Republic of the Philippines

SUPREME COURT
Manila
EN BANC
G.R. No. L-9957 August 8, 1916
PERFECTO DE LA VEGA, ET AL., plaintiffs-appellees,
vs.
TOMAS ALL!LOS "o# AL!ELOS$, defendant-appellant.
Silvestre Apacible for appellants.
P. Joya Admana for appellees.
TORRES, J.%
This appeal by bill of exceptions as !aised by counsel fo! the defendant f!o" the
#ud$"ent of %anua!y &', ()(*, in hich the Cou!t of +i!st ,nstance of Batan$as
absolved the defendant f!o" the co"plaint ith !espect to the pa!cels of land Nos.
&, ', *, and - in the !ou$h s.etch ad"itted by a$!ee"ent of the pa!ties, and
o!de!ed hi" to !etu!n and delive! to the plaintiffs the pa!cels of land desi$nated on
the said s.etch as Nos. (, / and 0, upon the plaintiffs payin$ to the defendant the
su" of P*'12 ith the costs of the p!oceedin$s a$ainst the appellant.
By a !itin$ of May ), ()(', plaintiffs th!ou$h thei! counsel filed a co"plaint in the
Cou!t of +i!st ,nstance of Batan$as, alle$in$ as a cause of action that they e!e
the sole hei!s of thei! co""on p!edecesso!s in inte!est, 3icto! de la 3e$a and
4!sula de 5u6"an, ho at thei! deaths e!e in possession of a pa!cel of land
"easu!in$ sixcavanes and a half, situated in the ba!!io of 7ao of the pueblo of
Balayan, Batan$as ith the "etes and bounds $iven and desc!ibed in the !ou$h
s.etch specifically "entioned in Pa!a$!aph , of the co"plaint2 that the plaintiffs had
continued in the co""on and pro indiviso possession of the said pa!cel of land,
hich as divided into seven pa!ts o! lots, as seen by the !ou$h s.etch attached to
the co"plaint2 that about the yea! (-)/, +idel de la 3e$a, one of the coone!s of
the said p!ope!ty, in conside!ation of a loan of P*'1 hich he had !eceived f!o"
the defendant To"as Balielos 8o! Ballilos9 conveyed to the latte! the pa!cels of
land Nos. (, *, and :, by "eans of a cont!act of antich!esis, until such ti"e as the
said debto!, o! so"e one of the coone!s of the land, should !etu!n the said
bo!!oed su"2 that subse;uently, to it, in the yea! ()1/, the plaintiffs, ith the
exception of Polica!po de la 3e$a, successively bo!!oed f!o" the defendant the
su"s of P*1, P(- and P:1, unde! the sa"e cont!act of antich!esis, but this ti"e
they $ave as secu!ity the lots "a!.ed Nos. &, ', and 0, f!o" hich lots the
defendant as to collect the inte!est due, as in fact he did, f!o" the date of the
encu"b!ance of the said pa!cels of land up to the ti"e the co"plaint as filed
hen they offe!ed to pay the defendant the said su"s of P*'1, P*1, P(-, and
P:1, a total of P/*-, in o!de! to !eac;ui!e the said pa!cels2 but that the defendant
!efused and still unlafully !efuses to !eceive the said su"s and has app!op!iated
to hi"self the said pa!cels of land. The plaintiffs the!efo!e p!ayed that the
defendant be o!de!ed to delive! the !esto!e the said pa!cels of land to the", afte!
they should have paid hi" the su" of P/*-, and that he be fu!the! o!de!ed to pay
to the plaintiffs the su" of P/11 fo! the losses and da"a$es suffe!ed by the", ith
the costs of the p!oceedin$s a$ainst the defendant.
<is de"u!!e! havin$ been ove!!uled, the defendant in his anse! denied each and
all of the alle$ations contained in the co"plaint, and in special defense set fo!th
that the desc!iption of the pa!cels of land in ;uestion as that found in the "ap
inse!ted in pa!a$!aph 8a9 of his special defense. <e added that the lots Nos. (, *,
and :, shon in the said s.etch, e!e sold to hi" in %uly, (-):, by +idel de la
3e$a ith the consent of the othe! plaintiffs fo! the p!ice of P*'1 on the condition
that they "i$ht be !epu!chased, but that no pe!iod hateve! as fixed fo! thei!
