!

Ledesma'v.'Municipality'of'Iloilo! !
On!Aug.!2,!1922,!Julio!Ledesma!sold!to!Celso!Ledesma,!appellant!herein,!
December'17,'1926' lots! 228TA,! 537,! and! 703.! Again,! according! to! Julio! Ledesma,! the!
Johnson,'J.'' inclusion!of!537!and!703!in!the!transfer!of!228TA!was!a!mistake.!!
Rañeses,'Roberto'Miguel'O.'' !
! ISSUE:' WON! the! inclusion! of! lots! 537! and! 703! in! the! TCT! issued! in!
SUMMARY:'Concepcion!Lopez!owned!a!parcel!of!land!identified!as!lot! favor!of!Celso!Ledesma!made!him!the!owner!of!such!properties.!!
no.!228.!Parts!of!the!lot,!numbered!503!and!703,!were!sold!to!the!City! !!
of!Iloilo.!In!the!certificate!of!title!for!lot!no.!228!issued!to!Lopez!after! RULING:'NO,!he!did!not!become!the!owner!of!such.!!
the! sale,! lots! 537! and! 703! were! still! included,! albeit! erroneously.! In! !
the!subsequent!transfers!of!title,!537!and!703!were!included,!though! RATIO:''
the! subsequent! purchasers! prior! to! the! appellant! in! this! case! Appellant’s* argument:' By! the! inclusion! of! 537! and! 703! in! the!
recognized! that! the! inclusion! of! the! aforementioned! lots! was! registered! title! of! Concepcion! Lopez! in! 1915! and! in! each! succeeding!
erroneous.! Celso! Ledesma,! the! last! purchaser! of! the! said! lots,! now! transfer! of! title! until! it! was! transferred! to! him,! he! became! the! owner!
claims!the!value!of!537!and!703!with!damages!from!the!City!of!Iloilo,! thereof.!As!the!City!of!Iloilo!appropriated!the!same,!he!was!entitled!to!
stating! that,! on! the! basis! of! the! TCT! in! his! possession,! he! was! the! recover!the!value!of!the!lots!together!with!damages.!!
owner!of!537!and!703!were!his.!The!SC!disagreed.!! !
' Supreme*Court:*Appellant’s!theory!is!incorrect.!As!early!as!April!1915,!,!
DOCTRINE:' The! simple! possession! of! a! certificate! of! title,! under! the! Lopez! had! already! turned! over! the! disputed! lots! to! the! City! of! Iloilo!
Torrens! system,! does! not! necessarily! make! the! possessor! a! true! under!a!contract!of!sale!for!street!purposes.!537!and!703!had!become!a!
owner!of!all!the!property!prescribed!therein.' part! of! a! public! highway! established! by! law.! The! inclusion! of! the! lots!
' were! therefore! illegal,! in! accordance! with! Sec.! 39! of! Act! 490,! in! the!
FACTS:' Concepcion! Lopez! owned! a! parcel! of! land! identified! as! lot! no.! certificate!issued!to!Lopez!on!Nov.!10.!This!fact!was!recognized!by!the!
228.! In! March! 1915,! a! part! of! the! same! was! sold! to! the! City! of! Iloilo,! subsequent!purchasers!of!said!lots.!!
now!numbered!537!and!703,!for!P25k.!This!was!payable!in!ten!years.!! !
! The' simple' possession' of' a' certificate' of' title,' under' the' Torrens' system,'
On!Nov.!10,!1915,!after!a!petition!for!the!registration!of!lot!no.!228!was! does'not'necessarily'make'the'possessor'a'true'owner'of'all'the'property'
presented,!a!certificate!of!title!was!issued!in!favor!of!Concepcion!for!the! prescribed' therein.' According! to! Legarda! and! Prieto! v.! Saleeby! If! a!
aforementioned!lot,!including!lots!537!and!703.!! person! obtains! a! title,! under! the! Torrens! system,! which! include! by!
! mistake! or! oversight! land! which! cannot! be! registered! under! the!
On!April!27,!1918,!Concepcion!sold!lot!228,!including!lots!537!and!708! Torrens!system,!he!does!not,!by!virtue!of!said!certificate!alone,!becomes!
to!Maximo!M.!Kalaw!and!his!wife.!Neither!did!Lopez!and!Kalaw!know!o! the!owner!of!the!lands!illegally!included.!
the!inclusion!of!lots!537!and!703!in!the!certificate!of!title.!Later,!Lopez,! !
representing!Kalaw,!sold!the!lots!(228,!537,!and!703)!to!Julio!Ledesma.! The! inclusion! of! public! highways! in! a! certificate! of! title! does! not!
According!to!Julio!Ledesma’s!admissions,!the!inclusion!of!537!and!703! thereby! necessarily! give! to! the! holder! of! such! certificate! said! public!
in!the!TCT!issued!to!him!was!a!mistake.!! highways.! The! appellant! is! not! entitled! to! damages! as! he! never! did!
! become!owner!of!the!lots,!even!if!the!same!were!included!in!the!original!
On! Sept.! 15,! 1919,! Julio! Ledesma! sold! part! of! lot! no.! 228! to! Tomas! certificate!of!title!and!in!the!subsequent!transfers!of!title.!!
Locsin! et! al.! Later,! 228! was! subdivided! into! 228TA! and! 228TB.! 228TA! '
remained!Ledesma’s!property,!as!well!as!537!and!703.!!
!
DISPOSITIVE:'Judgment!of!the!lower!court!affirmed.'' favor!of!the!spouses!on!October!25,!1906.!The!said!certificate!included!
' the!wall.!
' !

Legarda'vs.'Saleeby! Subsequently,!the!predecessor!of!Saleeby,!Teus,!presented!a!petition!in!
the!Court!of!Land!Registration!for!the!registration!of!the!land!occupied!
October'2,'1915' by! him.! The! petition! was! granted! on! March! 25,! 1912.! Teus! then!
Johnson,'J.' transferred!the!property!to!Saleeby.!
Victor' !
! On!December!13,!1912,!the!spouses!discovered!that!the!land!where!the!
SUMMARY:'The!spouses!Legarda!and!Prieto!registered!their!property! wall! stands! was! included! in! the! certificate! granted! to! Saleeby.! They!
with! the! Court! of! Land! Registration.! Subsequently,! their! neighbor! then! presented! a! petition! in! the! Court! of! Land! Registration! for! an!
Teus!had!his!own!property!registered,!but!it!included!a!portion!of!the! adjustment!and!correction!of!the!error.!The!court,!however,!denied!the!
property! previously! registered! under! the! name! of! the! spouses.! The! petition.!It!said!that!during!the!pendency!of!the!petition!of!Saleeby,!the!
lower! court! said! that! the! registration! of! Saleeby,! which! was! not! spouses! failed! to! make! any! objection! to! the! registration! of! the! lot! of!
objected!to!by!the!spouses,!prevails.! Saleeby,!which!included!the!wall.!
' !
DOCTRINE:' Land! registration! proceedings! are! actions! in! rem.! They! The!situation!now!is!that!there!are!two!registered!owners!of!the!wall,!
bind!the!whole!world.! which!was!not!a!joint!wall.!
! !
