[No. L­11648.

 April 22, 1959]
THE DIRECTOR OF LANDS, petitioner, vs. LOPE ALBA, ET AL., claimants. ELIGIO
CATALAN,   movant   and   appellee, vs. RAMON   GATCHALIAN,   oppositor   and
appellant.
Appeal from the order of the Court of First Instance of Tacloban City. 

It appears that Eligio Catalan and Ramon Gatchalian, as partners, mortgaged to Dr. Dionisio
Marave two lots in Tacloban City, including the improvements thereon, all belonging to the
partnership, to secure the payment of a loan. The partnership failed to pay the loan; the
mortgage was  foreclosed and the properties were  sold at  public auction to Dr. Marave.
Before the expiration of the one year period of redemption, Catalan, on his own behalf,
redeemed   the   properties   with   his   private   funds.   The   Sheriff   issued   the   corresponding
certificate   of   redemption   in   favor   of   Catalan.   Upon   Catalan's   petition,   the   lower   court
ordered the cancellation of the title in the name of the partnership and to issue in its stead
another in the name of Catalan. Held: The theory of Catalan, accepted by the trial court,
that   he   became   the   absolute   owner   of   the   properties   in   question   upon   making   the
redemption because he was subrogated to the rights of Dr. Marave who made the purchase
at public auction, is untenable. Under general principles of law, a partner is an agent of the
partnership. (Art. 1818, new Civil Code). Furthermore, every partner becomes a trustee for
his copartner with regard to any benefits or profits derived from his act as partner (Art.
1807, new Civil Code). Consequently, when Catalan redeemed the properties in question,
he became a trustee and held the same in trust for his copartner Gatchalian, subject to his
right   to   demand   from   the   latter   his   contribution   to   the   amount   of   redemption.   The
principle   of   subrogation   cannot   be   applied   because   at   the   time   Catalan   redeemed   the
property, Dr. Marave, the purchaser at public auction, had not yet become the absolute
owner   of   said   properties.   He   never   received   the   definite   and   formal   certificate   of   sale
constituting muniment of title, for the reason that redemption was made. Consequently,
there was no title to the properties which he could convey to Catalan as redemptioner.

Judgment reversed. Montemayor, J., ponente.