Sie sind auf Seite 1von 32

4/27/2019 MANOTOK REALTY v.

CLT REALTY DEVELOPMENT CORPORATION

DIVISION

[ GR No. 123346, Nov 29, 2005 ]

MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

DECISION
512 Phil. 679

SANDOVAL-GUTIERREZ, J.:
[1]
Before us for resolution are three petitions for review on certiorari:

1. G.R. No. 123346

The petition in this case was filed by Manotok Realty, Inc. and Manotok Estate
[2]
Corporation against CLT Realty Development Corporation assailing the Decision
dated September 28, 1995 and Resolution dated January 8, 1996 of the Court of
Appeals in CA-G.R. CV No. 45255;

2. G.R. No. 134385

The petition was filed by Araneta Institute of Agriculture, Inc. against Jose B. Dimson
(now deceased), represented by his surviving spouse and children, and the Registry of
[3]
Deeds of Malabon, challenging the Joint Decision dated May 30, 1997 and
Resolution dated July 16, 1998 of the Court of Appeals in CA-G.R. CV No. 41883 and
CA-G.R. SP No. 34819; and

3. G.R. No. 148767

The petition here was filed by Sto. Niño Kapitbahayan Association, Inc. against CLT
[4]
Realty Development Corporation questioning the Decision of the Court of Appeals
dated March 23, 2001 in CA-G.R. CV No. 52549.

[5]
On March 6, 2002, these petitions were consolidated as the issue involved is the

lawyerly.ph/juris/view/ca555 1/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

validity of the parties' titles over portions of land known as the Maysilo Estate
located at Caloocan City and Malabon, Metro Manila, covered by Original
Certificate of Title (OCT) No. 994 of the Registry of Deeds of Caloocan City. It is
this same OCT No. 994 from which the titles of the parties were purportedly derived.

We shall state the antecedents of these cases separately considering their peculiar
circumstances.

1. G.R. No. 123346

(Manotok Realty, Inc. and Manotok Estate


Corporation, petitioners, vs. CLT Realty
Development Corporation, respondents)

On August 10, 1992, CLT Realty Development Corporation (CLT Realty) filed
with the Regional Trial Court, Branch 129, Caloocan City a complaint for annulment
of Transfer Certificates of Title (TCT), recovery of possession, and damages against
Manotok Realty, Inc. and Manotok Estate Corporation (Manotok
Corporations) and the Registry of Deeds of Caloocan City, docketed as Civil Case
No. C-15539.

The complaint alleges inter alia that CLT Realty (plaintiff) is the registered owner of
Lot 26 of the Maysilo Estate located in Caloocan City, covered by TCT No. T-
177013 of the Registry of Deeds of said city; that this TCT was originally derived from
OCT No. 994; that on December 10, 1988, CLT Realty acquired Lot 26 from its
former registered owner, Estelita I. Hipolito, by virtue of a Deed of Sale with Real
Estate Mortgage; that she, in turn, purchased the same lot from Jose B. Dimson;
that Manotok Corporations (defendants) illegally took possession of 20 parcels of land
(covered by 20 separate titles[6]) within said Lot 26 owned by CLT Realty; that based
on the technical descriptions of Manotok Corporations' titles, their property overlap
or embrace Lot 26 of CLT Realty; and that the titles of Manotok Corporations
constitute a cloud of doubt over the title of CLT Realty. The latter thus prays that the
20 titles of Manotok Corporations be cancelled for being void; and that Manotok
Corporations be ordered to vacate the disputed portions of Lot 26 and turn over
possession thereof to CLT Realty, and to pay damages.

In their answer with counterclaim, Manotok Corporations denied the material

lawyerly.ph/juris/view/ca555 2/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

allegations of the complaint, alleging that Jose B. Dimson's title (TCT No. R-15166)
was irregularly issued, hence void; and that consequently, the titles of Estelita
Hipolito (TCT No. R-17994) and CLT Realty (TCT No. 177013) derived therefrom are
likewise void. By way of affirmative defense, Manotok Corporations assert ownership
of the parcel of land being claimed by CLT Realty, alleging that they acquired the same
from the awardees or vendees of the National Housing Authority.

During the pre-trial conference, the trial court, upon agreement of the parties,
approved the creation of a commission composed of three commissioners tasked to
resolve the conflict in their respective titles. On July 2, 1993, the trial court issued an
Order[7] defining the issues to be resolved by the commissioners, thus:
"1. Whether or not the property covered by the Transfer Certificates of Title of
defendants (Manotok Realty, Inc. and Manotok Estate Corporation) pertain to or
involved Lot No. 26 of the Maysilo Estate presently titled in the name of the
plaintiff (CLT Realty Development Corporation); and

"2. Whether or not the property covered by the title of the plaintiff and the
[8]
property covered by the titles of the defendants overlap."

The commissioners chosen were Engr. Avelino L. San Buenaventura (nominated by


CLT Realty), Engr. Teodoro I. Victorino (nominated by Manotok Corporations), and
Engr. Ernesto S. Erive (chosen by the two commissioners and the parties).
Significantly, Engr. Ernesto Erive is the Chief of the Surveys Division,
Land Management Bureau, Department of Environment and Natural
Resources (DENR), Quezon City.[9] On July 2, 1993, the three took their oaths
of office in open court.

On October 8, 1993, Ernesto Erive and Avelino San Buenaventura submitted an


exhaustive Joint Final Report[10] (Majority Report) with the following conclusion:

lawyerly.ph/juris/view/ca555 3/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

"h. Based on the foregoing, it is the conclusion of the undersigned


Commissioners that defendants' (Manotok Realty, Inc. and Manotok Estate
Corporation) titles overlap portions of plaintiff's (CLT Realty Development
Corporation) title, which overlapping is due to the irregular and questionable
issuance of TCT Nos. 4211 (also of TCT No. 4210), 5261, 35486, 1368 to 1374.
The inherent technical defects on TCT No. 4211 (from where defendants derive
their titles) and TCT No. 4210 which were exhaustively elucidated above, point to
the fact that there was no approved subdivision of Lot 26 which served as legal
basis for the regular issuance of TCT Nos. 4210 and 4211. Thus, as between
plaintiff's title, which was derived from regularly issued titles, and defendants'
titles, which were derived from irregularly issued titles, plaintiff's title which
pertains to the entire Lot 26 of the Maysilo Estate should prevail over
defendants' titles."

On the other hand, Teodoro Victoriano submitted his Individual Final Report[11]
(Minority Report) dated October 23, 1993 with the following findings:
"f. That viewed in the light of the foregoing considerations, there is no question
that the different parcels of land which are covered by defendants' transfer
certificates of title in question are parts of Lot 26 of then Maysilo Estate;

"g. That on the basis of the technical descriptions appearing on the certificates of
titles of the defendants, it is ascertained that the parcels of land covered therein
overlap portions of the parcel of land which is covered by the plaintiff's certificate
of title."

The trial court then scheduled the hearing of the two Reports. CLT Realty filed its
objections to the Minority Report. For its part, Manotok Corporations submitted
their comment/objections to the Majority Report.