The! purpose! of! the! Torrens! system! is! to! quiet! title! to! land.! Once! a! !
parcel!of!land!has!been!registered!under!the!said!system,!it!is!binding! ISSUES:''
upon! the! whole! world! and! the! registration! of! the! certificate! gives! a. WON! the! subsequent! registration! of! the! property! under! the!
notice!to!the!whole!world!of!the!facts!as!stated!therein.!Other!parties! name! of! Saleeby! without! any! objection! from! the! spouses!
cannot! subsequently! put! the! property! under! litigation! once! it! is! during! the! pendency! of! the! land! registration! proceedings!
registered!with!finality,!subject!to!limited!exceptions.! divested!them!of!their!ownership!of!the!property!
! b. WON!Saleeby!can!be!considered!an!innocent!purchaser!in!good!
A! purchaser! from! a! seller! who! only! had! ownership! of! the! property! faith!
recorded! subsequent! to! the! registration! of! a! prior! party! cannot! be! !!
considered!a!purchaser!in!good!faith.!The!registration!of!the!property! RULING:' NO,! the! prior! registration! of! the! spouses! of! the! subject!
serves! as! notice! to! the! entire! world! so! he! is! presumed! to! have! full! property!is!binding.!
knowledge!of!the!facts!contained!therein.! !
' RATIO:''
FACTS:!Consuelo!Legarda!and!Mauro!Prieto!(spouses)!and!N.M.!Saleeby! '
own! adjoining! lots! in! Ermita.! There! exists! a! stone! wall! dividing! their! a.! The!decision!of!the!lower!court!is!based!on!the!theory!that!the!
properties,!which!is!located!on!the!lot!of!the!spouses.!! action! for! registration! of! the! lot! of! Saleeby! was! a! judicial! proceeding!
! and! that! the! judgment! there! is! binding! upon! all! parties! who! did! not!
On!March!2,!1906,!the!spouses!presented!a!petition!in!the!Court!of!Land! appear! or! oppose! the! same.! This! means! that! even! though! the! spouses!
Registration! for! the! registration! of! their! lot.! The! court! subsequently! previously! registered! the! property! in! their! name,! the! subsequent!
issued!an!original!certificate!provided!for!under!the!Torrens!System!in! registration!of!Saleeby!divested!them!of!their!rights!over!it.!
!
! !
It! should! be! first! noted! that! if! such! a! principle! is! to! be! followed,! then! b! The! primary! purpose! of! the! Torrens! system! is! to! quiet! title.!
Teus! and! Saleeby! should! have! been! bound! by! the! pronouncement! in! Supposing!that!Teus!was!the!real!owner!of!the!property!in!question,!his!
the! earlier! registration! proceeding! initiated! by! the! spouses.! He! only! failure! to! object! to! the! registration! of! the! spouses! binds! him.! Saleeby,!
attempted!to!register!the!said!property!6!years!after!the!issuance!of!the! the! transferee! of! Teus,! cannot! have! any! greater! right,! title! or! interest!
certificate! of! land! registration! was! issued! in! favor! of! the! spouses.! than!his!transferor.!
Following! this! line! of! reasoning,! the! failure! of! Saleeby! to! object! there! !
bound!him!to!the!decision!of!the!court.! It! should! be! noted! here! that! the! certificate! of! registration! obtained! by!
! Teus!was!obtained!subsequent!to!that!of!the!spouses.!This!means!that!
The!real!purpose!of!the!Torrens!system!is!to!quiet!title!to!land;!to!put!a! the! certificate! of! the! spouses! had! already! been! recorded! in! the! public!
stop! forever! to! any! question! of! the! legality! of! the! title,! except! claims! registry.!The!record!serves!as!notice!to!the!whole!world.!All!persons!are!
which! were! noted! at! the! time! of! the! registration,! in! the! certificate,! or! charged!with!knowledge!of!what!it!contains.!
which! may! arise! subsequent! thereto.! Once! a! title! is! registered,! the! !
owner! may! rest! secure,! without! having! to! guard! his! property! in! court! Under! the! rule! of! notice,! it! is! presumed! that! the! purchaser! has!
against!possible!subsequent!registration.! examined! every! instrument! of! record! affecting! the! title.! This! is!
! irrebutable.! This! presumption! cannot! be! overcome! by! proof! of!
Land! registration,! being! an! action! in! rem,! includes! all! the! world! as! innocence!or!good!faith.!
parties,! including! the! government.! After! the! registration! is! complete! !
and!final,!and!there!exists!no!fraud,!there!are!no!innocent!third!parties! Since!Saleeby!is!conclusively!presumed!to!have!knowledge!of!the!facts!
who!may!claim!an!interest.!The!government!itself!assumes!the!burden! as!stated!in!the!certificate!of!the!spouses,!he!cannot!be!considered!to!be!
of! giving! notice! to! all! parties.! To! allow! parties! to! litigate! the! same! a!purchaser!in!good!faith.!
question! over! and! over! again! would! destroy! the! point! of! the! whole! !
system.! DISPOSITIVE:' Decision! of! the! lower! court! REVERSED.! The! records! of!
! the! case! are! to! be! returned! to! the! lower! court! and! the! certificates!
Torrens! registration! only! gives! to! the! one! registering! what! title! he! corrected! in! order! to! reflect! that! the! spouses! are! the! owners! of! the!
already!had!prior!to!registration.!If!he!does!not!already!have!a!perfect! property!in!question.!
title,! he! cannot! have! the! property! registered.! The! certificate! of! '
registration!contains!a!precise!and!correct!statement!of!the!exact!status! '
of!the!fee!held!by!its!owner,!absent!any!showing!of!fraud.!
! CARAGAYILAYNO'v.'CA!
A! title! once! registered! cannot! be! defeated,! even! by! an! adverse,! open! Dec.'26,'2014'
and!notorious!possession,!nor!by!prescription.! MelencioJHerrera,'J.'
! Krissy'
“The! general! rule! is! that! in! the! case! of! two! certificates! of! title,! !
purporting! to! include! the! same! land,! the! earlier! in! date! prevails…if! it! SUMMARY:'After!discovering!a!discrepancy!between!the!Inventory!of!
can! be! very! clearly! ascertained! by! the! ordinary! rules! of! construction! Properties!of!deceased!Mariano!and!his!OCT!in!the!area!of!the!estate,!
relation! to! written! documents,! that! the! inclusion! of! the! land! in! the! Salvador,!the!administrator,!proceeded!to!the!disputed!property!and!
certificate! is! a! mistake,! the! mistake! may! be! rectified! by! holding! the! discovered!petitioner!Juliana!occupying!the!same.!Salvador!demanded!
latter!of!the!two!certificates!of!title!to!be!conclusive.”!(Hogg)! that!she!vacate!but!she!refused,!asserting!ownership!and!possession!
of!the!same!for!a!long!period!of!time.!Salvador!filed!a!suit!to!recover!
!
the!property.!Juliana!sought!that!the!property!be!reconveyed!to!her.!
She!also!claimed!that!there!was!fraud!in!the!inclusion!of!the!property!
in!the!OCT.!The!RTC!and!CA!awarded!the!property!to!Salvador.!SC!
reversed!and!ruled!that!there!was!no!fraud.!Juliana!was!entitled!to!the!
property.!
' !
DOCTRINE:'Mere!possession!of!a!certificate!of!title!under!the!Torrens!
System!is!not!conclusive!as!to!the!holder’s!true!ownership!of!all!the!
property!described!therein!for!he!does!not,!by!virtue!of!said!
certificate!alone,!become!the!owner!of!the!land!illegally!included.!A!
