G.R. No.

168800 April 16, 2009

NEW REGENT SOURCES, INC. V. TANJUATCO
FACTS:
Petitioner New Regent Sources, Inc. (NRSI) filed !o"plint for Rescission#$eclrtion of Nullit% of
!ontrct, Recon&e%nce nd $"ges ginst respondent 'n(utco nd t)e Register of $eeds of
!l"* *efore t)e R'! of !l"*, +gun. NRSI lleged t)t in 199,, it ut)ori-ed .icente P.
!ue&s III, its !)ir"n nd President, to ppl% on its *e)lf, for t)e c/uisition of two prcels of lnd *%
&irtue of its rig)t of ccretion. !ue&s purportedl% pplied for t)e lots in )is n"e *% p%ing P02,,00.10
to t)e 2ureu of +nds. 3n 4nur% 2, 1995, !ue&s nd )is wife e6ecuted .oting 'rust
Agree"ent o&er t)eir s)res of stoc7 in t)e corportion. ')en, pending ppro&l of t)e ppliction wit)
t)e 2ureu of +nds, !ue&s ssigned )is rig)t to 'n(utco for t)e su" of P05,000. 3n 8rc) 12, 1996,
t)e $irector of +nds relesed n 3rder, w)ic) ppro&ed t)e trnsfer of rig)ts fro" !ue&s to
'n(utco. Transfer Certf!ates of Tt"e #ere t$en ss%e& n t$e na'e of Tan(%at!o .
In )is Answer wit) !ountercli", 'n(utco d&nced t)e ffir"ti&e defense t)t t)e co"plint stted
no cuse of ction ginst )i". According to 'n(utco, it ws !ue&s w)o ws lleged to )&e
defruded t)e corportion. 9e &erred furt)er t)t t)e co"plint did not c)rge )i" wit) 7nowledge of
t)e gree"ent *etween !ue&s nd NRSI. R'! dis"issed t)e co"plint of petitioner on de"urrer to
e&idence nd )eld t)t 'n(utco is n innocent purc)ser for &lue.
ISS:;< =#N NRSI ws *le to su*stntite its cli" of entitle"ent to owners)ip of t)e lnds in
'n(utco>s n"e
9;+$< No.
NRSI nc)ors its cli" o&er t)e lnds su*(ects of t)is cse on t)e rig)t of ccretion. It su*"itted in
e&idence, titles to four prcels of lnd, w)ic) llegedl% d(oin t)e lots in t)e n"e of 'n(utco. 2ut it
"ust *e stressed t)t a!!reton as a 'o&e of a!)%rn* +ro+ert, %n&er Art!"e -./ of t$e C0" Co&e
re)%res t$e !on!%rren!e of t$e fo""o#n* re)%stes< (1) t)t t)e deposition of soil or sedi"ent *e
grdul nd i"percepti*le? (2) t)t it *e t)e result of t)e ction of t)e wters of t)e ri&er? nd (1) t)t t)e
lnd w)ere ccretion t7es plce is d(cent to t)e *n7s of ri&ers. ')us, it is not enoug) to *e riprin
owner in order to en(o% t)e *enefits of ccretion. One #$o !"a's t$e r*$t of a!!reton '%st s$o# 1,
+re+on&erant e0&en!e t$at $e $as 'et a"" t$e !on&tons +ro0&e& 1, "a#. Petitioner )s not*l%
filed in t)is regrd s it did not offer n% e&idence to pro&e t)t it )s stisfied t)e foregoing re/uisites.
@urt)er, it is undisputed t)t 'n(utco deri&ed )is title to t)e lnds fro" 3riginl !ertificte of 'itle
(3!') No. 2,5 registered in t)e n"e of t)e Repu*lic of t)e P)ilippines. Sid prcels of lnd for"ed
prt of t)e $ried Sn 4un Ri&er 2ed, w)ic) under Article 502 (1) of t)e !i&il !ode rig)tl% pertins to t)e
pu*lic do"inion. ')e !ertifiction issued *% @orester III ;"ilino S. +e&iste confir"s t)t sid lnds
were &erified to *e wit)in t)e Alien*le nd $ispos*le, certified nd declred s suc) on Septe"*er 20,
1901. C"ear",, t$e Re+%1"! s t$e entt, #$!$ $a& e0er, r*$t to transfer o#ners$+ t$ereof to
res+on&ent.
Ne6t, petitioner soug)t to est*lis) frudulent registrtion of t)e lnd in t)e n"e of 'n(utco. NRSI
presented *efore t)e tril court cop% of t)e .oting 'rust Agree"ent w)ic) t)e spouses !ue&s e6ecuted
in f&or of Puline !o. 9owe&er, not)ing in sid gree"ent indictes t)t NRSI e"powered !ue&s to
ppl% for t)e registrtion of t)e su*(ect lots on its *e)lf. Neit)er did petitioner dduce e&idence to pro&e
t)t !ue&s ws its President nd !)ir"n. ;&en ssu"ing t)t !ue&s ws t)e president of NRSI, )is
powers re confined onl% to t)ose &ested upon )i" *% t)e *ord of directors or fi6ed in t)e *%Alws. In
trut), petitioner could )&e esil% presented its *%Alws or corporte resolution to s)ow !ue&s>s
ut)orit% to *u% t)e lnds on its *e)lf. 2ut it did not.
Petitioner filed co"plint for rescission#declrtion of nullit% of contrct, recon&e%nce nd d"ges
ginst respondents. An a!ton for re!on0e,an!e s one t$at see2s to transfer +ro+ert,, #ron*f%"",
re*stere& 1, anot$er, to ts r*$tf%" an& "e*a" o#ner. In n ction for recon&e%nce, t)e certificte of
title is respected s incontro&erti*le. =)t is soug)t insted is t)e trnsfer of t)e propert%, specificll% t)e
title t)ereof, #$!$ $as 1een #ron*f%"", or erroneo%s", re*stere& n anot$er +erson3s na'e, to its
rig)tful nd legl owner, or to one wit) *etter rig)t. To #arrant a re!on0e,an!e of t$e "an&, t$e
fo""o#n* re)%stes '%st !on!%r < (1) t)e ction "ust *e *roug)t in t)e n"e of person cli"ing
owners)ip or do"inicl rig)t o&er t)e lnd registered in t)e n"e of t)e defendnt? (2) t)e
registrtion of t)e lnd in t)e n"e of t)e defendnt ws procured t)roug) frud or ot)er illegl
"ens? (1) t)e propert% )s not %et pssed to n innocent purc)ser for &lue? nd (,) t)e ction is
filed fter t)e certificte of title )d lred% *eco"e finl nd incontro&erti*le *ut #t$n fo%r ,ears
fro" t)e disco&er% of t)e frud, or not "ater t$an 10 ,ears n t$e !ase of an '+"e& tr%st. Petitioner
filed to s)ow t)e presence of t)ese re/uisites.