COMPAA GENERAL DE TABACOS VS. MIGUEL TOPIO, ET. AL G.R. No. 1244. April 22, 19 4 Ar!

i"l#$ 144%, 14&2'14&( FACTS: Doroteo Faustino and fifty-nine others denounced sixty separate parcels of land in the Province of Isabela and each were ranted a ri ht to the several pieces of land! A title deed to a piece of public land situated at "abantad# within the town of Cauayan# in the Province of Isabela de $u%on# was issued in favor of Doroteo Faustino# by decree of the &eneral 'ffice of the Treasury! Faustino a reed to sell the land to Antonio Pascual Casal# the receipt of which he ac(nowled es! Faustino waives the acceptation of the )oney not paid in cash# and the two years which the law prescribes for the exercise of such action! In conse*uence he rants and conveys to Casal the ownership# ri hts# and actions which he has or )ay have to the said land# authori%in hi) to ta(e possession thereof# and disposin of it at his will# as of a thin lawfully ac*uired# to which end he now delivers hi) the title deeds# effectin the sy)bolic delivery of the said land# which he declares to be free of all encu)brance# bindin hi)self to warrant and defend the sa)e at all ti)es! Antonio Pascual Casal entered into a contract to sell all of the said parcels of land to the plaintiff# but before the contract was finally executed he died! +y his will ,ose Clavet was appointed as Casal-s executor! The defendants did not present any title deeds in the re ister of property# only the owner of the recorded property is the one who appears as such on the boo(s of the re ister until the record is cancelled by final .ud )ent! ISS/0: 1'2 an action for the annul)ent of contracts can be )aintained by the defendants3 40$D: 2o! 5/$I2&: /nder the provisions of Article 6789 of the Civil Code# the action for the annul)ent of contracts can only be )aintained by those who are bound# either principally or subsidiarily# by virtue thereof! The defendants not bein persons bound either principally or subsidiarily by virtue of that contract of sale between the Spanish &overn)ent and those ori inal rantees they cannot )aintain the action of nullity of which they see( to avail the)selves as a defense in this suit! And it is lo ical that it should be so! The nullity of an obli ation bein declared# the contractin parties )ust reciprocally restore the thin s which have been the ob.ect of the contract! :Art! 6787!; If the nullity of the title deeds referred to should be declared in confor)ity with the contention of the defendants# the lands should be restored to the Spanish &overn)ent and the price paid for the) should be restored by that &overn)ent to the ori inal rantees or their successors! It would follow that the lands in *uestion could not re)ain in the possession of the defendants# because they would have to be restored to the vendor# nor could the latter be co)pelled to restore the price! There is no reason for orderin the cancellation of the inscription unless this relief is prayed for and proof is )ade of a better ri ht on the part of so)e other person who clai)s to be the lawful owner or possessor! In this case there has been no de)and for the cancellation of the inscription in the re istry of the hacienda of San $uis y $a Concepci<n in favor of the Co)pa=>a &eneral de Tabacos! It has been alle ed that the inscription is defective# but no person entitled to )aintain an action for the purpose has instituted proceedin s for the cancellation of that inscription! As lon as the inscription subsists it )ust produce all its effects! To alle e the nullity of the ori inal

title deeds executed by the Spanish &overn)ent in favor of the ori inal rantees of the lands in *uestion is to alle e the nullity of the contract entered into between the Spanish &overn)ent as rantor and the) as vendees# for the titles are si)ply evidenciary of the sale for a certain consideration of a specific thin !