Land!Registration!Court!has!no!jurisdiction!to!decree!a!lot!to!persons!
who!have!put!no!claim!in!it!and!who!have!never!asserted!any!right!of!
ownership!over!it.!!The!Land!Registration!Act!as!well!as!the!Cadastral!
Act!protects!only!the!holders!of!a!title!in!good!faith!and!does!not!
permit!its!provisions!to!be!used!as!a!shield!for!the!commission!of!
fraud,!or!that!one!should!enrich!himself!at!the!expense!of!another.!
' !!
FACTS:' Salvador! Estrada,! nephew! and! administrator! of! the! intestate!
estate!of!the!deceased!Mariano!De!Vera,!instituted!a!suit!against!Juliana!
CaragayTLayno!for!the!recovery!of!a!portion!(3732!sq.!m.)!of!sugar!and!
coconut! land! (total! area! indicated! in! OCT:! 8752! sq.! m.)! located! at!
Calasiao,!Pangasinan.!
! not!yet!passed!into!the!hand!of!third!parties.!
Juliana! and! decedent,! Mariano,! were! first! cousins,! both! orphans,! who!
lived! together! in! the! care! of! a! common! aunt.! As! prior! Administratrix,!
Mariano’s! widow! filed! in! the! Special! Proceeding! an! Inventory! of! all! of!
Mariano’s!properties,!including!a!parcel!of!land!in!Calasiao!with!an!area!
of! 5417! sq.! m.! Because! of! a! discrepancy! in! area! mentioned! in! the!
Inventory! and! that! in! the! OCT,! Salvador! repaired! to! the! Disputed!
Property.! He! found! that! it! was! occupied! by! petitioners! Juliana! and!
Benito! Layno.! Salvador! demanded! that! they! vacate! the! lot! because! it!
was!titled!in!the!name!of!Mariano.!Petitioners!refused,!claiming!that!the!
land! belonged! to! them! and,! before! them,! to! Juliana’s! father,! Juan!
Caragay.!
! SC:!Fraud!was!unsubstantiated.!The!disputed!portion!was!erroneously!
Juliana! claims! that! the! disputed! portion! had! been! fraudulently! or!
mistakenly!included!in!the!OCT!so!that!an!implied!or!constructive!trust!
existed!in!her!favor.!
!
RTC:! Salvador! entitled! to! recover! possession! of! the! disputed! portion.!
Petitioners!ordered!to!vacate!the!same.!
CA:!Affirmed.!Although!Sec.!102!of!Act!496!allows!a!Petition!to!compel!a!
trustee! to! reconvey! a! registered! land! to! the! cestui! que! trust,! this!
remedy!is!no!longer!available!to!Juliana.!Mariano’s!land!was!registered!
on!Sept.!11,!1947!and!it!was!only!on!March!28,!1967!when!Jualiana!filed!
her! answer! that! she! sought! the! reconveyance! of! the! disputed! land.!
Thus,! her! claim! for! reconveyance! prescribed! after! 10! years.! Mariano’s!
OCT!has!become!indefeasible.!
!
ISSUES:' 1.! Whether! the! absence! of! fraud! in! the! inclusion! of! the!
property!in!the!OCT!destroys!the!indefeasibility!of!a!Torrens!title.!
2.!Whether!Juliana!was!entitled!to!reconveyance.!
RULING:'1.!No.!
2.!Yes.!First,!Juliana!and!her!father!had!been!in!actual,!open,!continuous!
and! uninterrupted! possession! in! the! concept! of! an! owner! of! the!
disputed! portion! for! about! 45! years.! Second,! Mariano! and! his!
successorsTinTinterest!are!guilty!of!laches.!Third,!Juliana’s!property!had!
!
RATIO:'!
1.! Juliana:! There! was! fraud! in! the! inclusion! of! the! disputed! portion! in!
the! OCT.! During! his! lifetime,! Mariano! borrowed! from! her! the! tax!
declaration!of!her!land!purportedly!to!be!used!as!collateral!for!his!loan!
and! sugar! quota! application.! Relying! on! her! cousin’s! assurances,! she!
acceded!to!his!request!and!was!made!to!sign!some!documents!of!which!
she! did! not! even! know! because! she! was! an! unlettered! woman.! She!
discovered! the! fraudulent! inclusion! only! in! 1966! when! Salvador! so!
informed!her!and!sought!to!eject!them.!
!
included! in! the! OCT.! Deducting! the! area! of! the! disputed! portion! from!
the! area! of! the! entire! lot,! the! difference! is! 5020! sq.! m.! which! closely!
!
approximates! 5147! sq.m.! indicated! in! the! Inventory! of! Property! of!
Mariano.! The! widow! by! limiting! the! area! in! said! inventory! in! effect!
recognized!and!admitted!that!the!disputed!portion!did!not!form!part!of!
the!decedent’s!estate.!!
! possessor! and! owner! of! the! disputed! portion,! her! cause! of! action! for!
Mere!possession!of!a!certificate!of!title!under!the!Torrens!System!is!not!
conclusive! as! to! the! holder’s! true! ownership! of! all! the! property!
described! therein! for! he! does! not,! by! virtue! of! said! certificate! alone,!
become! the! owner! of! the! land! illegally! included.! A! Land! Registration!
Court! has! no! jurisdiction! to! decree! a! lot! to! persons! who! have! put! no!
claim!in!it!and!who!have!never!asserted!any!right!of!ownership!over!it.!!
The!Land!Registration!Act!as!well!as!the!Cadastral!Act!protects!only!the!
holders!of!a!title!in!good!faith!and!does!not!permit!its!provisions!to!be!
used!as!a!shield!for!the!commission!of!fraud,!or!that!one!should!enrich!
himself!at!the!expense!of!another.!
! !
2.!The!disputed!portion!was!originally!possessed!openly,!continuously!
and!uninterruptedly!in!the!concept!of!an!owner!by!Juan!and!had!been!
declared! in! his! name! under! a! tax! declaration! beginning! with! the! year!
1921.!Upon!the!demise!of!her!father,!in!1914(?),!Juliana!adjudicated!the!
property!to!herself!as!his!sole!heir!in!1958!and!declared!it!in!her!name!
under! a! tax! declaration! beginning! with! the! year! 1959.! Realty! taxes!
were! religiously! paid! from! 1938! to! 1972.! Juliana! and! her! father! had!
been! in! actual,! open,! continuous! and! uninterrupted! possession! in! the!
concept! of! owner! for! about! 45! years,! until! said! possession! was!
disturbed! in! 1966! when! Salvador! informed! her! that! the! property! was!
registered!in!Mariano’s!name.!
! THE'PROVINCE'OF'CAVITE!
For! 20! years! from! the! date! of! registration! of! title! (1947)! to! when! this!
suit!was!instituted!(1967),!neither!Mariano!up!to!the!time!of!his!death!
in!1951,!nor!his!successorsTinTinterest,!had!taken!steps!to!possess/lay!
adverse! claim! to! the! disputed! portion,! hence! they! may! be! said! to! be!
guilty!of!laches.!!
! Cavite! three! LRA! cases! covering! a! parcel! of! land! in! Brgy.! Lantic,!
