THIRD DIVISION
SAN ROQUE REALTY AND DEVELOPMENT CORPORATION, Petitioner, - versus - REPUBLIC OF THE Respondent. |
G.R. No. 163130
Present: YNARES-SANTIAGO, J.,
Chairperson, AUSTRIA-MARTINEZ, CHICO-NAZARIO,
NACHURA,
and REYES,
JJ. Promulgated: |
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D E C I S I O N
NACHURA, J.:
This is a petition for review on certiorari of a Decision[1] of
the Court of Appeals (CA) in CA-G.R. CV. No. 61758 ordering the cancellation of
petitioner San Roque Realty Development Corporation's (SRRDC's) Transfer
Certificates of Title (TCT) Nos. 128197 and 128198, thereby reversing the
Decision[2] of
the Regional Trial Court (RTC) of
The
facts, as found by the CA, are as follows:
The subject parcels of land are located at
Lahug, P9,500.00 as pre-condition for the entry on the lands sought to
be expropriated. On
Eventually,
the land was subdivided and T.C.T. No. 11946 was cancelled and new titles were
issued by the Register of Deeds of Cebu.
Two parcels covered by T.C.T. Nos. 128197 (Lot No. 933-B-3) and 128198
(Lot No. 933-B-4) were acquired by defendant-appellee. In 1995, defendant-appellee begun
construction of townhouses on the subject parcels of land.
On
22 February 1996, plaintiff-appellant filed the present case (Records, pp.
1-15) alleging that it is the owner of the subject parcels of land by virtue of
the 1938 Decision in the expropriation case, thus, T.C.T. Nos. 128197 and
128198 are null and void. It argued that
defendant-appellee, had no right to possess the subject properties because it
was not its lawful owner.
In
its Answer (Records, pp. 28-38), defendant-appellee claimed that it was a buyer
in good faith. It also claimed that
there was no valid expropriation because it was initiated by the executive
branch without legislative approval. It
also alleged that the expropriation was never consummated because the
government did not actually enter the land nor were the owners paid any
compensation.[3]
The appellate court then quotes, verbatim, the evidence and positions of
the parties, as found by the trial court, viz.:
Plaintiff alleged that the Republic of the
Philippines is the absolute owner of Lot No. 933 of Cebu Cadastre (covered by
Transfer Certificate of Title 11946), a part and parcel of the Camp Lapu-lapu
military reservation; that said parcel of land was originally private property
registered in the names of Francisco Racaza, Pantaleon Cabrera and Josefina
Martinez; that on October 19, 1938, plaintiff (then Commonwealth now Republic
of the Philippines) instituted condemnation proceeding against the owners of
eighteen (18) parcels of land including Lot 933 in Banilad Estate Lahug
(Exhibits “A” and “A-1”) before the Court of First Instance of the Province of
Cebu, 8th Judicial District, that the purpose of expropriation was
to carry out the development program of the Philippine Army as provided in the
National Defense Act, i.e., military reservation; that sometime in October
1938, Judge Felix Martinez ordered plaintiff to make an initial deposit of P9,500.00
with any depository of the latter payable to the Provincial Treasurer as pre-condition
for the entry on the lands sought to be expropriated (Exhibit “B”); that,
accordingly, plaintiff deposited said amount with the Philippine National Bank
to the credit of the Provincial Treasurer (Exhibit “C”); that said amount was
subsequently disbursed in full but due to the destruction of the vouchers,
journal and cash book in the Office of the Provincial Treasurer during the last
World War, the names of the payees could not reasonably be ascertained (Exhibit
“P”); that on May 14, 1940, Judge Martinez issued a Decision condemning the
properties in favor of plaintiffs and, at the same time, fixing the just
compensation thereof (Exhibits “D” and “E”); that defendant San Roque’s
predecessors namely Ismael D. Rosales, Pantaleon Cabrera and Francisco Racaza
interposed and (sic) Exception and Notice of Intention to Appeal and filed
their corresponding appeal bond (Exhibits “N” & “O”); that naturally, the
filing held temporarily in abeyance the finality of the Decision and prevented
plaintiff from recording the Decision with the Register of Deeds; that
plaintiffs, nonetheless, started using the expropriated properties including
Lot 933, devoting the properties to military use; that to show use of subject
properties, plaintiff submitted (1) the historical account of the National
Historical Commission embodied in a metal marker located in Lot 932 adjacent to
Lot 933 (TSN, January 21, 1997, pp. 6-7; 9; Exhibits “I,” “I-1,” “I-2;” (2) the
testimonial accounts of Sgt. Suralta, Barangay Captain Rosales, Lt. Colonel
Infante and Col. Reynaldo Correa; and, (3) the remnant of the Lahug Airport,
