the Republic appealed therefrom to the Court of Appeals. However, on January 11, 1973, before the appeal
could be resolved, Presidential Decree No. 3-A issued, amending Presidential Decree No. 3, thus:
Sec. 1. Section 7 of Presidential Decree No. 3, dated September 26, 1972, is hereby amended by the addition of the following paragraphs:
The provisions of any law to the contrary notwithstanding, the reclamation of areas under water, whether foreshore or inland, shall be
limited to the National Government or any person authorized by it under a proper contract.
All reclamations made in violation of this provision shall be forfeited to the State without need of judicial action.
Contracts for reclamation still legally existing or whose validity has been accepted by the National Government shall be taken over by the
National Government on the basis of quantum meruit, for proper prosecution of the project involved by administration.
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On November 20, 1973, the Republic and the Construction Development Corporation of the Philippines ("CDCP") signed a Contract for the
Manila-Cavite Coastal Road Project (Phases I and II) which contract included the reclamation and development of areas covered by the Agreement
between Pasay City and RREC. Then, there was issued Presidential Decree No. 1085 which transferred to the Public Estate Authority ("PEA") the
rights and obligations of the Republic of the Philippines under the contract between the Republic and CDCP.
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WHEREFORE, the decision appealed from is hereby AFFIRMED with the following modifications:
1. The requirement by the trial court on public bidding and submission of RREC's plans specification to the Department Public Works and
Highways in order that RREC may continue the implementation of the reclamation work is deleted for being moot and academic;
2. Ordering the plaintiff-appellant to turn over to Pasay City the ownership and possession over all vacant spaces in the twenty-one
hectare area already reclaimed by Pasay City and RREC at the time it took over the same. Areas thereat over which permanent structures
has (sic) been introduced shall, including the structures, remain in the possession of the present possessor, subject to any negotiation
between Pasay City and the said present possessor, as regards the continued possession and ownership of the latter area.
3. Sustaining RREC's irrevocable option to purchase sixty (60%) percent of the Twenty-One (21) hectares of land already reclaimed by it,
to be exercised within one (1) year from the finality of this decision, at the same terms and condition embodied in the Pasay City-RREC
reclamation contract, and enjoining appellee Pasay City to respect RREC's option.
SO ORDERED.
On February 14, 1992, Pasay City and RREC presented a Motion for Reconsideration of such Decision of the Court of Appeals, contending, among
others, that RREC had actually reclaimed Fifty-Five (55) hectares, and not only Twenty-one (21) hectares, and the respondent Court of Appeals
erred in not awarding damages to them, movants.
On April 28, 1992, the Court of Appeals acted favorably on the said Motion for Reconsideration, by amending the dispositive portion of its
judgment of January 28, 1992, to read as follows:
WHEREFORE, the dispositive portion of our Decision dated January 28, 1992 is hereby AMENDED to read as follows:
1. The requirement by the trial court on public bidding and the submission of the RREC's plans and specification to the Department of
Public Works and Highways in order that RREC may continue the implementation of the reclamation work is deleted for being moot and
academic.
2. Ordering plaintiff-appellant to turn over to Pasay City the ownership and possession of the above enumerated lots (1 to 9).
3. Sustaining RREC's irrevocable option to purchase sixty (60%) percent of the land referred to in No. 2 of this dispositive portion, to be
exercised within one (1) year from the finality of this Decision, at the same terms and condition embodied in the Pasay City-RREC
reclamation contract, and enjoining Pasay City to respect RREC's irrevocable option.
SO ORDERED.
From the Decision and Amended Decision of the Court of Appeals aforementioned, the Republic of the Philippines, as well as Pasay City and RREC,
have come to this Court to seek relief, albeit with different prayers.
On September 10, 1997, the Court commissioned the former thirteenth Division of Court of Appeals to hear and receive evidence on the
controversy. The corresponding Commissioner's Report, dated November 25, 1997, was submitted and now forms part of the records.
On October 11, 1997, the Cultural Center of the Philippines ("CCP") filed a Petition in Intervention, theorizing that it has a direct interest in the case
being the owner of subject nine (9) lots titled in its (CCP) name, which the respondent Court of Appeals ordered to be turned over to Pasay City.
The CCP, as such intervenor, was allowed to present its evidence, as it did, before the Court of Appeals, which evidence has been considered in the
formulation of this disposition.
