520 Phil. 877
GARCIA, J.:
That, for and in consideration of ONE MILLION EIGHT HUNDRED SIXTY NINE THOUSAND SIX HUNDRED FORTY & 78/100 (P1,869,640.78) PESOS, Philippine Currency, obtained by HONORIO TORRES, JR. from the MORTGAGEE, RAMON T. TORRES, the MORTGAGOR does hereby transfer and convey by way of mortgage unto the MORTGAGEE, his successors or assigns the parcel of land, pertaining to the MORTGAGOR'S share which is 50.00% which is equivalent to ONE HUNDRED FIFTY TWO (152) SQUARE METERS over the whole property of containing an area of THREE HUNDRED FOUR (304) SQUARE METERS, together with all the buildings and improvements now existing or which may hereafter be erected or constructed thereon, xxxThe mortgage document further provides that in the event the petitioner, as mortgagor, fails to pay the mortgage indebtedness, the mortgagee may foreclose the mortgage, sell the mortgaged property in a public auction in accordance with Act No. 3135, as amended, with the mortgagor (i.e., petitioner) expressly waiving his right of redemption.
WHEREAS, in a certain document executed on January 28, 1999 by Honorio Torres, Jr., as mortgagor with the conformity of Michael Torres, for and in consideration of the sum of P1,869,640.78 caused to be transferred and conveyed by way of mortgage in favor of Spouses Ramon and Agnes Torres his one-half (1/2) undivided share in the above described property consisting of ONE HUNDRED FIFTY TWO (152) SQUARE METERS together with the building improvements erected thereon; [7]Soon, petitioner filed against the spouses Torres, the Sheriff of Baguio City and the City Register of Deeds a complaint[8] for Declaration of Nullity of Real Estate Mortgage and the Sheriff's Notice of Auction Sale and Damages With Prayer for Writ of Preliminary Injunction and Temporary Restraining Order before the Regional Trial Court (RTC) of Baguio City, which complaint was thereat docketed as Civil Case No. 4591-R.
In an Order[11] dated January 11, 2000, the Executive Judge denied petitioner's aforementioned motion, explaining thus:
- That the above-entitled case was raffled yesterday to Branch 5 of this Court and that the said Court has yet to schedule the initial hearing for the preliminary injunction; hence this ex-parte Motion is being addressed to the Office of the Executive Judge;
- That the foreclosure sale will be conducted any time this day by the respondent Sheriff, and in order not to negate the possibility of the parties of amicably settling their differences and thresh out the issues surrounding the case, there is an urgent need to stop the scheduled foreclosure sale scheduled today, January 11, 2000;
- That there is great possibility of the parties for amicable settlement as the parties hereto are close relatives, they being uncle and nephew to each other;
- That since time is of the essence, and that the respondents could not be served immediately of the proper notice, it is imperative that the Honorable Executive Judge pursuant to Administrative Circular No. 20-95 of the Supreme Court issue a Restraining Order good for 72 hours and directing the respondent sheriff to cease and desist from conducting the foreclosure sale scheduled today, and preserve status quo in the meantime that the parties will have been given the chance to settle their differences.
It appears, as gathered by undersigned, that the Honorable Judge of Branch 5, this Court, Judge Antonio Esteves, has set the hearing of the writ of preliminary injunction sometime on January 18, 2000, and he has therefore acquired definitive jurisdiction over this case. Therefore, Judge Esteves alone had and still has the prerogative to act on all incidents regarding this case. That he has not issued the Temporary Restraining Order prayed for by plaintiffs was an exercise of his judicial discretion. The same cannot be defeated by the subsequent actions of any other judge of the same court, not even the executive judge.Meanwhile, the Sheriff proceeded with the scheduled public auction sale on January 11, 2000 at which the herein private respondents were the sole and highest bidders with a bid of P2,800,000.00. On the same day, January 11, 2000, a Sheriff's Certificate of Sale[12] was issued in favor of private respondents. Thereafter, or on February 3, 2000, the Sheriff, citing the provision in the deed of real estate mortgage relative to the mortgagor's express waiver of his right of redemption,[13] issued a Final Certificate of Sale [14] in favor of the private respondent spouses.
