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FIRST DIVISION
G.R. No. 120760. February 24, 1998
PACITA VIRAY, Petitioner, v. COURT OF APPEALS and JOHNSON CHUA, Respondents.
D E C I S I O N
BELLOSILLO, J.:
This case involves the authority of the Clerk of Court to amend ex mero motu a writ of execution earlier issued by the court to change the amount to be satisfied in the execution.
In Civil Case
No. D-8835 of the Regional Trial Court of Dagupan City, plaintiff Pacita Viray,
petitioner herein, entered into a compromise agreement with defendant spouses
Hilarion and Gliceria Pinlac whereby the spouses bound themselves to pay their
indebtedness to the former amounting to P160,000.00 in eighty (80) equal
monthly installments of P2,000.00 each, subject to the condition
that
failure to
pay
two (2) installments would render the
outstanding amount due and payable.
The
agreement was approved by the trial court.1cräläwvirtualibräry
Meanwhile, a parcel of land owned by the Pinlac spouses and mortgaged with the Social Security System (SSS) was sold at public auction after the same was foreclosed for non-payment of amortizations. On 14 April 1989 the spouses redeemed the property and sold it a few days later to private respondent Johnson Chua.
On 4 May 1989,
for failure of the Pinlac spouses to pay two (2) installments as stipulated in
the compromise agreement, petitioner Pacita Viray filed with the trial court a
motion for the issuance of a writ of execution. Alleging that the Pinlac spouses had paid her only P2,500.00
and then failed to pay the succeeding
installments,
petitioner demanded
execution in the amount of P57,500.00 as unpaid balance thereunder.
On 5 May 1989 the motion was granted, and on
22 May 1989 a writ of execution was issued by the Clerk of Court for the amount
of P57,500.00 as prayed for.
Three (3) days later the Deputy Sheriff annotated the notice of levy on
the transfer certificate of title covering the parcel of land in the name still
of the Pinlac spouses but which had been sold earlier to respondent Chua.
In a letter
dated 9 June 1989 to the Clerk of Court, Atty. Alicia Bravo-Fabia, petitioner
Viray requested that the writ of execution
issued on 22 May l989
be
amended
by changing the amount to be
satisfied.
She explained that in her
motion for issuance of the writ the entire
amount
due
her
was
erroneously
stated as P57,500.00 when in fact the
correct amount due was P157,500.00, or a differenceof P100,000.00.
On 13 June 1989, acting on Viray's letter,
the Clerk of Court
without a prior
order from the court granted the request and issued an amended writ increasing
the amount to be collected from P57,500.00 to P157,500.00.
On the same day respondent Chua registered
with the Registry of Deeds the deeds of redemption and sale executed in his
favor by the Pinlac spouses.
Accordingly,
at 4:00 o'clock in the afternoon of the same day, a new title was issued in his
name.
The new title
contained Entry No. 135748/T-37005 referring to the notice of levy.
The
entry however did not specify
the
amount to be levied.
Upon verification
from the Sheriff's notice of levy that the amount due was P57,500.00,
and after consulting a lawyer upon advice of a sister, respondent Chua tendered
the amount to Clerk of Court Fabia.
The
tender was however rejected by the Clerk of Court who informed Chua that the
amount was insufficient as the writ and the notice of levy had already been
amended to reflect the correct amount of
P157,000.00.
Subsequently, a notice of sale at public auction dated 20 June 1989 based on the amended writ was published and the sale set on 24 July 1989. On the day of the auction, respondent Chua filed a complaint for injunction with prayer for a restraining order. The auction sale nevertheless proceeded with petitioner Viray as the highest bidder. A certificate of sale in her favor was correspondingly issued by the Sheriff. Because of this turn of events, Chua amended his complaint by adding to his causes of action a declaration of nullity of sale plus damages.
During the trial
of the case, respondent Chua consigned the amount of P57,500.00 which
was approved by the trial court.
Accordingly,
the amount was
deposited with the Far East Bank and Trust Company (FEBTC), Dagupan City
Branch.
On 11 July 1990
the trial court rendered judgment in favor of respondent Chua declaring null
and void the amended writ of execution dated 13 June 1989, the notice of sale
at public auction dated 20 June 1989 and the sheriff's certificate of sale
dated 24 July 1989.
The court also
directed the Register of Deeds of Dagupan City to cancel the registration of the notice of levy and the sheriff's
certificate of sale
and ordered FEBTC
to pay to petitioner Viray the consigned amount of P57,500.00 even as it
dismissed her counterclaim.2 It also ruled that in the absence
of a court order, the Clerk of Court had no authority whatsoever to amend the
writ of execution.
This obtaining,
respondent Chua's obligation was deemed discharged upon his consignation of P57,000.00
pursuant to the writ of execution originally issued.
