February 2010 - Philippine Supreme Court Resolutions
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[G.R. No. 178368 : February 22, 2010] FIRST BAY AREA BANK [RURAL BANK OF MALALAG, INC.] V. SPOUSES THELMA CASCO AND JAIME DUPITAS:
[G.R. No. 178368 : February 22, 2010]
FIRST BAY AREA BANK [RURAL BANK OF MALALAG, INC.] V. SPOUSES THELMA CASCO AND JAIME DUPITAS
Sirs/Mesdames:
Quoted hereunder, for your information, is a resolution of this Court dated 22 February 2010:
G.R. No. 178368 (First Bay Area Bank [Rural Bank of Malalag, Inc.] v. Spouses Thelma Casco and Jaime Dupitas).-
This is about the remedy required when the judgment debtor declines to surrender to the Register of Deeds his title to the property sold at public auction and prevents its transfer to the buyer.
The Facts and the Case
In an earlier case, petitioner First Bay Area Bank, Inc. (First Bay) won a judgment against Thelma and Jaime Dupitas (spouses Dupitas), resulting in the issuance of a writ of execution against them by the Municipal Circuit Trial Court of Malalag-Sulop, Davao del Sur. The sheriff levied on the properties of the spouses Dupitas, including registered lands covered by Transfer Certificates of Title T-37104, T-37105, T-37106, T-37107, T-37108, T-37109, and T-37111, and sold these lands at public auction to First Bay.
Because the spouses Dupitas failed to redeem their titled lands, the sheriff issued a final certificate of sale in favor of First Bay. Subsequently, the Acting Registrar of Deeds wrote the spouses Dupitas, requiring them to surrender their owner's duplicate copies of land titles so it could annotate the sheriffs sale on them. But the spouses Dupitas failed to do so despite repeated demands. Consequently, First Bay filed a petition with the Regional Trial Court (RTC) of Digos City, Davao del Sur, to compel the surrender of the subject titles or to cause such titles to be cancelled and have new ones issued in First Bay's name.
After hearing, however, the RTC issued an Order dated January 22, 2007, dismissing the petition. It said that, just because First Bay had been unable to get copies of the owner's duplicate copies of the titles from the spouses Dupitas, it did not mean that it was already justified in having those titles cancelled and replaced by new ones in First Bay's name. The RTC ruled that petitioner First Bay had resorted to the wrong remedy for the transfer of the titles to its name. The proper remedy, said the RTC, was an action for specific performance. First Bay filed a motion for reconsideration of the order but the RTC denied the same in its Order dated June 12, 2007.
In response, First Bay filed this petition for review under Rule 41, Section 21(c), in relation to Rule 45 of the 1997 Rules of Civil Procedure, raising questions of law respecting the correct application of Section 107 of Presidential Decree (P.D.) 1529.
The Issue Presented
The sole issue presented in this case is whether or not an action for specific performance is the correct remedy where the judgment debtor unjustifiably refuses to surrender the title to the land sold at public auction, thus, preventing the register of deeds from transferring the title to the buyer's name.
The Court's Ruling
In Padilla, Jr. v. Philippine Producers' Cooperative Marketing Association, Inc.[1] and Heirs of Blancaflor v. Court of Appeals,[2] the Court already held that Section 107 of P.D. 1529 provides the procedure to be observed in case the judgment debtor refuses to surrender the duplicate copy of his certificate of title. It reads:
A party-in-interest may file a petition in the RTC to compel the surrender of the owner's duplicate certificate of title:
After hearing the petition, the court may:
The Court sees no reason to digress from the above established rulings.
WHEREFORE, the Court GRANTS the petition, SETS ASIDE the Orders dated January 22, 2007 and June 12, 2007 of the Regional Trial Court of Digos City in Civil Case MISC. CASE 3517 A-F, and DIRECTS the Register of Deeds of Davao del Sur to cancel Transfer Certificates of Title T-37104, T-37105, T-37106, T-37107, T-37108, T-37109, and T-37111 in the name of Thelma and Jaime Dupitas and to issue new ones in the name of First Bay Area Bank, Inc.
SO ORDERED.
WITNESS the Honorable Antonio T. Carpio, Chairperson, Honorable Arturo D. Brion, Mariano C. Del Castillo, Roberto A. Abad and Jose P. Perez, Members, Second Division, this 22nd day of February, 2010.
G.R. No. 178368 (First Bay Area Bank [Rural Bank of Malalag, Inc.] v. Spouses Thelma Casco and Jaime Dupitas).-
This is about the remedy required when the judgment debtor declines to surrender to the Register of Deeds his title to the property sold at public auction and prevents its transfer to the buyer.
The Facts and the Case
In an earlier case, petitioner First Bay Area Bank, Inc. (First Bay) won a judgment against Thelma and Jaime Dupitas (spouses Dupitas), resulting in the issuance of a writ of execution against them by the Municipal Circuit Trial Court of Malalag-Sulop, Davao del Sur. The sheriff levied on the properties of the spouses Dupitas, including registered lands covered by Transfer Certificates of Title T-37104, T-37105, T-37106, T-37107, T-37108, T-37109, and T-37111, and sold these lands at public auction to First Bay.