On February 8, 1994, the trial court issued an Order directing the parties to file their
respective memoranda "to enable this court to adopt wholly or partially the
memorandum for either as the judgment herein, x x x."[12]

On April 6, 1994, Manotok Corporations submitted their Memorandum praying that


the trial court approve the Minority Report and render judgment in their favor.

lawyerly.ph/juris/view/ca555 4/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

CLT Realty likewise filed its Memorandum on April 15, 1994 praying that "the
Majority Report be approved in toto, and that judgment be rendered pursuant
thereto."

In its Order of April 22, 1994, the trial court considered the case submitted for
decision.[13]

On May 10, 1994, the trial court rendered its Decision, the dispositive portion of
which reads:
"WHEREFORE, premises considered, judgment is hereby rendered in favor of
plaintiff (CLT Realty) and against defendants (Manotok Corporations) as
follows:

"1. Ordering the annulment and cancellation of defendants' Transfer Certificates


of Title Nos. 4210 and 4211 of the Registry of Deeds of Caloocan City which
encroach on plaintiff's 201,288 square meters of Lot No. 26 of the Maysilo
Estate, Caloocan City;

"2. Ordering defendants to vacate said 201,288 square meters of Lot No. 26
registered in the name of plaintiff;

"3. Ordering defendants jointly and severally to pay plaintiff the sum of
P201,288.00 annually from March 15, 1989, as reasonable compensation for
defendants' occupancy and use of the 201,288 square meters involved in this
case until the area is vacated;

"4. Ordering defendants jointly and severally to pay plaintiff's counsel (Villaraza
& Cruz Law Office) the sum of P50,000.00 as attorney's fees; and

"5. Ordering defendants jointly and severally to pay the costs of suit.

"Defendants' Counterclaim is dismissed for lack of merit.

"SO ORDERED."

The findings of fact and conclusions contained in the Majority Report, which the trial
court adopted in its Decision, are quoted as follows:
lawyerly.ph/juris/view/ca555 5/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

"7. That the following facts were established by the undersigned Commissioners:

"a. Records show that Maysilo Estate was surveyed under Plan No. Psu-2345 on
September 8 to 27, October 4 to 21 and November 17 to 18, 1991;

"b. That on the basis of the Decision rendered on December 3, 1912 by


Hon. Norberto Romualdez in Land Registration Case No. 4429
pursuant to which the Decree No. 36455 was issued and the approved
plan Psu-2345, the Maysilo Estate was registered under Republic Act No.
496 and Original Certificate of Title No. 994, OCT-994, was issued by the
Registry of Deeds of Rizal, covering 34 parcels of land, Lots 1 to 6, 7-A, 8 to 15, 17
to 22, 23-A, 24, 25-A, 25-D and 26 to 33, all of Psu-2345.

"c. The original copy of OCT-994 in its original form although dilapidated is on
file at the Registry of Deeds of Caloocan City;

"d. That according to the documents submitted by the plaintiff, TCT-177013 in


the name of plaintiff CLT Realty Development Corporation specifically
describes the parcel of land covered by its title as 'Lot 26, Maysilo Estate.'
TCT-177013 was a transfer from TCT-R-17994 registered in the name of
Estelita Hipolito which in turn is a transfer from TCT-R-15166 registered in
the name of Jose B. Dimson which also is a transfer from OCT-994. TCT-R-
17994 and TCT-R-15166 also specifically describe the parcel of land covered by
the titles as 'Lot 26, Maysilo Estate';

"e. That defendant Manotok Realty Inc.'s properties are covered by TCT Nos.
7528, 7762, 8012, 9866, C-17272, 21107, 21485, 26405, 26406, 26407, 33904,
34255, C-35267, 41956, 53268, 55896, T-1214528, 163902 and 165119, while
defendant Manotok Estate Corporation's property is covered by TCT No. T-
232568, all of the Registry of Deeds of Caloocan City.

"f. That on the basis of the technical descriptions on the titles of defendants, the
parcels of land covered therein overlap portions of the parcel of land covered by
plaintiff's title;

"g. That according to the documents of defendants, Lot 26 was apparently


subdivided which led to the issuance of Transfer Certificates of Title Nos. 4210
lawyerly.ph/juris/view/ca555 6/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

and 4211 which were registered on September 9, 1918 in the names of Messrs.
Alejandro Ruiz and Mariano Leuterio. All of defendants' titles are derived from
TCT No. 4211.

"h. The original copy of OCT-994 does not contain the pages where Lot 26 and
some other lots are supposedly inscribed;

"i. TCT No. 4211 was later cancelled by TCT No. 5261 in the name of Francisco J.
Gonzales which was later cancelled by TCT No. 35486 in the names of Jose Leon
Gonzales, Consuelo Susana Gonzales, Juana Francisca Gonzales, Maria Clara
Gonzales, Francisco Felipe Gonzales and Concepcion Maria Gonzales;

"j. Upon examination of the original copy of OCT-994, it can be seen


that the technical descriptions of the lots and the certificate itself are
entirely written in the English language. On the other hand, it was
noticed that the technical descriptions on TCT Nos. 4211 (as well as
TCT No. 4210) 5261 and 35486 are inscribed in the Spanish language
in these certificates;

"k. The dates of the original survey of the mother title OCT-994
(September 8-27, October 4-21 and November 17-18, 1911) are not
indicated on TCT Nos. 4211 (also on TCT No. 4210), 5261 and 35486.
Rather, an entirely different date, December 22, 1917, is indicated at
the end of the Spanish technical descriptions on TCT No. 4211 (also
on TCT No. 4210), 5261 and 35486;

"l. The parcel of land covered by the successive titles TCT Nos. 4211,
5261 and 35486 is not identified by a lot number. There is no
reference or mention of Lot 26 of the Maysilo Estate in the technical
description of said titles.

"m. That there is no subdivision survey plan number indicated on TCT


No. 4211 (also on TCT No. 4210), 5261 and 35486 covering the
purported subdivision of Lot 26. Upon verification with the Bureau
of Lands or in the Land Registration Authority, which are the official
depositories of all approved survey plans, no survey plan covering
said subdivision could be found;

lawyerly.ph/juris/view/ca555 7/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

"n. The three (3) separate lots covered by TCT Nos. 4210 and 4211
which allegedly were the result of the subdivision of Lot 26 were not
designated or identified as Lot 26-A, Lot 26-B and Lot 26-C to
conform with existing practice;

"o. That it appears that the parcel of land covered by the successive titles TCT No.
4211, then 5261 and lastly 35486 was again subdivided under Plan Psu-21154.
The alleged subdivision plan Psd-21154 had seven (7) resultant lots which are
issued individuals certificates, TCT Nos. 1368 thru 1374, six of which are in the
names of each of the six children of Francisco J. Gonzales;

"p. Plan Psd-21154 appears to have been prepared on September 15,


21, 29 and October 5-6, 1946 according to the technical descriptions
appearing on TCT Nos. 1368 thru 1374;

"q. TCT Nos. 1368 thru 1374 are written in the English language and
the technical descriptions of the lots covered therein indicate the
original survey of the mother title as 'September 8-27, October 4-21
and November 17-18, 1911' which dates are not found in the mother
title TCT No. 35486 or the antecedent titles TCT No. 5261 and 4211;

