448 Phil. 624
PANGANIBAN, J.:
“WHEREFORE, the petition for certiorari is GRANTED. The orders of respondent RTC, Branch 6 of Manila dated May 27, 1998 and August 3, 1998 are hereby ANNULLED. Costs against private respondent.”[4]On the other hand, the annulled May 27, 1998 Order of the Regional Trial Court (RTC)[5]reads as follows:
“It appearing that the decision of the Honorable Supreme Court promulgated on July 24, 1997, affirming the challenged resolutions of January 5, 1995 and July 14, 1995 in C.A. Sp. No. 29147, has become final and executory; that the issues raised by [Delta Motors Corporation] in its Oppositions/Comment and Counter Omnibus Motion dated March 25, 1998 have already been resolved with finality by the Honorable Supreme Court in said decision promulgated on July 24, 1997, the Omnibus Motion dated March 16, 1998 filed by x x x State Investment House Inc.,[6] through counsel, is hereby granted.
“WHEREFORE, as prayed for, (i) Sheriff Eduardo E. Centeno is hereby directed to execute an Alias Sheriff’s Final Deed of Sale involving TCT No. 27847, issued by the Register of Deeds of Pasay City which title is now with the Register of Deeds of Parañaque in favor of State Investment Trust, Inc., (ii) the Register of Deeds of Parañaque, Metro Manila is hereby directed to cancel TCT No. 27847 registered in the name of Delta Motors Corporation, upon the presentation of said Sheriff’s Final Deed of Sale and issue a new title covering the same property in the name of State Investment House, Inc., (iii) Sheriff Eduardo Centeno is hereby directed to sell at public auction Delta Motors Corporation’s shares of stocks in Canlubang Golf and Country Club covered by Certificate Nos. 074 and 075 and the levied real properties under TCT Nos. 29567, 29563, 29564, 29171, 29565, 29566 and 32784 issued by the Register of Deeds of Dagupan City and; [(iv)] Sheriff Eduardo Centeno is hereby directed to continue with the execution proceedings commenced by the late Sheriff Orlando M. Alcantara in the implementation of the Alias Writ of Execution, and to execute all documents such as, but not limited to, the Sheriff’s Certificate of Sale or Final Deed of Sale, and to perform all acts necessary to implement said writ and to transfer in the name of State Investment Trust, Inc. title to the properties of Delta Motors Corporation subject of notices of levy.”[7]
“WHEREFORE, while the assailed decision was validly rendered by the [RTC], nonetheless it has not attained finality pending service of a copy thereof on x x x DELTA, which may appeal therefrom within the reglementary period.”[10]Notably, the CA Decision was silent on the assailed March 11, 1987 RTC Order granting the execution. Delta then appealed to this Court. However, its Petition, docketed as GR No. 100366, was dismissed on August 14, 1991, because of Delta’s failure to present proof that a copy of the Petition was served on the RTC, as required by Revised Supreme Court Circular No. 1-88, which had taken effect on July 1, 1991.
“WHEREFORE, the questioned order of [the RTC] dated June 3, 1992, dismissing the notice of appeal dated November 6, 1991; and the order dated September 14, 1992 of the same court denying the motion for reconsideration filed by [Delta], through counsel, are hereby SET ASIDE; and respondent court [is] hereby ordered to ELEVATE the records of the case to the Court of Appeals, on appeal.”[11]SITI elevated the CA ruling to this Court. While the appeal was pending, Delta filed with the CA an Omnibus Motion asking the latter to take the following steps:
“1) Declare as null and void ab initio and without any force and effect the Order of [the RTC] dated March 11, 1987 ordering the issuance of the writ of execution;In its July 18, 1994 Resolution, this Court denied SITI’s appeal and upheld the CA Decision in the Second Case. Hence, on October 26, 1994, Delta moved for the resolution of the Omnibus Motion it had earlier filed with the CA. The latter denied the Omnibus Motion in its January 5, 1995 Resolution:
“2) Declare as null and void ab initio and without any force and effect the writ of execution issued pursuant to the Order dated March 11, 1987;
“3) All other proceedings held, conducted and executed by x x x sheriff implementing the aforesaid writ of execution.”[12]
“Consequently, the matters prayed for in the Omnibus Motion of x x x Delta [Motors] Corporation dated February 10, 1994 and above-quoted are matters which were not raised as issues by [Delta] in the instant petition and, therefore, not within the jurisdiction and power of this Court in the instant petition to decide.Consequently, Delta lodged with this Court an appeal docketed as GR No. 121075. In its July 24, 1997 Decision, however, this Court promulgated a Decision affirming the CA Resolution denying Delta’s Omnibus Motion. After this Decision became final and executory, SITI filed with the RTC on March 16, 1998, an Omnibus Motion in Civil Case No. 84-23019, asking for the issuance of an order:
“WHEREFORE, the Omnibus Motion is hereby DENIED.”[13]
“1. Directing the incumbent sheriff of this branch, Eduardo E. Centeno, and/or his successor in office, to execute an Alias Sheriff’s Final Deed of Sale involving TCT No. 27847, issued by the Register of Deeds of Pasay City (now title is with Register of Deeds of Parañaque) in favor of State Investment Trust, Inc.;In opposing the Motion, Delta pointed out that the case had not attained finality because of its pending appeal. The RTC nevertheless rendered the May 27, 1998 Order granting SITI’s Omnibus Motion. Thereafter, Delta challenged that Order on certiorari before the CA, which then annulled it in the present assailed Decision.