In G.R. No. 103882, the Republic of the Philippines theorizes, by way of assignment of errors, that:
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THE COURT OF APPEALS ERRED IN UPHOLDING THE VALIDITY OF PASAY CITY ORDINANCE NO. 158 DATED APRIL 21, 1959 AND THE
RECLAMATION CONTRACT ENTERED INTO BETWEEN PASAY CITY AND RREC;
II
THE COURT OF APPEALS ERRED IN FINDING THAT RREC HAD RECLAIMED 55 HECTARES AND IN ORDERING THE TURN-OVER TO PASAY CITY
OF THE OWNERSHIP AND POSSESSION OF NINE (9) LOTS TITLED IN THE NAME OF CCP.
In G.R. No. 105276, the petitioners, Pasay City and RREC, contend, that:
I
THE COURT OF APPEALS ERRED IN NOT DECLARING PRESIDENTIAL DECREE NO. 3-A UNCONSTITUTIONAL;
II
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It is the submission of the petitioner, Republic of the Philippines, that there are no foreshore lands along the seaside of Pasay City ; that what
Pasay City has are submerged or offshore areas outside the commerce of man which could not be a proper subject matter of the Agreement
between Pasay City and RREC in question as the area affected is within the National Park, known as Manila Bay Beach Resort, established under
Proclamation No. 41, dated July 5, 1954, pursuant to Act No. 3915, of which area it (Republic) has been in open, continuous and peaceful
possession since time immemorial.
Petitioner faults the respondent court for unduly expanding what may be considered "foreshore land" through the following disquisition:
The former Secretary of Justice Alejo Mabanag, in response to a request for an opinion from the then Secretary of Public Works and
Communications as to whether the term, "foreshore areas" as used in Section I of the immediately aforequoted law is that defined in
Webster's Dictionary and the Law of Waters so as to make any dredging or filling beyond its prescribed limit illegal, opined:
According to the basic letter of the Director of Public Works, the law of Waters speaks of "shore" and defines it thus: "that space
movement of the tide. Its interior or terrestrial limit in the line reached by highest equinoctial tides."
Webster's definition of foreshore reads as follows:
That part of the shore between high water and low-water marks usually fixed at the line to which the ordinary means tide flows: also, by
extension, the beach, the shore near the water's edge.
If we were to be strictly literal the term foreshore or foreshore lands should be confined to but a portion of the shore, in itself a very
limited area. (p. 6, Intervenors-appellees' brief).
Bearing in mind the (Webster's and Law of Waters) definitions of "shore" and of foreshore lands, one is struck with the apparent
inconsistency between the areas thus described and the purpose to which that area, when reclaimed under the provision of Republic Act
No. 1899, shall be devoted. Section I (of said Law) authorizes the construction thereat of "adequate docking and harbor facilities". This
purpose is repeated in Sections 3 and 4 of the Act.
And yet, it is well known fact that foreshore lands normally extend only from 10 to 20 meters along the coast. Not very much more if at
all. In fact certain parts in Manila bordering on Manila Bay, has no foreshore to speak of since the sea washes the sea wall.
It does not seem logical, then, that Congress had in mind. Webster's limited concept of foreshore when it enacted Republic Act No. 1899,
unless it intends that the wharves, piers, docks, etc. should be constructed parallel to the shore, which is impractical.
Since it is to be presumed that Congress could not have intended to enact an ineffectual measure not one that would lead to absurd
consequences, it would seem that it used "foreshore" in a sense wider in scope that defined by Webster. . . .
To said opinion on the interpretation of the R.A. 1899, plaintiff-appellant could not offer any refutation or contrary opinion. Neither can
we. In fact, the above construction is consistent with the "rule on context" in statutory construction which provides that in construing a
statute, the same must be construed as a whole. The particular words, clauses and phrases should not be studied as detached and
isolated expressions, but the whole and every part of the statute must be considered in fixing the meaning of any of its parts in order to
produce a harmonious whole (see Araneta vs. Concepcion, 99 Phil. 709). There are two reasons for this. Firstly, the force and significance
of particular expressions will largely depend upon the connection in which they are found and their relation to the general subject-matter
of the law. The legislature must be understood to have expressed its whole mind on the special object to which the legislative act is
directed but the vehicle for the expressions of that meaning is the statute, considered as one entire and continuous act, and not as an
agglomeration of unrelated clauses. Each clause or provision will be illuminated by those which are cognate to it and by the general tenor
of the whole statute and thus obscurities end ambiguities may often be cleared up by the most direct and natural means. Secondly effect
must be given, if it is possible, to every word and clause of the statute, so that nothing shall be left devoid of meaning or destitute of
force. To this end, each provision of the statute should be read in the light of the whole. For the general meaning of the legislature, as
gathered from the entire act, may often prevail over the construction which would appear to be the most natural and obvious on the face
of a particular clause. If is by this means that contradiction and repugnance between the different parts of the statute may be avoided.
