Dagupan Trading vs.

Macam
14 SCRA 99
May 1965

FACTS:

Sammy Maron and his seven brothers and sisters were pro-indiviso owners of a parcel of unregistered
land located in barrio Parayao, Binmaley, Pangasinan. In 1955, while their application for registration of
said land under Act No. 496 was pending, they executed, on June 19 and on September 21, two deeds of
sale conveying the property to herein respondent Rustico Macam who thereafter took possession of the
property and made substantial improvements upon it. On October 14, 1955, OCT No. 6942 covering the
land was issued in the name of the Marons, free from all liens and encumbrances.

On August 4, 1956, however, by virtue of a final judgment of the Municipal Court of Manila in a civil case
in favor of Manila Trading and Supply Co. (Manila Trading) against Sammy Maron, levy was made upon
whatever interest he had in the subject property. Thereafter, said interest was sold at public auction to
the judgment creditor Manila Trading. The corresponding notice of levy, certificate of sale and the
sheriff's certificate of final sale in favor of Manila Trading - because nobody exercised the right of
redemption - were duly registered, and on March 1, 1958, the latter sold all its rights and title in the
property to herein petitioner Dagupan Trading Company (Dagupan Trading).

On September 4, 1958, Dagupan Trading filed an action against Macam, praying that it be declared
owner of one-eighth portion of the subject property. The CFI of Pangasinan dismissed the said
complaint, and the Court of Appeals affirmed its decision.

ISSUE:

Who has the superior right over the one-eight portion of the subject property?

COURT RULING:

The Supreme Court likewise affirmed both decisions of the lower courts. At the time of the levy, Sammy
Maron already had no interest on the one-eight portion of the property he and his siblings have
inherited because for a considerable time prior to the levy, said interest had already been conveyed
upon Macam "fully and irretrievably" - as the Court of Appeals held. Consequently, the subsequent levy
made on the property for the purpose of satisfying the judgment rendered against Sammy Maron in
favor of the Manila Trading Company was void and of no effect.

The unregistered sale and the consequent conveyance of title and ownership in favor Macam could not
have been cancelled and rendered of no effect upon the subsequent issuance of the Torrens title over
the entire parcel of land. Moreover, upon the execution of the deed of sale in his favor by Sammy
Maron, Macam had immediately taken possession of the land conveyed as its new owner and
introduced considerable improvements upon it himself. To deprive him, therefore, of the same by sheer
force of technicality would be against both justice and equity.