On 29 March 1995 respondent Court of Appeals affirmed the trial court's ruling with the additional finding that the deed of sale between the Pinlac spouses and respondent Chua was not simulated.3 It also held that the evidence did not show that at the time of its execution Chua knew of the case between petitioner and the Pinlac spouses nor was he aware of any lien on the property, except the mortgage in favor of the SSS, as to impute bad faith to him. On 7 June 1995 the appellate court denied petitioner's motion for reconsideration.4cräläwvirtualibräry
Petitioner
maintains that (1) respondent Chua had knowledge of the actual amount to be
executed before he registered the deeds of redemption and
sale; (2) Chua was a buyer in bad faith;
and, (3) the Clerk of Court had the authority to amend a purely clerical error
in the writ of execution.
She
postulates that respondent Chua is charged with the duty of ascertaining the
actual amount to be executed since the notice of levy annotated in the TCT
mentions Civil Case No. D-8835 as the source of the obligation of the Pinlac
spouses.
The fact that
Chua did not refer to the records of the
case which show that the property was being levied for P157,500.00 is an
eloquent manifestation of
his bad
faith.
This, she adds, is not enhanced
any by the fact that prior to the registration of the deeds of redemption and
sale she had already informed Chua that the balance of the spouses' obligation
with her was P157,500.00.
The Court is
unpersuaded by these ratiocinations.
Respondent Chua was not mandated to dig deep into the records of Civil
Case No. D-8835 to ascertain the amount
subject of the notice of levy, for he had every right to rely on the
amount stated in the notice itself, i.e., P57,500.00.
Assuming that petitioner had informed him of
the correct outstanding balance of the Pinlac spouses, this happenstance did
not in any way overrule the amount stated in the notice of levy precisely
because it was this amount ordered by the Clerk of Court for levy as directed
by the trial court which approved petitioner's motion for execution.
We have ruled many times over that a
purchaser is not
required to explore
beyond what the record in the Registry indicates on its face, in quest of any
hidden defect or inchoate right which may subsequently defeat his right
thereto.5cräläwvirtualibräry
Petitioner insists that respondent Chua was a buyer in bad faith and the sale was simulated because even after the purported sale he allowed the vendor spouses to continue occupying the subject property without paying any rental while he himself lived in a rented apartment. This reasoning may otherwise be persuasive but we agree with the observation of respondent appellate court thus -
x x x x The appellee (respondent Chua) did not take immediate possession of the property as he wanted the title x x x to be clean or settled first (pp. 7-9, TSN, February 9, 1990). It is uncontroverted that at the time the deed of sale was executed, the title to the property was in the possession of the Social Security System. The appellee knew that he cannot (sic) possibly register the deed of sale and acquire a new title in his name without presenting at the same time the owner's copy of the title. It was only on June 3, 1989 that he received the title of the property and on the same day registered the sale with the Register of Deeds x x x x6cräläwvirtualibräry
Petitioner finally submits that when the discrepancy between the judgment and the writ of execution is merely clerical in nature which can readily be verified, the Clerk of Court may unilaterally correct such error.
Before resolving this issue, there is need to reiterate some basic principles. In Hidalgo v. Crossfield7 the Court distinguished between the issuance of an execution and the awarding of an execution -
The issuing of an execution is a ministerial act, and must be carefully distinguished from the awarding of an execution, which is a judicial act. 'To award is to adjudge, to give anything by judicial sentence,' and when it is said that a party is awarded an execution upon a judgment it should be understood thereby that it is judicially declared that the party has a right to have the judgment executed x x x x The right of a party to have an execution having been duly adjudged, the mere issuing of the writ when the time for its issuance as prescribed by law has arrived; that is to say, the preparation and delivery of the formal writ or order to the sheriff, or other officer charged with the execution of judgments, directing him to proceed with the execution is a mere compliance with the provisions of the award of judgment, and the essentially a purely ministerial act.
In other words, the function of ordering the execution of a judgment, being judicial, devolves upon the judge whereas the act of issuing the writ of execution, being ministerial, can be performed by another person, viz, the clerk of court. As the rule now stands the clerk of court may, under the direction of the court or judge, make out and sign all writs and processes issuing from the court.8cräläwvirtualibräry
We may recall
that petitioner moved for and was granted the execution amount of P57,500.00.
The order of the trial court granting the
motion was the foundation of the writ and bestowed vitality to it.9 The order as worded is
unambiguous.
The court simply granted
the motion for a writ of execution after it was found to be in order.
Under the premises it is imperative that
before the Clerk of Court can amend the writ itself, the order of the court
granting its issuance should first be amended.
For the order granted what was prayed for by petitioner in her motion,
i.e., that a "writ of execution be issued for the sum of FIFTY SEVEN
THOUSAND FIVE HUNDRED (P57,500.00) PESOS representing defendants' unpaid
balance."