particularly its runway (originally devoted exclusively for military airport
and landing field as can be gleaned from Executive Orders 73, 75 and 154 dated
December 3, 1936, August 12, 1947 and June 24, 1938, respectively) situated on
Lot 933 itself; that survey maps of defendant and plaintiff have shown the
exact location of the runway; that Lot 933 was devoted to military use by
plaintiff not only for building structures but also military training of the
Riverine Battalion (Lot 932, as per testimony of M/Sgt. Renato Suralta); that
these training continued up to the present (TSN, January 27, 1997, pp. 4-8);
that the area where Park Vista is being built was used as training ground (TSN,
April 3, 1997, p. 2). Plaintiff further
alleged that defendant San Roque secured Certificates of Title in its favor to
the prejudice of plaintiff specifically TCT Nos. 128197 and 128198 covering Lot
No. 933-B-3 of the subdivision plan Psd-114779 and Lot 933-B-4 of the
subdivision plan Psd-27-023209, respectively; that subject parcels of land
belong to plaintiff and registration thereof in the name of defendant San Roque
is null and void. Consequently,
defendant San Roque’s possession and ownership over the subject property are
without legal basis.
On
the other hand, defendant San Roque alleged that subject parcels of land have
been covered by the Torrens System for decades and any transactions involving
the same including the alleged expropriation should have been registered and
annotated on the Transfer Certificates of Title; that there has been no
registration much less annotation of said expropriation on TCTs issued to
defendant San Roque nor any [of] its predecessors-in-interest. (Exhibits “20” to “24,” “25,” “25-A” to
“25-C,” Exhibits “2,” “2-A” to “2-C,” “3,” “3-A” and “3-B”); that plaintiff
never secured a title in its name, never actually took possession of subject
parcels of land from the date of the Decision in Civil Case No. 781 up to the
present; that despite the fact that defendant San Roque’s Park Vista Project is
within viewing and walking distance from Camp Lapu-lapu, it was able to
introduce substantial improvements (Exhibits “36,” “36-A” to “36-Q”) with no
action being taken by plaintiff; that there are other developments on Lot 933
such as the Cebu Civic and Trade Center which include areas within the military
camp as well (Exhibits “36-R” to “36-V,”
“38,” “38-A” to “38-R”); that plaintiff’s only proof of its claim is the
Camp Lapu-lapu Development Plan (Exhibit “F”) which is a private survey of
plaintiff; that plaintiff knew and was fully aware of all transactions
involving Lot No. 933 up to this date; that defendant San Roque is an innocent
purchaser for value and, therefore, entitled to the protection of the law as it
has every right to rely on the correctness of the certificates of title issued
therefor; that defendant San Roque and its predecessors-in-interest have been
in open, notorious and continuous possession and enjoyment of subject
property(ies) since 1930; that there is a presumption of regularity in the
issuance of subject TCT Nos. 128197 and 128198 by defendant Register of Deeds;
that the alleged Camp Lapu-lapu Development Plan, in the absence of any
Transfer Certificate of Title in plaintiff’s name, cannot prevail over
defendant San Roque’s Transfer Certificate of Title; that defendant San Roque’s
(sic) commenced development of subject parcels of land as early as 1993 and
started construction in April 1994 upon issuance of titles in its name, two and
a half years prior to institution of the instant case; that it has been paying
real taxes since the acquisition of subject properties (Exhibits “4,” “4-A” and
“4-B,” “5,” “5-A” and “5-B,” “26” to “35”); that all requirements for such
development, such as securing permits and licenses from government agencies
were complied with (Exhibits “9” to “18-C”); that it was only on 24 July 1995
that plaintiff initiated steps to recover possession starting with the letter
dated 24 July 1995 (Exhibit “1,” “6,” “7” and “8”) and even addressed to a
wrong entity; that it took plaintiff fifty-six (56) years (counted from the
Decision dated 14 May 1940) to take action to secure its “claimed” ownership
and possession; that private ownership of portions of Lot 933 have been
affirmed by the appellate court by ordering the City Government of Cebu to pay
the private landowner for the portion used for the expansion of Geongson Road
in the case of Perpetua Magno, et al. versus City of Cebu, CA-G.R. No. 40604-CV
(Exhibits “51” to “55,” “55-A” to “55-C”); that in fact, the plaintiff paid
rental for another allegedly expropriated property in the case of another
expropriated Lot 934 subject of the case of Segura v. CAA, et al., CA-G.R. No.
