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DECISION
TINGA , J : p
The present petition for review under Rule 45 assails a Decision 1 of the Third
Division of the Court of Appeals which granted a petition for the annulment of a
judgment rendered by a Dumaguete City Regional Trial Court (RTC). We nd that the
appellate court correctly determined the existence of the requisites for annulment of
judgment, and accordingly deny the petition.
The decision sought to be annulled was rendered on 16 April 1998 in Civil Case
No. 10173 by the Dumaguete City RTC Branch 44. 2 The facts antecedent to that case
and those pertinent to this petition are culled from the decision of the Court of Appeals.
3
On 16 April 1998, the trial court rendered the decision that was eventually
annulled by the Court of Appeals. The trial court found that what Simeona Montenegro
had actually sold in 1935 was the subject land, which did not include the 884-square
meter portion claimed by her heirs. Accordingly, it recognized the absolute ownership
of the Montenegro heirs over the said portion. The trial court also found that the
spouses Juan Sendiong and Exequila Castellanes could have only acquired ownership
over the conjugal share of Maximo Orbeta in the subject land considering that the latter
had sold the same in 1934 without the consent of his spouse, Basilia Teves-Orbeta. The
trial court also declared null and void the sale made by Maximo Orbeta with respect to
the conjugal share of his spouse, and ordered the spouses Pretzylou and Genosa
Sendiong to restore to petitioners the title to and possession of their respective shares
in the subject land.
Pretzylou and Genosa Sendiong 5 sought to appeal the decision by ling a Notice
of Appeal, but the same was denied by the RTC on the ground that the certi cate of non
forum-shopping was signed by counsel and not by the Sendiongs themselves. The
disallowance of the Notice of Appeal was challenged before the Court of Appeals in a
Petition for Certiorari, docketed as C.A.-G.R. SP No. 48943, but the petition was denied
by the Court of Appeals Fourth Division in a Decision dated 30 June 2000. 6 A motion
for the reconsideration of the Decision was denied in a Resolution dated 8 January
2001. 7 The appeal not having been given due course, the decision in Civil Case No.
10173 lapsed into finality.
On 28 August 2000, respondent, represented by his attorney-in-fact and daughter
Mae A. Sendiong, led a Petition for Annulment of Decision with a Prayer for a
Temporary Restraining Order and Writ of Preliminary Injunction with the Court of
Appeals, in respect to the decision in Civil Case No. 10173. Respondent, as petitioner
therein, alleged having learned of the decision sought to be annulled only in 1999, as he
was not made a party thereto. Asserting his right to the property as an heir of Luis
Sendiong, respondent noted that the petitioners did not implead him as a defendant in
Civil Case No. 10173, and that the trial court had refused to implead him as an
indispensable party despite repeated motions to that effect by the defendants in the
civil case. Private respondent argued that the decision in Civil Case No. 10173
encroached on the hereditary rights of himself and Lourdes Sendiong without having
"even given the elementary courtesy of due process." 8 On the premise that he and
Lourdes Sendiong were indispensable parties in Civil Case No. 10173 but not made
parties thereto, respondent invoked Rule 3, Section 7 of the Rules of Civil Procedure and
jurisprudence in positing that the RTC decision was null and void. 9
Before the Court of Appeals, petitioners argued that the petition for annulment of
judgment was fatally in rm as the certi cation on non-forum shopping was signed by
the attorney-in-fact by virtue of a General Power of Attorney. Petitioners also alleged
that the rule on res judicata should apply considering that the issue on whether
respondent is an indispensable party had already been passed upon by the Court of
Appeals in the decision in C.A.-G.R. SP No. 48943, the petition for certiorari led by
Pretzylou and Genosa Sendiong.
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In its Decision dated 20 May 2002, the Court of Appeals granted the petition for
annulment of judgment and nulli ed the decision in Civil Case No. 10173. It ruled that
respondent and Lourdes Sendiong were indeed indispensable parties in Civil Case No.
10173, considering that the complaint had prayed that petitioners be declared as
absolute co-owners of the subject property. Moreover, petitioners had challenged the
validity of the donation of the subject property to Luis Sendiong, predecessor-in-
interest of respondent, and accordingly, any judgment regarding petitioners' claims
would affect respondent's interests in the subject land. Citing jurisprudence, the
appellate court ruled that the absence of an indispensable party in a case renders
ineffectual all the proceedings subsequent to the ling of the complaint, including the
judgment, 1 0 and that all subsequent actuations of the court are null and void for want
of authority to act, not only as to the absent parties, but even as to those present. 1 1
The Court of Appeals also ruled that the petition for annulment of judgment was
barred neither by estoppel, laches, res judicata nor forum-shopping, contrary to the
stance of petitioners. 1 2
Before this Court, petitioners impute several errors on the part of the Court of
Appeals in having given cognizance to the petition for annulment of judgment. They cite
the failure of the caption of the petition to state the docket case number in the lower
court in contravention of Supreme Court Administrative Circular No. 28-91 (A.C. No. 28-
91), the "double violations (sic) of the Anti-Forum (sic) Shopping Rule" premised on the
signature of the certi cation of non-forum shopping having been a xed by attorney-in-
fact Mae Sendiong only, and at that only on the basis of a mere General Power of
Attorney, as well as on the failure to state in the certi cation that the matter had already
been ventilated before the Court of Appeals in C.A.-G.R. SP No. 48943. Petitioners
argue that the petition for annulment is barred by res judicata, as the issue on the
"alleged indispensability of Paul Sendiong as party defendant before the Lower Court in
Civil Case No. 10173" and the issue of validity of the decision having been passed upon
by the Court of Appeals in C.A.-G.R. SP No. 48943. Petitioners also claim that
respondent's hereditary rights, interests, and participation in the subject land would
remain undisturbed should the RTC decision be actually implemented. TDCcAE
The issues have been threshed out, correctly in our view, by the Court of Appeals.