"r. It appears that these seven (7) properties covered by TCT Nos. 1368 thru 1374
were later expropriated by the Republic of the Philippines through the People's
Homesite and Housing Corporation (now the National Housing Authority) after
which they were consolidated and subdivided into 77 lots under (LRC) Pcs-1828
for resale to tenants. Manotok Realty, Inc. appears to be one of the original
vendees of said lots having acquired Lot 11-B covered by TCT No. 34255. It
appears that some of the tenants later sold their lots to various vendees some of
whom are the defendants, Manotok Realty, Inc. and Manotok Estate
Corporation;

"s. That Psd-21154, the plan which allegedly subdivided the lot
covered by TCT No. 35486 (formerly covered by TCT No. 4211, then
TCT No. 5261), could not be traced at the official depository of plans
which is the Bureau of Lands. According to the EDPS Listings of the
Records Management Division of the Lands Management Bureau

lawyerly.ph/juris/view/ca555 8/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

(formerly the Bureau of Lands), there is no record of the alleged plan


Psd-21154. Accordingly, said EDPS listings indicate those survey
plans which were salvaged after the fire that gutted the Philippines
from the Japanese forces. It appears, however, from TCT Nos. 1368
thru 1374 that psd-21154 was done after the war on September 15, 21,
29 and October 5-6, 1946;

"t. Upon examination of the technical descriptions inscribed on TCT


Nos. 1368 thru 1374, it was noticed that the tie lines deviated from the
mother lot's tie point which is Bureau of Lands Location Monument
No. 1, Caloocan City. Instead different location monuments of
adjoining Piedad Estate were used. The tie point used in TCT No.
1368 is B.M. 10, Piedad Estate while TCT Nos. 1369 and 1370 used
B.M. No. 9, Piedad Estate; and TCT Nos. 1371, 1372, 1373 and 1374
used B.M. No. 7, Piedad Estate. The changing of the tie points
resulted in the shifting of the position of the seven (7) lots do not fall
exactly inside the boundary of the mother lot. The same is true when
the lots described on the titles of the defendants are plotted on the
basis of their technical descriptions inscribed on said titles.

"8. In the light of the foregoing facts, the undersigned Commissioners


have come to the following conclusions:

"a. There are inherent technical infirmities or defects on the face of


TCT Nos. 4211 (also on TCT No. 4210), 5261 and 35486. The fact that
the technical descriptions in TCT Nos. 4211, 5261 and 35486 are
written in Spanish while those on the alleged mother title, OCT-994,
were already in English is abnormal and contrary to the usual
practice in the issuance of titles. If OCT-994 is the mother title of
TCT Nos. 4211, 5261 and 35486, then said titles should also be written
in English because OCT-994 is already in English. It is possible that
an ascendant title be written in Spanish and the descendant title in
English, the language now officially used, but the reverse is highly
improbable and irregular.

"b. Also, the fact that the original survey dates of OCT-994 (September
8-27, October 4-21 and November 17-18, 1911) are not indicated on the

lawyerly.ph/juris/view/ca555 9/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

technical descriptions on TCT Nos. 4211, 5261 and 35486 but an


entirely different date, December 22, 1917, is instead indicated
likewise leads to the conclusion that TCT Nos. 4211, 5261 and 35486
could not have been derived from OCT-994. It is the established
procedure to always indicate in the certificate of title, whether
original or transfer certificates, the date of the original survey of the
mother title together with the succeeding date of subdivision or
consolidation. Thus, the absence of the original survey dates of OCT-
994 on TCT Nos. 4211, 5261 and 35486 is the original survey date of
the mother title, then OCT-994 is not the mother title of TCT Nos.
4211, 5261 and 35486 not only because the original survey dates are
different but because the date of original survey is always earlier than
the date of the issuance of the original title. OCT-994 was issued on
May 3, 1917 and this is much ahead of the date of survey indicated on
TCT Nos. 4210 and 4211 which is December 22, 1917;

"c. Granting that the date December 22, 1917 is the date of a
subdivision survey leading to the issuance of TCT Nos. 4210 and 4211,
there are, however, no indications on the face of the titles themselves
which show that a verified and approved subdivision of Lot 26 took
place. In subdividing a lot, the resulting parcels are always designated by the
lot number of the subdivided lot followed by letters of the alphabet starting from
the letter 'A' to designate the first resultant lot, etc., for example, if Lot 26 is
subdivided into three (3) lots, these lots will be referred to as Lot 26-A, Lot 26-N
and Lot 26-C followed by a survey number such as 'Psd-_____' or '(LRC) Psd-
_____'. However, the lots on TCT Nos. 4210 and 4211 do not contain
such descriptions. In fact, the parcels of land covered by TCT Nos.
4210 and 4211 are not even described by lot number and this is again
technically irregular and defective because the designation of lots by
Lot Number was already a practice at that time as exemplified by the
technical descriptions of some sub-lots covered by OCT-994, i.e., 23-
A, 25-A, 25-D, etc.;

"d. That TCT Nos. 4210 and 4211 which allegedly was the result of a
subdivision of Lot 26 should not have been issued without a
subdivision plan approved by the Director of Lands or the Chief of the
General Land Registration Office. Republic Act No. 496 which took

lawyerly.ph/juris/view/ca555 10/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

effect on November 6, 1902, particularly Section 58 thereof, provided


that the Registry of Deeds shall not enter the transfer certificate to
the grantee until a plan of such land showing all the portions or lots
into which it has been subdivided, and the technical description of
each portion or lot, have been verified and approved by the Director
of Lands...' and as corroborated by Section 44, Paragraph 2, and that
the plan has been approved by the Chief of the General Land
Registration Office, or by the Director of Lands as provided in Section
fifty-eight of this Act, the Registry of Deeds may issue new certificates
of title for any lot in accordance with said subdivision plan';

"e. The absence of a lot number and survey plan number in the
technical description inscribed on TCT Nos. 4210 and 4211 and the
absence of a subdivision survey plan for Lot 26 at the records of the
Bureau of Lands or the Land Registration Authority leads to the
conclusion that there was no verified and approved subdivision
survey plan of Lot 26 which is a compulsory requirement needed in
the issuance of said titles;

"f. Similarly, the absence of plan Psd-21154 from the files of the
Bureau of Lands, the official depository of survey plans, is another
indication that the titles covered by TCT Nos. 1368 thru 1374 which
were derived from TCT No. 4211 are again doubtful and questionable;

"g. Moreover, the changing of the tie points in the technical descriptions on TCT
Nos. 1368 thru 1374 from that of the mother lot's tie point which is BLLM No. 1,
Caloocan City to different location monuments of adjoining Piedad Estate which
resulted in the shifting of the position of the seven (7) lots in relation to the
mother lot defeats the very purpose of tie points and tie lines since the accepted
practice is to adopt the mother lot's tie point in order to fix the location of the
parcels of land being surveyed on the earth's surface."[14]

Manotok Corporations then interposed an appeal to the Court of Appeals. For its
part, CLT Realty filed a motion to amend/correct the dispositive portion of the above
Decision alleging that "TCT Nos. 4210 and 4211" mentioned therein are mistakenly
referred to as the titles of Manotok Corporations; and that to conform to the body of

lawyerly.ph/juris/view/ca555 11/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

the Decision, the correct numbers of the titles ordered to be cancelled should be
indicated. In its Order dated May 30, 1994, the trial court granted the motion, thus:
"WHEREFORE, premises considered, the Motion to Amend/Correct Judgment
dated May 23, 1994 filed by counsel for plaintiff is granted. Accordingly, the first
paragraph of the dispositive portion of the Decision of this Court dated May 10,
1994 is amended as follows:

xxx

"1. Ordering the annulment and cancellation of Transfer Certificates of Title Nos.
7528, 7762, 8012, 9866, C-17272, 21107, 21485, 26405, 26406, 26407, 33904,
34255, C-35267, 41956, 53268, 55897, T-121428, 163902 and 165119 in the name
of defendant Manotok Realty, Inc. and Transfer Certificate of Title No. T-232568
in the name of defendant Manotok Estate Corporation of the Registry of Deeds of
Caloocan City which encroach on plaintiff's 201,288 square meters of Lot No. 26
of the Maysilo Estate, Caloocan City.

x x x.