12728-CV (Exh. “56,” “56-A” to “56-B”); that the alleged expropriation of Lot
933 was never consummated as plaintiff never entered, much less take
possession, of subject parcels of land and ever paid any compensation to the
original owners despite its being a requisite for valid exercise of the power
of eminent domain; that there is nother (sic) on record which will show that
compensation for the expropriated lots was ever paid to, much less received by
the landowners/predecessors-in-interest of defendant San Roque; that plaintiff
abandoned the public use, much less did it do so within a reasonable time, the
Lahug Airport had long transferred to Mactan and the areas said airport used to
occupy are now being developed by or on long term lease to private entities;
that alleged initial deposit of P9,500.00 payable to Provincial
Treasurer does not specify for which property the same was intended for; that
if indeed plaintiff actually entered subject property and introduced
improvements thereon it would not have been possible for defendant San Roque or
its predecessors-in-interest to have actually possessed and enjoyed the property
from 1938 up to the present to the exclusion of plaintiff; that the
expropriation requires legislative action and thus the alleged expropriation of
Lot 933 is null and void; that City Ordinances have classified Lot 933 and neighboring
lots initially as residential and presently as commercial (Exhibits “39,” “40,”
“41”); and, finally that the AFP-Viscom is not the proper party to initiate much
less institute suit even assuming the alleged expropriation is valid as the
expropriated lots were placed under the control and supervision of the Civil
Aeronautics Board.[4]
On
Aggrieved,
the Republic appealed the decision to the CA insisting on its absolute
ownership over the subject properties grounded on the following: (1) the CFI
Decision in the expropriation case, Civil Case No. 781; (2) the ruling of this
Court in Valdehueza v. Republic;[7]
and (3) the expropriated properties, including Lot No. 933, are devoted to
public use.
The
CA reversed the RTC Decision on the finding that the appeal from the CFI
Decision in the expropriation case was never perfected by the original owners
of the subject properties,[8] and
thus, the expropriation of Lot No. 933 became final and binding on the original
owners, and SRRDC, which merely stepped into the latter's shoes, is similarly
bound.[9]
The CA further held that laches and estoppel cannot work against the Republic
despite its failure from 1940 to register Lot No. 933 in its name, or to record
the decree of expropriation on the title.[10] Accordingly, the CA found no necessity to
rule on the applicability of Valdehueza
v. Republic in the case.[11]
Hence,
the instant petition.
In
this appeal, SRRDC assigned the following errors:
I.
THE COURT OF APPEALS ERRED IN
HOLDING THAT THE VALIDITY OF THE EXPROPRIATION PROCEEDINGS IN CIVIL CASE NO.
781 MAY NO LONGER BE QUESTIONED.
RESPONDENT'S OWN (REBUTTAL) EVIDENCE SHOWS THAT THE DECISION IN CIVIL
CASE NO. 781 IS NOT YET FINAL.
FURTHERMORE, THE CONDUCT OF EXPROPRIATION PROCEEDINGS ALONE DOES NOT
CONFER TITLE UPON RESPONDENT.
II.
THE COURT OF APPEALS ERRED IN
HOLDING THAT RESPONDENT HAD A BETTER RIGHT TO THE SUBJECT PROPERTIES. THE SUBJECT PROPERTIES BEING UNDER THE
III.
THE COURT OF APPEALS ERRED IN
HOLDING THAT RESPONDENT IS NOT GUILTY OF LACHES DESPITE THE FACT THAT IT FAILED
TO ASSERT ITS RIGHT, IF ANY, OVER THE SUBJECT PROPERTIES FOR 56 LONG YEARS.
IV.
THE COURT OF APPEALS ERRED IN
HOLDING THAT PETITIONER IS NOT A BUYER IN GOOD FAITH.[12]
At the outset, we note that issues of ownership and
possession of several lots included in the 18 parcels of land covering the
Banilad Friar Lands Estate had been the subject of earlier controversies which
we already had occasion to rule upon.