(See Black, Interpretation of Laws, 2nd Ed., pp. 317-319).
Resorting to extrinsic aids, the "Explanatory Note" to House Bill No. 3830, which was subsequently enacted
as Republic Act No. 1899, reads:
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Before us is a petition for review on certiorari under Rule 45 of the Rules of Court, as amended, assailing the Decision of the Court of Appeals (CA)
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dated September 26, 2003, which affirmed the Decision of the Regional Trial Court (RTC), Iba, Zambales, Branch 71, promulgated on July 31, 2001
in LRC Case No. RTC-N-75-I. The CA and the trial court adjudicated Lot No. 2278-A, Cad. 652-D, Masinloc Cadastre in favor of respondent Pedro O.
Enciso, pursuant to Section 29 of Presidential Decree (P.D.) No. 1529.
The facts, as culled from the records of the case, show that on April 24, 2000, the respondent, alleging to be the owner in fee simple of a parcel of
residential land located in Barangay South Poblacion, Masinloc, Zambales, filed a petition for land registration before the RTC of Iba, Zambales. The
lot is described as follows:
A parcel of land (Lot 2278-A of the subdivision plan Csd-03-012562-D being a portion of Lot 2278, Cad. 652-D L.R.C. Rec. No.), situated in the Barrio
of South Poblacion, Municipality of Masinloc, Province of Zambales. Bounded on the NW., along line 1-2 by Sta. Lucia Street; on the NE., along line
2-3 by Capt. Albright Street; on the SE. & SW. along line 3-4-1 by Lot 2278-B of the subd. plan. Beginning at a point marked "1" on plan being N. 39
deg. 35E., 12.05 m. from BLLM.1,
Cad. 652-D.
thence N. 16 deg. 13E., 32.48 m. to point. 2;
thence S. 75 deg. 05E., 44.83 m. to point. 3;
thence S. 16 deg. 19W., 33.36 m. to point. 4;
thence N. 73 deg. 57W., 44.76 m. to point. of;
beginning; containing an area of ONE THOUSAND FOUR HUNDRED SEVENTY-FIVE (1,475) square meters. All points referred to are indicated on the
plan and are marked on the ground by P.S. cyl. conc. mons. 15 x 40 cms. Bearings; true; date of original survey; Sept. 1927-July 1928 and that of the
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subdivision survey; July 22, 1999 and was approved on Jan. 20, 2000.
The respondent averred, inter alia, that he acquired title to the said lot by virtue of an extrajudicial settlement of estate and quitclaim on March 15,
1999; the said property is not tenanted or occupied by any person other than the respondent and his family who are in actual physical possession
of the same; and the respondent and his predecessors-in-interest have been in continuous, peaceful, open, notorious, uninterrupted and adverse
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possession of the land in the concept of an owner for not less than 30 years immediately preceding the filing of the application.
Petitioner Republic of the Philippines, through the Office of the Solicitor General (OSG), opposed the application on the following grounds: (a)
neither the respondent nor his predecessors-in-interest have been in open, continuous, exclusive, and notorious possession and occupation of the
subject land since June 12, 1945 or prior thereto; (b) the respondent failed to adduce any muniment of title and/or the tax declaration with the
application to prove bona fide acquisition of the land applied for or its open, continuous, exclusive and notorious possession and occupation
thereof in the concept of owner since June 12, 1945 or prior thereto; (c) the alleged tax declaration adverted to in the application does not appear
to be genuine and the tax declarations indicate such possession to be of recent vintage; (d) the claim of ownership in fee simple on the basis of
Spanish title or grant can no longer be availed of by the respondent considering that he failed to file an appropriate application for registration
within the period of six months from February 16, 1976 as required by P.D. No. 892; and (e) the subject land is a portion of the public domain
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belonging to the Republic of the Philippines which is not subject to private appropriation.