"SO ORDERED."

The Court of Appeals, in its Decision dated September 28, 1995 in CA-G.R. CV No.
45255, affirmed the Decision of the trial court, except as to the award of damages
which was ordered deleted, thus:
"WHEREFORE, in view of the foregoing, judgment is hereby rendered
AFFIRMING the Decision dated May 10, 1994, as corrected by the Order dated
May 30, 1994, rendered by the trial court, with the modification that the award
of damages in favor of plaintiff-appellee is hereby DELETED.

"No costs.

"SO ORDERED."

Manotok Corporations' motion for reconsideration was denied by the Appellate Court
in its Resolution dated January 8, 1996.

lawyerly.ph/juris/view/ca555 12/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

Hence, the present petition of Manotok Corporations. They allege in essence that the
Court of Appeals erred:
"1. In upholding the trial court's Decision which decided the case on the basis of
the Commissioners' Report; and

"2. In giving imprimatur to the trial court's Decision even though the latter
overlooked relevant facts recited in the Minority Report of Commissioner
Victorino and in the comment of petitioners on the Majority Report of
Commissioners San Buenaventura and Erive, detailing the legal and factual basis
which positively support the validity of petitioners' title and ownership of the
disputed parcels of land."

2. G.R. No. 134385

(Araneta Institute of Agriculture, Inc., petitioner, vs. Heirs of Jose B.


Dimson, represented by his compulsory heirs: his surviving spouse,
Roqueta R. Dimson and their children, Norma and Celso Tirado,
Alson and Virginia Dimson, Linda and Carlos Lagman, Lerma and
Rene Policar, and Esperanza R. Dimson; and Registry of Deeds of
Malabon, respondents)

Records show that on December 18, 1979, Jose B. Dimson filed with the then Court
of First Instance of Rizal, Branch 33, Caloocan City a complaint for recovery of
possession and damages against Araneta Institute of Agriculture, Inc.
(Araneta Institute), docketed as Civil Case No. C-8050. Dimson alleged in his
amended complaint that he is the absolute owner of a parcel of land located at Barrio
Potrero, Malabon, Metro Manila with an area of 50 hectares of the Maysilo Estate,
covered by TCT No. R-15169 of the Registry of Deeds of Caloocan City; that he
discovered that his land has been illegally occupied by Araneta Institute; that the
latter has no legal and valid title to the land; and that Araneta Institute refused to
vacate the land and remove its improvements thereon despite his repeated demands.

In its answer, Araneta Institute admitted occupying the disputed land by constructing
some buildings thereon and subdividing portions thereof, claiming that it is the
absolute owner

of the land by virtue of TCT No. 737[15] and TCT No. 13574.[16] It further alleged
lawyerly.ph/juris/view/ca555 13/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

that Dimson's title of the subject land is void, hence, his complaint has no cause of
action.

On May 28, 1993, the trial court rendered a Decision[17] in favor of Dimson, thus:
"WHEREFORE, PREMISES CONSIDERED, judgment is hereby rendered in
favor of the plaintiff Jose B. Dimson and against defendant Araneta Institute of
Agriculture, ordering

"1) defendant Araneta Institute of Agriculture and all those claiming rights and
authority under the said defendant Araneta, to vacate the parcel of land covered
by plaintiff Dimson's title TCT No. R-15169 of the Registry of Deeds of Metro
Manila, District III, Caloocan City, with a land area of 500,000 square meters,
more or less; to remove all the improvements thereon; and to return full
possession thereof to the said plaintiff Dimson.

"2) defendant Araneta Institute of Agriculture to pay plaintiff Dimson the


amount of P20,000.00 as and for attorney's fees; and

"3) defendant Araneta Institute of Agriculture to pay costs.

"Defendant Araneta's counterclaim is hereby dismissed for lack of merit.

"All other counterclaim against plaintiff Dimson are, likewise, hereby dismissed
for lack of merit.

"All claims of all the intervenors claiming rights against the title of plaintiff
Dimson TCT R-15169 are hereby dismissed for lack of merit.

"This is without prejudice on the part of the intervenors Heirs of Pascual David,
Florentina David and Crisanta Santos to file the proper case against the proper
party/parties in the proper forum, if they so desire.

"The claim of Virgilio L. Enriquez as co-plaintiff in the instant case is dismissed


for lack of merit.

[18]
"SO ORDERED."

lawyerly.ph/juris/view/ca555 14/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

Araneta Institute interposed an appeal to the Court of Appeals, docketed as CA-G.R.


CV No. 41883.

On May 30, 1997, the Court of Appeals rendered the assailed Decision affirming the
Decision of the trial court in favor of Dimson.
"WHEREFORE, premises considered, in CA-G.R. CV No. 41883 (Civil Case No.
C-8050 of the Regional Trial Court, Branch 122, Caloocan City), with
MODIFICATION deleting the award for attorney's fees, the decision appealed
from is AFFIRMED, with costs against defendant-appellant. CA-G.R. SP No.
34819 is DENIED DUE COURSE and DISMISSED for lack of merit.

"SO ORDERED."

In its Decision, the Appellate Court ruled that the title of Araneta Institute to the
disputed land is a nullity, holding that:

lawyerly.ph/juris/view/ca555 15/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

"We now proceed to CA-G.R. CV No. 41883.

"In its first assignment of error, defendant-appellant (Araneta Institute of


Agriculture, Inc.) contends that the trial court erred in giving more weight to
plaintiff's transfer certificate of title over the land in question notwithstanding
the highly dubious circumstances in which it was procured.

"This validity of plaintiff-appellee's (Jose B. Dimson) title is actually the meat of


the controversy.

"It was in the pursuit of this objective to nullify plaintiff-appellee's title that CA-
G.R. SP No. 34819 was belatedly filed on August 10, 1994, long after plaintiff-
appellee's TCT No. R-15169 was issued on June 8, 1978.

"Unfortunately for defendant-appellant, in the light of applicable law and


jurisprudence, plaintiff-appellee's title must be sustained.

"Plaintiff-appellee's TCT No. R-15169 covers Lot 25- A-2 with an area of 500,000
square meters. This was derived from OCT No. 994 registered on April 19, 1917.
TCT No. R-15169 was obtained by plaintiff-appellee Jose B. Dimson
simultaneously with other titles, viz: TCT Nos. 15166, 15167, and 15168 by virtue
of the Decision dated October 13, 1977 and Order dated October 18, 1977, in
Special Proceedings No. C-732. The Order dated October 18, 1977 directed the
Registry of Deeds of Caloocan City to issue in the name of Jose B. Dimson
separate transfer certificate of titles for the lot covered by plan (LRC) SWO-5268
and for the lots covered by the plans, Exhibits H, I and J.