!ede"ption2 that as the p!ope!ty had not been !edee"ed ithin the le$al pe!iod,
the one!ship of the said pa!cels of land had beco"e consolidated in the
pu!chase! by fo!ce of la2 that in about the sa"e yea!, (-):, Robe!ta de la 3e$a,
ith the consent and autho!i6ation of the othe! plaintiffs, also sold to the
defendant, fo! the su" of P*1, lot No. ', a pa!cel hich "easu!ed one-half cavan
of seed2 that pa!cel No. & li.eise had been sold to hi" by +elina Ali=o ith the
consent of the plaintiffs, in o! about the "onth of +eb!ua!y, ()1(, fo! the su" of
P&-2 and, finally, that pa!cel No. / li.eise had been sold to hi" by +elina Ali=o
ith the consent of the plaintiffs, in o! about the "onth of +eb!ua!y, ()1(, fo! the
su" of P&-2 and, finally, that pa!cel No. / as sold to hi" by +idel de la 3e$a ith
the consent of the othe! plaintiffs, in the yea! (-)(, fo! the p!ice of P-1, on
condition that it "i$ht be !edee"ed by the vendo!s at the sa"e p!ice2 that no
pe!iod as fixed ithin hich it as to be !epu!chased and that as it as not
!epu!chased by the plaintiffs ithin the pe!iod fixed by la, the one!ship of the
land had conse;uently beco"e consolidated in the defendant2 and that the latte!
had fo! "any yea!s been in the ;uiet, public, and continuous possession of the
pa!cels of the land in ;uestion as the one! the!eof, to the exclusion of eve!y othe!
pe!son. 7efendant the!efo!e p!ayed that he be absolved f!o" the co"plaint, ith
the costs a$ainst the plaintiffs.
Afte! the hea!in$ and the int!oduction of evidence by both pa!ties, the cou!t
!ende!ed the afo!e"entioned #ud$"ent to hich the defendant excepted and in
!itin$ "oved fo! a !eopenin$ of the case and a ne hea!in$. To the o!de!
ove!!ulin$ his "otion defendant excepted and duly filed the p!ope! bill of
exceptions hich as app!oved and t!ans"itted to the cle!. of this cou!t.
The appeal in this case is the!efo!e !est!icted to the pa!cels of land Nos. (, /, and
0 hich defendant in the #ud$"ent appealed f!o" is o!de!ed to delive! and !esto!e
to the plaintiffs upon pay"ent to hi" of the su" of P*'1, and the ;uestion he!e
!aised is hethe! the deed of conveyance of the said pa!cels of land, executed by
+idel de la 3e$a in favo! of the defendant on %uly &), (-):, and found in the
docu"ent Exhibit > is a cont!act of antich!esis, as contended by the plaintiffs, o!
hethe! it is a sale unde! pacto de retro, as the defendant-appellant in this
instance alle$es it to be.
Acco!din$ to the stipulation of the pa!ties, the lots !efe!!ed to on this appeal a!e
those "a!.ed Nos. (, /, and 0 on the !ou$h s.etch shon on pa$e && of the bill of
exceptions, th!ee pa!cels of land that e!e the sub#ect "atte! of the cont!act
executed beteen +idel de la 3e$a and the defendant and contained in the
docu"ent Exhibit >, dated Balayan, Batan$as, %uly &), (-):.
,n o!de! to dete!"ine the natu!e of and to classify the said cont!act, the essential
pa!t of the docu"ent Exhibit >, as found at pa$es (: to (- of the bill of exceptions,
is t!ansc!ibed he!e belo. The pa!ts the!eof hich !efe! to the na"es of the
coone!s of the to pa!cels of land "entioned in the cont!act, and to the a!ea,
"etes, and bounds of each one of these to pa!cels, have been o"itted. The said
essential pa!t is as follos?