The! remedy! of! the! landowner! whose! property! has! been!
wrongfully/erroneously! registered! in! another’s! name! is,! after! 1! year!
from!the!date!of!the!decree,!not!to!set!aside!the!decree,!but!,!respecting!
the!decree!as!incontrovertible!and!no!longer!open!to!review,!to!bring!an!
ordinary!action!in!the!ordinary!court!of!justice!for!reconveyance,!or,!if!
the! property! has! passed! into! th! hands! of! an! innocent! purchaser! for!
value,!for!damages.!
!
Prescription! cannot! be! invoked! against! Juliana! because,! as! lawful!
reconveyance,! which,! in! effect,! seeks! to! quiet! title! to! property,! falls!
within! the! settled! rule! that! an! action! to! quiet! property! in! one’s!
possession!is!imprescriptible.!One!who!is!in!actual!possession!of!a!piece!
of! land! claiming! to! be! owner! thereof! may! wait! until! his! possession! is!
disturbed!or!his!title!attacked!before!taking!steps!to!vindicate!his!right.!
Her!undisturbed!possession!for!52!years!gave!her!a!continuing!right!to!
seek!the!aid!of!a!court!of!equity!to!determine!the!nature!of!the!adverse!
claim!of!a!3rd!party!and!the!effect!on!her!own!title.!Besides,!her!right!to!
quiet!title,!to!seek!reconveyance!and!to!annul!the!OCT!accrued!only!in!
1966!when!she!was!made!aware!of!a!claim!adverse!to!her!own.!
DISPOSITIVE:' CA! judgment! reversed! and! set! aside.! Salvador! ordered!
to!cause!segregation!of!the!disputed!portion!occupied!by!Juliana!and!to!
reconvey! the! same! to! her.! Register! of! Deeds! ordered! to! issue! a! new!
certificate!of!title!covering!the!area!of!the!disputed!portion!in!favor!of!
Juliana!and!the!remaining!area!in!another!certificate!of!title!in!favor!of!
the!estate!of!Mariano.!
'
'
DOLFO'v.'REGISTER'OF'DEEDS'OF'
September'25,'2000'
Mendoza'
Mafoxci'
!
SUMMARY:' Respondents! Casal! et.! al' filed! before! the! RTC! of! Bacoor,!
Carmona,! Cavite.! Amelita! Dolfo! and! Yangtze! Properties,! Inc.! filed! a!
motion! for! leave! to! file! and/or! complaintTinTintervention! in! these!
cases.!Dolfo!alleged!that!she!is!the!registered!owner!of!the!property!in!
the!LRC!cases!based!on!TCT!No.!TT320601,!and!Yangtze!entered!into!a!
Contract! to! Sell! with! her! over! the! property.! The! RTC! denied! the!
motion! because! it! is! procedural! error! to! file! a! complaint! for!
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intervention! in! cases! involving! original! application! for! land!
registration,! being! in' rem,! and! there! was! already! a! general! order! of!
default! entered! by! the! court! against! those! who! failed! to! oppose! the!
applications.! On! MR,! the! RTC! treated! the! motion! as! one! to! lift! the!
order! of! general! default! and! held! that! Dolfo’s! title! over! the! property!
was!of!doubtful!nature!and!that!allowing!her!to!intervene!in!the!LRC!
cases! would! unduly! delay! the! proceedings.! The! Acting! Register! of!
Deeds!of!the!Province!of!Cavite,!filed!a!complaint!before!the!RTC!for!
the! annulment! of! Dolfo’s! certificate! of! title.! Meanwhile,! the! RTC! of!
Bacoor!rendered!a!decision!recognizing!the!rights!of!Casal,!et.!al.!over!
the! litigated! property.! Dolfo! then! filed! a! petition! for! certiorari! and!
mandamus!before!the!CA!to!annul!and!set!aside!the!orders!of!the!RTC!
and! to! compel! it! to! give! due! course! to! her! motion! for! leave! to!
intervene!and/or!admit!complaintTinTintervention.!The!CA!denied!due!
course! to! the! petition.! It! also! denied! Dolfo’s! MR.! The! SC! held! that! a!
motion!to!intervene!in!a!land!registration!case!is!not!allowed!,!being!
one! in' rem.! The! party! wishing! to! be! heard! should,! instead! of! filing! a!
motion!for!leave!to!intervene,!ask!for!the!lifting!of!the!order!of!general!
default.! If! lifted,! he! should! file! an! opposition! to! the! application! for!
registration.!It!also!held!that!the!presumption!of!validity!of!the!title!of!
Dolfo!was!overturned,!given!the!factual!findings!in!the!case.!
' Meanwhile,! the! RTC! of! Bacoor! rendered! a! decision! recognizing! the!
DOCTRINE:'The!Torrens!system!does!not!create!or!vest!title!but!only!
confirms! and! records! one! already! existing! and! vested.! A! land!
registration! court! has! no! jurisdiction! over! parcels! of! land! already!
covered! by! a! certificate! of! title! only! when! there! exists! no! serious!
controversy!as!to!the!authenticity!of!the!certificate.!'
' !
FACTS:!Respondents!Casal!et.!al'filed!before!the!RTC!of!Bacoor,!Cavite!
LRA!Case!Nos.!BT94T60,!BT89T14!and!BT90T6.!LRA!Case!No.!BT94T60!was!
for!reconstitution!of!OCT!No.!362!purporting!to!cover!a!parcel!of!land!in!
Brgy.!Lantic,!Carmona,!Cavite.!The!other!two!cases!were!for!registration!
of!title.!!
! 2. Whether!the!presumption!that!a!TCT!was!regularly!issued!may!be!
Amelita! Dolfo! and! Yangtze! Properties,! Inc.! filed! a! motion! for! leave! to!
file! and/or! complaintTinTintervention! in! the! LRA! cases.! Dolfo! alleged!
that! she! is! the! registered! owner! of! the! property! in! the! LRC! cases,! as!
shown!by!TCT!No.!TT320601!issued!in!her!name,!and!Yangtze!entered!
into!a!Contract!to!Sell!with!her!over!the!property.!!
!
The! RTC! denied! the! motion! because! it! is! procedural! error! to! file! a!
complaint! for! intervention! in! cases! involving! original! application! for!
land!registration,!being!in'rem,!and!there!was!already!a!general!order!of!
default! entered! by! the! court! against! those! who! failed! to! oppose! the!
applications.! The! RTC! noted! Dolfo’s! failure! to! exercise! any! act! of!
dominion!over!the!property.!!
!
On! MR,! the! RTC! treated! the! motion! as! one! to! lift! the! order! of! general!
default.! It! was! denied! because! the! LRA! report! that! Dolfo’s! title! was!
issued!without!legal!basis,!and!the!NBI!report!that!the!signature!of!the!
signatory! of! the! Register! of! Deeds! was! forged,! were! given! greater!
weight!than!the!documents!proffered!by!Dolfo!to!show!the!genuineness!
of!the!signature!from!the!Register!of!Deeds.!The!RTC!held!that!Dolfo’s!
title!over!the!property!was!of!doubtful!nature!and!that!allowing!her!to!
intervene!in!the!LRC!cases!would!unduly!delay!the!proceedings.!!
!
Atty.!Artemino!Cana,!Acting!Register!of!Deeds!of!the!Province!of!Cavite,!
filed!a!complaint!before!the!RTC!for!the!annulment!of!Dolfo’s!certificate!
of!title.!!
