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L-630 November 15, 1947 which should have been granted outright, and reference is
made to the ruling laid down by this Court in another case
to the effect that a court should not pass upon a
constitutional question if its judgment may be made to rest
ALEXANDER A. KRIVENKO, petitioner-appellant,
upon other grounds. There is, we believe, a confusion of
vs. ideas in this reasoning. It cannot be denied that the
constitutional question is unavoidable if we choose to
THE REGISTER OF DEEDS, CITY OF MANILA, decide this case upon the merits. Our judgment cannot to
respondent and appellee. be made to rest upon other grounds if we have to render
any judgment at all. And we cannot avoid our judgment
simply because we have to avoid a constitutional question.
Gibbs, Gibbs, Chuidian and Quasha of petitioner- We cannot, for instance, grant the motion withdrawing the
appellant. appeal only because we wish to evade the constitutional;
issue. Whether the motion should be, or should not be,
First Assistant Solicitor General Reyes and Solicitor granted, is a question involving different considerations
Carreon for respondent-appellee. now to be stated.
Marcelino Lontok appeared as amicus curies.
It is true that in section 9 of said Commonwealth Act No. Such legislative interpretation is also in harmony with the
141, "alienable or disposable public lands" which are the interpretation given by the Executive Department of the
same "public agriculture lands" under the Constitution, are Government. Way back in 1939, Secretary of Justice Jose
classified into agricultural, residential, commercial, Abad Santos, in answer to a query as to "whether or not
industrial and for other puposes. This simply means that the phrase 'public agricultural lands' in section 1 of Article
the term "public agricultural lands" has both a broad and a XII (now XIII) of the Constitution may be interpreted to
particular meaning. Under its broad or general meaning, include residential, commercial, and industrial lands for
as used in the Constitution, it embraces all lands that are purposes of their disposition," rendered the following
neither timber nor mineral. This broad meaning is short, sharp and crystal-clear opinion:
particularized in section 9 of Commonwealth Act No. 141
which classifies "public agricultural lands" for purposes of
alienation or disposition, into lands that are stricly
Section 1, Article XII (now XIII) of the Constitution
agricultural or actually devoted to cultivation for classifies lands of the public domain in the Philippines into
agricultural puposes; lands that are residential;
agricultural, timber and mineral. This is the basic
commercial; industrial; or lands for other purposes. The classification adopted since the enactment of the Act of
fact that these lands are made alienable or disposable Congress of July 1, 1902, known as the Philippine Bill. At
under Commonwealth Act No. 141, in favor of Filipino
the time of the adoption of the Constitution of the
citizens, is a conclusive indication of their character as Philippines, the term 'agricultural public lands' and,
public agricultural lands under said statute and under the therefore, acquired a technical meaning in our public laws.
Constitution. The Supreme Court of the Philippines in the leading case
of Mapa vs. Insular Government, 10 Phil., 175, held that
the phrase 'agricultural public lands' means those public
It must be observed, in this connection that prior to the lands acquired from Spain which are neither timber nor
Constitution, under section 24 of Public Land Act No. mineral lands. This definition has been followed by our
2874, aliens could acquire public agricultural lands used Supreme Court in many subsequent case. . . .
for industrial or residential puposes, but after the
Constitution and under section 23 of Commonwealth Act
No. 141, the right of aliens to acquire such kind of lands is Residential commercial, or industrial lots forming part of
completely stricken out, undoubtedly in pursuance of the the public domain must have to be included in one or more
constitutional limitation. And, again, prior to the of these classes. Clearly, they are neither timber nor
Constitution, under section 57 of Public Land Act No.
mineral, of necessity, therefore, they must be classified as
2874, land of the public domain suitable for residence or
agricultural.
industrial purposes could be sold or leased to aliens, but
after the Constitution and under section 60 of
Commonwealth Act No. 141, such land may only be
leased, but not sold, to aliens, and the lease granted shall Viewed from another angle, it has been held that in
only be valid while the land is used for the purposes determining whether lands are agricultural or not, the
referred to. The exclusion of sale in the new Act is character of the land is the test (Odell vs. Durant, 62 N.W.,
undoubtedly in pursuance of the constitutional limitation, 524; Lorch vs. Missoula Brick and Tile Co., 123 p.25). In
other words, it is the susceptibility of the land to cultivation
for agricultural purposes by ordinary farming methods
which determines whether it is agricultural or not (State vs. Sec. 5. Save in cases of hereditary succession, no
Stewart, 190 p. 129). private agricultural land will be transferred or assigned
except to individuals, corporations, or associations
qualified to acquire or hold lands of the public domain in
the Philippines.
Furthermore, as said by the Director of Lands, no reason
is seen why a piece of land, which may be sold to a
person if he is to devote it to agricultural, cannot be sold to
him if he intends to use it as a site for his home. This constitutional provision closes the only remaining
avenue through which agricultural resources may leak into
aliens' hands. It would certainly be futile to prohibit the
alienation of public agricultural lands to aliens if, after all,
This opinion is important not alone because it comes from they may be freely so alienated upon their becoming
a Secratary of Justice who later became the Chief Justice private agricultural lands in the hands of Filipino citizens.
of this Court, but also because it was rendered by a Undoubtedly, as above indicated, section 5 is intended to
member of the cabinet of the late President Quezon who insure the policy of nationalization contained in section 1.
actively participated in the drafting of the constitutional Both sections must, therefore, be read together for they
provision under consideration. (2 Aruego, Framing of the have the same purpose and the same subject matter. It
Philippine Constitution, p. 598.) And the opinion of the must be noticed that the persons against whom the
Quezon administration was reiterated by the Secretary of prohibition is directed in section 5 are the very same
Justice under the Osmeña administration, and it was firmly persons who under section 1 are disqualified "to acquire
maintained in this Court by the Solicitor General of both or hold lands of the public domain in the Philippines." And
administrations. the subject matter of both sections is the same, namely,
the non-transferability of "agricultural land" to aliens. Since
"agricultural land" under section 1 includes residential lots,
It is thus clear that the three great departments of the the same technical meaning should be attached to
Government — judicial, legislative and executive — have "agricultural land under section 5. It is a rule of statutory
always maintained that lands of the public domain are construction that "a word or phrase repeated in a statute
classified into agricultural, mineral and timber, and that will bear the same meaning throughout the statute, unless
agricultural lands include residential lots. a different intention appears." (II Sutherland, Statutory
Construction, p. 758.) The only difference between
"agricultural land" under section 5, is that the former is
public and the latter private. But such difference refers to
Under section 1 of Article XIII of the Constitution, "natural
ownership and not to the class of land. The lands are the
resources, with the exception of public agricultural land,
same in both sections, and, for the conservation of the
shall not be aliented," and with respect to public
national patrimony, what is important is the nature or class
agricultural lands, their alienation is limited to Filipino
of the property regardless of whether it is owned by the
citizens. But this constitutional purpose conserving
State or by its citizens.
agricultural resources in the hands of Filipino citizens may
easily be defeated by the Filipino citizens themselves who
may alienate their agricultural lands in favor of aliens. It is
partly to prevent this result that section 5 is included in Reference is made to an opinion rendered on September
Article XIII, and it reads as follows: 19, 1941, by the Hon. Teofilo Sison, then Secretary of
Justice, to the effect that residential lands of the public
domain may be considered as agricultural lands, whereas more specific with a view to avoiding the possible
residential lands of private ownership cannot be so confusion of ideas that could have arisen from the first
considered. No reason whatsoever is given in the opinion draft.
for such a distinction, and no valid reason can be adduced
for such a discriminatory view, particularly having in mind
that the purpose of the constitutional provision is the If the term "private agricultural lands" is to be construed as
conservation of the national patrimony, and private not including residential lots or lands not strictly
residential lands are as much an integral part of the agricultural, the result would be that "aliens may freely
national patrimony as the residential lands of the public acquire and possess not only residential lots and houses
domain. Specially is this so where, as indicated above, the for themselves but entire subdivisions, and whole towns
prohibition as to the alienable of public residential lots and cities," and that "they may validly buy and hold in their
would become superflous if the same prohibition is not names lands of any area for building homes, factories,
equally applied to private residential lots. Indeed, the industrial plants, fisheries, hatcheries, schools, health and
prohibition as to private residential lands will eventually vacation resorts, markets, golf courses, playgrounds,
become more important, for time will come when, in view airfields, and a host of other uses and purposes that are
of the constant disposition of public lands in favor of not, in appellant's words, strictly agricultural." (Solicitor
private individuals, almost all, if not all, the residential General's Brief, p. 6.) That this is obnoxious to the
lands of the public domain shall have become private
conservative spirit of the Constitution is beyond question.
residential lands.
