49. Autocorp Group vs CA (2004) G.R. No.

157553

Facts:

Respondent bank extended a loan of eighty-five million pesos (P85,000,000.00) in favor of petitioner
Autocorp Group (Autocorp). The loan was secured by pledge and real estate mortgage on several lots.
The agreement provided that in any case of default, creditor shall treat the whole obligation as due and
demandable. Petitioner Autocorp failed to pay the loan. Despite its failure, petitioner asked for an
additional loan, to which he defaulted again. Hence, respondent bank requested for the sale of the six
(6) mortgaged lots.

Before the deputy sheriff could prepare the requisite publication and notice, the petitioners filed a
complaint for "Annulment of Loan Agreement and Real Estate Mortgage/ against respondent bank. RTC
granted the petition but CA reversed the trial court’s order.

The six (6) properties were awarded to respondent bank as the lone bidder. the certificate was
entered in the primary entry book of the Register of Deeds of Cebu. However, the entry fee and the
registration fee were paid only the following day as the cashier in charge of receiving payment had
already left.

Petitioner once again filed a motion, contending that payment of the entry fee is a condition  sine
qua non before any valid entry can be made in the primary entry book. RTC ordered a preliminary
injunction on the basis of the evidence adduced by petitioners while CA reversed the said order. The
latter held that the entry of the certificate of sale in the primary entry book was equivalent to
registration.

ISSUE: IS CA’S Contention correct?

HELD: YES, CA’s contention is correct.

Sec. 27, Rule 39 of the Rules of Court provides that:

Section 27. Who may redeem real property so sold. — Real property sold as provided in the last
preceding section, or any part thereof sold separately, may be redeemed in the manner hereinafter
provided, by the following persons:

(a) The judgment obligor; or his successor in interest in the whole or any part of the property;

(b) A creditor having a lien by virtue of an attachment, judgment or mortgage on the property
sold, or on some part thereof, subsequent to the lien under which the property was sold. Such
redeeming creditor is termed a redemptioner. (29a)

In this case, the objection as to the payment of the requisite fees is unavailing. There is no
question that the fees were paid, albeit belatedly. Respondent bank presented the certificate of sale to
the Office of the Register of Deeds of Cebu City for registration on January 21, 1999 at 4:30 p.m. As the
cashier had already left, the Office could not receive the payment for entry and registration fees, but
still, the certificate of sale was entered in the primary entry book.