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After ascertaining that the jurisdictional requirements for the application were done in accordance with the law during the initial hearing on
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November 9, 2000, the trial court issued an Order of Default on January 3, 2001 against all persons with the exception of the government.
The respondent presented tax receipts to show that the property was declared for taxation purposes in his name. He also testified that he acquired
the property by inheritance from his deceased father, Vicente Enciso, who died on May 18, 1991. He then immediately took possession of the
property and constructed a house thereon in 1991. On March 15, 1999, he and his siblings executed an extrajudicial settlement of estate where the
land was adjudicated in his favor.
The respondent further narrated that the property was originally owned by the Municipality of Masinloc, Zambales. On October 5, 1968, the
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municipality passed Resolution No. 71, undertaking to construct a road along the shoreline of the poblacion, but requiring landowners adjoining
the roads to share in the expenses for an inner wall adjacent to their lots. In view of this, the same resolution provided that:
WHEREAS, where the above landowners share in the construction of the roads, the same may be given the priority to acquire such additional
available areas by purchase, if such additional areas are not needed by the government for public use, the advances of the landowners as a result
of his [sic] construction (inner wall) be considered as price of the land, provided that the cost and value of the inner wall exceeds the assessed
value of the land, and if the cost of the inner wall is less than the assessed value of the land, the landowners will have to pay the corresponding
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balance to the government;
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On March 8, 1969, the Municipality of Masinloc, Zambales passed supplementary Resolution No. 102, which stated that in consideration of the
financial assistance extended by the abutting property owners, and because the government no longer needed the additional areas for public use,
the municipality was authorizing the Municipal Mayor to enter into and sign deeds of purchase between the municipality and the landowners
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concerned. Consequently, the Municipal Council of Masinloc, Zambales unanimously approved Resolution No. 102-A dated March 15, 1969,
authorizing its mayor to execute a deed of sale in favor of Honorato Edao, covering a portion of the reclaimed lots no longer needed for public
use. Honorato was thus entitled to buy the lot for his help in carrying out the project envisioned in Resolution No. 71, and after the submission of
an itemized statement of the cost of the construction of the inner wall along Sta. Lucia Street.
12
Immediately thereafter, the Municipality of Masinloc, Zambales, represented by its Mayor, P.A. Edao, executed a Deed of Absolute Sale covering
a piece of reclaimed land containing more or less 2,790 square meters in favor of Honorato Edao. The deed stated that the vendee constructed
the inner wall needed to facilitate the fabrication of a portion of Sta. Lucia Street, which was opposite his lot, and the extensions of Magsaysay and
Capt. Albright Streets at a total expense of P1,683.80. Considering that the assessed value of the lot was P2,092.50, or P408.70
more than the vendee spent for the construction of the inner wall, the vendee paid P408.70 to the vendor.
13
The respondent admitted that Honorato was his uncle, being his fathers half-brother. He further narrated that on December 9, 1980, the spouses
14
Honorato and Esperanza Edao sold the lot to Vicente B. Enciso for P2,092.50 via a Deed of Absolute Sale. On January 17, 1981, Vicente Enciso,
15
Natividad Edao Asuncion and Thelma A. Edao entered into a Deed of Partition involving the same parcel of land. Vicente was awarded one-half
of the total area of the property, 1,398 square meters, more or less; Natividad and Thelma got one-fourth each, or approximately 697.5 square
meters individually.
No cross-examination was conducted and no evidence was adduced by the government to controvert the application for registration.
16
On May 8, 2001, Director Felino M. Cortez of the Department on Registration submitted the Report of the Land Registration Authority, informing
the trial court that it was not in a position to verify whether the parcel of land subject of registration was already covered by a land patent and
previously approved isolated survey. Acting on this report, the trial court directed the Lands Management Bureau, the Community Environment
and Natural Resources Office of Iba, Zambales, and the
Department of Environment and Natural Resources Regional Executive Director for Region III, San Fernando, Pampanga, to submit a report on the
17
status of the parcel of land.