The evidence thus presented established that applicants, The Republic disagrees with the appellate court's concept
by themselves and their predecessors-in-interest, had of possession and argues:
been in open, public, peaceful, continuous, exclusive and
notorious possession and occupation of the two adjacent
parcels of land applied for registration of title under a 17. The Court of Appeals found that the land was
bona-fide claim of ownership long before June 12, 1945. declared for taxation purposes in the name of respondent
Such being the case, it is conclusively presumed that all spouses only since 1979. However, tax declarations or
the conditions essential to the confirmation of their title reality tax payments of property are not conclusive
over the two adjacent parcels of land are sought to be evidence of ownership. (citing cases)
registered have been complied with thereby entitling them
to the issuance of the corresponding certificate of title
pursuant to the provisions of Presidential Decree No. 18. Then again, the appellate court found that
1529, otherwise known as the Property Registration "applicants (respondents) and their predecessors-in-
Decree. (Rollo, p. 26) interest had been in possession of the land for more than
30 years prior to the filing of the application for
registration." This is not, however, the same as saying that
Respondent court echoed the court a quo's observation, respondents have been in possession "since June 12,
thus: 1945." (PD No. 1073, amending Sec. 48 [b], CA NO. 141;
sec. also Sec. 14, PD No. 1529). So there is a void in
respondents' possession. They fall short of the required
The land sought to be registered has been declared to be possession since June 12, 1945 or prior thereto. And,
within the alienable and disposable zone established by even if they needed only to prove thirty (30) years
the Bureau of Forest Development (Exhibit "P"). The possession prior to the filing of their application (on
February 5, 1987), they would still be short of the required
investigation conducted by the Bureau of Lands, Natural
possession if the starting point is 1979 when, according to
Resources District (IV-2) reveals that the disputed realty
had been occupied by the applicants "whose house of the Court of Appeals, the land was declared for taxation
strong materials stands thereon"; that it had been declared purposes in their name. (Rollo, pp. 14-15)
for taxation purposes in the name of applicants-spouses
since 1979; that they acquired the same by means of a
public instrument entitled "Kasulatan ng Bilihang Tuluyan" The argument is myopic, to say the least. Following the
duly executed by the vendor, Cristeta Dazo Belen, on logic of petitioner, any transferee is thus foreclosed to
June 17, 1978 (Exhibits "I" and "J"); and that applicants apply for registration of title over a parcel of land
and their predecessors in interest had been in possession notwithstanding the fact that the transferor, or his
predecessor-in-interest has been in open, notorious and apply only to alienable and disposable lands of the public
exclusive possession thereof for thirty (30) years or more. domain which have been in open, continuous, exclusive
This is not, however, what the law provides. and notorious possession and occupation by the applicant
himself or thru his predecessor-in-interest, under a bona
fide claim of acquisition or ownership, since June 12,
As petitioner itself argues, Section 48 of the Public Land 1945.
Act (CA 141) reads:
In the main, petitioner seeks to defeat respondents' If indeed private respondents and their predecessors have
application for registration of title on the ground of foreign been in possession since time immemorial, the rulings of
nationality. Accordingly, the ruling in Director of Lands v. both courts could be upheld for, as this Court stated in Oh
Buyco (supra) supports petitioner's thesis. Cho v. Director of Lands (75 Phil. 890 [1946]):
. . . All lands that were not acquired from the Government, contrary, the entire property . . . was pasture land (and
either by purchase or by grant, belong to the public therefore inalienable under the then 1973 Constitution).
domain. An exception to the rule would be any land that
should have been in the possession of an occupant and of
his predecessors in interest since time immemorial, for . . . (P)rivate respondents' evidence miserably failed to
such possession would justify the presumption that the establish their imperfect title to the property in question.
land had never been part of the public domain or that if Their allegation of possession since time immemorial, . . .,
had been a private property even before the Spanish is patently baseless. . . . When referring to possession,
conquest (Cariño v. Insular Government, 41 Phil 935 specifically "immemorial possession," it means possession
[1909]; 212 U.S. 449; 53 Law. Ed., 594) The applicant of which no man living has seen the beginning, and the
does not come under the exception, for the earliest existence of which he has learned from his elders (Susi v.
possession of the lot by his first predecessor in interest Razon, supra). Such possession was never present in the
began in 1880. case of private respondents. . . .
. . . alienable public land held by a possessor, personally . . ., there does not even exist a reasonable basis for the
or through his predecessors-in-interest, openly,
finding that the private respondents and their
continuously and exclusively for the prescribed statutory predecessors-in-interest possessed the land for more than
period (30 years under the Public Land Act, as amended)
eighty (80) years, . . .
is converted to private property by the mere lapse or
completion of said period, ipso jure. (Director of Lands v.
Intermediate Appellate Court, supra)
xxx xxx xxx
Clearly, the application in Buyco were denied registration Section 8, Article XII of the 1987 Constitution above
of title not merely because they were American citizens at quoted is similar to Section 15, Article XIV of the then
the time of their application therefor. Respondents therein 1973 Constitution which reads:
failed to prove possession of their predecessor-in-interest
since time immemorial or possession in such a manner
that the property has been segregated from public domain; Sec. 15. Notwithstanding the provisions of
such that at the time of their application, as American
Section 14 of this Article, a natural-born citizen of the
citizens, they have acquired no vested rights over the Philippines who has lost his citizenship may be a
parcel of land. transferee of private land, for use by him as his residence,
as the Batasang Pambansa may provide.
SO ORDERED.
G.R. No. L-17587 September 12, 1967 then by the visits of Wong's four children who had become
the joy of her life. Wong himself was the trusted man to
whom she delivered various amounts for safekeeping,
PHILIPPINE BANKING CORPORATION, representing the including rentals from her property at the corner of Ongpin
estate of JUSTINA SANTOS Y CANON FAUSTINO, and Salazar streets and the rentals which Wong himself
paid as lessee of a part of the Rizal Avenue property.
deceased, plaintiff-appellant,
Wong also took care of the payment; in her behalf, of
vs. taxes, lawyers' fees, funeral expenses, masses, salaries
of maids and security guard, and her household expenses.
LUI SHE in her own behalf and as administratrix of the
intestate estate of Wong Heng, deceased, defendant-
appellant.
"In grateful acknowledgment of the personal services of
the lessee to her," Justina Santos executed on November
15, 1957 a contract of lease (Plff Exh. 3) in favor of Wong,
Nicanor S. Sison for plaintiff-appellant. covering the portion then already leased to him and
another portion fronting Florentino Torres street. The lease
Ozaeta, Gibbs & Ozaeta for defendant-appellant.
was for 50 years, although the lessee was given the right
to withdraw at any time from the agreement; the monthly
rental was P3,120. The contract covered an area of 1,124
square meters. Ten days later (November 25), the
contract was amended (Plff Exh. 4) so as to make it cover
CASTRO, J.:
the entire property, including the portion on which the
house of Justina Santos stood, at an additional monthly
rental of P360. For his part Wong undertook to pay, out of
Justina Santos y Canon Faustino and her sister Lorenzo the rental due from him, an amount not exceeding P1,000
were the owners in common of a piece of land in Manila. a month for the food of her dogs and the salaries of her
This parcel, with an area of 2,582.30 square meters, is maids.
located on Rizal Avenue and opens into Florentino Torres
street at the back and Katubusan street on one side. In it
are two residential houses with entrance on Florentino
On December 21 she executed another contract (Plff Exh.