!
rights! of! Casal,! et.! al.! over! the! litigated! property.! Dolfo! then! filed! a!
petition! for! certiorari! and! mandamus! before! the! CA! to! annul! and! set!
aside!the!orders!of!the!RTC!and!to!compel!it!to!give!due!course!to!her!
motion! for! leave! to! intervene! and/or! admit! complaintTinTintervention.!
The!LRA!was!included!party!respondent.!!
The!CA!denied!due!course!to!the!petition.!It!also!denied!Dolfo’s!MR.!
!
ISSUES:'!
1. Whether!a!motion!to!intervene!in!a!land!registration!case!could!be!
allowed.!–NO!
overturned!by!factual!findings!to!the!contrary.!TYES!
!!
RULING:'!
1. A!motion!to!intervene!in!a!land!registration!case!cannot!be!allowed.!
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2. The!rule!that!a!title!issued!under!the!Torrens!System!is!presumed! of! Amelita! Dolfo.! Page! 232! of! the! Primary! Entry! Book! for! Act! 496!
valid!and,!hence,!the!best!proof!of!ownership!of!a!piece!of!land!does! under! the! date! 18! November! 1991! does! not! indicate! that! a!
not! apply! where! the! certificate! itself! is! faulty! as! to! its! purported! document!was!presented!for!registration!in!favor!of!Amelita!Dolfo!
origin.! affecting!TCT!No.!11520!which!resulted!in!the!issuance!of!TCT!No.!
! TT!320601.!
RATIO:'! !
1. A! party! wishing! to! be! heard! should,! instead! of! filing! a! motion! for! This! Investigator! also! failed! to! locate! despite! the! thorough! search!
leave!to!intervene,!ask!for!the!lifting!of!the!order!of!general!default.! of!the!vault!clerks,!TCT!No.!11520!the!supposed!title!from!whence!
If! lifted,! he! should! file! an! opposition! to! the! application! for! the! subject! TCT! No.! TT320601! was! derived.! Instead,! the!
registration.!This!is!so!because!proceedings!in!land!registration!are! investigator! found! TCT! Nos.! 11519! and! 11521! issued! by! RD!
in' rem! and! not! in' personam,! the! sole! object! being! the! registration! Cuevas.!
applied!for,!not!the!determination!of!any!right!connected!with!the! !
registration.! Records! of! the! LRA! show! shat! the! Judicial! Forms! 109! and! 109TD!
! used!for!the!genuine!TCT!No.!320601!issued!in!the!name!of!Molino!
2. Even!if!intervention!is!proper,!Dolfo’s!reliance!on!her!title!is!infirm.! Homes!and!not!in!favor!of!Amelita!Dolfo.!This!is!confirmed!by!the!
The! presumption! of! validity! of! the! title! was! overcome! by! the! Certification! of! DRD! Diosdado! A.! Concepcion,! dated! 21! May! 1996.!
evidence! presented:! LRA! Report! (dated! May! 24,! 1996),! and! NBI! When!interviewerd,!DRD!Concepcion!disclosed!to!the!Investigator!
Report!(June!20,!1996)! that! the! supposed! original! of! TCT! No.! TT320601! in! the! name! of!
! Amelita! Dolfo! is! detached! from! the! title! volume.! He! further!
The!numerous!documents!Dolfo!presented!to!prove!its!authenticity! intimated! that! based! on! his! own! personal! verification! he! believes!
have! been! disputed! by! the! Report! by! Benjamin! Flestado,! Chief! of! that!the!supposed!title!in!the!name!of!Amelita!Dolfo!is!of!doubtful!
the! Inspection! and! Investigation! Division! of! the! Land! Registration! authenticity.!He!said!that!former!RD!Antonia!Cabuco!disowned!her!
Authority! (LRA).! His! Report! showed! that! her! T.C.T.! No.! TT320601! alleged!signature!in!TCT!No.!TT320901.!
was! issued! without! legal! basis! and! that! no! document! was! on! file! !
with! the! Primary! Entry! Book! of! the! Registry! of! Deeds! of! Trece! Dolfo! questioned! the! credibility! of! Atty.! Artemino! Cana! who! filed!
Martires! City! to! support! the! issuance! thereof.! This! Report! the! action! for! annulment! of! her! title.! However,! the! evidence! she!
concludes!that!petitioner's!T.C.T.!No.!TT320601!is!spurious.! was! able! to! present! was! the! letter! of! the! LRA! Administrator,!
! Reynaldo! Maulit,! who,! in! declaring! the! existence! of! TCT! No.! TT
The! LRA! Report! is! reinforced! by! the! NBI! Report! dated! June! 20,! 320601! in! the! vaults! of! the! Register! of! Deeds! of! the! Province! of!
1996! showing! that! the! signature! of! Register! of! Deeds! Antonia! Cavite,!referred!to!the!letterTreport!of!the!same!Atty.!Artemio!Caña!
Cabuco!appearing!on!petitioner's!title!is!a!forgery.! dated!April!30,!1996.!
! !
Consequently,! Atty.! Artemio! Cana,! Acting! Register! of! Deeds! of! Allowing! Dolfo! to! intervene! in! the! LRA! cases! would! not! avoid!
Cavite,!filed!a!complaint!with!the!Regional!Trial!Court,!Branch!89!at! multiplicity! of! suits! in! view! of! the! case! for! annulment! and!
Bacoor!for!annulment!of!petitioner's!title.! cancellation!of!her!TCT.!Her!intervention!will!be!premature!as!her!
! best!proof!of!ownership!to!be!presented!in!the!LRA!case!is!the!same!
Verification! conducted! in! the! Registry! of! Deeds! of! Cavite! Province! as!the!one!being!questioned!in!the!case!for!annulment.!She!is!also!
on!21!May!1996!disclosed!that!there!is!no!document!on!file!in!the! not! left! without! recourse! by! not! allowing! her! to! intervene.! If! it! is!
registry!vault!to!support!the!issuance!of!TCT!No.TT!320601!in!favor! shown!that!her!certificate!of!title!is!genuine!and!that!she!is!the!true!
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owner! of! the! litigated! property,! the! proceedings! in! the! land! ! ! Feb!10,!1975!T!previous!title!was!cancelled!by!TCT!TT
registration! cases! would! then! be! null! and! void! because! the! trial! 128606!issued!in!the!name!of!! ! Eduardo!Victa!
court! has! no! jurisdiction! on! the! matter.! Otherwise,! she! could! sue! ! ! Feb! 10,! 1975! T! later! TCT! was! cancelled! by! TCT! No.!
for!damages.! T0128607!in!the!name!of!sps.!! ! Rodriguez!
! ! 5)! Since! May! 1075,! sos.! Rodriguez! tried! to! enter! and! occupy!
DISPOSITIVE:'Petition!denied.!CA!affirmed.! the!subject!lots!by!force!and!! intimidation.!
! !
! Sps.!Rodriguez!claimed!that!the!subjects!lots!were!conjugal!property!of!

RODRIGUEZ'v.'LIM! Dominga! and! Frisco! Gudani;! that! upon! Dominga’s! death! Frisco!
executed! an! extrajudicial! settlement! of! estate! of! Dominga! where! the!
Nov.'30,'2006' lots!were!adjudicated!in!his!favour.!thereafter,!Frisco!sold!the!lands!to!
Callejo,'Sr.,'J.' Eduardo!Victa!who!in!turn!sold!the!same!to!the!Sps.!Rodriguez.!