WHEREFORE, the motion for the issuance of a 72-hour temporary restraining order as executive judge should be, as it is, DENIED.
SO ORDERED.
The [respondent ] spouses Ramon Torres and Agnes Torres filed a motion for the issuance of a writ of possession through their counsel and states the following contention:
- On January 28, 1999, [petitioner] HONORIO TORRES, JR., with the conformity of MICHAEL TORRES entered into a REAL ESTATE MORTGAGE with [respondent] spouses Ramon and Agnes Torres of one half undivided share on the lot covered by Transfer Certificate of Title No. T-70954, issued by the Register of Deeds of the City of Baguio, with an area of ONE HUNDRED FIFTY TWO (152) SQUARE METERS, MORE OR LESS, together with the improvements thereon for and in consideration of the amount of ONE MILLION EIGHT HUNDRED SIXTY NINE THOUSAND SIX HUNDRED FORTY & 78/100 (P1,869,640.78) PESOS, Philippine Currency, to be paid within SIX (6) months from the date of the execution of mortgage.
- On the due date, [petitioner] failed to pay the said loan, hence an Extra Judicial Petition of Sale was filed by Spouses Ramon and Agnes Torres ... to satisfy the mortgage indebtedness ... which as of November 30, 1999 amounts to P2,145,767.98.
- That the property subject of this case was sold to [respondents] during the foreclosure sale last January 11, 2000 and was issued the corresponding Sheriff's Certificate of Sale which is attached to the record.
- Considering the waiver of the 1-year redemption period in the Real Estate Mortgage, a Sheriff's Final Certificate of Sale was issued on February 3, 2000. A copy of which is attached to the record.
- The Capital Gains Tax and The Documentary Stamp Tax were already PAID by the herein [respondents] and the Title of the aforesaid mortgaged property was already consolidated to the Spouses Ramon and Agnes Torres.
The [petitioner], by and thru its counsel opposed the issuance of the Writ of Possession on the following grounds and considerations:
On August 14, 2002, shortly after the respondent judge issued the aforequoted order, petitioner's brother, Michael, who was then the owner of the other one-half portion of the subject property, sold the said other half to Torrent Development Corporation[19] of which herein private respondent Ramon T. Torres is himself the president.
- On January 11, 2000, [petitioner's] application for the Writ of Preliminary Injunction with prayer for the issuance ex-parte of a 72-hour Temporary Restraining Order to enjoin the Extra-Judicial foreclosure sale of Transfer Certificate of Title No. T-70954 which is the subject of this case was denied.
- On February 7, 2000, [petitioner] filed suit for Judicial declaration as being null and void ab initio the following: a) the Real Estate Mortgage entered into by and between the [petitioner] as the mortgagor and the [respondents] as the mortgagees on January 28, 1999 for obvious lack of, or absence of cause or consideration — the sum of money being then applied for was not received by the [petitioner]; b) the Sheriff's Extra Judicial Foreclosure Sale conducted and the Sheriff's Certificate of Sale issued without factual and legal basis; c) Cancellation of Entry No. 263803-28-239 (Real Estate Mortgage) and the Entry No. 230-30-7 (Sheriff's Certificate of Sale) recorded/annotated on the Memorandum of Encumbrances of said TCT No. T-70954 Registry of Deeds, Baguio City.
- The [petitioner] admitted having [signed] the Real Estate Mortgage in question and alleged that to enable the [respondents] first to register with the Register of Deeds the Mortgage Document as a condition before the grant of loan of P1,869,640.78 to the [petitioner]. The Real Estate Mortgage was intended by the parties thereto to secure the repayment of the loan (P1,869,640.78) being then applied by [petitioner].
- The subject loan of P1,869,640.78 of the Real Estate Mortgage was not given by the [respondents] to the [petitioner] instead they had shown in their exhibits as payment the bank checks and check vouchers amounting to P1,136,000.00 in the name of Leonora Torres (mother of the [petitioner]) and quote "For the advances she had been receiving from the [respondent], Leonora Torres, ceded, by way of sale her undivided ½ share in the property of the [petitioner]. That to secure payment of Leonora Torres' obligation to the [respondents] which aggregated by the time to P1,869,640.78, [petitioner] agreed to assume in consideration of the title transfer to him, that [petitioner] shall also execute a Deed of Real Estate Mortgage covering said portion that will be placed in his name in favor of the [respondent] Ramon Torres and registered simultaneously on the title that may be issued in the name of the [petitioner] and his brother.