"Upon the other hand, defendant-appellant Araneta Institute of Agriculture's


TCT No. 13574 was derived from TCT No. 26539, while TCT No. 7784 (now TCT
No. 21343) was derived from TCT No. 26538. TCT No. 26538 and TCT No.
26539 were both issued in the name of Jose Rato. TCT No. 26538 and TCT No.
26539 both show Decree No. 4429 and Record No. 4429.

"Decree No. 4429 was issued by the Court of First Instance of Isabela. On the
other hand, Record No. 4429 was issued for ordinary Land Registration Case on
March 31, 1911 in CLR No. 5898, Laguna (Exhs. 8, 8-A Rivera). The trial court
ruled defendant-appellant Araneta Institute of Agriculture's TCT No. 13574
lawyerly.ph/juris/view/ca555 16/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

spurious because this title refers to a property in the Province of Isabela (RTC
Decision, p. 19).

"Another point, Araneta's TCT No. 13574 (Exh. 6) and 21343 are both derived
from OCT No. 994 registered on May 3, 1917, which was declared null and void
by the Supreme Court in Metropolitan Waterworks and Sewerage System vs.
Court of Appeals, 215 SCRA 783 (1992). The Supreme Court ruled: 'Where two
certificates of title purport to include the same land, the earlier in date prevails x
x x. Since the land in question has already been registered under OCT No. 994
dated April 19, 1917, the subsequent registration of the same land on May 3, 1919
is null and void.'

"In sum, the foregoing discussions unmistakably show two independent reasons
why the title of defendant-appellant Araneta Institute of Agriculture is a nullity,
to wit: the factual finding that the property in Isabela, and the decision of the
Supreme Court in the MWSS case."[19]

Araneta Institute then filed the present petition, ascribing to the Court of Appeals a
long list of factual errors which may be stated substantially as follows:

lawyerly.ph/juris/view/ca555 17/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

In CA-G.R. CV No. 41883

The Honorable Court of Appeals erred in not holding that the evidence presented
by petitioner Araneta Institute clearly establish the fact that it has the better
right of possession over the subject property than respondent Jose B. Dimson.

There is only one Original Certificate of Title No. 994 covering the
A.) Maysilo Estate issued on May 3, 1917 pursuant to the Decree No. 36455
issued by the Court of Land Registration on April 17, 1917.

Certifications of responsible government officials tasked to preserve the


B.) integrity of the Torrens System categorically confirm and certify that
there is only one OCT 994 issued on May 3, 1917.

The Government in the exercise of its governmental function of


preserving the integrity of the torrens system initiated a fact-finding
C.)
inquiry to determine the circumstances surrounding the issuance of OCT
No. 994 and its derivative titles.

The Government fact-finding committee correctly found and concluded


D.)
that there is only one OCT No. 994 issued on May 3, 1917.

The Senate Committee on Justice and Human Rights and the Senate
Committee on Urban Planning, Housing and Resettlement conducted an
E.)
Investigation and concluded that there is only one OCT 994 that was
issued on May 3, 1917.

The certifications issued by the government officials, notably from the


Land Registration Authority, the Department of Justice Committee
F.)
Report and the Senate Committees' Joint Report are all newly-
[20]
discovered evidence that would warrant the holding of a new trial."

3. G.R. No. 148767

(Sto. Nino Kapitbahayan Association, Inc.,


petitioner, vs. CLT Realty Development
Corporation, respondent)
lawyerly.ph/juris/view/ca555 18/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

CLT Realty is the registered owner of a parcel of land known as Lot 26 of the Maysilo
Estate in Caloocan City, covered by TCT No. T-177013.[21] It acquired the property
on December 10, 1998 from the former registered owner Estelita I. Hipolito under
TCT No. R-17994, who in turn, acquired it from Jose B. Dimson.

On the other hand, Sto. Niño Kapitbahayan Association, Inc. (Sto. Niño Association),
petitioner, is the registered owner of two parcels of land likewise located in Caloocan
City, covered by TCT Nos. T-158373 and T-158374. By virtue of these titles, Sto.
Niño Association occupied and claimed ownership over a portion of Lot 26.

Thus, on July 9, 1992, CLT Realty filed with the Regional Trial Court, Branch 121,
Caloocan City a complaint for annulment of titles[22] and recovery of possession with
damages against Sto. Niño Association, docketed as Civil Case No. C-15491. In its
complaint, CLT Realty alleged that based on the technical descriptions on the titles of
Sto. Niño Association, an overlapping exists between their respective titles; and that
the titles of Sto. Niño Association are void as they are derived from TCT No. 4211,[23]
a forged and fictitious title.

In its answer, Sto. Niño Association denied the material allegations of the complaint
and asserted that its members have been in possession of the disputed lots prior to
1987. The area had been identified by the government as slum and blighted.

At the pre-trial conference, the parties entered into a stipulation of facts, thus:
Both parties admit that the defendant (Sto. Niño Association) is
"(1) presently occupying the property covered by TCT Nos. 158373 and
158374 located at Barrio Baesa, Caloocan City; and

Both parties admit that the plaintiff (CLT) is also the registered owner of
(2) the same properties being occupied by the defendant and covered by
TCT No. 177013 of the Registry of Deeds of Caloocan City."

Resolving the issue of whose title to the disputed land is valid, the trial court, on
September 28, 1995, rendered a Decision in favor of Sto. Niño Association and
ordered the cancellation of TCT No. T-177013 in the name of CLT Realty.

However, upon motion for reconsideration by CLT Realty, the trial court, in its
lawyerly.ph/juris/view/ca555 19/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

Amended Decision dated February 12, 1996, granted the motion, rendered
judgment in favor of CLT Realty, and ordered the cancellation of TCT Nos. T-158373
and T-158374, both in the name of Sto. Niño Association, thus:
"WHEREFORE, premises considered, the Motion for Reconsideration is hereby
GRANTED and judgment is accordingly rendered in favor of the plaintiff CLT
REALTY DEVELOPMENT CORPORATION and against the defendant STO.
NIÑO KAPITBAHAYAN ASSOCIATION, INC., ordering the cancellation of TCT
Nos. T-158373 and T-158374, both in the name of the defendant. The
defendants' counterclaim is hereby dismissed for utter lack of merit.

[24]
"SO ORDERED."

The Amended Decision is anchored on the trial court's finding that, based on the
evidence, there was fraud in the issuance of TCT No. 4211 from which Sto. Niño
Association's titles were derived. The irregularities which attended such issuance
were discussed lengthily by the court a quo as follows:

lawyerly.ph/juris/view/ca555 20/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

"The court finds the motion meritorious.

"The conflict stems from the fact that the plaintiff's and defendants' titles overlap
each other, hence, a determination of the respective origins of such titles is of
utmost importance.

"TCT No. T-177013 in the name of the plaintiff was derived from R-17994 T-89 in
the name of Estelita Hipolito which title can trace its origin from OCT 994. The
boundaries of OCT 994 known as Lot No. 26 of the Maysilo Estate are the same
as that of the plaintiff's titles.