Torres street and the Hen Wah Restaurant with entrance
7) giving Wong the option to buy the leased premises for
on Rizal Avenue. The sisters lived in one of the houses,
P120,000, payable within ten years at a monthly
while Wong Heng, a Chinese, lived with his family in the
installment of P1,000. The option, written in Tagalog,
restaurant. Wong had been a long-time lessee of a portion
imposed on him the obligation to pay for the food of the
of the property, paying a monthly rental of P2,620.
dogs and the salaries of the maids in her household, the
charge not to exceed P1,800 a month. The option was
conditioned on his obtaining Philippine citizenship, a
On September 22, 1957 Justina Santos became the petition for which was then pending in the Court of First
owner of the entire property as her sister died with no Instance of Rizal. It appears, however, that this application
other heir. Then already well advanced in years, being at for naturalization was withdrawn when it was discovered
the time 90 years old, blind, crippled and an invalid, she that he was not a resident of Rizal. On October 28, 1958
was left with no other relative to live with. Her only she filed a petition to adopt him and his children on the
companions in the house were her 17 dogs and 8 maids. erroneous belief that adoption would confer on them
Her otherwise dreary existence was brightened now and
Philippine citizenship. The error was discovered and the taken advantage of her trust in order to secure the
proceedings were abandoned. execution of the contracts in question. As counterclaim he
sought the recovery of P9,210.49 which he said she owed
him for advances.
On November 18, 1958 she executed two other contracts,
one (Plff Exh. 5) extending the term of the lease to 99
years, and another (Plff Exh. 6) fixing the term of the Wong's admission of the receipt of P22,000 and P3,000
option of 50 years. Both contracts are written in Tagalog. was the cue for the filing of an amended complaint. Thus
on June 9, 1960, aside from the nullity of the contracts, the
collection of various amounts allegedly delivered on
In two wills executed on August 24 and 29, 1959 (Def different occasions was sought. These amounts and the
Exhs. 285 & 279), she bade her legatees to respect the dates of their delivery are P33,724.27 (Nov. 4, 1957);
contracts she had entered into with Wong, but in a codicil P7,344.42 (Dec. 1, 1957); P10,000 (Dec. 6, 1957);
P22,000 and P3,000 (as admitted in his answer). An
(Plff Exh. 17) of a later date (November 4, 1959) she
appears to have a change of heart. Claiming that the accounting of the rentals from the Ongpin and Rizal
various contracts were made by her because of Avenue properties was also demanded.
machinations and inducements practiced by him, she now
directed her executor to secure the annulment of the
contracts. In the meantime as a result of a petition for guardianship
filed in the Juvenile and Domestic Relations Court, the
Security Bank & Trust Co. was appointed guardian of the
On November 18 the present action was filed in the Court properties of Justina Santos, while Ephraim G. Gochangco
of First Instance of Manila. The complaint alleged that the was appointed guardian of her person.
contracts were obtained by Wong "through fraud,
misrepresentation, inequitable conduct, undue influence
and abuse of confidence and trust of and (by) taking In his answer, Wong insisted that the various contracts
advantage of the helplessness of the plaintiff and were were freely and voluntarily entered into by the parties. He
made to circumvent the constitutional provision prohibiting likewise disclaimed knowledge of the sum of P33,724.27,
aliens from acquiring lands in the Philippines and also of admitted receipt of P7,344.42 and P10,000, but contended
the Philippine Naturalization Laws." The court was asked that these amounts had been spent in accordance with the
to direct the Register of Deeds of Manila to cancel the instructions of Justina Santos; he expressed readiness to
registration of the contracts and to order Wong to pay comply with any order that the court might make with
Justina Santos the additional rent of P3,120 a month from respect to the sums of P22,000 in the bank and P3,000 in
November 15, 1957 on the allegation that the reasonable his possession.
rental of the leased premises was P6,240 a month.
The case was heard, after which the lower court rendered
In his answer, Wong admitted that he enjoyed her trust judgment as follows:
and confidence as proof of which he volunteered the
information that, in addition to the sum of P3,000 which he
said she had delivered to him for safekeeping, another [A]ll the documents mentioned in the first cause of action,
sum of P22,000 had been deposited in a joint account with the exception of the first which is the lease contract of
which he had with one of her maids. But he denied having
15 November 1957, are declared null and void; Wong
Heng is condemned to pay unto plaintiff thru guardian of
her property the sum of P55,554.25 with legal interest Article 1256 [now art. 1308] of the Civil Code in our
from the date of the filing of the amended complaint; he is opinion creates no impediment to the insertion in a
also ordered to pay the sum of P3,120.00 for every month contract for personal service of a resolutory condition
of his occupation as lessee under the document of lease permitting the cancellation of the contract by one of the
herein sustained, from 15 November 1959, and the parties. Such a stipulation, as can be readily seen, does
moneys he has consigned since then shall be imputed to not make either the validity or the fulfillment of the contract
that; costs against Wong Heng. dependent upon the will of the party to whom is conceded
the privilege of cancellation; for where the contracting
parties have agreed that such option shall exist, the
exercise of the option is as much in the fulfillment of the
From this judgment both parties appealed directly to this contract as any other act which may have been the
Court. After the case was submitted for decision, both subject of agreement. Indeed, the cancellation of a
parties died, Wong Heng on October 21, 1962 and Justina contract in accordance with conditions agreed upon
Santos on December 28, 1964. Wong was substituted by beforehand is fulfillment.2
his wife, Lui She, the other defendant in this case, while
Justina Santos was substituted by the Philippine Banking
Corporation.
And so it was held in Melencio v. Dy Tiao Lay 3 that a
"provision in a lease contract that the lessee, at any time
before he erected any building on the land, might rescind
Justina Santos maintained — now reiterated by the the lease, can hardly be regarded as a violation of article
Philippine Banking Corporation — that the lease contract 1256 [now art. 1308] of the Civil Code."
(Plff Exh. 3) should have been annulled along with the four
other contracts (Plff Exhs. 4-7) because it lacks mutuality;
because it included a portion which, at the time, was in
custodia legis; because the contract was obtained in The case of Singson Encarnacion v. Baldomar 4 cannot
violation of the fiduciary relations of the parties; because be cited in support of the claim of want of mutuality,
her consent was obtained through undue influence, fraud because of a difference in factual setting. In that case, the
and misrepresentation; and because the lease contract, lessees argued that they could occupy the premises as
like the rest of the contracts, is absolutely simulated. long as they paid the rent. This is of course untenable, for
as this Court said, "If this defense were to be allowed, so
long as defendants elected to continue the lease by
continuing the payment of the rentals, the owner would
Paragraph 5 of the lease contract states that "The lessee never be able to discontinue it; conversely, although the
may at any time withdraw from this agreement." It is owner should desire the lease to continue the lessees
claimed that this stipulation offends article 1308 of the Civil could effectively thwart his purpose if they should prefer to
Code which provides that "the contract must bind both terminate the contract by the simple expedient of stopping
contracting parties; its validity or compliance cannot be left payment of the rentals." Here, in contrast, the right of the
to the will of one of them." lessee to continue the lease or to terminate it is so
circumscribed by the term of the contract that it cannot be
said that the continuance of the lease depends upon his
We have had occasion to delineate the scope and will. At any rate, even if no term had been fixed in the
application of article 1308 in the early case of Taylor v. Uy agreement, this case would at most justify the fixing of a
Tieng Piao.1 We said in that case: period5 but not the annulment of the contract.
prepared the lease contract on the basis of data given to
him by Wong and that she told him that "whatever Mr.
Nor is there merit in the claim that as the portion of the Wong wants must be followed."7
property formerly owned by the sister of Justina Santos
was still in the process of settlement in the probate court
at the time it was leased, the lease is invalid as to such
portion. Justina Santos became the owner of the entire The testimony of Atty. Yumol cannot be read out of
property upon the death of her sister Lorenzo on context in order to warrant a finding that Wong practically
September 22, 1957 by force of article 777 of the Civil dictated the terms of the contract. What this witness said
Code. Hence, when she leased the property on November was:
15, she did so already as owner thereof. As this Court
explained in upholding the sale made by an heir of a
property under judicial administration: Q Did you explain carefully to your client, Doña Justina,
the contents of this document before she signed it?