“2. Directing the Register of Deeds of Parañaque, Metro Manila, to cancel TCT No. 27847 registered in the name of Delta Motors Corporation, upon the presentation of said Sheriff’s Final Deed of Sale and issue a new title covering the same property, in the name of State Investment [Trust], Inc.;
“3. Directing the incumbent Sheriff of this branch, Eduardo E. Centeno and/or his successor in office, to sell at public auction Delta Motors Corporation’s shares of stocks in Canlubang Golf and Country Club covered by Certificate Numbers 074 and 075, and the levied real properties under TCT Nos. 29567, 29563, 29564, 29171, 29565, 29566 and 32784 issued by the Register of Deeds of Dagupan City;
“4. Directing the incumbent sheriff, and/or his successor in office, to continue with the execution proceedings commenced by the late sheriff Orlando M. Alcantara in the implementation of the Alias Writ of Execution, and to execute all documents such as, but not limited to, the Sheriff’s Certificate of Sale or Final Deed of Sale, and to perform all acts necessary to implement said writ and to transfer in the name of State Investment Trust, Inc. title to the properties of Delta Motors Corporation subject of notices of levy.
“Other reliefs just and equitable are likewise prayed for.”[14]
The issues can be summed up into three: (1) whether CA-GR SP No. 48793 is barred by res judicata or the doctrine of conclusiveness of judgment, (2) whether the RTC acted without jurisdiction in issuing the Writ of Execution, and (3) whether respondent’s appeal is barred by laches.“A.
The Court of Appeals erred in finding that there was no valid ruling made with respect to the 17[16] March 1987 Order and all orders or proceedings issued pursuant thereto.
“B.
The Court of Appeals erred in concluding that the doctrine of res judicata and conclusiveness of judgment is inapplicable to the case at bar.
“C.
The Court of Appeals erred in finding [that] the RTC acted without jurisdiction when it granted and issued the Writ of Execution.
“D.
The Court of Appeals erred in not finding that by reason of laches and inexcusable inaction, Delta has lost its right to appeal.”[17]
“It is without [a] doubt therefore that the decision of the [RTC] has not become final and executory. As a natural or inherent and inevitable consequence of said declaration, a decision which has not become final and executory may not be ordered executed or enforced under Section 1, Rule 39 of the 1997 Rules of Civil Procedure.Neither can the CA’s refusal to nullify the March 11, 1987 Order in the other Petitions be construed as a declaration of its validity. The CA painstakingly explained:
“Neither is the Order of March 11, 1987 properly an execution pending appeal under Section 2(a), Rule 39 of the said Rule, as the ground of the RTC in granting the writ of execution was that the Decision had already become final and executory which is patently erroneous as it had been expressly held by this Court in CA-G.R. SP No. 23068 that the RTC decision insofar as Delta is concerned has not become final and executory.
“Thus, the RTC acted without jurisdiction when it granted and issued a writ of execution under Section 1, Rule 39 despite the fact that the decision had not become final and executory.”[20]
“[I]ndeed in CA-G.R. SP No. 29147, this Court actually desisted from categorically ruling on the issue of the validity of the order of [the RTC] dated March 11, 1987 as well as the other court processes. However, contrary to [SITI’s] assertions, no substantial rights were determined by reason of such refusal to rule on said issue. This Court declined to rule on said issue principally because the same was not raised in the petition, thus, the lack of jurisdiction of the Court of Appeals to rule on a matter foreign to that brought to it. The Supreme Court in G.R. No. [121075], x x x upheld the refusal of the Court of Appeals to rule on said issue simply because it agreed that the latter court had no jurisdiction to do so in said particular petition, which was filed only for the purpose of assailing the RTC order dismissing Delta’s appeal.”[21]As matters stood prior to CA-GR SP No. 48793 (the presently appealed CA Decision), directly or inferentially, there was yet no judgment or final order on the merits regarding the March 11, 1987 Order for the execution of the RTC Decision and the proceedings conducted relative thereto. Neither was one made in CA-GR SP No. 23068, 29147 or GR No. 121075.