"On the other hand, TCT Nos. T-158373 and T-158374, both in the name of the
defendants, are the latest in a series of titles which descend from TCT No. 4211.
A trace of the history of TCT No. 4211 reveals that it was succeeded by TCT No.
5261 which was in turn succeeded by TCT No. 35486. TCT No. 35486 was
allegedly subdivided into seven lots covered by TCT Nos. 1368 to 1374. One or
two of these subdivided lots were the predecessors of the defendants' titles.

"It behooves this court to address the issue of whether or not TCT No.
4211 from which the defendants' titles were originally derived can
validly trace its origin from OCT 994.

"There is pervasive evidence that TCT No. 4211 could not have been a
true derivative of OCT No. 994.

"Firstly, the survey dates indicated in OCT No. 994 are September 8-
27, October 8-21 and November 17-18, all in the year 1911. On the
other hand, these dates of original survey are conspicuously missing
in TCT No. 4211 contrary to established procedure that the original
survey dates of the mother title should be indicated in succeeding
titles. Instead, an examination of TCT No. 4211 reveals a different
date on its face. This date, December 22, 1971, could not be an
original survey date because it differs from those indicated in the
mother title. Of equal importance is the fact that the date of original
survey always comes earlier than the date of the issuance of the
mother title. Since OCT No. 994 was issued on April 19, 1917, it is
highly irregular that the original survey was made only several
lawyerly.ph/juris/view/ca555 21/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

months later or only on December 22, 1917.

"Neither is the Court inclined to consider this date as the date a subdivision
survey was made. The regular procedure is to identify the subdivided lots by
their respective survey or lot numbers, on the contrary, no such lot number is
found in TCT No. 4211, pointing to the inevitable conclusion that OCT No. 994
was never validly subdivided into smaller lots, of which one of them is covered by
TCT No. 4211.

"Secondly, the assertion that TCT Nos. 1368 to 1374 which preceded
the defendants' titles were issued pursuant to subdivision plan PSD
21154 is not supported by the evidence. The Land Management
Bureau which handles survey plans has no records of the said PSD
21154. The Registry of Deeds of Rizal has a copy of the plan but the
court finds such possession questionable since the Land Registration
Authority which supervises the Registry of Deeds does not have a
copy of the same. The court therefore believes that the issuance of
TCT Nos. 1368 to 1374 is attended by a serious irregularity which
cannot be ignored as it affects the very validity of the alleged
subdivisions of the land covered by TCT No. 35486.

"Thirdly, the language of the technical descriptions of the land


covered by OCT No. 994 is already in English, while its alleged
derivative titles TCT Nos. 4211, 5261 and 35486 are still in Spanish.
This is in direct violation of the practice that the language used in the
mother title is adopted by all its derivative titles. The reversion to
Spanish in the derivative titles is highly intriguing and casts a cloud
of doubt to the genuineness of such titles.

"Fourthly, the tie points used in the mother lot were not adopted by
the alleged derivative titles particularly TCT Nos. 1368 to 1374, the
immediate predecessors of the defendants' titles. The pivotal role of tie
points cannot be brushed aside as a change thereof could result to the shifting of
positions of the derivative lots in relation to the mother lot. Consequently,
overlapping could take place as in fact it did when the defendants' titles
overlapped that of CLT at the northwestern portion of the latter's property.

lawyerly.ph/juris/view/ca555 22/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

"Fifthly, the results of laboratory analysis conducted by a Forensic


Chemist of the NBI revealed that TCT Nos. 4210 and 4211 were
estimated to be fifty (50) years old as of March 1993 when the
examination was conducted. Hence, the documents could have been
prepared only in 1940 and not in 1918 as appearing on the face of TCT
No. 4211.

"Based on the foregoing patent irregularities, the court finds the


attendance of fraud in the issuance of TCT No. 4211 and all its
derivative titles which preceded the defendants' titles. Evidently,
TCT No. 4211 cannot be validly traced from OCT No. 994. Being void
ab initio, it did not give rise to any transmissible rights with respect
to the land purportedly invalid, and resultantly, the defendants,
being the holders of the latest derivatives, cannot assert any right of
ownership over the lands in question. 'The void ab initio land titles
issued cannot ripen into private ownership.' (Republic vs.
Intermediate Appellate Court, 209 SCRA 90)

xxx

"The court's findings are consistent with a ruling of the Court of Appeals in CA-
GR No. 45255 entitled 'CLT Realty Development Corp. vs. Manotok Realty, Inc.,
et al.' promulgated on September 28, 1995, affirming the decision of the mother
branch of this court ordering the cancellation of TCT Nos. 4210 and 4211 which
encroached on a specific area of Lot No. 26 of the Maysilo Estate, Caloocan City.
This court is also aware that on January 8, 1996, the Court of Appeals denied the
Motion for Reconsideration of the defendants in the aforementioned case for
lack of merit."[25] (underscoring supplied)

The above Amended Decision was affirmed by the Court of Appeals in its Decision
dated May 23, 2001 in CA-G.R. CV No. 52549, thus:
"WHEREFORE, finding no reversible error in the appealed Decision, We
AFFIRM the same. Without pronouncement as to costs.

"SO ORDERED."[26]

lawyerly.ph/juris/view/ca555 23/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

Hence, the present petition based on the following assigned errors:


"1. THE HONORABLE COURT OF APPEALS ERRED IN AFFIRMING IN TOTO
THE AMENDED DECISION OF THE COURT A QUO.

"2. THE JUDGMENT OF THE HONORABLE COURT OF APPEALS IS


PREMISED ON THE MISAPPREHENSION OF FACTS OF THE COURT A QUO.

"3. ASSUMING ARGUENDO, WITHOUT NECESSARILY ADMITTING THAT


THE ARGUMENTS OF APPELLANT ARE UNAVAILING, THERE ARE
SUPERVENING FACTS AND EVENTS, SHOULD THIS HONORABLE COURT
CONSIDER THE SAME, THAT WOULD WARRANT THE REVERSAL OF THE
CHALLENGED DECISION AND WILL IMPEL A DIFFERENT CONCLUSION."
[27]

In sum, the three instant petitions assail the validity of: (1) TCT No. R-15169 of the
Registry of Deeds of Caloocan City in the name of Jose B. Dimson, covering Lot 25-
A-2 of the Maysilo Estate;[28] and (2) TCT No. T-177013 of the same Registry of
Deeds in the name of CLT Development Corporation, covering Lot 26, also of
the Maysilo Estate.[29]

In the meantime, petitioners Manotok filed with this Court two separate
Manifestations stating that a (1) Report of the Fact-Finding Committee dated August
28, 1997 composed of the Department of Justice (DOJ), Land Registration Authority
and the Office of the Solicitor General, and (2) Senate Committee Report No. 1031
dated May 25, 1998 were issued by the DOJ and the Senate. Both reports conclude
that there is only one OCT No. 994 issued, transcribed and registered on May 3,
1917.