But if an alien is given not only a lease of, but also an It is well to note at this juncture that in the present case we
option to buy, a piece of land, by virtue of which the have no choice. We are construing the Constitution as it is
Filipino owner cannot sell or otherwise dispose of his and not as we may desire it to be. Perhaps the effect of
property,21 this to last for 50 years, then it becomes clear our construction is to preclude aliens admitted freely into
that the arrangement is a virtual transfer of ownership the Philippines from owning sites where they may build
whereby the owner divests himself in stages not only of their homes. But if this is the solemn mandate of the
the right to enjoy the land ( jus possidendi, jus utendi, jus Constitution, we will not attempt to compromise it even in
fruendi and jus abutendi) but also of the right to dispose of the name of amity or equity . . . .
it ( jus disponendi) — rights the sum total of which make
up ownership. It is just as if today the possession is
transferred, tomorrow, the use, the next day, the For all the foregoing, we hold that under the Constitution
disposition, and so on, until ultimately all the rights of
aliens may not acquire private or public agricultural lands,
which ownership is made up are consolidated in an alien. including residential lands, and, accordingly, judgment is
And yet this is just exactly what the parties in this case did
affirmed, without costs.25
within the space of one year, with the result that Justina
Santos' ownership of her property was reduced to a hollow
concept. If this can be done, then the Constitutional ban
against alien landholding in the Philippines, as announced That policy would be defeated and its continued violation
in Krivenko v. Register of Deeds,22 is indeed in grave sanctioned if, instead of setting the contracts aside and
peril. ordering the restoration of the land to the estate of the
deceased Justina Santos, this Court should apply the
general rule of pari delicto. To the extent that our ruling in
this case conflicts with that laid down in Rellosa v. Gaw
It does not follow from what has been said, however, that
Chee Hun 26 and subsequent similar cases, the latter
because the parties are in pari delicto they will be left
must be considered as pro tanto qualified.
where they are, without relief. For one thing, the original
parties who were guilty of a violation of the fundamental
charter have died and have since been substituted by their
administrators to whom it would be unjust to impute their The claim for increased rentals and attorney's fees, made
guilt.23 For another thing, and this is not only cogent but in behalf of Justina Santos, must be denied for lack of
also important, article 1416 of the Civil Code provides, as merit.
an exception to the rule on pari delicto, that "When the
agreement is not illegal per se but is merely prohibited,
and the prohibition by law is designed for the protection of And what of the various amounts which Wong received in
the plaintiff, he may, if public policy is thereby enhanced, trust from her? It appears that he kept two classes of
recover what he has paid or delivered." The Constitutional accounts, one pertaining to amount which she entrusted to
provision that "Save in cases of hereditary succession, no him from time to time, and another pertaining to rentals
private agricultural land shall be transferred or assigned from the Ongpin property and from the Rizal Avenue
except to individuals, corporations, or associations property, which he himself was leasing.
qualified to acquire or hold lands of the public domain in
monthly expenses and that, as a matter of fact, there
should be a balance in her favor. The lower court did not
With respect to the first account, the evidence shows that allow either party to recover against the other. Said the
he received P33,724.27 on November 8, 1957 (Plff Exh. court:
16); P7,354.42 on December 1, 1957 (Plff Exh. 13);
P10,000 on December 6, 1957 (Plff Exh. 14) ; and
P18,928.50 on August 26, 1959 (Def. Exh. 246), or a total
of P70,007.19. He claims, however, that he settled his [T]he documents bear the earmarks of genuineness; the
accounts and that the last amount of P18,928.50 was in trouble is that they were made only by Francisco Wong
fact payment to him of what in the liquidation was found to and Antonia Matias, nick-named Toning, — which was the
be due to him. way she signed the loose sheets, and there is no clear
proof that Doña Justina had authorized these two to act for
her in such liquidation; on the contrary if the result of that
was a deficit as alleged and sought to be there shown, of
He made disbursements from this account to discharge P9,210.49, that was not what Doña Justina apparently
Justina Santos' obligations for taxes, attorneys' fees, understood for as the Court understands her statement to
funeral services and security guard services, but the the Honorable Judge of the Juvenile Court . . . the reason
checks (Def Exhs. 247-278) drawn by him for this purpose why she preferred to stay in her home was because there
amount to only P38,442.84.27 Besides, if he had really she did not incur in any debts . . . this being the case, . . .
settled his accounts with her on August 26, 1959, we the Court will not adjudicate in favor of Wong Heng on his
cannot understand why he still had P22,000 in the bank counterclaim; on the other hand, while it is claimed that
and P3,000 in his possession, or a total of P25,000. In his the expenses were much less than the rentals and there in
answer, he offered to pay this amount if the court so fact should be a superavit, . . . this Court must concede
directed him. On these two grounds, therefore, his claim of that daily expenses are not easy to compute, for this
liquidation and settlement of accounts must be rejected. reason, the Court faced with the choice of the two
alternatives will choose the middle course which after all is
permitted by the rules of proof, Sec. 69, Rule 123 for in the
After subtracting P38,442.84 (expenditures) from ordinary course of things, a person will live within his
P70,007.19 (receipts), there is a difference of P31,564 income so that the conclusion of the Court will be that
which, added to the amount of P25,000, leaves a balance there is neither deficit nor superavit and will let the matter
of P56,564.3528 in favor of Justina Santos. rest here.
As to the second account, the evidence shows that the Both parties on appeal reiterate their respective claims but
monthly income from the Ongpin property until its sale in we agree with the lower court that both claims should be
Rizal Avenue July, 1959 was P1,000, and that from the denied. Aside from the reasons given by the court, we
Rizal Avenue property, of which Wong was the lessee, think that the claim of Justina Santos totalling P37,235, as
was P3,120. Against this account the household expenses rentals due to her after deducting various expenses,
and disbursements for the care of the 17 dogs and the should be rejected as the evidence is none too clear about
salaries of the 8 maids of Justina Santos were charged. the amounts spent by Wong for food29 masses30 and
This account is contained in a notebook (Def. Exh. 6) salaries of her maids.31 His claim for P9,210.49 must
which shows a balance of P9,210.49 in favor of Wong. But likewise be rejected as his averment of liquidation is belied
it is claimed that the rental from both the Ongpin and Rizal by his own admission that even as late as 1960 he still
Avenue properties was more than enough to pay for her had P22,000 in the bank and P3,000 in his possession.
ACCORDINGLY, the contracts in question (Plff Exhs. 3-7) G.R. No. L-36637 July 14, 1978
are annulled and set aside; the land subject-matter of the
contracts is ordered returned to the estate of Justina
Santos as represented by the Philippine Banking GENEROSO MENDOZA, substituted by his wife and
Corporation; Wong Heng (as substituted by the defendant- administratrix DIEGA DE LEON VDA. DE MENDOZA,
appellant Lui She) is ordered to pay the Philippine Banking
petitioner,
Corporation the sum of P56,564.35, with legal interest
from the date of the filing of the amended complaint; and vs.
the amounts consigned in court by Wong Heng shall be
applied to the payment of rental from November 15, 1959 THE HON. COURT OF APPEALS, DANIEL GOLE CRUZ
until the premises shall have been vacated by his heirs. and DOLORES MENDOZA, respondents.
Costs against the defendant-appellant.