- On February 18, 1988 Honorio Torres Sr. and Leonora Torres (parents of the [petitioner]) signed a Deed of Donation in favor of their sons, [petitioner] and Michael Torres the entire property consisting of 304 square meters now under TCT No. T-70954.
- Leonora Torres cannot validly sell ½ pertaining to her alleged conjugal property to the [respondents] in 1995 and 1997 because of the presence of the Deed of Donation. Likewise the Deed of Sale made in 1995 and 1997 is being questioned being not notarized and with incomplete dates.
In consideration of the facts presented both by the [petitioner] and the [respondents], laws and jurisprudence are clear that purchaser at the foreclosure sale is entitled as a right to a writ of possession, regardless whether or not there is a pending suit for the annulment of the mortgage or the foreclosure itself. Thusly, despite the suit filed by the [petitioner] for the annulment of the Real Estate Mortgage, Sheriff's Extra-judicial Foreclosure Sale and the issuance of Sheriff's Certificate of Sale, this Court hereby grants a Writ of Possession to [respondents] on the 304 square meters of land covered by Certificate of Title No. T-70954, grounded particularly on the following laws and jurisprudence.
Section 7 of Act 3135, as amended by Act 4118, grants to the purchaser at an extrajudicial foreclosure sale, an absolute right to possession of the property sold during the one-year period of redemption and a fortiori after the lapse of said period without any redemption being made. Possession may be obtained under a writ, which may be applied for ex-parte.
The long catena of Supreme Court decisions provide the following settled principle:"It is ministerial upon the court to issue a writ of possession in favor of the purchaser in foreclosure sale of the mortgaged property, it follows that the execution of the writ of possession can not be suspended, much less, restrained by respondent judge." (Delos Angeles v. Court of Appeals, et al., 60 SCRA 116)In the case of Spouses Eduardo Vaca and Ma. Luisita Pilar vs. Court of Appeals, G.R. NO. 109672, July 14, 1994, which is similar in the case at bar, the Supreme Court in this occasion ruled that the pendency of a case for prohibition or injunction questioning the validity of the mortgage as well as the foreclosure sale is not a valid ground to stop the issuance of a writ of possession in favor of the winning bidder in the foreclosure sale."The pendency of a separate civil suit questioning the validity of the mortgage cannot bar the issuance of the writ of possession, because the same is a ministerial act of the trial court after title on the property has been consolidated in mortgage." (Vda. De Jacob vs. Court of Appeals). The ruling was reiterated in Navarra vs. Court of Appeals in which held as a rule any question regarding the validity of the mortgage or its foreclosure cannot be legal ground for refusing the issuance of a writ of possession.The issuance of a Writ of Possession to a purchaser in an extrajudicial foreclosure, after the period of redemption, is a ministerial function of the court. It is also a ministerial function of the court to issue the writ, upon mere motion, without need of instituting a separate action for the purpose, as enunciated under Section 7, Act 3135.
WHEREFORE, this Court hereby GRANTS [respondents'] Motion for the issuance of a Writ of Possession and the Sheriff is directed to enforce the said writ against [petitioner] and all others claiming right from him over the subject property. This is without prejudice to the prosecution of the case in chief.SO ORDERED. (Words in brackets added).
Submitted for resolution is [petitioner's] MOTION FOR RECONSIDERATION TO SET ASIDE THE ORDER GRANTING A WRIT OF POSSESSION and the COMMENT and/or OPPOSITION TO MOTION FOR RECONSIDERATION TO SET ASIDE THE ORDER GRANTING A WRIT OF POSSESSION filed by [respondents] RAMON and AGNES TORRES through counsel.