Without waiting for the final report, the trial court granted the application for registration on July 31, 2001, the dispositive portion of the decision
reads:
WHEREFORE, this Court, after confirming the Order of General Default entered into the record of this case on January 3, 2001 hereby adjudicates
Lot No. 2278-A, Cad. 652-D, Masinloc Cadastre, containing an area of 1,475 square meters, situated at Brgy. South Poblacion, Masinloc, Zambales,
Philippines, as appearing on the approved Plan No. Csd-03-012562-D (Exhibit "M") and also in the Technical Description of said lot (Exhibit "K") in
favor of the applicant whose address is at Brgy. South Poblacion, Masinloc, Zambales, Philippines, in accordance with Section 29 of Presidential
Decree No. 1529. This adjudication however is subject to the various easements/reservations provided for under pertinent laws, Presidential
Decree and/or Presidential Letters of Instruction, which should be annotated/projected in the title to be issued.
Once this decision becomes final, let the corresponding decree and title be issued.
SO ORDERED.
18
The trial court ruled that the respondent satisfactorily proved his ownership in fee simple, as well as the identity of the land sought to be titled.
Likewise, the trial court found that the respondent, as well as his predecessors-in-interest, had been in open, peaceful, continuous, public, adverse,
and under a bona fide claim of ownership. According to the trial court, there was no evidence that the subject parcel of land was within any
19
government reservation, or that the applicant was disqualified from owning real property under the Constitution.
The Republic of the Philippines appealed the case before the CA, contending that the trial court erred in granting the application despite his failure
to prove registrable title over Lot No. 2278-A.
The CA disposed of the appeal on September 26, 2003 and affirmed the decision of the trial court. The fallo of the decision reads:
WHEREFORE, premises considered, the assailed decision dated July 31, 2001 of the RTC, Branch 71 of Iba, Zambales in LRC Case No. RTC-N-75-1 is
hereby AFFIRMED.
SO ORDERED.
20
The petitioner dispensed with the filing of a motion for reconsideration and forthwith filed the instant petition.
The OSG assigned the following error to the appellate court:
THE COURT OF APPEALS ERRED ON A QUESTION OF LAW IN GRANTING RESPONDENTS PETITION FOR REGISTRATION SANS ANY SHOWING THAT
21
THE SUBJECT PROPERTY WAS PREVIOUSLY DECLARED ALIENABLE AND DISPOSABLE LANDS OF THE PUBLIC DOMAIN.
The petitioner contends that the first and primordial element in order to warrant the registration of title is to show that the land must be an
alienable and disposable land of the public domain. On this note, the petitioner believes that the respondent failed to adduce any evidence to show
that the subject land was already previously declared part of such alienable and disposable land of the public domain. Furthermore, the petitioner
34
Subject land was reclassified as residential. It was already segregated from the public domain and assumed the character of private ownership. It
was reclaimed by the Municipality of Masinloc and eventually adjudicated to Honorato Edao. The Municipality of Masinloc must have been in
possession of the subject land even before 1969 considering that it was originally surveyed way back in 1927-1928. In the exercise of its proprietary
right, the Municipality of Masinloc validly conveyed the subject land to petitioner-appellees predecessors-in-interest. Petitioner-appellees
possession and occupation of the subject land is continuous, public, adverse and uninterrupted and in the concept an owner and no other person
claimed possession and ownership of the same. Article 1137 of the Civil Code provides:
"Art. 1137. Ownership and other real rights over immovables also prescribed (sic) through uninterrupted adverse possession thereof for thirty
years, without need of titles or of good faith."
Parenthetically, petitioner-appellees possession tacked with that of his predecessors-in-interest already complied with the thirty (30)-year
requirement of open, continuous, exclusive and notorious possession required under the law.
Prescinding from the foregoing, petitioner-appellee sufficiently and satisfactorily proved his real and absolute ownership in fee simple; that he has
a registrable title over the subject land and that he complied with the requirements under the law to warrant registration of title over the subject
22
land.
The petition is meritorious.
While it is the rule that findings of fact of appellate courts are conclusive upon this Court, among the recognized exceptions is where the findings of
23
fact are not supported by the record or are conspicuously erroneous as to constitute a serious abuse of discretion. This is the situation in this
case.
