GR No.

159156

January 31, 2005

RAMON P. ARON
Vs.
HEIRS OF ALFREDO REALON
CALLEJO SR., J
FACTS:
Roman Realon was the owner of two parcels of land which was
inherited by Alfredo Realon and his siblings. Sometime in 1979, Alfredo
executed a contract to sell his undivided portion of the lot to petitioner. He
also obliged himself to execute a deed of final sale. However Alfredo
failed to register the sale. To secure the balance of the purchase price,
Aron mortgage the property to the remaining heir. Alfredo Realon died
and his successors where unaware about the sale. Engineer Ilaban, the
attorney-in-fact of Aron, filed a case for consignation against the heir of
Realon. The Realons countered by contending that undue influence was
present at the execution of the sale and that the balance of the price due in
the contract to sell was not paid. Aron contended that the contract to sell
was supersededby the deeds of the sale with mortgage in response, the
Realons contended that even the other heirs did not receive the proceeds
from the contract itself allegedly executed by Alfredo. The Regional Trial
Court held that there was fraud present.
ISSUE:
Whether or not the other heirs of Alfredo are the real parties in
interest.
HELD:
The well settled rule is that every action must be prosecuted and
defended in the name of the real party in interest. Thus, the presence of all
indispensable party is a condition sine qua non for the existence of
judicial power. The plaintiff is mandated to implead all indispensable
party and in the absence of one render all subsequent judgment voids.
Failure to include the other heirs as indispensable parties in the complaint
to nullify the contract to sell is fatal to the complaint.
In light of all the foregoing, the petition is granted. The assailed
decision of the Court of Appeals in CA GR CV No. 68979, and that of the
Regional Trial Court are set aside. No cost.
So ordered.