Robicka'Gozun' ! 1)! They! claimed! that! they! were! purchasers! of! good! faith! and!
! for!value.!
SUMMARY:'! ! 2)! They! have! been! in! possession! of! the! subject! lots! by!
' themselves!and!their!predecessorsT! inTinterest.!
DOCTRINE:'' !
' !
FACTS:'Pablo!Gyoma!Lim,!Jr.!(Pablo!Lim!Jr.)!filed!with!the!court!a!quo!a! [facts!as!found!by!the!court]!
complaint! for! cancellation! of! certificate! of! title! and! injunction! against! !
the!sps.!Rodriguez.! Frisco!Gudani!and!Dominga!Goyma!were!married!on!March!1922.!After!
! 1)!He!alleged!that!his!mother!Dominga!Gyoma!(Dominga)!was! 11! months! of! living! together,! Frisco! left! the! conjugal! abode! and! never!
the!owner!of!the!2!parcels!of!! land! in! the! province! of! Quezon,! with! returned.! On! march! 1932,! they! executed! a! public! instrument! “Marital!
an!area!of!28,051!sq!meters!and!260,590!sq.!m.!! Consent”! giving! Dominga! the! full! power! and! authority! and! consent! to!
! respectively.! The! subject! lots! were! registered! in! the! name! of! buy,!sell,!hire,!lease!or!mortgage,!land!or!buildings!among!others.!
Dominga!Gyoma!on!Feb!6,!! ! 1948!under!TCT!No.!TT2857.! !
! 2)! Dominga! died! and! was! survived! by! Lim,! a! spurious! son! Dominga! cohabited! with! Pablo! Lim! after! Frisco! left.! they! had! a! son,!
acknowledged!and!recognised!! by! her.! During! her! lifetime,! Dominga! pablo!Lim!Jr.!(the!plaintiff!in!the!case)!
exclusively!possessed!the!subject!lots!and!upon!her!! death! Pablo! !
Lim!succeeded!to!all!her!rights!of!ownership!and!possession.!! Dec! 1945! T! Dominga! purchased! from! the! spa.! marciano! and! Marina!
! 3)! However,! the! Sps.! Rodriguez! unlawfully! and! fraudulently! Rodriguez!4!parcels!of!land,!including!the!subject!lots.!TCT!No.!TT2857!
made!it!appear!that!they!had!! purchased! the! subject! lots! from! was!issued!in!favor!of!Dominga!Goyma,!“wife!of!Frisco!Gudani.”!
persons!who!were!not!owners!thereof.! !
! The! owner’s! duplicate! copy! of! the! TCT! was! in! Dominga’s! custody! and!
! 4)Sps.Rodriguez! caused! the! cancellation! of! TCT! No.! TT2857! during! her! lifetime,! she! took! possession! of! the! subject! lots! and! even!
despite!the!fact!that!the!! ! owner’s! duplicate! copy! was! in! the! instituted!tenants!therein.!Before!she!passed!away,!she!gave!the!TCT!to!
possession!of!Pablo!Lim.! her!son,!Pablo!Lim!Jr.!
! ! Feb!10,!1975!T!TCT!TT128605!was!issued!in!the!name! !
of!Frisco!Gudani,!estranged!! ! husband!of!Dominga!
!
2! years! after! Dominga’s! death,! Atty.! Aguilan! sent! to! see! Frsico! Gudani!
and! informed! the! latter! about! the! properties.! He! falsely! made! Frsico!
believe!that!if!he!would!not!acquire!the!properties!for!himself,!the!same!
would! be! forfeited! in! favor! of! the! government.! Thus,! Frisco! was!
persuaded!to!affix!his!signature!on!the!ff!documents:!
! a)! Affidavit! adjudicating! to! himself! the! properties! mentions!
therein,!including!the!subject!lots.!
! b)!Petition!for!the!issuance!of!second!owner’s!duplicate!copy!of!
TCT!TT2857!
! c)!Affidavit!of!Loss!
! d)!Affidavit!stating!that!Pablo!Goyma!Lim!Jr!was!not!the!son!of!
Dominga.!
! Frisco! Gudani! could! not! dispose! of! the! subject! lots! before! partition! of!
After!the!subject!lots!were!adjudicated!in!Frisco’s!favor,!and!the!second!
owner’s! duplicate! copy! was! obtained,! Atty.! Aguilan! made! Frisco! sign!
the!Deed!of!Conditional!Sale!of!Property!dated!Sept!10,!1974!in!favor!of!
Eduardo!Victa.!For!the!said!purported!said,!Frisco!received!P5,000!only.!
Deed! of! Absolute! Sale! dated! Jan! 17,! 1975! was! signed! transferring! the!
subject!lots!to!Victa.!On!Feb!1975,!Victa!sold!the!subject!lots!to!the!spa!
Rodriguez.!
! RULING:'YES.!
! The! second! owners! duplicate! copy! of! TCT,! affidavit! of! Frisco!
adjudicating!to!himself!the!properties!and!Deed!of!Absolute!sale!dated!
Jan! 17,! 1975! were! presented! to! Registry! of! Deeds! of! the! Province! of!
Quezon.! On! the! basis! of! these! documents,! TCT! TT2857! was! cancelled!
and! in! lieu! thereof! TCT! TT128605! was! issued! in! the! name! of! Frisco!
Gudani.! Thereafter,! TCT! TT128606! was! issued! in! the! name! of!
! Eduardo!Victa!also!on!Feb!10,!1975.!Finally,!TCT!No.!TT128607!
was!issued!!in!the!name!of!sps.!Rodriguez!also!on!Feb!10,!1975.!
! "When!the!owner’s!duplicate!certificate!of!title!has!not!been!lost,!but!is!
! in! fact! in! the! possession! of! another! person,! then! the! reconstituted!
Court! a! quo! rendered! judgment! in! favor! of! Pablo! Goyma! Lim,! Jr.! and!
against!the!sps.!Rodriguez.!It!concluded!that!the!transactions!involving!
the! subject! lots,! particularly! the! transfers! thereof! from! the! deceased!
Dominga!Goyma!to!Frisco!Gudani!and!from!him!to!Eduardo!Victa!were!
fraudulent!and!made!through!the!machinations!of!Atty.!Aguilan.!
! !
! Given!the!fraudulent!character!of!the!transactions,!the!spouses!
Rodriguez!could!not!avail!of!the!protective!mantle!of!the!law!protecting!
purchasers!for!value!in!good!faith.!They!were!declared!to!be!purchasers!
in! bad! faith! because! they! had! prior! knowledge! of! the! claim! of! Pablo!
Goyma! Lim,! Jr.! over! the! subject! lots! and! even! anticipated! his! filing! of!
the!case!against!them.!
!
! Granting! that! fraud! was! not! sufficient! to! vitiate! consent,! the!
transactions!were!void!for!want!of!authority!to!sell!them.!Frisco!could!
not!lay!valid!claim!over!the!subject!lots!as!sole!heir!without!the!estate!
having!been!partitioned!to!determine!who!are!entitled!thereto.!
!
CA! affirmed! the! decision! of! court! a! quo.! It! stressed! that! Pablo! Goyma!
Lim! Jr.! was! the! saon! of! Dominga! who! succeeded! over! the! properties.!
the! estate! of! Dominga! Goyma! and! without! authority! given! by! Pablo!
Goyma!Lim,!Jr.!