There is hardly need to elaborate why we affirm the appellate court's ruling.
To be certain, annulment of judgment is not a relief to be granted indiscriminately
by the courts. Annulment of judgment is a recourse equitable in character, allowed only
in exceptional cases as where there is no available or other adequate remedy. 1 3 Under
Section 2, Rule 47 of the 1997 Rules of Civil Procedure, the only grounds for annulment
of judgment are extrinsic fraud and lack of jurisdiction. 1 4 If the action is based on
extrinsic fraud, it must be brought within four (4) years from discovery, and if based on
lack of jurisdiction, before it is barred by laches or estoppel. 1 5
Respondent's petition for annulment is grounded on lack of jurisdiction, owing to
the failure to implead the indispensable parties. The cited ground is ample basis for
annulment of judgment. We have long held that the joinder of all indispensable parties
is a condition sine qua non of the exercise of judicial power. 1 6 The absence of an
indispensable party renders all subsequent actions of the court null and void for want
of authority to act, not only as to the absent parties but even as to those present. 1 7
It takes no great degree of legal sophistication to realize that respondents Paul
Sendiong and Lourdes Sendiong were indispensable parties to Civil Case No. 10173.
Paul and Lourdes Sendiong derived their rights to the subject property from their father
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Luis Sendiong, who acquired the property by way of donation from the spouses Juan
Sendiong and Exequila Castellanes, who in turn purchased the property from Maximo
Orbeta in 1934. The central thrust of the complaint in Civil Case No. 10173 was that
Orbeta could have sold only his one-half conjugal share, which of course is undivided, in
the subject land as his wife did not consent to the sale. Accordingly, the prayer in the
complaint was that petitioners be declared as the absolute co-owners of the subject
land, minus 2,311 square meters which they claimed was the maximum which Maximo
Orbeta could have conveyed to Juan Sendiong and Exequila Castellanes. If such thrust
and prayer were to be upheld, as it was by the RTC, then all the subsequent
transmissions of the subject land from 1934 would be affected, and the rights of
ownership acquired by the various successors-in-interest accordingly diminished. This
includes the rights of Paul Sendiong and Lourdes Sendiong, who derived their
hereditary shares in the property from Luis Sendiong.
As held by the Court of Appeals on this point:
This Court takes notice of the fact that, as can be gleaned from their
complaint, private respondents prayed that they be declared as absolute co-
owners of Lot 606, except the 2,311 square meters conveyed by Maximo Orbeta
to spouses Juan Sendiong and Exequila Castellanes. Indeed, private respondents
admittedly recognize petitioner's interest over the subject land, being one of the
heirs of Luis Sendiong who acquired the subject land by way of donation from
spouses Juan Sendiong and Exequila Castellanes, who in turn acquired the
subject land from Maximo Orbeta, the original vendee. Considering private
respondents' claim that said donation is invalid, in effect, they admit that there is
an actual controversy or cloud in the title or ownership over the subject land. This
is telling proof that a complete adjudication or nal determination thereof would
require that petitioner, together with Lourdes Sendiong, be impleaded as
indispensable parties. Any judgment respecting private respondents' claim would,
as a matter of course, affect petitioner's interests over the subject land.
Verily, as an heir of Luis Sendiong, the latter having acquired the subject
land from spouses Juan Sendiong and Exequila Castellanes, petitioner's right
over his share in the estate of his deceased father would be adversely affected by
the assailed decision declaring private respondents heirs of Simeona Montenegro
and heirs of spouses Orbeta, as co-owners of the portion of the subject land
consisting of 884 square meters and 2,311 square meters, respectively, which
consequently encroached upon his share as heir of Luis Sendiong as it involves a
question of ownership and not merely of possession. caCEDA
Needless to state, considering that the complaint was for quieting of title
of the subject land, said heirs of Luis Sendiong should have been impleaded as
indispensable parties for the assailed decision to bind and affect their interests. In
like manner, when an action involves reconveyance of property, owners of
property over which reconveyance is asserted are indispensable parties, without
whom no relief is available and without whom the court can render no valid
judgment and it is the duty of the plaintiffs to implead all the necessary or
indispensable parties for the complete determination of the action as a person
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not included as a party to a case cannot be bound by the decision made by a
court. 1 8
Indeed, the Court could not see how or why respondent and Lourdes Sendiong
could not have been impleaded in Civil Case No. 10173 before the RTC. In the answer
led by the defendants in Civil Case No. 10173, the matter of the indispensable
inclusion of Paul and Lourdes Sendiong was already raised. Petitioners could have
easily amended their complaint to that effect, but they did not. The RTC could have
required the inclusion of Paul and Lourdes Sendiong as party-defendants, as prayed for
by the defendants in Civil Case No. 10173, but it refused to do so. The shared
intransigence of petitioners and the RTC in refusing to implead Paul and Lourdes
Sendiong has resulted in the ignominy of a void decision.