Lot Nos. 932 and 939 were the subject of Valdehueza v. Republic[13]
which is ubiquitously invoked by the Republic in this case. Republic
v. Lim[14] dealt
with the special circumstances surrounding the incomplete and ineffectual
expropriation of Lot No. 932. On the
other hand, Federated Realty Corporation
v. Court of Appeals[15]
preliminarily determined the state of ownership and possession of a portion of
Lot No. 933, particularly
In Valdehueza, we held that the registered
lot owners were not entitled to recover possession of the expropriated lots
considering that the titles contained annotations of the right of the National
Airports Corporation (now CAA) to pay for and acquire said lots.[16]
In Republic v. Lim,[17]
we rejected the Republic’s invocation of our Decision in Valdehueza to retain ownership over said lots, and upheld the principle that title to the expropriated property shall pass from
the owner to the expropriator only upon full payment of just compensation.[18] We struck down the Republic’s claim of
ownership over Lot No. 932 in light of its blatant disregard of the explicit
order in Valdehueza to effect payment
of just compensation.
In Federated Realty Corporation v. Court of
Appeals[19] we upheld
Federated Realty Corporation’s (FRC’s) clear and unmistakable right, as the
title holder, to the lot in question, necessitating the issuance of a writ of
injunction to prevent serious damage to its interests.[20] Even as the Republic invoked Valdehueza and the CFI Decision in Civil
Case No. 781 to defeat the rights of the registered owner and actual possessor,
we applied the settled principle in land registration that a certificate of
title serves as evidence of an indefeasible and incontrovertible title to the
property in favor of the person named therein.[21]
It is against this backdrop that we
resolve the main issue at bench: the ownership of Lot Nos. 933-B-3 and
933-B-4. To do so, however, we must answer
a number of fundamental questions.
First,
was there a valid and complete expropriation of the 18 parcels of land,
inclusive of subject Lot No. 933?
Corollary thereto, did the CFI Decision in Civil Case No. 781 attain
finality and, as such, now evade review?
To
these questions, the CA responded in the affirmative. It found that no timely appeal had been filed
by the original owners of Lot No. 933, and thus, the CFI Decision became
final. Accordingly, the CA ruled that
the validity of the expropriation, including the authority to expropriate, was
no longer open to question. Therefore, the
appellate court saw no necessity to delve into the applicability of Valdehueza.
We
cannot subscribe to the CA’s ruling.
In its
effort to simplify the issues, the CA disregarded relevant facts and ignored
the evidence, noteworthy among which is that when the Republic filed its
complaint with the RTC, it alleged that the CFI Decision in Civil Case No. 781
had long become final and executory. However,
this assertion would compound the Republic’s predicament, because the Republic could
not adequately explain its failure to register its ownership over the subject
property or, at least, annotate its lien on the title. Trying to extricate itself from this
quandary, the Republic belatedly presented a copy of an Exception and Notice of
Intention to Appeal dated
The
CA’s categorical pronouncement that the CFI Decision had become final as no
appeal was perfected by SRRDC’s predecessor-in-interest is, therefore,
contradicted by the Republic’s own allegation that an appeal had been filed by
the original owners of Lot No. 933. Not
only did the CA fail to resolve the issue of the Republic’s failure to register
the property in its name, it also did not give any explanation as to why title
and continuous possession of the property remained with SRRDC and its predecessors-in-interest
for fifty-six years. The CA ruling that disregards
these established facts and neglects to reconcile the contradiction mentioned
above does not deserve concurrence by this Court.
Furthermore, as correctly pointed out
by SRRDC, even if the appellate court adverted to our finding in Valdehueza on the finality of the
expropriation over the lots subject of that case, still, SRRDC and its
predecessors-in-interest would not be bound.
The reference to the finality of the CFI Decision in Civil Case No. 781 in
Valdehueza applies to different
parties and separate parcels of land. We
confirmed this in Federated Realty Corporation
v. CA,[22] and
noted that our decision in Valdehueza
and in Republic v. Lim[23]
did not involve the ownership of Lot No. 933 which was not subject of those
cases.
Second,
assuming that the CFI Decision in Civil Case No. 781 is final and executory,
and that the expropriation proceedings before that court had been completed,
did the Republic pay just compensation for Lot No. 933?
Regrettably,
the CA did not dispose of this issue.