. . . . and he!eas on this day , have "o!t$a$ed the to pa!cels of land
above-"entioned to the said 7. To"as Ballilos fo! the su" of P*'1 and fo!
the te!" of ei$ht yea!s, countin$ f!o" this day, at the expi!ation of hich ,
"ay !edee" the"2 that should , not then do so, the said lands shall
continue to be "o!t$a$ed until , have the "oney available he!eith the
!edee" the"2 the!efo!e, , he!eby "o!t$a$e the to pa!cels of land
he!einabove "entioned to 7. To"as Ballilos fo! the said su" of P*'1,
hich , have !eceived f!o" hi" in cu!!ent coin, and as the sa"e as not
!eceived in ou! p!esence, e aive the exception of "oney not paid in
cash2 the!efo!e, hencefo!th and du!in$ the pe!iod above stipulated, , $!ant
and convey "y one!ship and possession in the said to pa!cels of land
to the said 7. To"as Ballilos in o!de! that he "ay "ana$e and en#oy the
sa"e in conside!ation of the su" fo! hich they a!e "o!t$a$ed.
The!e bein$ p!esent 7. To"as Ballilos . . . ., he stated that he had
!eceived in "o!t$a$e, to his enti!e satisfaction, the to pa!cels of tillable
land above "entioned, unde! the conditions and fo! the ti"e stipulated, fo!
the su" of P*'1, hich he has al!eady delive!ed to the said 7. +idel de a
3e$a, ho in tu!n states that the said lands a!e f!ee of all cha!$es and
encu"b!ances and binds hi"self to a!!ant this "o!t$a$e in case of le$al
p!oceedin$s.
The said cont!act appa!ently !eco!ds a loan of P*'1, secu!ed by a "o!t$a$e of the
afo!e"entioned to pa!cels of land and payable ithin the pe!iod of ei$ht yea!s, o!
ithin such ti"e as the debto! +idel de la 3e$a "i$ht be able to pay his debt and
!edee" the said land. <oeve!, notithstandin$ the te!"s of the docu"ent, le$ally
the!e is no "o!t$a$e inas"uch as the said inst!u"ent is not of the natu!e of a
public inst!u"ent. And even thou$h it e!e, it as not !eco!ded in the p!ope!ty
!e$ist!y as it ou$ht to have been. +u!the!"o!e, the inst!u"ent !ecites that the
debto! thencefo!th ceded and conveyed his one!ship and possession in the said
to pa!cels of land to the c!edito! Ballilos in o!de! that Ballilos "i$ht "ana$e and
en#oy the sa"e in conside!ation of the su" fo! hich the lands, f!ee of all bu!den
and encu"b!ance acco!din$ to the debto!, e!e "o!t$a$ed.
,f the inst!u"ent above "entioned can not be const!ued as a "o!t$a$e of the said
to pa!cels of land in secu!ity fo! P*'1, the a"ount loaned, and fo! the pay"ent of
the debt ithin ei$ht yea!s o! so"e othe! pe!iod, neithe! can it be held to be a sale
unde! pacto de retro inas"uch as the said docu"ent contains no "ention
hateve! of any sale ith !i$ht of !ede"ption, althou$h it does say that the debto!
ceded and conveyed to the c!edito! the one!ship and possession of the lands in
o!de! that he "i$ht "ana$e and en#oy the" in conside!ation of the su" fo! hich
they e!e "o!t$a$ed.
As it is not shon that the said docu"ent is a cont!act of "o!t$a$e executed as
secu!ity fo! a loan, still less does it appea! to be a cont!act of pacto de retro, in
vie of the te!"s of the a$!ee"ent Exhibit >, as stipulated beteen the
cont!actin$ pa!ties, of the alle$ations of both pa!ties, and of the findin$s of the
cou!t in !e$a!d to the alle$ations, "ade and p!oven at the t!ial by the contendin$
pa!ties, e find the classification of the said cont!act as one of antich!esis to be
co!!ect and p!ope!, ta.in$ into account the intention of the cont!actin$ pa!ties as
!evealed by the o!ds and te!"s e"ployed by the" and !eco!ded in the said
docu"ent.