The foregoing premises considered, the Court cannot seriously consider
petitioners' contention that respondent's hereditary rights, interests and participation
over the subject land would not be adversely affected by their complaint.
Petitioners allege that the question in Civil Case No. 10173 involves only the
recovery of possession from Pretzylou Sendiong of property which they allege is
rightfully theirs. However, such allegation is belied by the very complaint, which plainly
prays that petitioners be adjudged absolute co-owners of half of the subject land.
Besides, as pointed out by the Court of Appeals, the RTC itself ruled against the validity
of the conveyance by Maximo Orbeta to Juan Sendiong and Exequila Castellanes of the
whole property, a declaration that indubitably affects the rights of all the successors-in-
interests, including respondent.
Now, the matter of whether respondent is otherwise barred from seeking the
annulment of judgment by estoppel, laches, or procedural infirmities.
Neither laches nor estoppel serves as a bar. The petition for annulment alleges
that respondent learned of the existence of Civil Case No. 10173 only in 1999, or one
year after the decision therein had been rendered. Since he was not impleaded in Civil
Case No. 10173, there is no basis to presume that respondent was aware of the civil
case during its pendency before the RTC. Moreover, at the time respondent according
to petitioners learned of the civil case, there was no pending appeal from the RTC
decision therein, the Notice of Appeal having been earlier denied. Under these
circumstances, it would be di cult to discern how in 1999 respondent could have still
participated in Civil Case No. 10173. There was no pending appeal to speak of which he
could have involved himself. Nor could have he participated in the special civil action for
certiorari, an original action, then pending before the Court of Appeals.
Indeed, a petition for annulment of judgment was, at that point, the only viable
remedy for respondent to avail of, 1 9 and it was utilized only one year after respondent
learned of the existence of Civil Case No. 10173. Laches has been de ned as the failure
or neglect for an unreasonable and unexplained length of time, to do that which, by
exercising due diligence, could or should have been done earlier — negligence or
omission to assert a right within a reasonable time, warranting presumption that the
party entitled to assert it has abandoned it or declined to assert it. 2 0 Considering that a
petition for annulment of judgment based on extrinsic fraud may be led within four (4)
years from discovery of the fraud, a similar petition based on lack of jurisdiction is
generally not barred by laches or estoppel if the petition is led within one year after
petitioner learns of the questioned decision. This moreover holds true, as in this case,
since respondent is a foreign resident restrained by time and distance to undertake an
immediate and proximate response, such as judicial recourse. aSIETH
We have saved the least tenable of the arguments presented for last. Petitioners
argue that the petition for annulment should have been dismissed outright for failing to
cite the docket number of the case in the lower court, pursuant to A.C. No. 28-91, 2 8
promulgated as it was to prevent forum-shopping or multiple ling of petitions and
complaints.
This claim relies upon the mother of all technicalities, but one which is not even
supported by A.C. No. 28-91, which provides that "any violation of this Circular shall be
cause for the summary dismissal of the multiple petition or complaint." In short,
dismissal of a petition for violation of A.C. No. 28-91 obtains only if the petition can be
considered a multiple petition or complaint, and not simply because the docket number
of the lower court case was not mentioned in the complaint. Besides, as pointed out by
respondent, the docket number of the lower court case is mentioned in the body of the
petition.
And even if A.C. No. 28-91 could be construed as authorizing the dismissal of a
petition for failing to state the docket number of the lower court decision, the relative
weight of all things must be considered, particularly the degree of distress on
respondent due to the deprivation of his property without being afforded the
opportunity to defend his claims. When gauged against the denial of respondent's right
to due process of law, the purported "violation" by Paul Sendiong of A.C. No. 28-91
does not amount to a hill of beans.
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WHEREFORE, the Petition is DENIED and the assailed judgment of the Court of
Appeals is AFFIRMED. Costs against petitioners.
SO ORDERED.
Puno, Austria-Martinez, Callejo, Sr. and Chico-Nazario, JJ., concur.
Footnotes
1. Penned by Justice J. Guevara-Salonga, concurred in by Justices E. Verzola and B.
Abesamis. Rollo, pp. 149-164.
(b) the Court rendering the same must have jurisdiction over the subject matter
and the parties;
27. It would of course be specious to have required respondent to have mentioned Civil
Case No. 10173 in the certification of non forum-shopping, considering that the petition
itself is devoted to having the decision in the said case annulled.
28. "1. Caption of petition or complaint. — The caption of the petition or complaint must
include the docket number of the case in the lower court or quasi-judicial agency whose
order or judgment is sought to be reviewed." See A.C. No. 28-91.