The
Republic submits that the P9,500.00 initial deposit it made was
disbursed in full to the owners of the 18 lots subject of expropriation, and
assumes that the owners of Lot No. 933 were among the recipients of such
disbursement. The Republic admits that
records of payment were destroyed by fire during World War II, and it cannot be
ascertained who received the money. It
would rely simply on the presumption that official duty had been regularly
performed in assuming that the owners of the 18 lots expropriated were adequately
paid.
We are
not convinced.
The Republic’s
bare contention and assumption cannot defeat SRRDC’s apparent ownership over
the subject properties. As we have previously found in Valdehueza, Republic v. Lim[24] and Federated
Realty Corporation v. CA,[25] by
the very admission of the Republic, there was no record of payment of
compensation to the land owners.
In Republic v. Lim,[26] we emphasized that no piece of land can
be finally and irrevocably taken from an unwilling owner until compensation is
paid.[27] Without full payment of just compensation,
there can be no transfer of title from the landowner to the expropriator.[28] Thus, we ruled that the Republic’s failure to pay
just compensation precluded the perfection of its title over Lot No. 932.[29] In fact, we went even further and recognized
the right of the unpaid owner to recover the property if within five years from
the decision of the expropriation court the expropriator fails to effect payment
of just compensation.
Time
and again, we have declared that eminent domain cases are to be strictly
construed against the expropriator.[30] The payment of just compensation for private
property taken for public use is an indispensable requisite for the exercise of
the State’s sovereign power of eminent domain.
Failure to observe this requirement renders the taking
ineffectual,
notwithstanding
the avowed public purpose. To disregard
this limitation on the exercise of governmental power to expropriate is to ride
roughshod over private rights.
From the
records of this case and our previous findings in the related cases, the
Republic manifestly failed to present clear and convincing evidence of full
payment of just compensation and receipt thereof by the property owners.[31] Notably, the CFI Decision in Civil Case No.
781 makes no mention of the initial deposit allegedly made by the Republic.[32] Furthermore, based on the CFI Decision fixing
the amount of just compensation for some of the lots, the initial deposit, if
it was indeed disbursed, would still not adequately recompense all the owners
of the 18 expropriated lots.[33] More importantly, if the Republic had actually
made full payment of just compensation, in the ordinary course of things, it
would have led to the cancellation of title, or at least, the annotation of the
lien in favor of the government on the certificate of title covering Lot No.
933.[34]
In Federated Realty Corporation v. CA,[35]
we expounded on the registration requirement in expropriation proceedings as provided
in the law in force at the time of the CFI Decision, thus:
The registration with the Registry of Deeds of the Republic’s interest arising from the exercise of its power of eminent domain is in consonance with Section 88 of Act No. 496 or the Land Registration Act (now Section 85 of P.D. 1529 also known as the Property Registration Decree), to wit:
SEC.
88. Whenever any land of a registered
owner, or any right or interest therein, is taken by eminent domain, the
Government or municipality or corporation or other authority exercising such
right shall file for registration in the proper province a description of the
registered land so taken, giving the name of such owner thereof, referring by
number and place of registration in the registration book to each certificate
of title, and stating what amount or interest in the land is taken, and for
what purpose. A memorandum of the right
or interest taken, shall be made on each certificate of title by the register
of deeds, and where the fee simple is taken a new certificate shall be entered
to the owner for the land remaining to him after such taking, and a new
certificate shall be entered to the Government, municipality, corporation, or
other authority exercising such right for the land so taken. All fees on account of any memorandum of
registration or entry of new certificate shall be paid by the authority taking
the land.
Furthermore,
Section 251 of the Code of Civil Procedure, the law in force at the time of the
Commonwealth case likewise provides
for the recording of the judgment of expropriation in the Registry of
Deeds. Said provision reads, to wit:
SEC.
251. Final
Judgment, Its Record and Effect. – The record of the final judgment in such
action shall state definitely by metes and bounds and adequate
description. The particular land or
interest in land condemned to the public use, and the nature of the public
use. A certified copy of the record of judgment shall be recorded in the
office of the registrar of deeds for the province in which the estate is
situated, and its effect shall be to vest in the plaintiff for the public use
stated the land and estate so described.