!
!
ISSUES:' WON! the! TCT! in! favor! of! Sps.! Rodriguez! were! properly!
cancelled.!
!!
!
RATIO:'Court!a!quo!and!CA!correctly!nullified!TCT!No.!TT128607!in!the!
name! of! petitioners.! In! fact,! all! the! transactions! relative! to! TCT! No.! TT
2857,!i.e.,!affidavit!of!Frisco!Gudani!adjudicating!to!himself!the!subject!
lots!and!their!purported!sale!by!him!to!Eduardo!Victa!and!by!the!latter!
to!Sps.!Rodrigiez,!were!declared!null!and!void!by!the!court!a!quo!on!the!
ground!that!these!were!all!made!through!the!fraudulent!machinations!
of!Atty.!Aguilan.!
certificate!is!void,!because!the!court!that!rendered!the!decision!had!no!
jurisdiction.! Reconstitution! can! validly! be! made! only! in! case! of! loss! of!
the! original! certificate."! In! such! a! case,! "the! decision! authorizing! the!
issuance!of!a!new!owner’s!duplicate!certificate!of!title!may!be!attacked!
any!time.”!
!
The!second!owner’s!duplicate!copy!of!TCT!No.!TT2857!issued!upon!the!
petition! of! Frisco! Gudani! was! void! since! the! owner’s! duplicate!
!
certificate! of! title! has! not! been! lost! but! is! in! fact! in! the! possession! of! '
Dominga,!and!later!on!with!Pablo!Lim!Jr.!Further,!the!certificates!of!title! DOCTRINE:' The! patent! and! OCT,! and! all! the! titles! stemming!
(TCT!No.!TT128605!in!the!name!of!Frisco!Gudani,!TCT!No.!TT128606!in! from! them,! cannot! be! cancelled.! The! real! purpose! of! the! Torrens!
the! name! of! Eduardo! Victa! and! TCT! No.! TT128607! in! the! names! of! system! of! land! registration! is! to! quiet! title! to! land! and! stop! forever!
petitioners)! that! were! subsequently! issued! covering! the! subject! lots! any!question!of!its!legality.!Titles!over!lands!under!the!system!should!
may!be!nullified!because!they!all!emanated!from!a!void!document,!i.e.,! be! given! stability! for! on! it! greatly! depends! the! stability! of! the!
the! second! owner’s! duplicate! copy! of! TCT! No.! TT2857! that! was! country’s!economy.!Interest!reipublicae!uts!it!finis!litium.!
procured! by! Frisco! Gudani,! or! more! particularly! by! Atty.! Aguilan,! in! For! half! a! decade! after! the! death! of! Mrs.! Agunoy,! the!
behalf!of!Frisco!Gudani,!through!fraud.!! properties! transferred! from! one! buyer! to! another,! all! transactions!
! involved!being!in!good!faith.!A!fraudulent!or!forged!document!of!sale!
Sps.! Rodriguez! cannot! raise! the! defines! of! indefeasibility! of! a! Torrens! may! become! the! root! of! a! valid! title! if! the! certificate! of! title! has!
title! with! respect! to! TCT! No.! TT168607! because! "the! principle! of! already! been! transferred! from! the! name! of! the! true! owner! to! the!
indefeasibility! of! a! Torrens! title! does! not! apply! where! fraud! attended! name!of!the!forger.!!
the! issuance! of! the! title.! Petitioners! cannot! claim! that! they! were! Regardless!of!whether!or!not!there!was!fraud!the!hard!reality!
purchasers! in! good! faith! and! for! value! because! the! transactions! is! that! the! properties! in! question! are! no! longer! floating! objects! on! a!
involving! the! subject! lots! were! so! replete! with! badges! of! fraud! and! spring! that! cannot! rise! higher! than! its! source,! but! now! very! much!
irregularities!that!should!have!put!them!on!guard!about!the!defects!in! ashore! and! firmly! standing! on! the! high! solid! ground! of! the! Torrens!
the! respective! titles! of! Frisco! Gudani! and! Eduardo! Victa.They! are! not! system!of!land!registration.!
purchasers!of!good!faith!and!for!value.!Defendant!Reynaldo!Rodriguez! '
was!well!aware!that!on!his!acquisition!of!the!properties,!Pablo!Goyma! '
Lim,!Jr.!will!file!suit!against!him!that!is!why!he!retained!P10,000.00!of! FACTS:''
the! purchase! price,! which! amount! is! intended! to! be! used! in! the! Gregorio! Agunoy,! Sr.! filed! an! application! for! Free! Patent! covering! 2!
expected! litigation.! In! fact,! defendant! Reynaldo! Rodriguez! admitted! to! parcels!of!land!in!the!Sta.!Rosa!Cadastre!in!Nueva!Ecija.!9!years!later,!he!
Frisco! Gudani! that! he! purchased! the! properties! at! a! very! low! price! was!issued!the!free!patent!by!the!director!of!lands.!!
because! of! which! he! promised! to! give! Frisco! Gudani! an! additional! ! The!Register!of!Deeds!of!Nueva!Ecija!registered!the!Free!Patent!
amount!of!P1,500.00!upon!the!termination!of!the!case.! and!issued!the!corresponding!OCT!in!the!name!of!Gregorio!Agunoy,!Sr.!
! The! heirs! of! Eusebio! Perez! caused! the! annotation! of! adverse! claim! on!
DISPOSITIVE:'! the!OCT!in!1975.!
' ! The!said!heirs!filed!a!formal!protest!with!the!Bureau!of!Lands,!
' alleging! that! one! of! the! lots! subject! of! the! free! patent! was! identical! to!

Republic'v.'Agunoy! that! which! had! been! adjudicated! as! the! private! property! of! Eusebio!
Perez!by!the!CFI!of!Nueva!Ecija.!!
Feb.'17,'2005' ! The! Chief! of! the! Legal! Division! of! the! Bureau! of! Lands!
Garcia,'J.' conducted!a!formal!and!ocular!investigation!of!the!premises,!and!found!
Gabe'Ruaro' that! the! free! patent! and! its! corresponding! OCT! were! improperly! and!
! fraudulently!issued.!!
SUMMARY:' Agunoy! filed! an! application! for! free! patent! over! land! in! Transactions!over!the!land:!
Nueva! Ecija.! The! land,! or! portions! of! it,! were! sold! to! various! parties!
over!the!course!of!20!years.!After!20!years,!the!Perezes!challenged!the!
issuance!of!the!patent!and!Agunoy’s!OCT!on!the!ground!of!fraud.!
!
1. The! heirs! of! the! wife! of! Agunoy,! Sr.,! sold! the! land! to! Joaquin!
Sangabol,! leading! to! the! cancellation! of! the! OCT! and! the! eventual!
issuance!of!a!TCT!in!Sangabol’s!name.!
a. Sangabol,! in! turn,! sold! a! portion! of! the! property! to!
Fortunata!Para,!and!another!portion!to!Virginia!Jimenez!in!
1979.! Sangabol’s! TCT! was! cancelled,! and! a! new! TCT! was!
issued!to!Para.!!
b. Para! mortgaged! his! land! with! Perpetual! Finance! and!
Investment,! Inc.! The! mortgage! was! foreclosed! and! the!
property! sold! at! public! auction.! A! certificate! of! sale! was!
issued!to!Perpetual!Finance!
c. Meanwhile,!Jimenez!sold!her!portion!of!the!land!to!Josefina!