@eve!al a!ticles of the Civil Code !elatin$ to the cont!act of antich!esis, a!e as
follos?
ART. (--(. By antich!esis a c!edito! ac;ui!es a !i$ht to !eceive the f!uits of
!eal p!ope!ty of his debto!, ith the obli$ation to apply the" to the
pay"ent of inte!est, if due, and afte!a!ds to the p!incipal of his c!edit.
ART. (--'. The debto! can not !ecove! the en#oy"ent of the !eal p!ope!ty
ithout p!eviously payin$ in full hat he oes to his c!edito!.
But the latte!, in o!de! to f!ee hi"self f!o" the obli$ations i"posed on hi"
by the p!ecedin$ a!ticle, "ay alays co"pel the debto! to !eente! upon
the en#oy"ent of the estate, unless the!e be an a$!ee"ent to the cont!a!y.
ART. (--*. The c!edito! does not ac;ui!e the one!ship of the !eal
p!ope!ty by nonpay"ent of the debt ithin the te!" a$!eed upon.
Any stipulation to the cont!a!y shall be void. But in this case the c!edito!
"ay de"and, in the "anne! p!esc!ibed in the la of civil p!ocedu!e, the
pay"ent of the debto! o! the sale of the !eality.
ART. (--/. The cont!actin$ pa!ties "ay stipulate that the inte!est of the
debt be set off a$ainst the f!uits of the estate $iven in antich!esis.
This cont!act is so"ehat si"ila! to those of pled$e and "o!t$a$e and fo! this
!eason a!ticle (--: p!esc!ibed that ce!tain a!ticles !elative to these latte! cont!acts
a!e applicable to cont!acts of antich!esis, fo! both the fo!"e! and the latte!
cont!acts a!e co"p!ised in title (/, boo. *, of the Civil Code.
The cou!tAs const!uction as to the fo!" of the cont!act ente!ed into by the pa!ties
as found in the #ud$"ent appealed f!o", is fully suppo!ted by the la, the
pleadin$s, and the evidence. The cont!act ente!ed into by the cont!actin$ pa!ties
hich has p!oduced beteen the" !i$hts and obli$ations is in fact one of
antich!esis, fo! a!ticle (&-( of the Civil Code p!esc!ibes a"on$ othe! thin$s that if
the o!ds should appea! to conflict ith the evident intent of the cont!actin$
pa!ties, the intent shall p!evail. A!ticle (&-' p!ovides that hoeve! $ene!al the
te!"s of the cont!act "ay be, they should not be unde!stood to include thin$s and
cases diffe!ent f!o" those ith !e$a!d to hich the inte!ested pa!ties intended to
cont!act2 and, fu!the!, a!ticle (&-* of the sa"e code says that if any stipulation of a
cont!act should ad"it of seve!al diffe!ent "eanin$s, that "ost suitable to $ive it
effect should be applied.
,n the said Exhibit > it as stipulated that even afte! ei$ht yea!s the debto!, the
one! of the p!ope!ty, "i$ht !edee" it heneve! he should have the "eans to pay
his debt and !ecove! the lands $iven in antich!esis to his c!edito! ho "i$ht told
the" in usuf!uct in conside!ation fo! the "oney he had loaned2 and as the
fo!e$oin$ a!ticles of the Civil Code fixes no te!" fo! the !ecove!y of the en#oy"ent
of i""ovables $iven in antich!esis, p!ovided that the debto! p!eviously pay hat
he oes to this c!edito!, the plaintiffs have an un;uestionable !i$ht to !ecove!
pa!cels Nos. (, /, and 0 of the land desi$nated in the "ap o! plan ad"itted by
a$!ee"ent of the pa!ties, afte! fi!st payin$ the debt of P*'1 to the defendant-
c!edito!.
By the fo!e$oin$ !easons, the e!!o!s assi$ned by the appellant to the #ud$"ent
!ende!ed in this suit have been fully !efuted, and, the!efo!e, as the said #ud$"ent is
in acco!dance ith the la and the evidence, it should be, as it is he!eby, affi!"ed,
ith the costs a$ainst the defendant. @o o!de!ed.