(Emphasis supplied)
There
is no showing that the Republic complied with the aforestated registration
requirement. Without such compliance, it
cannot be said that FRC had notice of the Republic’s adverse claim sufficient
to consider the former in bad faith, for the law gives the public the right to
rely on the face of the Torrens title and to dispense with the need of further
inquiry, except only when one has actual knowledge of facts and circumstances
that should impel a reasonably cautious man to inquire further into its
integrity. Such is the very essence of
our
The
real purpose of the system is to quiet title of land; to put a stop forever to
any question of the legality of the title, except claims which were noted at
the time of registration, in the certificate, or which may arise subsequent
thereto. That being the purpose of the
law, it would seem that once a title is registered, the owner may rest secure, without the
necessity of waiting in the portals of the courts, or sitting in the “mirador de su casa,” to avoid the
possibility of losing his land. x x x
The certificate, in the absence of fraud, is the evidence of title and shows
exactly the real interest of its owner.
The title once registered, with very few exceptions, should not
thereafter be impugned, except in some direct proceeding permitted by law. Otherwise, all security in registered titles
would be lost.[36]
From the
foregoing, it is clear that it was incumbent upon the Republic to cause the
registration of the subject properties in its name or record the decree of
expropriation on the title. Yet, not only did the Republic fail to register the
subject properties in its name, it failed to do so for fifty-six (56) years.
This brings
us to the third question that begs resolution: Is the Republic, by its failure
or neglect to assert its claim, barred by laches?
Laches is the
failure or neglect, for an unreasonable and unexplained length of time, to do
that which by exercising due diligence could or should have been done earlier;
it is negligence or omission to assert a right within a reasonable time,
warranting a presumption that the party entitled to assert it either has
abandoned it or declined to assert it.[37]
The general
rule is that the State cannot be put in estoppel or laches by the mistakes or
errors of its officials or agents.[38] This rule, however, admits of exceptions. One exception is when the strict application
of the rule will defeat the effectiveness of a policy adopted to protect the
public[39] such as the
In Republic v. Court of Appeals,[40] we ruled that the immunity of
government from laches and estoppel is not absolute, and the government’s
silence or inaction for nearly twenty (20) years (starting from the issuance of
St. Jude’s titles in 1966 up to the filing of the Complaint in 1985) to correct
and recover the alleged increase in the land area of St. Jude was tantamount to
laches.
In the
case at bench, the Republic failed to register the subject properties in its
name and incurred in laches spanning more than five-and-a-half (5 ½) decades. Even if we were to accede to the Republic’s
contention that the Exception and Notice of Intention to Appeal filed by the
original owners of Lot No. 933 initially prevented it from registering said
property in its name, we would still be hard pressed to find justification for the
Republic’s silence and inaction for an excessively long time.
Very
telling of the Republic’s silence and inaction, whether intentional or by sheer
negligence, is the testimony of Antonio L. Infante, the Republic’s witness in
the proceedings before the RTC.[41]
On cross-examination, he testified that several surveys[42]
were conducted on a number of expropriated lots, including Lot No. 933.[43] The results of these surveys showed that Lot
No. 933 was still registered in the name of the original owners.[44] As such, Infante recommended in his report
that legal action be taken.[45] Yet, despite the aforesaid recommendation,
title to Lot No. 933 remained registered in the name of the original owners,
and subsequently its transferees. This
silence and unexplained inaction by the Republic clearly constitute laches.
A
fourth basic question is whether or not SRRDC is a buyer in good faith.
The CA
found SRRDC wanting in good faith because it should be imputed with constructive
knowledge, or at least, sufficiently warned that the Republic had claims over
the property in view of indications that the subject land belonged to a
military reservation.
Contrary
to the CA’s findings, however, Infante testified that there were no facilities
installed by the AFP on Lot No. 933, although sometime in 1984 to 1985, there
began some illegal construction thereon.[46] He was uncertain as to whether a criminal
case was filed against those responsible for the illegal construction, and simply
referred to an arrangement between the AFP and an Amores Realty which prevented
the former from filing a case against the latter.[47]
Significantly, the records also reveal that the Republic’s possession
of the 18 expropriated lots pertain only to the lots adjacent to Lot No.
933. At most, the
The
trial court correctly held that title registered under the
The conveyance
history of the subject properties is clearly shown on the titles of SRRDC’s
predecessors-in-interest. Absent a
showing that SRRDC had any participation, voluntary or otherwise, in the
transfers by the original owners of Lot No. 933, prior to its eventual
acquisition of the same, we affirm that SRRDC is a buyer in good faith and an
innocent purchaser for value.