No one then but
the
court can amend what was granted, and its Clerk of Court has
no
other
duty
but to issue the writ in accordance with the grant.
It is settled principle that a writ of execution should conform strictly with
the very essential particulars of the promulgated judgment10 or, in the present case, with the
order granting execution of a judgment based on a compromise agreement.
In Pacific Mills v. NLRC11 the court expressed in no uncertain terms that only
the judge is vested with authority to amend such order.
There was no such amendment of the order in the
case at bar which would provide a solid basis for the alteration of the
writ.
Verily, it was
petitioner's fault if not negligence which generated the present
controversy.
Her motion prayed for a
lesser amount giving rise to the logical conclusion that the Pinlac spouses
had, in the meantime, paid part of the judgment amount and that the prayer of
petitioner was only for the unpaid remainder.
Thus if anyone is to be blamed for the resultant aberration, it is petitioner
herself who compounded her woes by simply sending a letter to the Clerk of
Court requesting amendment of the writ of execution rather than directing the
matter to the attention of the judge by way of a motion for amendment of his
order and the writ.
Consequently, the
amended writ for P157,500.00 is void on two (2) grounds:
first, it went beyond the order granting execution for P57,500.00;
and second,
the Clerk of Court
was not clothed with authority to issue the amended writ.
While an officer of the court, a public
officer and an "officer of the law," the Clerk of Court is not a
judicial officer.
Neither is the
position synonymous
with
the
court.
The
office
is
essentially
a
ministerial one.12 By amending the writ of execution
on her own
will,
the
Clerk of Court clearly usurped a judicial function.
She should have instead asked cousel for
Pacita Viray in the court below to file a motion for the issuance of an amended
writ.
Only then, when the motion to
amend the writ is granted, can she validly amend the writ and thus avoid
causing prejudice to the public she is bound to serve.
However, the Court does not wish to leave petitioner alone in her woes; in the interest of fairness and justice, we declare that with this decision petitioner is not precluded from exercising whatever rights she may have under the law and undertake the appropriate step for the enforcement of such rights or the execution of the compromise judgment rendered by the RTC - Br. 43, Dagupan City, in her favor on 8 November 1998 against the Pinlac spouses.13cräläwvirtualibräry
WHEREFORE, the petition is DENIED.
The Decision of respondent Court of Appeals
sustaining that of the Regional Trial Court of Dagupan City declaring the
amended writ of execution, the notice of sale at public auction and the
sheriff's certificate of sale as void; ordering the Register of Deeds of
Dagupan City to cancel the registration of the notice of levy and the sheriff's
certificate of sale on the title of respondent Johnson Chua; ordering FEBTC
Dagupan City Branch to release to petitioner Pacita Viray the amount of P57,500.00,
including
the
interest
thereon,
deposited
with
the
bank
under Investment Savings Deposit No. 47099
and consigned to her with the approval of the court; and, dismissing the
counterclaim, is
AFFIRMED.
SO ORDERED.
Davide, Jr.,(Chairman), Vitug, Panganiban, and Quisumbing, JJ., concur.
Endnotes:
1 Decision approving the Compromise Agreement was penned by Judge Eloy R. Bello Jr., RTC-Br. 41, Dagupan City, on 8 November 1988; Exh. "3"; Envelope of Exhs. pp. 5-6.
2 Decision penned by Judge Senecio O. Ortile, RTC-Br. 43, Dagupan City; Rollo, p. 59.
3 Penned by Justice Arturo B. Buena, concurred in by Justices Cancio C. Garcia and Eugenio S. Labitoria; id., p. 26.
4 Rollo, p. 32.
5 Pulido v. Court of Appeals, G.R. No. 109244, 29 December 1995, 251 SCRA 673.
6 Rollo, p. 23.
7 17 Phil. 466 (1910).
8 Rule 136, Sec. 4, the Rules of Court and Chapter II., Sec. A, par. (2) subpar, (a), of the Manual for Clerks of Court.
9 Abinujar v. Court of Appeals, G.R. No. 104133, 18 April 1995, 243 SCRA 531.
10 Ex-Bataan Veterans Security Agency, Inc. v. NLRC, G.R. No. 121428, 29 November 1995, 250 SCRA 418.
11 Francisco, Vicente J., Revised Rules of Court, 1966 Ed., p. 646; cf, Pacific Mills, Inc. v. NLRC, G.R. No. 88864, 17 January 1990, 181 SCRA 130, and Ibatan v. Melicor, G.R. No. 39125, 20 August 1990, 188 SCRA 598.
12 Manual for Clerks of Court, p. 2.
13 See Vda. de Dimayuga v. Raymundo, 76 Phil. 143 (1946); Arambulo v. CFI of Laguna, 53 Phil. 302 (1929); Philippine Reconstruction Corp., Inc. v. Aparente, No. L-26630, 30 May 1972, 45 SCRA 217.