Section 14(1) of P.D. No. 1529, otherwise known as the Property Registration Decree, provides:
SEC. 14. Who may apply. The following persons may file in the proper Court of First Instance an application for registration of title to land,
whether personally or through their duly authorized representatives:
(1) Those who by themselves or through their predecessors-in-interest have been in open, continuous, exclusive and notorious possession and
occupation of alienable and disposable lands of the public domain under a bona fide claim of ownership since June 12, 1945, or earlier.
Applicants for registration of title must therefore prove the following: (a) that the land forms part of the disposable and alienable lands of the
public domain; and (b) that they have been in open, continuous, exclusive,
and notorious possession and occupation of the same under a bona fide claim of ownership either since time immemorial, or since June 12, 1945. It
is not disputed that the land sought to be registered was originally part of the reclamation project undertaken by the Municipality of Masinloc,
Zambales. The prevailing rule is that reclaimed disposable lands of the public domain may only be leased and not sold to private parties. These
lands remained sui generis, as the only alienable or disposable lands of the public domain which the government could not sell to private parties
except if the legislature passes a law authorizing such sale. Reclaimed lands retain their inherent potential as areas for public use or public
24
service. The ownership of lands reclaimed from foreshore areas is rooted in the Regalian doctrine, which declares that all lands and waters of the
25
public domain belong to the State. On November 7, 1936, the National Assembly approved Commonwealth Act No. 141, also known as the Public
Land Act, compiling all the existing laws on lands of the public domain. This remains to this day the existing and applicable general law governing
the classification and disposition of lands of the public domain. The State policy prohibiting the sale of government reclaimed, foreshore and
marshy alienable lands of the public domain to private individuals continued under the 1935 Constitution.
35
Before the Court is a petition for review assailing the 21 August 2002 Decision of the Court of Appeals in CA-G.R. CV No. 66658. The Court of
3
Appeals affirmed in toto the 16 December 1999 Decision of the Regional Trial Court of Tanauan, Batangas, Branch 6 (trial court) in Land
Registration Case No. T-635.
36
12
Petitioner appealed from the trial courts Decision. Petitioner alleged that the trial court erred in granting the application for registration absent
clear evidence that the applicant and its predecessors-in-interest have complied with the period of possession and occupation as required by law.
Petitioner alleged that the testimonies of Evangelista and Torres are general in nature. Considering the area involved, petitioner argued that
additional witnesses should have been presented to corroborate Evangelistas testimony.
The Ruling of the Court of Appeals
In its 21 August 2002 Decision, the Court of Appeals affirmed in toto the trial courts Decision.
The Court of Appeals ruled that Evangelistas knowledge of the possession and occupation of the land stemmed not only from the fact that he
worked there for three years but also because he and Kabesang Puroy were practically neighbors. On Evangelistas failure to mention the name of
his uncle who continuously worked on the land, the Court of Appeals ruled that Evangelista should not be faulted as he was not asked to name his
uncle when he testified. The Court of Appeals also ruled that at the outset, Evangelista disclaimed knowledge of Fortunatos relation to Kabesang
Puroy, but this did not affect Evangelistas statement that Fortunato took over the possession and cultivation of the land after Kabesang Puroys
death. The Court of Appeals further ruled that the events regarding the acquisition and disposition of the land became public knowledge because
San Bartolome was a small community. On the matter of additional witnesses, the Court of Appeals ruled that petitioner failed to cite any law
requiring the corroboration of the sole witness testimony.
37
13
The Issues
The issues may be summarized as follows:
1. Whether the land is alienable and disposable;
2. Whether respondent or its predecessors-in-interest had open, continuous, exclusive, and notorious possession and occupation of the
land in the concept of an owner since June 1945 or earlier; and
3. Whether respondent is qualified to apply for registration of the land under the Public Land Act.
The Ruling of this Court
The petition has merit.
Respondent Failed to Prove
that the Land is Alienable and Disposable
Petitioner argues that anyone who applies for registration has the burden of overcoming the presumption that the land forms part of the public
domain. Petitioner insists that respondent failed to prove that the land is no longer part of the public domain.
14
The well-entrenched rule is that all lands not appearing to be clearly of private dominion presumably belong to the State. The onus to overturn,
by incontrovertible evidence, the presumption that the land subject of an application for registration is alienable and disposable rests with the
15
applicant.