An
innocent purchaser for value is one who, relying on the certificate of title, bought
the property from the registered owner, without notice that some other person
has a right to, or interest in, such property, and pays a full and fair price
for the same, at the time of such purchase, or before he has notice of the
claim or interest of some other person in the property.[50]
Likewise, Section 32 of Presidential
Decree No. 1529[51]
provides:
SECTION 32. Review of decree of registration; Innocent purchaser for value. – The decree of registration shall not be reopened or revised by reason of absence, minority, or other disability of any person adversely affected thereby, nor by any proceeding in any court for reversing judgments, subject, however, to the right of any person, including the government and the branches thereof, deprived of land or of any estate or interest therein by such adjudication or confirmation of title obtained by actual fraud, to file in the proper Court of First Instance a petition for reopening and review of the decree of registration not later than one year from and after the date of the entry of such decree of registration, but in no case shall such petition be entertained by the court where an innocent purchaser for value has acquired the land or an interest therein, whose rights may be prejudiced. Whenever the phrase “innocent purchaser for value” or an equivalent phrase occurs in this Decree, it shall be deemed to include an innocent lessee, mortgagee, or other encumbrancer for value.
Upon the expiration of said period of one year, the decree of registration and the certificate of title issued shall become incontrovertible. Any person aggrieved by such decree of registration in any case may pursue his remedy by action for damages against the applicant or any other persons responsible for the fraud.
In the instant case, the Republic’s adverse claim of
ownership over the subject properties may have given SRRDC’s
predecessors-in-interest, the sellers, voidable title to the subject
properties. However, we stress that
prior to SRRDC’s acquisition of the subject properties, Lot No. 933 had already
been subdivided and covered by separate titles of the subsequent
transferees. These titles, including the
titles to the subject properties, had not been voided at the time of the sale
to SRRDC in 1994. As such, SRRDC
acquired good title to the subject properties, having purchased them in good
faith, for value, and without notice of the seller’s defect of title, if any.
Finally, there is a recent development that has sealed the
fate of the Republic in its claim of ownership over the subject
properties. This is the passage of Republic
Act No. 9443 (RA 9443), entitled “AN ACT CONFIRMING AND DECLARING, SUBJECT TO
CERTAIN EXCEPTIONS, THE VALIDITY OF EXISTING TRANSFER CERTIFICATES OF TITLE AND
RECONSTITUTED CERTIFICATES OF TITLE COVERING THE BANILAD FRIAR LANDS ESTATE,
SITUATED IN THE FIRST DISTRICT OF THE CITY OF CEBU.”[52] The
law confirms and declares valid all existing TCTs and Reconstituted
Certificates of Title duly issued by the Register of Deeds of Cebu Province
and/or
In fine, we hold that the operative facts in the case at
bar, to wit: (1) the incomplete expropriation of Lot No. 933 in view of
Republic’s failure to prove payment in full of just compensation; (2) the
registration under the Torrens system of the subject properties in the name of
SRRDC and its predecessors-in-interest; (3) the estoppel and laches of the
Republic for 56 years; (4) the status of SRRDC as an innocent purchaser for
value; and (5) the passage of R.A. No. 9443, all warrant the reversal of the CA
Decision.
WHEREFORE, premises
considered, the petition is GRANTED. The August 15, 2003 Decision of the Court of
Appeals is hereby REVERSED and the
August 25, 1998 Decision of the Regional Trial Court is REINSTATED. TCT Nos. 128197
and 128198, in the name of petitioner San Roque Realty and Development
Corporation, are upheld and declared valid.
SO ORDERED.
ANTONIO EDUARDO B. NACHURA
Associate Justice
WE CONCUR:
CONSUELO YNARES-SANTIAGO
Associate
Justice
Chairperson
MA. ALICIA
AUSTRIA-MARTINEZ Associate Justice |
MINITA V. CHICO-NAZARIO Associate Justice |
RUBEN T. REYES
Associate
Justice
A T T E S T A T I O N
I attest that the conclusions in the above Decision were
reached in consultation before the case was assigned to the writer of the
opinion of the Court’s Division.
CONSUELO
YNARES-SANTIAGO
Associate
Justice
Chairperson,
Third Division
C E R T I F I C A T I O
N
Pursuant to Article VIII,
Section 13 of the Constitution, and the Division Chairperson's Attestation, it
is hereby certified that the conclusions in the above Decision were reached in
consultation before the case was assigned to the writer of the opinion of the
Court.
REYNATO
S. PUNO
Chief
Justice
[1] Penned by Associate Justice
Andres B. Reyes, Jr., with Associate Justices Eubulo G. Verzola and Regalado E.