After carefully evaluating the issues raised in the said Motion, the Court resolves to deny the same for being a mere reiteration which have already been resolved and passed upon in the Order of the Court subject of the instant motion.On September 25, 2002, the petitioner filed with the trial court a Notice of Appeal,[22] therein making known that he is taking an appeal from the respondent judge's orders of August 8, 2002 and September 18, 2002 on the ground that said orders "are contrary to law, morals, public policy, the facts, and the evidence...". In an order dated October 8, 2002,[23] the respondent judge gave due course to petitioner's notice of appeal and accordingly directed the elevation of the records of Civil Case No. 4591-R to the Court of Appeals.
As the issue regarding the share of his brother MICHAEL TORRES being included in the writ of possession issued by this Court, the same is likewise without merit considering the fact that the said share had been sold to the [respondents] Ramon and Agnes Torres who are entitled to possession as a result thereof.
Further, the issue raised by the [petitioner] that the writ of possession should have been issued in an LRC case, the same is not applicable because the writ of possession issued by this Court was the result of a foreclosure sale, the validity of which is the subject matter of this case. Unlike in a petition for a writ of possession in an LRC case which is issued ex-parte, the [petitioner] in this case was even given the opportunity to comment and/or oppose the same.
Considering the foregoing, the Sheriff of this Court is hereby ordered to immediately implement the Order dated August 8, 2002 and to make a return within five (5) days from receipt hereof.
SO ORDERED. (Words in brackets supplied).
After deliberating on the petition for certiorari with prayer for preliminary injunction and/or restraining order, the Court, without giving due course thereto, Resolves to: (a) REQUIRE respondents to file a COMMENT thereon, not a motion to dismiss, within ten (10) days from notice hereof; (b) ISSUE, effective immediately and continuing until further orders from this Court, a TEMPORARY RESTRAINING ORDER, enjoining respondent judge, private respondents and their agents, representatives and anyone acting on their behalf, from implementing and enforcing the Orders dated 8 August 2002 and 18 September 2002 issued by the Regional Trial Court of Baguio City, Branch 5 in Civil Case No. 4591-R entitled "Honorio Torres, Jr., et al. vs. Spouses Ramon Torres and Agnes Torres, et al." and the Writ of Possession dated 22 August 2002 issued in connection therewith; and (c) REQUIRE petitioner to POST a BOND within five (5) days from notice hereof in the amount of TEN THOUSAND PESOS (P10,000.00) in cash or surety issued by a reputable surety company of indubitable solvency and with terms and conditions acceptable to this Court, otherwise the temporary restraining order herein issued shall be rendered of no force and effect.However, before he received notice of this Court's aforementioned October 28, 2002 Resolution and TRO, together with a copy of the requirements for surety bond, petitioner already filed an "Urgent Motion with Leave of Court to Withdraw Petition" bearing date October 23, 2002,[26] via registered mail on October 24, 2002.
x x x. As a matter of policy such a direct recourse to this Court should not be allowed. The Supreme Court is a court of last resort, and must so remain if it is to satisfactorily perform the functions assigned to it by the fundamental charter and immemorial tradition. It cannot and should not be burdened with the task of dealing with causes in the first instance. Its original jurisdiction to issue the so-called extraordinary writs should be exercised only where absolutely necessary or where serious and important reasons exist therefor. Hence, that jurisdiction should generally be exercised relative to actions or proceedings before the Court of Appeals, or before constitutional or other tribunals, bodies or agencies whose acts for some reason or another, are not controllable by the Court of Appeals. Where the issuance of an extraordinary writ is also within the competence of the Court of Appeals or a Regional Trial Court, it is in either of these courts that the specific action for the writ's procurement must be presented. This is and should continue to be the policy in this regard, a policy that courts and lawyers must strictly observe. (Emphasis supplied.)It cannot be over-emphasized that where the issuance of the extraordinary writ of certiorari as invoked by the petitioner in this case against the interlocutory orders of RTC, Baguio City is concurrently within the competence of this Court and the Court of Appeals, litigants must observe the principle of hierarchy of courts. This Court's original jurisdiction to issue extraordinary writs should be exercised only where absolutely necessary, or where serious and important reasons therefor exist. We find no such need in this case.