In this case, respondent submitted two certifications issued by the Department of Environment and Natural Resources (DENR). The 3 June 1997
16
Certification by the Community Environment and Natural Resources Offices (CENRO), Batangas City, certified that "lot 10705, Cad-424, Sto.
Tomas Cadastre situated at Barangay San Bartolome, Sto. Tomas, Batangas with an area of 596,116 square meters falls within the ALIENABLE AND
17
DISPOSABLE ZONE under Project No. 30, Land Classification Map No. 582 certified [on] 31 December 1925." The second certification in the form
of a memorandum to the trial court, which was issued by the Regional Technical Director, Forest Management Services of the DENR (FMS-DENR),
stated "that the subject area falls within an alienable and disposable land, Project No. 30 of Sto. Tomas, Batangas certified on Dec. 31, 1925 per LC
No. 582."
18
The certifications are not sufficient. DENR Administrative Order (DAO) No. 20, dated 30 May 1988, delineated the functions and authorities of the
offices within the DENR. Under DAO No. 20, series of 1988, the CENRO issues certificates of land classification status for areas below 50 hectares.
The Provincial Environment and Natural Resources Offices (PENRO) issues certificate of land classification status for lands covering over 50
19
hectares. DAO No. 38, dated 19 April 1990, amended DAO No. 20, series of 1988. DAO No. 38, series of 1990 retained the authority of the CENRO
to issue certificates of land classification status for areas below 50 hectares, as well as the authority of the PENRO to issue certificates of land
20
classification status for lands covering over 50 hectares. In this case, respondent applied for registration of Lot 10705-B. The area covered by Lot
10705-B is over 50 hectares (564,007 square meters). The CENRO certificate covered the entire Lot 10705 with an area of 596,116 square meters
which, as per DAO No. 38, series of 1990, is beyond the authority of the CENRO to certify as alienable and disposable.
The Regional Technical Director, FMS-DENR, has no authority under DAO Nos. 20 and 38 to issue certificates of land classification. Under DAO No.
20, the Regional Technical Director, FMS-DENR:
1. Issues original and renewal of ordinary minor products (OM) permits except rattan;
2. Approves renewal of resaw/mini-sawmill permits;
3. Approves renewal of special use permits covering over five hectares for public infrastructure projects; and
4. Issues renewal of certificates of registration for logs, poles, piles, and lumber dealers.
Under DAO No. 38, the Regional Technical Director, FMS-DENR:
1. Issues original and renewal of ordinary minor [products] (OM) permits except rattan;
2. Issues renewal of certificate of registration for logs, poles, and piles and lumber dealers;
3. Approves renewal of resaw/mini-sawmill permits;
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39
40
In Director of Lands v. IAC, the Court allowed the land registration proceeding filed by Acme Plywood & Veneer Co., Inc. (Acme) for five parcels of
land with an area of 481,390 square meters, or 48.139 hectares, which Acme acquired from members of the Dumagat tribe. The issue in that case
was whether the title could be confirmed in favor of Acme when the proceeding was instituted after the effectivity of the 1973 Constitution which
prohibited private corporations or associations from holding alienable lands of the public domain except by lease not to exceed 1,000 hectares. The
Court ruled that the land was already private land when Acme acquired it from its owners in 1962, and thus Acme acquired a registrable title.
Under the 1935 Constitution, private corporations could acquire public agricultural lands not exceeding 1,024 hectares while individuals could
39
acquire not more than 144 hectares.
In Director of Lands, the Court further ruled that open, exclusive, and undisputed possession of alienable land for the period prescribed by law
created the legal fiction whereby the land, upon completion of the requisite period, ipso jure and without the need of judicial or other sanction
ceases to be public land and becomes private property. The Court ruled:
Nothing can more clearly demonstrate the logical inevitability of considering possession of public land which is of the character and
duration prescribed by statute as the equivalent of an express grant from the State than the dictum of the statute itself that the
possessor(s) "x x x shall be conclusively presumed to have performed all the conditions essential to a Government grant and shall be
entitled to a certificate of title x x x." No proof being admissible to overcome a conclusive presumption, confirmation proceedings would,
in truth be little more than a formality, at the most limited to ascertaining whether the possession claimed is of the required character
and length of time; and registration thereunder would not confer title, but simply recognize a title already vested. The proceedings would
not originally convert the land from public to private land, but only confirm such a conversion already effected by operation of law from
the moment the required period of possession became complete.