Maambong, concurring.
[2] Penned by Judge Aproniano B.
Taypin.
[3] Rollo, pp. 48-49.
[4]
[5]
[6]
[7] 123 Phil. 968 (1966).
[8] Rollo, p. 55.
[9]
[10]
[11]
[12]
[13] Supra note 7.
[14] G.R. No. 161656, June 29, 2005, 462
SCRA 265.
[15] G.R. No. 127967, December 14, 2005,
477 SCRA 707.
[16] Supra note 7, at 112.
[17] Supra note 14.
[18]
[19] Supra note 15.
[20]
[21]
[22] Supra note 15.
[23] Supra note 14.
[24]
[25] Supra note 15.
[26] Supra note 14.
[27] Visayan
Refining
[28] Supra
note 14, at 282.
[29]
[30]
[31] Federated
Realty Corporation v. CA, supra note 15, at 711; Republic v. Lim, supra note 14, at 273; Valdehueza v. Republic, supra note 7, at 973; TSN, November 10,
1997, pp. 6-7.
[32] Annex “B,” rollo, pp. 75-80.
[33] The decision uniformly fixed the
price for all 18 lots, excluding the improvements, at P0.10 per square
meter. (TSN, November 10, 1997, p. 6.)
[34] Federated
Realty Corporation v. CA, supra note 15, at 719.
[35]
[36]
[37] Olizon
v. Court of Appeals, G.R. No. 107075, September 1, 1994, 236 SCRA 148,
157-158.
[38] Republic
v. Court of Appeals, G.R. No. 116111, January 21, 1999, 301 SCRA 366, 377.
[39]
[40]
[41] Antonio L. Infante, former military
officer and real estate officer of AFP VISCOM.
[42] In 1975, 1977, 1982, 1984, 1992, and
1994.
[43] TSN, April 2, 1997, p. 6.
[44]
[45]
[46]
[47]
[48] Rollo,
p. 130.
[49]
[50] Realty
Sales Enterprise, Inc. v. Intermediate Appellate Court, G.R. No. L-67451,
September 28, 1987, 154 SCRA 328, 345, citing Cui v. Henson, 51 Phil 606 (1928), Fule v. DeLegare, 117 Phil. 367 (1963).
[51] Amending and codifying the laws relative to registration of property and for other purposes.
[52] [REPUBLIC ACT NO. 9443]
AN ACT CONFIRMING AND
DECLARING SUBJECT TO CERTAIN EXCEPTIONS, THE VALIDITY OF EXISTING TRANSFER
CERTIFICATES OF TITLE AND RECONSTITUTED CERTIFICATES OF THE TITLE COVERING THE
BANILAD FRIAR LANDS ESTATE, SITUATED IN THE FIRST DISTRICT OF THE CITY OF CEBU.
SECTION 1. All existing Transfer Certificates of Title and Reconstituted Certificates of Title duly issued by the Register of Deeds of Cebu Province and/or Cebu City covering any portion of the Banilad Friar Lands Estate, notwithstanding the lack of signatures and/or approval of the then Secretary of the Interior (later Secretary of Agriculture and Natural Resources) and/or the then Chief of the Bureau of Public Lands (later Director of Public Lands) in the copies of the duly executed Sale Certificates and Assignments of Sales Certificates, as the case may be, now on file with the Community Environment and Natural Resources Office (CENTRO), Cebu City, are hereby confirmed and declared as valid titles and the registered owners recognized as absolute owners thereof.
This confirmation and declaration of validity shall in all respects be entitled to like effect and credit as a decree of registration, binding the land and quieting the title thereto and shall be conclusive upon and against all persons, including the national government and all branches thereof; except when, in a given case involving a certificate of title or a reconstituted certificate of title, there is clear evidence that such certificate of title or reconstituted certificate of title was obtained through fraud, in which case the solicitor general or his duly designated representative shall institute the necessary judicial proceeding to cancel the certificate of title or reconstituted certificate of title as the case may be, obtained through such fraud.
SEC. 2. All laws, decrees, proclamations or issuances contrary to or inconsistent with the provisions of this Act are hereby repealed, amended or modified accordingly.
SEC. 3. This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two national newspapers of general circulation.
[53] Published on July 11 and 12, 2007 in The Daily Tribune and Balita, respectively. Effective 15 days therefrom, or on July 27, 2007.