“SEC. 47. Effect of judgments or final orders. – The effect of a judgment or final order rendered by a court of the Philippines, having jurisdiction to pronounce the judgment or final order, may be as follows:In Mirpuri v. Court of Appeals,[22] the Court explained:
x x x x x x x x x
“(b) In other cases, the judgment or final order is, with respect to the matter directly adjudged or as to any other matter that could have been raised in relation thereto, conclusive between the parties and their successors in interest by title subsequent to the commencement of the action or special proceeding, litigating for the same thing under the same title and in the same capacity; and
“(c) In any other litigation between the same parties or their successors in interest, that only is deemed to have been adjudged in a former judgment or final order which appears upon its face to have been so adjudged, or which was actually and necessarily included therein or necessary thereto.”
“Literally, res judicata means a matter adjudged, a thing judicially acted upon or decided; a thing or matter settled by judgment. In res judicata, the judgment in the first action is considered conclusive as to every matter offered and received therein, as to any other admissible matter which might have been offered for that purpose, and all other matters that could have been adjudged therein. Res judicata is an absolute bar to a subsequent action for the same cause; and its requisites are: (a) the former judgment or order must be final; (b) the judgment or order must be one on the merits; (c) it must have been rendered by a court having jurisdiction over the subject matter and parties; (d) there must be between the first and second actions, identity of parties, of subject matter and of causes of action.”All the decisions relied upon by petitioner contain no discussion of the rights and the liabilities of the parties vis-à-vis the March 11, 1987 Order. The judgment in CA-GR SP No. 23068 was limited to the validity of the summons and the RTC Decision. CA-GR SP No. 29147 and GR No. 121075 delved only on the Notice of Appeal. Both matters were distinct from the subject of execution, which was involved in the March 11, 1987 RTC Order. In the absence of a final judgment or final order on the merits, there can be no res judicata to speak of.
x x x x x x x x x
“x x x A judgment is on the merits when it determines the rights and liabilities of the parties based on the disclosed facts, irrespective of formal, technical or dilatory objections.”[23]
“Discretionary execution.-Section 9 of Rule 41 of the Rules of Court explains the instances when the trial court loses jurisdiction over a case:
“(a) Execution of a judgment or a final order pending appeal. – On motion of the prevailing party with notice to the adverse party filed in the trial court while it has jurisdiction over the case and is in possession of either the original record or the record on appeal, as the case may be, at the time of the filing of such motion, said court may, in its discretion, order execution of a judgment or final order even before the expiration of the period to appeal.
“After the trial court has lost jurisdiction, the motion for execution pending appeal may be filed in the appellate court.
“Discretionary execution may only issue upon good reasons to be stated in a special order after due hearing.”
“A party’s appeal by record on appeal is deemed perfected as to him with respect to the subject matter thereof upon the approval of the record on appeal filed in due time.In the case at bar, the appeal filed by respondent was perfected on November 12, 1991, when it filed its Notice of Appeal. Considering that it had already filed such Notice, and that the period of appeal for petitioner had already expired, the RTC no longer had jurisdiction over the case. Hence, the trial court acted improperly when it issued its May 27, 1998 Order granting petitioner’s Omnibus Motion. That Motion was filed four years after this Court had affirmed the CA Decision directing the elevation of the records on appeal. For having been issued without jurisdiction, the Order is plainly null and void.[24]
x x x x x x x x x
“In appeals by notice of appeal, the court loses jurisdiction over the case upon the perfection of the appeals filed in due time and the expiration of the time to appeal of the other parties.
x x x x x x x x x
“In either case, prior to the transmittal of the original record or the record on appeal, the court may issue orders for the protection and preservation of the rights of the parties which do not involve any matter litigated by the appeal, approve compromises, permit appeals of indigent litigants, order execution pending appeal in accordance with Section 2 of Rule 39, and allow withdrawal of the appeal.”