The respondents in these cases vehemently opposed the said Manifestations alleging,
among others, that the same are "nothing but a crude attempt to circumvent and
ignore time-honored judicial procedures and sabotage the orderly administration of
justice by using alleged findings in the alleged reports prepared by the DOJ and the
Senate Committee that were never presented before the trial courts to obtain a
reversal of the questioned Decisions. At the very least, said procedure is highly
irregular, improper and contrary to the dictates of due process."[30]

lawyerly.ph/juris/view/ca555 24/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

Summary of the Contentions of the Parties

I. G.R. No. 123346

Petitioners Manotok Corporations mainly contend that the Court of Appeals erred in
affirming the lower court's Decision which was rendered without conducting trial for
the reception of evidence. It merely relied on the technical report of the
commissioners appointed by the court based on the parties' nomination. They
(petitioners) were thus denied due process as they were not able to present evidence
in a full-blown trial.

Respondent CLT Realty, on the other hand, maintains that the factual findings of the
commissioners are supported by evidence. The contending parties were accorded
due process because they submitted their respective evidence to the commissioners in
the course of the proceedings. The same evidence became the basis of their Majority
and Minority Reports. The two Reports were later heard and passed upon by the trial
court.

Respondent CLT Realty adds that the Decision of the trial court, upheld by the Court
of Appeals, complies with the requirement of Section 14, Article VIII of the
Constitution since it clearly and distinctly expresses the facts and the law upon which
it is based.

II. G.R. 134385

Petitioner Araneta Institute basically submits that the case of MWSS vs. CA[31] cited
in the Decision dated May 30, 1997 of the Court of Appeals is inapplicable to the
present case. In that case, it upheld TCT No. 15167 of Dimson derived from OCT 994
issued and registered earlier, or on April 19, 1917. Whereas, the MWSS' title was
derived from OCT 994 issued and registered later, or on May 3, 1917. The Appellate
Court erred when it relied on MWSS vs. CA.[32]

On the other hand, respondents heirs of Dimson counter that the validity of Dimson's
title, TCT No. 15167, has been upheld by this Court in MWSS case.

III. G.R. No. 148767

lawyerly.ph/juris/view/ca555 25/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

Like petitioner Araneta Institute in G.R. No. 134385 and petitioners Manotok
Corporations in G.R. No. 123346, petitioner Sto. Niño Association contends that there
are supervening facts and events that transpired after the trial court rendered its
Amended Decision that if considered will result in a different conclusion. These are
the two Reports of the DOJ and Senate Fact-Finding Committees that there is only
one OCT No. 994 issued on May 3, 1917. Thus, with a new trial, and with the
presentation of these Reports as evidence, it could be shown that the titles of Jose
Dimson and CLT Realty are void.

Ruling of the Court

The present petitions must fail.

At the outset, it bears stressing that under Rule 45 of the 1997 Rules of Civil
Procedure, as amended, our jurisdiction over cases brought to us from the Court of
Appeals is limited to reviewing and correcting errors of law committed by said
court. The Supreme Court is not a trier of facts. Thus, it is not our function to review
factual issues and examine, evaluate or weigh the probative value of the evidence
presented by the parties.[33] We are not bound to analyze and weigh all over again
the evidence already considered in the proceedings below.[34]

Here, the paramount question being raised in the three petitions is whether TCT No.
15169 issued in the name of Jose B. Dimson and TCT No. 177013 issued in the
name of CLT are valid. Undoubtedly, such issue is a pure question of fact a matter
beyond our power to determine. Where, as here, the findings of fact of the
trial courts are affirmed by the Court of Appeals, the same are accorded
the highest degree of respect and, generally, will not be disturbed on
appeal. Such findings are binding and conclusive on this Court.[35]

Be that as it may, to reinforce our conclusion, we shall still proceed to discuss why the
present petitions have no merit.

As regards G.R. No. 123346 (Manotok Corporations vs. CLT Realty,


involving Lot 26), the trial court acted properly when it adopted the Majority
Report of the commissioners as part and parcel of its Decision. That is allowed in

lawyerly.ph/juris/view/ca555 26/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

Section 11, Rule 32 of the Revised Rules of Court (now the 1997 Rules of Civil
Procedure, as amended), quoted below:
"SEC. 11. Hearing upon report. Upon the expiration of the period of ten (10)
days referred to in the preceding section, the report shall be set for hearing, after
which the court shall render judgment by adopting, modifying, or rejecting the
report in whole or in part or it may receive further evidence or may
recommit it with instructions." (underscoring supplied)

The case of overlapping of titles necessitates the assistance of experts in the field of
geodetic engineering. The very reason why commissioners were appointed by the
trial court, upon agreement of the parties, was precisely to make an evaluation and
analysis of the titles in conflict with each other. Given their background, expertise
and experience, these commissioners are in a better position to determine which of
the titles is valid. Thus, the trial court may rely on their findings and conclusions.

It bears stressing that the parties opted to submit the case for decision on the bases,
among others, of their respective objections/comments on the commissioners'
reports.

Thus, petitioners Manotok Corporations, under the doctrine of estoppel, cannot now
be permitted to assail the Decision of the trial court which turned out to be adverse to
them and insist that it should have conducted further reception of evidence before
rendering its judgment on the case.

We note further that while petitioners assail the trial court's Decision as being
premature, however, they also assert that the said court should have adopted the
Minority Report which is favorable to them. Certainly, we cannot countenance their
act of adopting inconsistent postures as this is a mockery of justice.

We noted in the beginning of this Decision that the issue in all these three (3) cases
involves the validity of the parties' overlapping titles. The titles of the respondents in
these cases were derived from OCT No. 994 of the Registry of Deeds of Caloocan City
registered on April 19, 1917. The validity of such mother title has already been
upheld by this Court in G.R. No. 103558, MWSS vs. Court of Appeals, et al. dated
November 17, 1992[36] earlier cited in the assailed Decisions. Significantly, the
ruling in MWSS was reiterated in G.R. No. 96259, Heirs of Luis J. Gonzaga vs. Court
of Appeals dated September 3, 1996.[37]
lawyerly.ph/juris/view/ca555 27/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

We cannot delve anymore into the correctness of the Decision of this Court in
MWSS. The said Decision, confirming the validity of OCT No. 994 issued on April 19,
1917 from which the titles of the respondents in the cases at bar were derived, has long
become final and executory. Nothing is more settled in law than that once a
judgment attains finality it becomes immutable and unalterable. It may no longer be
modified in any respect, even if the modification is meant to correct what is perceived
to be an erroneous conclusion of fact or law, and regardless of whether the
modification is attempted to be made by the court rendering it or by the highest court
of the land.[38]

The doctrine of finality of judgment is grounded on fundamental considerations of


public policy and sound practice, and that, at the risk of occasional errors, the
judgments or orders of courts must become final at some definite time fixed by law;
otherwise, there would be no end to litigations, thus setting to naught the main role of
courts of justice which is to assist in the enforcement of the rule of law and the
maintenance of peace and order by settling justiciable controversies with finality.[39]

Just as the losing party has the right to file an appeal within the prescribed period, the
winning party likewise has the correlative right to enjoy the finality of the resolution
of his case. We held that "a final judgment vests in the prevailing party a
right recognized and protected by law under the due process clause of the
Constitution. . . . A final judgment is 'a vested interest which it is right
and equitable that the government should recognize and protect, and of
which the individual could not be deprived arbitrarily without injustice.'"
[40] In the present cases, the winning parties, respondents herein, must not be
deprived of the fruits of a final verdict.