SANTOS, J.:
On April 16, 1968, Generoso Mendoza filed an urgent Acting on said appeal which was docketed as CA-G.R.
petition for reconsideration praying that the decision dated No. 46581- R, the Court of Appeals rendered on February
July 21, 1965 and the decree issued pursuant thereto 27, 1973, the decision, subject matter of the present
dated May 16, 1967 be set aside and that Original petition for review. It set aside the order of the land
Certificate of Title No. 03787 be cancelled, on the ground registration court of September 3, 1968 which set aside its
that the vendees, the registered owners, had failed to pay decision of July 21, 1965 and the decree issued pursuant
the purchase price of the lands. 5 thereto. It also denied applicant Mendoza's petition for
reconsideration dated April 15 (filed April 16), 1968, which In the first assignment of error, the petitioner assails the
was considered as a petition for review of the decree. Court of Appeals' holding that he himself caused the
registration of the land in question in the name of the
vendees, the herein private respondents. But whether or
Hence, this Petition for Review which alleges that the not the petitioner did in fact cause the registration of the
land in favor of private respondents is a question of fact
respondent Court of Appeals erred —
which cannot properly be raised in the present petition for
review inasmuch as Section 2, Rule 45 of the Rules of
Court expressly provides that in an appeal from the Court
1. ... IN HOLDING THAT THE APPELLEE of Appeals to this Court, only questions of law my be
HIMSELF CAUSED THE REGISTRATION OF THE TITLE raised. 10 Thus, the finding of the Court of Appeals that
TO THE LAND IN QUESTION IN THE NAME OF THE petitioner caused the registration of the land in favor of the
APPELLANTS. private respondents cannot now be raised in this Appeal
much less disturbed by this Court.
Q. You said that you are the owners of these two xxx xxx xxx
parcels of land subject matter of this litigation, after you
have caused the filing of this application, was there any
transaction that took place with respect to the same? Q. Do you know who are now in possession of these
properties.
xxx xxx xxx SEC. 29. After the filing of the application and before the
issuance of the decree of title by the Chief of the General
Land Registration Office, the land therein described may
Finally, even the registration court itself did not believe be dealt with and instruments relating thereto shall be
applicant-petitioner's claim that he did not previously recorded in the office of the register of said at any time
cause the registration of the subject property in the names before issuance of the decree of title, in the same manner
of private respondents. For, while it granted applicant- as if no application had been made. The interested Party
may, however, present such instruments to the Court of
First Instance instead of presenting them to the office of in the following facts and circumstances. Firstly, it was the
the register of deeds, together with a motion that the same petitioner himself, the applicant in the registration
be considered in relation with the application, and the proceedings, who presented the deed of sale (Exh. I) to
court after notice to the parties, shall order such land the court and testified before the same that he did sell the
registered subject to the ecumbrance created by a said land to the private respondents. This was done by him
instruments, or order the decree of registration issued in despite the fact that he could easily have the land
the name of the buyer or of the person to whom the registered in his name — as an order of general default
property has been conveyed by said instruments. ... had been issued and the hearing on the application for
(Emphasis supplied). registration had been conducted EX-PARTE. Secondly, as
if to fully convince the court of the fact of sale, petitioner
presented his wife, Diega de Leon, and private
It is clear from the above-quoted provision that the law respondent, Daniel GolE Cruz, to confirm the said sale of
expressly allows the land subject matter of an application the land and the stipulated usufructuary rights. Finally, the
for registration to be "dealt with", i.e., to be disposed of or petitioner even filed the motion for the issuance of the
encumbered during the interval of time between the filing decree of confirmation of title after having received the
of the application and the issuance of the decree of title, decision of the court ordering the registration of the title to
and to have the instruments embodying such disposition the land in the names of vendees-respondents, subject to
the stipulated usufructuary rights — thereby signifying his
or encumbrance presented to the registration court by the
,interested party" for the court to either "order such land full assent to the same.
registered subject to the encumbrance created by said
instruments, or order the decree of registration issued in
the name of the buyer or of the person to whom the It is true that no written motion was filed seeking the
property has been conveyed by said instruments. 17 The consideration of the deed of sale in relation with the
law does not require that the application for registration be application for registration. But the law does not require
amended by substituting the "buyer" or the person to that the motion accompanying the presentation of the
whom the property has been conveyed" for the applicant. instrument be in writing. And the above- enumerated acts
Neither does it require that the "buyer" or the "person to of the applicant-petitioner and the circumstances
whom the property has been conveyed" be a party to the surrounding the same accept of no interpretation than that
case. He may thus be a total stranger to the land the applicant-petitioner did in fact move the court to order
registration proceedings. The only requirements of the law the registration of the title to the land in the names of
are: (1) that the instrument be presented to the court by vendees- respondents, subject only to the stipulated
the interested party together with a motion that the same usufructuary rights of the petitioner and his wife. There
be considered in relation with the application; and (2) that was, therefore, sufficient compliance with the first
prior notice be given to the parties to the case. And the requirement of the law.
peculiar facts and circumstances obtaining in this case
show that these requirements have been complied with.
Anent the second requirement of prior notice to the
parties, the relevant fact to be considered is that an order
As heretofore stated, the instrument embodying the sale of of general default had been issued prior to the
the subject property by the petitioner to the private presentation of the deed of sale by the applicant-
respondents was duly presented to the registration court petitioner, since nobody filed an opposition to the
for consideration. That the purpose was to have the land application for registration. Thus, the only person who
registered in the names of private respondents subject to should have been entitled to a notice from the court was
the usufructuary rights of petitioner and his wife is explicit the applicant-petitioner himself, as the only party with a
legal standing in the proceedings. In view thereof, no legal petitioner cannot complain of fraud in obtaining the decree
objection to the court's jurisdiction to order the registration of registration for as heretofore stated, it was solely upon
of the lands in the names of vendees-respondents may be his testimony and proof that the lots were ordered
interposed on the ground of non-compliance with the registered in the names of the vendees-respondents and it
requirement of prior notice to the parties. was also upon his motion that the decree of registration
was issued by the lower court. What the applicant-
petitioner actually invokes in this case is not fraud in
Since there was sufficient compliance with the aforestated obtaining the decree of registration but the alleged failure
requirements of the law, respondent Court of Appeals did of the vendees-respondents to pay the purchase price of
not, therefore, err in holding that the lower court had the landholdings. But as correctly held by respondent
jurisdiction to order the registration of the lands in the Court of Appeals:
names of vendees-respondents.
The Facts
Is newspaper publication of the notice of initial hearing in
an original land registration case mandatory or directory?
SO ORDERED.
Francisco A. Lava, Jr. for petitioners.
FERNAN, J.:
and,
Firstly, the 'land in question described in the complaint and
sketched in Exhibit C ... by Dr. Guillermo Blanco,' is
[c] a parcel of land situated in the Municipality of completely different from the land appearing in the
Cauayan, Province of Isabela, having an area of Six Subdivision Plan of the appelles appellant, their respective
Thousand Two Hundred Fifty (6,250) square meters or area and boundaries being completely dissimilar.
fifty (50) meters at the east side by one hundred twenty-
five (125) meters at the North and South; bounded on the
north by Matias del Rosario, on the south by Alberto Clearly, we fail to see anything in the evidence of the
Tungangui, on the east by Agapita Blanco and on the west appellees showing that their property encroaches, much
by Cauayan Diversion Road and Matias del Rosario. less covers that of the property presently occupied by the
[Annex "B", Petition, pp. 41-42, Rollo.] appellant, except the self-serving sketch prepared by the
appellees' own witness, Dr. Blanco. We refuse to give any
weight to this piece of evidence because it was prepared
Thereafter, petitioners declared the above-described by someone who' has an incentive to exaggerate or give
parcels of land in their name for taxation purposes and false color to his statement or to suppress or prevent the
exercised exclusive possession thereof in the concept of truth or to state what is false. [Deering v. Wisona
owners by installing as caretaker one Fermin Lozano, who Harvester Workers, 155 U.S. Sup. Ct. Rep. 238]
had his house built thereon.
If, as the Abellera case, supra, held that res judicata can
be set up by a claimant to defeat the alleged right of WHEREFORE, the instant petition is hereby dismissed.
another claimant, what useful purpose would be served by Cost against petitioners.
allowing a party to present evidence of ownership over the
land sought to be registered when the final result would
necessarily be in favor of the claimant who had set up the
defense of res judicata? And supposing the land SO ORDERED.
registration court finds that the party against whom the
principle of res judicata operates does have a better right
or title to the land, what happens to the principle of res
judicata? Can a court sitting as a land registration court in
effect, annul a final judgment of another court of general
jurisdiction?
