GURBAX SINGH PABLA & CO., ET AL VS.

HERMOGENES REYES & TEODORA

TANTOCO

Facts:
1. John Tan Chin Eng owner of a registered land who entered in a Contract of
Lease w/ petitioners under the ff. terms:
a. Petitioner construct a 3-storey building valued at PHP 80-90K w/c will be
exclusive property of the owner Chin Eng
b. Petitioner has to occupy, hold or possess the land & improvements as
lessees for a period of 3 yrs & 6 mos. w/o rentals (equivalent to the
construction cost)
c. 2 yrs more for the petitioners to lease the property at PHP 2K rentals per
month
2. Aug. 10, 1948 --- COL was duly registered in the RD of Manila w/c title had an
annotation for the mortgage in favor of Calvo but was subsequently cancelled
& a new mortgage was executed in favor of herein respondents
3. May 14, 1949 COL was amended where lessees were to hold & occupy the
property w/o rentals was extended to 7 yrs & 4 mos. & the rental for the next 2 yrs
was reduced to Php 1,1148 p/m w/c was also duly registered w/ RD
4. May 25, 1949 petitioners wrote respondent to allow them to take the title to
have the amendment annotated w/ the RD
5. Respondent replied that they have to ask permission 1
st
to the real owner (but R
asked Chin Eng to settle 1
st
his obligation on the mortgage before having the
annotation)
6. Petitioners then filed w/ the CFI a motion to order to owner to deliver the owners
duplicate copy to him for the registration of the COL --- granted!



Issue:
W/N petitioners have a right to have said deeds registered?


Held: YES!

1. The COL is valid:
a. Executed by the registered owner of the property
b. Lawfully executed
c. They have all the qualities of registrable documents
2. The purpose of registration is to give notice to all persons & it is not intended by
the proceedings for registration to seek to destroy or otherwise affect already
registered rights over the land, subsisting or existing at the time of registration
3. The contentions of the respondents are out of issue in the registration (they had
no knowledge of the COL or that it violates their COM

Ruling: Issues raised by the respondents must be heard & decided in a proper
proceeding.