x x x [A]lienable public land held by a possessor, personally or through his predecessors-in-interest, openly, continuously and exclusively
for the prescribed statutory period of (30 years under The Public Land Act, as amended) is converted to private property by the mere
lapse or completion of said period, ipso jure. Following that rule and on the basis of the undisputed facts, the land subject of this appeal
was already private property at the time it was acquired from the Infiels by Acme. Acme thereby acquired a registrable title, there
40
being at the time no prohibition against said corporations holding or owning private land. x x x. (Emphasis supplied)
Director of Lands is not applicable to the present case. In Director of Lands, the "land x x x was already private property at the time it was
acquired x x x by Acme." In this case, respondent acquired the land on 8 August 1997 from Porting, who, along with his predecessors-in-interest,
has not shown to have been, as of that date, in open, continuous, and adverse possession of the land for 30 years since 12 June 1945. In short,
when respondent acquired the land from Porting, the land was not yet private property.
For Director of Lands to apply and enable a corporation to file for registration of alienable and disposable land, the corporation must have acquired
the land when its transferor had already a vested right to a judicial confirmation of title to the land by virtue of his open, continuous and adverse
41
possession of the land in the concept of an owner for at least 30 years since 12 June 1945. Thus, in Natividad v. Court of Appeals, the Court
declared:
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Sec. 2. Section 47, Chapter VIII of the same Act, as amended, is hereby further amended to read as follows:
Sec. 47. The persons specified in the next following section are hereby granted time, not to extend beyond December 31, 2020
within which to avail of the benefits of this Chapter: Provided, That this period shall apply only where the area applied for does
not exceed twelve (12) hectares: Provided, further, That the several periods of time designated by the President in accordance
with Section Forty-five of this Act shall apply also to the lands comprised in the provisions of this Chapter, but this Section shall
not be construed as prohibiting any of said persons from acting under this Chapter at any time prior to the period fixed by the
President.
Sec. 3. All pending applications filed before the effectivity of this amendatory Act shall be treated as having been filed in accordance with
the provisions of this Act.
Under RA 9176, the application for judicial confirmation is limited only to 12 hectares, consistent with Section 3, Article XII of the 1987 Constitution
that a private individual may only acquire not more than 12 hectares of alienable and disposable land. Hence, respondent, as successor-in-interest
of an individual owner of the land, cannot apply for registration of land in excess of 12 hectares. Since respondent applied for 56.4007 hectares, the
application for the excess area of 44.4007 hectares is contrary to law, and thus void ab initio. In applying for land registration, a private corporation
cannot have any right higher than its predecessor-in-interest from whom it derived its right. This assumes, of course, that the corporation acquired
the land, not exceeding 12 hectares, when the land had already become private land by operation of law. In the present case, respondent has failed
to prove that any portion of the land was already private land when respondent acquired it from Porting in 1997.
WHEREFORE, we SET ASIDE the 21 August 2002 Decision of the Court of Appeals in CA-G.R. CV No. 66658 and the 16 December 1999 Decision of
the Regional Trial Court of Tanauan, Batangas, Branch 6 in Land Registration Case No. T-635. We DENY the application for registration filed by
T.A.N. Properties, Inc.
SO ORDERED.
SECOND DIVISION
G.R. No. L-67399 November 19, 1985
REPUBLIC OF THE PHILIPPINES (The Director of Lands), petitioner,
vs.
THE INTERMEDIATE APPELLATE COURT and AVELINO LEYCO, LEANDRO LEYCO, ZARA LEYCO, JUSTINA LEYCO and FELIPA LEYCO, represented by
LEANDRO LEYCO, respondents.
Solicitor General for petitioner.
Restituto L. Opis for respondents.
MAKASIAR, C.J.:
Petition to review a decision of the Intermediate Appellate Court which affirmed in toto that of the trial court.
In LRC No. N-173 of the then Court of First Instance of Marinduque, Avelino, Leandro, Justina, Zara and Felipa all surnamed LEYCO applied for
judicial confirmation of their title to two (2) parcels of land with a combined area of 138.5413 hectares (pp. 1-9, ROA).
The Director of lands for the Republic of the Philippines opposed the petition.
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