Facts:

On January 5, 1993, Naguit filed a petition for registration of title of a parcel of land. The application
sought a judicial confirmation of imperfect title over the land.

The public prosecutor, appearing for the government, and Angeles opposed the petition. The court issued
an order of general default against the whole world except as to Angeles and the government.

The evidence revealed that the subject parcel of land was originally declared for taxation purposes in the
name of Urbano in 1945. Urbano executed a Deed of Quitclaim in favor of the heirs of Maming, wherein
he renounced all his rights to the subject property and confirmed the sale made by his father to Maming
sometime in 1955 or 1956. Subsequently, the heirs of Maming executed a deed of absolute sale in favor
of respondent Naguit who thereupon started occupying the same.

Naguit constituted Blanco, Jr. as her attorney-in-fact and administrator. The administrator introduced
improvements, planted trees in addition to existing coconut trees which were then 50 to 60 years old, and
paid the corresponding taxes due on the subject land.

Naguit and her predecessors-in-interest had occupied the land openly and in the concept of owner
without any objection from any private person or even the government until she filed her application for
registration.

The OSG argued that the property which is in open, continuous and exclusive possession must first be
alienable. Since the subject land was declared alienable only on October 15, 1980, Naguit could not have
maintained a bona fide claim of ownership since June 12, 1945, as required by Section 14 of the Property
Registration Decree, since prior to 1980, the land was not alienable or disposable.

The OSG suggested an interpretation that all lands of the public domain which were not declared alienable
or disposable before June 12, 1945 would not be susceptible to original registration, no matter the length
of unchallenged possession by the occupant.

Issue:

Whether or not it is necessary under Section 14(1) of the Property Registration Decree that the subject
land be first classified as alienable and disposable before the applicants possession under a bona fide
claim of ownership could even start.

Held:

Section 14 of the Property Registration Decree, governing original registration proceedings, provides:

SECTION 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.

(2) Those who have acquired ownership over private lands by prescription under the provisions of existing
laws.

There are three obvious requisites for the filing of an application for registration of title under Section
14(1)

1. that the property in question is alienable and disposable land of the public domain;

2. that the applicants by themselves or through their predecessors-in-interest have been in open,
continuous, exclusive and notorious possession and occupation, and;

3. that such possession is under a bona fide claim of ownership since June 12, 1945 or earlier.

The OSG's interpretation would render paragraph (1) of Section 14 virtually inoperative and even
precludes the government from giving it effect even as it decides to reclassify public agricultural lands as
alienable and disposable. The unreasonableness of the situation would even be aggravated considering
that before June 12, 1945, the Philippines was not yet even considered an independent state.

The more reasonable interpretation of Section 14(1) is that it merely requires the property sought to be
registered as already alienable and disposable at the time the application for registration of title is filed. If
the State, at the time the application is made, has not yet deemed it proper to release the property for
alienation or disposition, the presumption is that the government is still reserving the right to utilize the
property; hence, the need to preserve its ownership in the State irrespective of the length of adverse
possession even if in good faith. However, if the property has already been classified as alienable and
disposable, as it is in this case, then there is already an intention on the part of the State to abdicate its
exclusive prerogative over the property.

In this case, the 3 requisites for the filing of registration of title under Section 14(1) had been met by
Naguit.

1. The parcel of land had been declared alienable;

2. Naguit and her predecessors-in-interest had been in open, continuous, exclusive and notorious
possession and occupation of the land evidenced by the 50 to 60-year old trees at the time she
purchased the property;
3. as well as the tax declarations executed by the original owner Urbano in 1954, which strengthened
one's bona fide claim of ownership.