That is all that needs be said about this appeal except for
the disposition of the twenty-first error assigned, referring
to the existence of a pending case between the parties for
reconveyance.19 There was no denial in the brief for
movant-appellee that such a case was then pending at the
time the respective briefs were filed. What is decided here
cannot affect whatever final decision might possibly have
been rendered by this time in the aforesaid reconveyance
action. Nonetheless, the mere fact that such suit was then
pending did not oust the lower court of its jurisdiction to
issue the writ of possession. As stated by our present
Chief Justice in Agreda v. Rodriguez:20 "Besides, it is
clear that respondent Judge had jurisdiction to pass upon
the motion of Santiago Agreda for the issuance of a writ of
possession. Whether or not the motion should have been
denied, in view of institution of said Civil Case No. 6267, is
a matter that does not affect said jurisdiction."
x - - - - - - - - - - - - - - - - - - - - - - -x
ARANETA INSTITUTE OF AGRI-CULTURE, INC., The controversy attending the lands of OCT No. 994 has
Petitioner, not eluded this Court. Since 1992, our findings and ruling
in MWSS v. Court of Appeals4 have stood as the Rosetta
vs.
Stone in deciphering claims emanating from OCT No. 994,
HEIRS OF JOSE B. DIMSON, REPRESENTED BY HIS as was done in Gonzaga v. Court of Appeals,5 and in the
COMPULSORY HEIRS: HIS SURVIVING SPOUSE, Court’s Decision dated 29 November 2005 (2005
ROQUETA R. DIMSON AND THEIR CHILDREN, NORMA Decision) in these cases.6 Yet in the course of resolving
AND CELSA TIRADO, ALSON AND VIRGINIA DIMSON, these motions for reconsideration came the revelation that
LINDA AND CARLOS LAGMAN, LERMA AND RENE OCT No. 994 was lost in translation following MWSS.
POLICAR, AND ESPERANZA R. DIMSON; REGISTER Certain immutable truths reflected on the face of OCT No.
OF DEES OF MALABON, Respondents. 994 must emerge and gain vitality, even if we ruffle
feathers in the process.
RESOLUTION
I.
TINGA, J.:
A recapitulation of the facts, which have already been
extensively narrated in the 2005 Decision, is in order. For
clarity, we narrate separately the antecedent facts in G.R.
The stability of the country’s Torrens system is menaced
Nos. 123346 and 134385.
by the infestation of fake land titles and deeds. Any
decision of this Court that breathes life into spurious or
inexistent titles all but contributes to the blight. On the
contrary, the judicial devotion is towards purging the A. G.R. No. 123346, Manotok Realty, Inc.
and Manotok Estate Corporation, vs. Gonzalez, Francisco Felipe Gonzalez and Concepcion
Maria Gonzalez under TCT No. 35486. The lot was then,
CLT Realty Development Corporation per annotation dated 21 November 1946, subdivided into
seven (7) parcels each in the name of each of the
Gonzalezes.11
On 10 August 1992, CLT Realty Development Corporation
(CLT) sought to recover from Manotok Realty, Inc. and
Manotok Estate Corporation (Manotoks) the possession of The trial court, ruling for CLT, adopted the factual findings
Lot 26 of the Maysilo Estate in an action filed before the and conclusions arrived at by the majority commissioners
Regional Trial Court of Caloocan City, Branch 129.7 appointed to resolve the conflict of titles. It was
established that the entire Maysilo Estate was registered
under Act No. 496 by virtue of which OCT No. 994 was
CLT’s claim was anchored on Transfer Certificate of Title issued by the Register of Deeds of Rizal;12 that Lot 26
(TCT) No. T-177013 issued in its name by the Caloocan was transferred to CLT by Hipolito whose title was derived
City Register of Deeds, which title in turn was derived from from the Dimson title and that on the basis of the technical
Estelita Hipolito (Hipolito) by virtue of a Deed of Sale with descriptions of the property appearing in the Manotok
Real Estate Mortgage dated 10 December 1988. Hipolito’s titles, the latter’s property indeed encroached on the
title emanated from Jose Dimson’s (Dimson) TCT No. R- property described in CLT’s title.13
15169, a title issued pursuant to an order of the Court of
First Instance (CFI) of Caloocan City, Branch 33. Dimson’s
title appears to have been sourced from OCT No. 994.8 The Manotoks appealed to the Court of Appeals, which
affirmed the decision of the trial court.14 Their motion for
reconsideration having been denied,15 they filed a petition
For their part, the Manotoks challenged the validity of the for review with the Supreme Court, ascribing error to the
title relied on by CLT, claiming that Dimson’s title, the appellate court in upholding the trial court’s decision which
proximate source of CLT’s title, was irregularly issued and, decided the case on the basis of the majority
hence, the same and subsequent titles flowing therefrom commissioners’ report and overlooked relevant facts in the
are likewise void. The Manotoks asserted their ownership minority commissioner’s report.16
over Lot 26 and claimed that they derived it from several
awardees and/or vendees of the National Housing
Authority.9 The Manotok title likewise traced as its primary B. G.R. No. 134385, Araneta Institute
source OCT No. 994 which, on 9 September 1918, was
transferred to Alejandro Ruiz and Mariano Leuterio who of Agriculture, Inc. v. Heirs of
had previously acquired
Jose B. Dimson, et. al.
The trial court ruled for Dimson in its Decision dated 28 Araneta then filed a petition for review with the Supreme
May 1993 with these findings: first, there were inherent Court attributing error to the Court of Appeals in failing to
technical infirmities or defects in the titles that formed each recognize that it had a better right of possession over the
link in the chain of ownership that culminated in the property than did Dimson.21
Manotok title, i.e., that the technical descriptions in the
titles were written in Spanish whereas those in the alleged
mother title, OCT No. 994, were in English, which, an As both petitions involved interrelated challenges against
abnormal state that deviated from the usual practice in the the validity of the parties’ separate titles to portions of the
issuance of titles; and second, it was established
greater Maysilo Estate, they, along with G.R. No.
procedure to indicate in the certificate of title, whether 14876722 , were consolidated per Resolutions dated 21
original or transfer certificate, the date of the original April 1999 and 6 March 2002. Also in 2002, the Republic
survey of the mother title together with the succeeding of the Philippines sought and was allowed intervention in
date of subdivision or consolidation. Thus, the absence of
these cases.
the original survey dates of OCT No. 994 on Manotok’s
chain of titles, the trial court added, should mean that OCT
No. 994 was not the mother title not only because the
original survey dates were different but also because the On 29 November 2005, the Third Division of the Court
original survey date must always be earlier than the issue rendered the 2005 Decision,23 the dispositive portion of
date of the original title. OCT No. 994 was issued on May which reads:
3, 1917 which was much ahead of the survey date
indicated in the succeeding titles, which is December 22,
1917.18 WHEREFORE, the instant petitions are DENIED and the
assailed Decisions and Resolution of the Court of Appeals
are hereby AFFIRMED in toto. Costs against petitioners.
Undaunted, Araneta interposed an appeal to the Court of
Appeals which, on 30 May 1997, affirmed the lower court’s
SO ORDERED.24
xxx
xxx
Thus, Section 42 of Act No. 496 provides that the from the following unequivocal pronouncement in the 2005
certificate first registered in pursuance of the decree of Decision:
registration in regard to any parcel of land shall be entitled
in the registration book "Original Certificate of Title,
entered pursuant to decree of the Court of Land We noted in the beginning of this Decision that the issue in
Registration, dated at (stating time and place of entry of all these three (3) cases involves the validity of the parties'
decree and the number of the case). This certificate shall overlapping titles. The titles of the respondents in these
take effect upon the date of the transcription of the decree. cases were derived from OCT No. 994 of the Registry of
Subsequent certificates relating to the same land shall be Deeds of Caloocan City registered on April 19, 1917. The
in like form, but shall be entitled. "Transfer from number validity of such mother title has already been upheld by
(the number of the next previous certificate relating to the this Court in G.R. No. 103558, MWSS v. Court of Appeals,
same land)," and also the words "Originally registered et al. dated November 17, 1992 earlier cited in the
(date, volume, and page of registration).43 assailed Decisions. Significantly, the ruling in MWSS was
reiterated in G.R. No. 96259, Heirs of Luis J. Gonzaga v.