Because the spouses Dupitas failed to redeem their titled lands, the sheriff issued a final certificate of sale in favor of First Bay. Subsequently, the Acting Registrar of Deeds wrote the spouses Dupitas, requiring them to surrender their owner's duplicate copies of land titles so it could annotate the sheriffs sale on them. But the spouses Dupitas failed to do so despite repeated demands. Consequently, First Bay filed a petition with the Regional Trial Court (RTC) of Digos City, Davao del Sur, to compel the surrender of the subject titles or to cause such titles to be cancelled and have new ones issued in First Bay's name.
After hearing, however, the RTC issued an Order dated January 22, 2007, dismissing the petition. It said that, just because First Bay had been unable to get copies of the owner's duplicate copies of the titles from the spouses Dupitas, it did not mean that it was already justified in having those titles cancelled and replaced by new ones in First Bay's name. The RTC ruled that petitioner First Bay had resorted to the wrong remedy for the transfer of the titles to its name. The proper remedy, said the RTC, was an action for specific performance. First Bay filed a motion for reconsideration of the order but the RTC denied the same in its Order dated June 12, 2007.
In response, First Bay filed this petition for review under Rule 41, Section 21(c), in relation to Rule 45 of the 1997 Rules of Civil Procedure, raising questions of law respecting the correct application of Section 107 of Presidential Decree (P.D.) 1529.
The Issue Presented
The sole issue presented in this case is whether or not an action for specific performance is the correct remedy where the judgment debtor unjustifiably refuses to surrender the title to the land sold at public auction, thus, preventing the register of deeds from transferring the title to the buyer's name.
The Court's Ruling
In Padilla, Jr. v. Philippine Producers' Cooperative Marketing Association, Inc.[1] and Heirs of Blancaflor v. Court of Appeals,[2] the Court already held that Section 107 of P.D. 1529 provides the procedure to be observed in case the judgment debtor refuses to surrender the duplicate copy of his certificate of title. It reads:
SECTION 107. Surrender of Withheld Duplicate Certificate. -Where it is necessary to issue a new certificate of title pursuant to any involuntary instrument which divests the title of the registered owner against his consent or where a voluntary instrument cannot be registered by reason of the refusal or failure of the holder to surrender the owner's duplicate certificate of title, the party in interest may file a petition in court to compel surrender of the same to the Register of Deeds. The court, after hearing, may order the registered owner or any person withholding the duplicate certificate to surrender the same, and direct the entry of a new certificate of memorandum upon such surrender. If the person withholding the duplicate certificate is not amenable to the process of the court, or if for any reason the outstanding owner's duplicate certificate cannot be delivered, the court may order the annulment of the same as well as the issuance of a new certificate of title in lieu thereof. Such new certificate and all duplicates thereof shall contain a memorandum of the annulment of the outstanding duplicate.
A party-in-interest may file a petition in the RTC to compel the surrender of the owner's duplicate certificate of title:
a) Where it is necessary to issue a new certificate of title pursuant to any involuntary instrument (such as attachment or sale on execution) which divests the title of the registered owner against his consent; b) Where a voluntary instrument (such as conveyances, mortgage or lease) cannot be registered by reason of the refusal or failure of the holder to surrender the owner's duplicate certificate of title; and c) Where the owner's duplicate certificate is not presented for amendment or alteration pursuant to a court order.[3]
After hearing the petition, the court may:
a) | Order the registered owner or any person withholding the duplicate certificate to surrender the same, and direct the entry of a new certificate or memorandum upon such surrender; or |
b) | Order the annulment of the owner's duplicate certificate and the issuance of a new certificate in lieu thereof if the person withholding the same, is not amenable to the court's processes, or if for any reason said owner's duplicate certificate cannot be surrendered. Such new certificate and all duplicates thereof shall contain a memorandum of the annulment of the outstanding duplicate.[4] |
The Court sees no reason to digress from the above established rulings.
WHEREFORE, the Court GRANTS the petition, SETS ASIDE the Orders dated January 22, 2007 and June 12, 2007 of the Regional Trial Court of Digos City in Civil Case MISC. CASE 3517 A-F, and DIRECTS the Register of Deeds of Davao del Sur to cancel Transfer Certificates of Title T-37104, T-37105, T-37106, T-37107, T-37108, T-37109, and T-37111 in the name of Thelma and Jaime Dupitas and to issue new ones in the name of First Bay Area Bank, Inc.
SO ORDERED.
WITNESS the Honorable Antonio T. Carpio, Chairperson, Honorable Arturo D. Brion, Mariano C. Del Castillo, Roberto A. Abad and Jose P. Perez, Members, Second Division, this 22nd day of February, 2010.
Very truly yours,
(Sgd.) MA. LUISA L. LAUREA
Clerk of Court
(Sgd.) MA. LUISA L. LAUREA
Clerk of Court
Endnotes:
[1] G.R. No. 141256, July 15, 2005, 463 SCRA 480.
[2] 364 Phil. 454 (1999).
[3] J Land Registration and Related Proceedings, Amado D. Aquino, 2002 Ed., p. 178; P.D. 1529, Sections 107 and 109.
[4] Id.
