Go Ong v.

Court of Appeals
Facts
Petitioner is the wife of Alfredo Ong Bio Hong who owned 2 parcels of land under TCT no.
188705 consisting of lot no. 12 and lot no. 1. When Alfredo died petitioner became
administratrix of her husband’s estate. Later petitioner sold lot no. 12 to Lim Che Boon thereby
partially cancelling TCT no. 188705 and TCT no. 262852 in favour of Lim was issued. After this
transaction petitioner mortgaged lot no. 1 to Allied Banking Corporation for a loan of P900,000
to which it was obtained by JK Exports, Inc. The loan of the sum of P828,000 was due and ABC
attempted to collect the amount due. Petitioner then filed a complaint against ABC alleging that
the contract of mortgage was null and void for lack of judicial approval. In response, the bank
averred that it was the petitioner who promised to secure the court’s approval. The trial court
decided against the petitioner ruling that the mortgage was valid notwithstanding the lack of
judicial approval. The petitioner appealed the case to the CA but affirmed the trial court’s
decision with modification. Petitioner moved for reconsideration but was denied. Hence
petitioner filed a petition for review on certiorari against the lower appellate court.

Issue
Whether or not the contract of mortgage entered into was null and void for want of judicial
approval.

Ruling
No. The courts ruled that the mortgage was entered into in the petitioner’s personal capacity
and not as adminitratrix of her husband’s estate. The questioned mortgage was held to be valid
because the petitioner became the owner of the property by succession. Thus the mortgage
was held to be valid notwithstanding the lack of judicial approval. Therefore the petition for
review on certiorari was denied.