Court of Appeals dated September 3, 1996.
The dissent has likewise suggested that the variance
between these two dates is ultimately inconsequential. It
cannot be so for otherwise, the recent decision of the We cannot delve anymore into the correctness of the
Court in Alfonso v. Office of the President44 would simply
Decision of this Court in MWSS. The said Decision,
be wrong. In Alfonso, the Court precisely penalized confirming the validity of OCT No. 994 issued on April 19,
Alfonso, the former register of deeds of Caloocan because 1917 from which the titles of the respondents in the cases
she acquiesced to the change of the date of registration of
at bar were derived, has long become final and executory.
OCT No. 994, as reflected in several subsequent titles Nothing is more settled in law than that once a judgment
purportedly derived from that mother title, from 3 May attains finality it becomes immutable and unalterable. It
1917 to 19 April 1917. If indeed the difference in dates may no longer be modified in any respect, even if the
were "inconsequential," then it should not have really
modification is meant to correct what is perceived to be an
mattered that Mrs. Alfonso, as found by the Court, had
invariably issued certificates of title, reflecting either the 19
April or 3 May date, a circumstance which, the Court
concluded, was irregular. But if the Court were to accede erroneous conclusion of fact or law, and regardless of
to the dissent and agree that it did not really matter whether the modification is attempted to be made by the
whether the date of registration of OCT No. 994 was 3 court rendering it or by the highest court of the land.45
May or 19 April, then poor Mrs. Alfonso should be spared
of the penalty of dismissal from the service which the
Court had already affirmed. This new conclusion likewise differs from what the Court
had to say regarding OCT No. 994 "dated April 19, 1917"
in the adverted MWSS v. Court of Appeals46 decision:
III.
(2) Although petitioner's title was issued in 1940, it will be Since the dissent and even CLT now acknowledge that
noted that petitioner's title over Lots 2693 and 2695 both there is only one OCT No. 994 which was registered by
with an area of 599 square meters was based on the the Registry of Deeds of Rizal on 3 May 1917, the earlier
Cadastral Survey of Caloocan City, Cadastral Case No. factual finding in MWSS is indefensible. MWSS
recognized an OCT No. 994 registered on 19 April 1917, a
title that never existed and, even assuming that it did exist,
is now acknowledged as spurious.
It would be especially incoherent for the Court to reiterate
MWSS and Gonzaga when they effectuated the OCT No.
994 registered on 19 April 1917 and acknowledge at the
Gonzaga primarily relied on the ruling of the Court in same time that the same OCT never existed, the genuine
MWSS upon a finding that the case involved "facts that OCT No. 994 being that which was registered on 3 May
are exactly the same as those that we have passed and 1917. We need not go as far as to revive the MWSS or
ruled upon in the [MWSS case]." The title which was Gonzaga decisions, but certainly we can decline to infuse
affirmed by the Court in Gonzaga, TCT No. C-26806 in the further validity to their erroneous basic premise that there
name of Lilia Sevilla, was "a transfer from Original was an OCT No. 994 registered on 19 April 1917. The
Certificate of Title (OCT) No. 994 which was registered on dissent proposes that we perpetuate the erroneous
April 19, 1917 pursuant to Decree No. 36455."53 It was premise even as the error is plainly acknowledged, a
further observed by the Court that "on the one hand, stance that will not serve the Court well should it prevail.
[therein] petitioners’ titles indicate original registration to
have been made on May 3, 1917, but on the other hand,
private respondents’ title indicates original registration to
have been made on April 19, 1917."54 Moreover, the two cases should not bind the parties in the
petitions now before us. Undisputedly, the two cases
involved different parcels of land. The present petitioners
could not be bound by the decisions in the two cases, as
It was the title originally registered on 19 April 1917 which they were not parties thereto and and their properties were
was made to prevail in Gonzaga, following MWSS. Since not involved therein. As we very recently reaffirmed, it is
there is no OCT No. 994 originally registered on 19 April basic that no man shall be affected by any proceeding to
1917, as now acknowledged, it follows that Gonzaga, like which he is a stranger, and strangers to a case are not
MWSS, is no longer reliable as well. bound by judgment rendered by the court.55
The argument has been raised by the ponente of the 2005 We can take instruction from the tack previously taken by
Decision that the 3 May 1917 OCT No. 994 must be this Court in dealing with municipalities created by
distinguished from "OCT No. 994 dated May 3, 1917 executive orders. Beginning with Pelaez v. Auditor
involved in the MWSS and Gonzaga cases" because the General,56 the Court declared as a general principle that
former title was "based on the Cadastral Survey of the President had no power to create municipalities
Kalookan City under Cadastral Case No. 34, also covering through executive orders. However, instead of nullifying
the Maysilo Estate." It is elemental to note that assuming the creation of all municipalities created in the same
said 3 May OCT was somehow flawed because it was manner, the Court only annulled those municipalities
based on Cadastral Case No. 34, it does not mean that whose creation was specifically attacked in the petition
the so-called 17 April 1917 OCT No. 994 is valid or had filed by then-Vice President
existed in the first place. Since even the dissent now
discounts the existence of the so-called 17 April 1917
OCT No. 994, it should necessarily follow that any title that
is sourced from the 17 April 1917 OCT is void. Such Pelaez.57 With respect to the other municipalities which
conclusion is inescapable whatever questions there may were not
be about the veracity of the 3 May 1917 OCT based on
Cadastral Case No. 34.
annulled in Pelaez, the Court would, in the next few
decades, annul only the municipalities which were
specifically challenged in petitions raised before the This approach immensely differs from that preferred by the
Court.58 However, after the adoption of the Local 2005 Decision and the dissenting view, which dwells in the
Government Code of 1991 that gave statutory recognition main on the alleged flaws in the titles held by the
to the de facto municipalities which had not yet been Manotoks and Araneta, without making a similar inquiry
annulled, the Court started to affirm the legal existence of into the titles held by CLT and the Heirs of Dimson. Since
such municipalities.59 the decision in favor of CLT and the Heirs of Dimson was
ultimately grounded on a factual predicate now
acknowledged as erroneous, it follows that the primary
focus should have been whether the titles held by CLT
As in Pelaez, the operative effect of the "doctrines" and the Dimsons are valid and with force and effect. To
pronounced in MWSS and Gonzaga can extend only to that end, we need only examine the titles relied upon by
the parties and properties involved in said cases, even if it CLT and the Dimsons.
can be argued that the rights involving other parties and
properties are afflicted with inconsistency as regards the
legal rulings therein, similar to the municipalities created
which though created by void executive orders were not In the Manotok petition, CLT had originally filed a
however annulled. Yet with the emergence of a new fact– complaint for annulment of the titles in the name of the
the enactment of the Local Government Code vis-à-vis Manotoks, alleging that it was the registered owner of Lot
Pelaez, or the present acknowledgment that only the 3 26 of the Maysilo Estate covered by TCT No. T-177013 of
May 1917 OCT No. 994 exists vis-à-vis MWSS and the Registry of Deeds of Caloocan City. Reproduced
Gonzaga–subsequent rulings would be informed primarily below is what appears on the face of TCT No. T-
by the new developments, rather than by the previous 177013:60
precedents that were not able to take into account the true
or new factual premises.
