407 Phil. 591
KAPUNAN, J.:
WHEREFORE, judgment is hereby rendered as follows:Respondent bank filed a motion for reconsideration of the said decision. Pending resolution thereof, respondent bank moved for the inhibition of the presiding judge. The motion for inhibition was granted, thus, the case was re-raffled to Branch 72. The presiding judge thereof subsequently denied respondent bank's motion for reconsideration. Respondent bank then filed a notice of appeal but the same was denied on the ground that it (respondent bank) already waived its right to appeal pursuant to the joint stipulation. The decision was declared final and executory.
(1) The Notice of Sheriff's Sale dated February 10, 1989, Certificate of Sale dated March 10, 1989, Affidavit of Consolidation executed by the defendant bank, and the deed of sale dated February 1, 1995 executed by the bank in favor of the Terraces Realty & Development Corporation are hereby declared null and void and of no legal force and effect;
(2) The Register of Deeds of Marikina, Metro Manila is hereby ordered to cancel Transfer Certificates of Title No. 194096 and 194098 in the name of the bank and Transfer Certificate of Title No. 275504 in the name of Terraces Realty & Development Corporation, and to issue, in lieu thereof, new titles in the name of the plaintiff or her successor-in-interest upon proof by the latter of the payment to be made by them to the bank or by similar proof that such amount is deposited by the plaintiff in trust for the bank.
The plaintiff shall pay to the bank or deposit the amount in trust for the bank within fifteen (15) days from receipt of a copy of this decision the amounts as follows:
(a) on the promissory note for P176,623.24 - The amount of P176,623.24 plus the stipulated 12% interest per annum from January 24, 1985 until March 10, 1989; and 12% interest per annum on said amount of P176,623.24 from March 11, 1989 until fully paid.
(b) on the promissory note for P380,000.00 - The amount of P380,000.00 plus 14% interest per annum from January 24, 1985 until March 10, 1989; and 12% interest per annum on said amount of P380,000.00 from March 11, 1989 until fully paid; and
(c) on the promissory note of P31,000.00 - The amount of P31,000.00 14% interest per annum from January 24, 1985 until March 10, 1989; and 12% interest per annum of said amount of P31,000.00 from March 11, 1989 until fully paid.
(3) The claim of plaintiff for damages and attorney's fees is hereby denied.
No pronouncement as to costs.[2]
WHEREFORE, the Motion to Cancel Notice of Lis Pendens dated 23 March 1998 filed by respondent Roberto B. Tan and the motion for reconsideration filed by respondent Helen Leontovich Vda. De Aguinaldo dated 23 March 1998 are hereby DENIED, for lack of merit.Petitioner filed a motion for reconsideration but it was denied by the appellate court in its resolution of 23 February 1999. Hence, petitioner filed the instant petition assigning the following errors:
Petitioner's Motion for Partial Reconsideration dated 20 March 1998 is hereby GRANTED and par.(d) of the dispositive portion of our decision promulgated on 27 February 1998 is hereby MODIFIED to read as follows:Directing the Registrar of Deeds to reinstate the cancelled Transfer Certificates of Title Nos. 194096 & 194098 in the name of petitioner and Transfer Certificate of Title No. 275504 in the name of Terraces Realty & Development Corporation, or issue new ones in the event this is not legally feasible in their favor, pending review of the case on appeal.SO ORDERED.[4]
The Court required respondent bank and respondent Aguinaldo to file their respective Comments. Thereafter, the parties were required to file their respective memoranda.
- The Court of Appeals erred and committed serious irregularity in directing the "reinstatement" of Philbank's cancelled TCT No. 194096 (or the issuance of a new one in its place), in the fact of an existing TCT in Roberto Tan's name over the same parcel of land, and absent any proper direct action and judgment for reconveyance against him which rescinds or cancels his TCT No. 296945;
- The Court of Appeals erred and acted without jurisdiction in deciding upon the question of whether Philbank's cancelled TCT No. 194096 should be reinstated, or a new title issued in its place, this being within the exclusive jurisdiction of regional trial courts, and outside the scope of a certiorari proceeding.[5]
Private respondent Roberto Tan has filed a motion to dismiss on two grounds, one of which is "x x x the petition states no cause of action against Roberto B. Tan." In his submission to support this ground, Tan claims being a buyer in faith and for value (P2.5 Million), P2 Million of which came from a loan directly paid by the lender bank to the seller, and the full consideration was fully paid.The CA, in its decision, correctly denied respondent bank's prayer to reinstate its canceled TCTs because to do so would effectively cancel petitioner's title on the same lot. It must be noted that petitioner's title was regularly issued after the lot covered by the same was sold to him by respondent Aguinaldo. Petitioner relied on the seller's title, which was then free from any claims, liens or encumbrances appearing thereon.
Under the circumstances obtaining, the prayer under paragraph 3.5 cannot be granted. The aforequoted averments as against private respondent Roberto B. Tan are insufficient to make up a cause of action for the desired relief.[7]
The Torrens system was adopted in this country because it was believed to be the most effective measure to guarantee the integrity of land titles and to protect their indefeasibility once the claim of ownership is established and recognized. If a person purchases a piece of land on the assurance that the seller's title thereto is valid, he should not run the risk of being told later that his acquisition was ineffectual after all. This would not only be unfair to him. What is worse is that if this were permitted, public confidence in the system would be eroded and land transactions would have to be attended by complicated and not necessarily conclusive investigations and proof of ownership. The further consequence would be that land conflicts could be even more numerous and complex than they are now and possibly also more abrasive, if not even violent. The Government, recognizing the worthy purposes of the Torrens system, should be the first to accept the validity of the titles issued thereunder once the conditions laid down by the law are satisfied.[9]WHEREFORE, premises considered, the Resolutions, dated 28 August 1998 and 23 February 1999, of the Court of Appeals are REVERSED and SET ASIDE. Its Decision, dated 27 February 1998, is REINSTATED in toto.