Salva! Cruz.! Cruz! then! subdivided! the! lot! into! 13! sublots.!
Sangabol!divided!the!remaining!property!into!3!sublots.!
i. Two! of! the! subdivision! lots! were! then! mortgaged!
to! the! Rural! bank! of! Gapan.! The! mortgaged! was!
foreclosed,!and!the!land!was!sold!to!the!said!bank!
at!auction.!
2. The! annotation! on! the! back! of! the! OCT! was! cancelled! by! the!
Register!of!Deeds!of!Nueva!Ecija!in!1980.!!
3. Finally,! Sangabol! sold! property! to! Eduardo! Dee.! Thus,! a! TCT! was!
issued!in!the!name!of!Eduardo!D.!
! Eventually,! the! heirs! of! Ruperto! Perez,! the! oldest! son! of!
Eusebio,! filed! a! supplemental! protest,! alleging! that! the! subject! parcels!
of!land!had!been!exclusively!occupied!and!cultivated!by!them!and!their!
predecessorsTinTinterest! who! introduced! permanent! imporvements,!
including!ricelands,!mango!trees,!bamboo!groves,!and!other!crops;!that!
Agunoy!never!occupied!the!parcels!of!land;!that!the!lots!are!identical!to!
the! ones! in! the! relocation! survey! they! had! conducted;! and! that! the!
patent! and! title! issued! to! Agunoy! were! obtained! through! fraud! and!
misrepresentation.!
! This!led!the!Bureau!of!Lands!to!conduct!another!investigation!
and!ocular!inspection!of!the!lot,!in!which!it!was!found!that!the!land!was!
the! same! as! that! currently! covered! by! a! TCT! in! the! name! of! Santiago!
Mateo.! As! a! result,! the! Chief! of! the! Legal! Division! recommended! that!
court! action! be! instituted! for! the! cancellation! of! the! Free! Patent! and!
OCT!in!the!name!of!Gregorio!Agunoy!Sr.!!
! Thus,!the!Republic!of!the!Philippines!filed!a!petition!in!the!RTC!
of!Gapan.!It!alleged!that!the!Free!Patent!and!OCT!procured!by!Gregorio!
Agunoy,!Sr.!was!procured!through!fraud,!deceit!and!misrepresentation!
because!the!land!they!covered!had!already!been!adjudicated!as!private!
property! of! Eusebio! Perez! and! Valeriano! Espiritu.! Thus,! the! Bureau! of!
Lands!no!longer!had!jurisdiction!over!it.!The!Republic!asked!for!the!free!
patent!and!the!OCT!to!be!declared!null!and!void.!
! The!RTC!ruled!in!favor!of!the!Republic.!CA!reversed.!Hence!this!
petition!for!review!on!certiorari.!
ISSUES:'!
1.! WON! the! Republic! is! the! real! partyTinTinterest! and! thus! that!
Agunoy!had!acquired!free!patent!over!the!subject!lots!.(No)!
2.! WON! the! title! over! the! subject! lands! is! valid! for! having! been!
acquired!in!good!faith!and!for!value.!(Yes)!
Ratio:!
!!
RULING:''
1. No,!because!the!land!was!private!property.!
2. Yes,! because! the! heirs! can! no! longer! defeat! the! better! right!
arising! from! the! Torrens! titles! in! the! names! of! the! present!
transferees.!
!
RATIO:''
1. The! real! partyTinTinterest! is! the! party! who! stands! to! be!
benefited!or!injured!by!the!judgment!in!the!suit,!or!the!party!entitled!
to! the! avails! of! the! suit.! Here,! the! Republic! alleges! that! the! subjects!
lands!are!private!property!of!the!heirs!of!Perez!and!Espiritu,!and!that!
the! property! was! no! longer! a! disposable! public! land.! As! such,! the!
Republic!is!no!longer!a!real!party!in!interest.!The!real!beneficiary!here!
would!not!be!the!State,!but!Perez!or!Espiritu.!!
2. After! sleeping! for! an! unreasonably! long! period! of! time! lasting!
for!decades,!the!heirs!of!Perez!can!no!longer!defeat!the!better!
right!arising!from!the!Torrens!titles!in!the!names!of!the!present!
transferees! of! the! properties,! unless! anyone! succeeds! in!
overcoming! the! presumption! of! good! faith! in! securing! their!
titles.!!
The! Heirs! of! Perez! repeatedly! failed! to! at! least! attempt! to!
accomplish! the! registration! of! the! land! which! they! supposedly! own.!
This! is! especially! so! considering! that! the! cadastral! case! supposedly!
awarding! the! land! to! them! ordered! them! to! cause! registration.! They!
failed! to! do! so! for! more! than! 6! years.! VIgilantibus,! se! non!
!
dormientibus,! jura! subveniunt—the! law! aids! the! vigilant,! not! those!
who!sleep!on!their!rights.!!
As! for! the! certification! of! the! Public! Lands! Inspector,! it! was!
found! that! the! lots! were! already! abandoned,! as! evidenced! by! the!
absence!of!any!claimants!under!Espiritu’s!or!Perez’s!title.!!
Besides,! as! between! the! 1966! certification! which! led! to! the!
issuance! of! Agunoy’s! OCT,! and! the! 1988! one! which! was! cited! in! this!
complaint,!the!earlier!one!must!prevail.!
The!real!purpose!of!the!Torrens!system!of!land!registration!is!to!
quiet! title! to! land! and! stop! forever! any! question! of! its! legality.! Titles!
over!lands!under!the!system!should!be!given!stability!for!on!it!greatly!
depends!the!stability!of!the!country’s!economy.!Interest!reipublicae!uts!
it!finis!litium.!
The!discrepancy!between!the!2!surveys!can!only!be!imputed!to!
the! public! officials! who! prepared! them.! The! State! cannot! be! estopped!
by!errors!of!its!officials!or!agents.!!
In! any! event,! for! half! a! decade! after! the! death! of! Mrs.! Agunoy,!
the! properties! transferred! from! one! buyer! to! another,! all! transactions!
involved!being!in!good!faith.!!
! Finally,!as!to!the!invovation!of!the!doctrine!that!no!amount!of!
legal!technicality!may!serve!as!a!solid!foundation!for!the!enjoyment!of!
the!fruits!of!fraud!(fraus!et!jus!nunquam!cohabitant),!the!doctrine!has!
only!been!applied!in!cases!where!the!land!is!part!of!the!public!domain,!
and! where! there! were! no! innocent! 3rd! parties! involved.! Here,! as!
previously! stressed,! the! lands! are! no! longer! public,! and! there! are!
innocent!third!parties.!!
As! to! the! sale,! a! fraudulent! or! forged! document! of! sale! may!
become!the!root!of!a!valid!title!if!the!certificate!of!title!has!already!been!
transferred!from!the!name!of!the!true!owner!to!the!name!of!the!forger.!!
Regardless!of!whether!or!not!there!was!fraud!the!hard!reality!is!
that! the! properties! in! question! are! no! longer! floating! objects! on! a!
spring! that! cannot! rise! higher! than! its! source,! but! now! very! much!
ashore! and! firmly! standing! on! the! high! solid! ground! of! the! Torrens!
system!of!land!registration.!
!
DISPOSITIVE:'Petition'Denied.'CA'decision'affirmed.!
!