IT IS FURTHER CERTIFIED that said land was originally
registered on the 19th day of April, in the year, nineteen
IV. hundred and seventeen in the Registration Book of the
Office of the Register of Deeds of Rizal, Volume 36455,
page ____, as Original Certificate of Title No. 994,
pursuant to Decree No. 36455 issued in L.R.C. ____
The determinative test to resolve whether the prior Record No. _____in the name of ___________.
decision of this Court should be affirmed or set aside is
whether or not the titles invoked by the respondents are
valid. If these titles are sourced from the so-called OCT
No. 994 dated 17 April 1917, then such titles are void or This certificate is a transfer from Trans. Certificate of Title
otherwise should not be recognized by this Court. Since No. R-17994/T-89, which is cancelled by virtue hereof in
the true basic factual predicate concerning OCT No. 994 so far as the above-described land is concerned.
which is that there is only one such OCT differs from that
expressed in the MWSS and Gonzaga decisions, said
rulings have become virtually functus officio except on the Entered at City of Kalookan
basis of the "law of the case" doctrine, and can no longer
be relied upon as precedents. Philippines, on the 15th day of March
convenience of the landowner because it is easier for him Second. Any title that traces its source to OCT No. 994
to identify his property inasmuch as all the lands brought dated 17 April 1917 is void, for such mother title is
under the cadastral survey are designated by cadastral inexistent. The fact that the Dimson and CLT titles made
numbers."71 specific reference to an OCT No. 994 dated 17 April 1917
casts doubt on the validity of such titles since they refer to
an inexistent OCT. This error alone is, in fact, sufficient to
What is prohibited in a cadastral proceeding is the invalidate the Dimson and CLT claims over the subject
registration of land, already issued in the name of a
property if singular reliance is placed by them on the dates
appearing on their respective titles.
Notably, both the Manotoks and Araneta are amenable to
the remand of the petition, albeit under differing
qualifications. The Manotoks submit that there should be a
Third. The decisions of this Court in MWSS v. Court of remand to the court of origin, consolidating all the present
Appeals and Gonzaga v. Court of Appeals cannot apply to petitions, and that a full trial be conducted by the trial
the cases at bar, especially in regard to their recognition of court.76 On the other hand, Araneta proposes four (4)
an OCT No. 994 dated 19 April 1917, a title which we now options for the Court to consider: (1) the dismissal of the
acknowledge as inexistent. Neither could the conclusions original complaint filed by Dimson; (2) a ruling granting
in MWSS or Gonzaga with respect to an OCT No. 994 Araneta’s appeal and dismissing Dimson’s complaint, but
dated 19 April 1917 bind any other case operating under at the same time remanding the case to a new division of
the factual setting the same as or similar to that at bar. the Court of Appeals for factual determination pursuant to
Section 6, Rule 47 of the Rules of Court; (3) the
suspension of the resolution of the present motion for
With these conclusions, what then is the proper course of reconsideration while the case is remanded to the Court of
action to take with respect to the pending motions for Appeals for factual determination; or (4) the remand of the
reconsideration? Considering that CLT and the Dimsons proceedings to the Court of Appeals for the reception of
clearly failed to meet the burden of proof reposed in them further evidence, particularly the Senate and DOJ Reports,
as plaintiffs in the action for annulment of title and pursuant to Section 6, Rule 47 of the Rules of Court, and
recovery of possession, there is a case to be made for the consequent resolution by the appellate court of the
ordering the dismissal of their original complaints before instant petitions.
the trial court. However, such solution may not
satisfactorily put to rest the controversy surrounding the
Maysilo Estate. The OSG observes that during the oral arguments on the
motion for reconsideration, then Chief Justice Panganiban
suggested that a remand may be required to determine
More pertinently, after the instant petitions were filed with the status of the original title.77 Considering that the
this Court, the Republic of the Philippines, through the genuine OCT No. 994 is that issued on/ registered
OSG, had sought to intervene.1âwphi1 The Republic did on/dated 3 May 1917, a remand would be appropriate to
not participate as a party when these cases were still determine which of the parties, if any, derived valid title
before the trial courts and the Court of Appeals. While the from the said genuine OCT No. 994. On the one hand, the
Republic had originally prayed for the grant of the petitions appreciation of facts is beyond the province of this Court,
filed by all the petitioners in these consolidated cases, since it is not a trier of fact78 as well as not capacitated to
instead it presently seeks of the Court the promulgation of appreciate evidence at the first instance. On the other
a new ruling upholding the validity of OCT No. 994 hand, the Court of Appeals has the competence to engage
issued73 or registered74 on May 3, 1917. Rather than in that undertaking.
suggest whether the petitions be granted or denied, the
OSG argues that after a declaration from this Court that it
is the 3 May 1917 mother title that is valid, "a remand of Under Section 6 of Rule 46, which is applicable to original
this case to the Court of Appeals, to settle which among cases for certiorari,79 the Court may, whenever necessary
the private parties derived their titles from the existing to resolve factual issues, delegate the reception of the
OCT 994, is proper"75 evidence on such issues to any of its members or to an
appropriate court, agency or office.80 The delegate need the final adjudication by the Court on the matter. The
not be the body that rendered the assailed decision. same result can obtain herein.
SO ORDERED.
MAKASIAR, J.:
“All the documentary exhibits of applicant were submitted ‘THE LOWER COURT ERRED IN GRANTING THE
in evidence as offered, there being no objection on the APPLICATION OF MANUELA PASTOR FOR
part of the oppositor. Oppositor Director of Lands through CONFIRMATION OF HER ALLEGED IMPERFECT TITLE
City Fiscal of Batangas did not offer any contradictory TO LOTS NO. 9330-A AND 9330-C DESPITE EVIDENCE
evidence. ADDUCED BY APPLICANT HERSELF THAT SAID LOTS
WERE DECLARED PUBLIC LAND IN A PREVIOUS
CADASTRAL PROCEEDING.’
I
“Assuming that the decision of the cadastral court was not
yet final when the appealed decision was rendered, it was
nevertheless, litis pendentia which, under Section 1,
Substantially, the same issues, as raised by petitioner in
paragraph cranad(e), Rule 16 of the Rules of Court, is
the Court of Appeals, are brought before US.
likewise a bar to the present proceeding for land
registration case under Act No. 496.
But granting for a moment, that the defenses, of res Finally, petitioner argues for the first time on appeal that
adjudicata was properly raised by petitioner herein, WE “there is no substantial evidence to show that she
still hold that, factually, there is no prior final judgment at cranad(private respondent Manuela Pastor) and her
all to speak of. The decision in Cadastral Case No. 41 predecessors-in-interest have been in possession of the
does not constitute a bar to the application of respondent lots sought to be titled for a period of at least thirty
Manuela Pastor; because a decision in a cadastral cranad(30) years and in the manner provided in Section
proceeding declaring a lot public land is not the final 48, as amended, of the Public Land Law.”
decree contemplated in Sections 38 and 40 of the Land
Registration Act.
WE find no merit in the foregoing argument of petitioner.
The uncontradicted testimony of private respondent
A judicial declaration that a parcel of land is public, does Manuela Pastor, which was further corroborated by the
not preclude even the same applicant from subsequently testimony of Antonio Pastor, conclusively established
seeking a judicial confirmation of his title to the same land, beyond doubt that the respondent, together with her
provided he thereafter complies with the provisions of predecessors-in-interest since the year 1913 and up to the
Section 48 of Commonwealth Act No. 141, as amended, present, had been in open, continuous, exclusive, and
and as long as said public land remains alienable and notorious possession and occupation of the lots in
disposable cranad(now sections 3 and 4, P.D. No. 1073). question under a bona fide claim of ownership. Moreover,
the documentary evidence submitted by private
respondent also show that the lots have been declared for
With respect to Cadastral Case No. 43, the evidence on taxation purposes in the name of respondent Manuela
record is too scanty to sustain the view of the petitioner Pastor cranad(Exhibit ‘I’), and the taxes thereon have
been paid by said respondent herein cranad(Exhibits ‘J’,
that the decision rendered therein constitutes res
‘J-1’ to ‘J-5’, ‘K’, ‘K-1’ and ‘K-2’). And finally, Geodetic
adjudicata, or in the absence of finality thereof, litis
pendentia. On the contrary, private respondent has amply Engineer Quirino Clemeneo, who conducted the survey of
shown that no final decree whatsoever was issued in some of the lots and verified the survey conducted by the
connection with said cadastral case, even as it is not Bureau of Lands, testified that the thirteen cranad(13) lots
known in whose favor said decision was rendered. As in question did not encroach upon public or private lands.
found by the Court of Appeals: All these are unmistakable indicia that respondent
Manuela Pastor has performed and complied with all the
conditions essential to entitle her to a confirmation of her
imperfect title over the thirteen cranad(13) lots subject of
her application.
SO ORDERED.