Finally, we cannot consider the alleged newly-discovered evidence consisting of the


DOJ and Senate Fact-Finding Committee Reports invoked by petitioners herein.
Certainly, such committee reports cannot override the Decisions of the trial courts
and the Court of Appeals upholding the validity of respondents' titles in these cases.
The said Decisions were rendered after the opposing parties have been accorded due
process. It bears stressing that the courts have the constitutional duty to adjudicate
legal disputes properly brought before them. The DOJ and Senate, or any other
agencies of the Government for that matter, have clearly distinguishable roles from
that of the Judiciary. Just as overlapping of titles of lands is abhorred, so is the

lawyerly.ph/juris/view/ca555 28/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

overlapping of findings of facts among the different branches and agencies of the
Government. This we unmistakably stressed in Agan, Jr., et al. vs. Philippine
International Air Terminals Co., Inc., et al,[41] thus:
"Finally, the respondent Congressmen assert that at least two (2) committee
reports by the House of Representatives found the PIATCO contracts valid and
contend that this Court, by taking cognizance of the cases at bar, reviewed an
action of a co-equal body. They insist that the Court must respect the findings of
the said committees of the House of Representatives. With due respect, we
cannot subscribe to their submission. There is a fundamental
difference between a case in court and an investigation of a
congressional committee. The purpose of a judicial proceeding is to
settle the dispute in controversy by adjudicating the legal rights and
obligations of the parties to the case. On the other hand, a
congressional investigation is conducted in aid of legislation (Arnault
vs. Nazareno, G.R. No. L-3820, July 18, 1950). Its aim is to assist and
recommend to the legislature a possible action that the body may take with
regard to a particular issue, specifically as to whether or not to enact a new law or
amend an existing one. Consequently, this Court cannot treat the
findings in a congressional committee report as binding because the
facts elicited in congressional hearings are not subject to the rigors of
the Rules of Court on admissibility of evidence. The Court in assuming
jurisdiction over the petitions at bar simply performed its constitutional duty as
the arbiter of legal disputes properly brought before it, especially in this instance
when public interest requires nothing less." (Underscoring supplied)

WHEREFORE, the instant petitions are DENIED and the assailed Decisions and
Resolutions of the Court of Appeals are hereby AFFIRMED in toto. Costs against
petitioners.

SO ORDERED.

Panganiban, (Chairman), Corona, and Carpio Morales, JJ., concur.


Garcia, J., no part.

[1]
lawyerly.ph/juris/view/ca555 29/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION
[1] These petitions were filed under Rule 45 of the 1997 Rules of Civil Procedure, as
amended.

[2] Penned by Justice Eugenio S. Labitoria and concurred in by Presiding Justice


Nathanael P. de Pano, Jr. (retired) and Justice Cancio C. Garcia (now a member of
this Court).

[3] Penned by Justice Eduardo G. Montenegro and concurred in by Justice Pedro A.


Ramirez (both retired) and Justice Maximiano C. Asuncion (deceased).

[4] Penned by Justice Portia Aliño-Hormachuelos and concurred in by Justice Fermin


A. Martin, Jr. (retired) and Justice Mercedes Gozo-Dadole.

[5] Pursuant to Resolutions of this Court dated April 21, 1999 and March 6, 2002.

[6] TCT Nos. 7528, 7762, 8012, 9866, C-17272, 21107, 21485, 26405, 26406, 26407,
33904, 34255, C-33267, 41956, 53268, 55897, T-121428, 163902 and 165119 in the
name of Manotok Realty, Inc., and TCT No. T-23568 in the name of Manotok
Estate Corporation of the Registry of Deeds of Caloocan City (Annexes "D," "D-1"
through "D-19" of the complaint.

[7] Rollo of G.R. No. 123346, Vol. I at 245-246.

[8] Id. at 138.

[9] Id. at 137-138.

[10] Id. at 265-275.

[11] Id. at 254-265.

[12] Decision dated September 28, 1995 of the Court of Appeals (Annex "A" of Petition
in the Manotok Case) at 10; Decision dated 10 May 1994 of the Regional Trial Court
(Annex "C" of Petition in the Manotok Case) at 5.

[13] Annex "H" of Petition in the Manotok Case; Decision dated May 10, 1994 of the
Regional Trial Court (Annex "C"of Petition in the Manotok Case), at 5.

lawyerly.ph/juris/view/ca555 30/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

[14] Records of G.R. No. 123346 at 268-275.

[15] Issued on March 4, 1948, Pasig, Rizal and derived from TCT No. 26538 in the
name of Jose Ma. Rato with an area of 592,606.90 sq.m; Annex 10, Records at 515.

[16] Issued on May 20, 1949 and derived from TCT No. 26539 in the name of Jose
Ma. Rato with an area of 581,872.00 sq.m Annex 10, Records at 515.

[17] Penned by B.A. Adefuin-De La Cruz (retired).

[18] Rollo, G.R. No. 134385, RTC Decision, Civil Case No. C-8050 at 140.

[19] Rollo, G.R. No. 134385, CA Decision, CV No. 41883 at 122-124.

[20] Rollo, G.R. No. 134385, Petition at 25-28.

[21] Record I, G.R. No. 123346 at 14.

[22] TCT Nos. T-158373 and T-158374, both registered in the name of SNKAI.

[23] Annex "A", Record, G.R. No. 123346 at 74-75.

[24] Id. at 34-46.

[25] Amended Decision dated February 12, 1996, Rollo of G.R. No. 148767 at 11-13.

[26] Rollo, G.R. No. 148767 at 33-45.

[27] Rollo, G.R. No. 148767, Petition at 17.

[28] In G.R. No. 134385 filed by Araneta Institute of Agriculture, Inc.

[29] In G.R. Nos. 123346 and 148767 filed by Manotok Realty, Inc. and Manotok
Estate Corporation and Sto. Niño Kapitbahayan Association, Inc., respectively.

[30] Rollo of G.R. No. 123346 at 1578.

lawyerly.ph/juris/view/ca555 31/32
4/27/2019 MANOTOK REALTY v. CLT REALTY DEVELOPMENT CORPORATION

[31] Supra.

[32] Supra.

[33] Asia Trust Development Bank vs. Concepts Trading Corporation, G.R. No.
130759, June 20, 2003, 404 SCRA 449.

[34] Omandam vs. Court of Appeals, G.R. No. 128750, January 18, 2001, 349 SCRA
483.

[35] Duremdes vs. Duremdes, G.R. No. 138256, November 12, 2003, 415 SCRA 684.

[36] 215 SCRA783 (1992).

[37] 261 SCRA 327 (1996).

[38] Johnson & Johnson (Phils.), Inc. vs. Court of Appeals, G.R. No. 102692,
September 23, 1996, 262 SCRA 298.

[39] Garbo vs. Court of Appeals, G.R. No. 100474, September 10, 1993, 226 SCRA
250.

[40] Insular Bank of Asia and America Employees' Union (IBAAEU) vs. Inciong, No.
L-52415, October 23, 1984, 132 SCRA 663.

[41] G.R. Nos. 155001, 155547 and 155661, January 21, 2004, 420 SCRA 575.

lawyerly.ph/juris/view/ca555 32/32

Das könnte Ihnen auch gefallen