Philippine Savings Bank vs Lantin
G.R. No. L-33929 September 2, 1983
Facts:
A duplex-apartment house was owned by
Filomeno and Socorro Tabligan. It was built
by Candido Ramos, a duly licensed
architect and a building contractor for the
contract price of P32, 927. The spouses paid
P7,139 only hence, the architect used his
own money to finish the construction of the
duplex-apartment for P25,788.50
In December 1966 and Feb 1967,
spouses Tabligan obtained from
Philippine Savings Bank 3 loans in the
total amount of 35,000 to complete the
construction of the duplex apartment. To
secure the payment of the loans, the
spouses executed 3 Promissory Notes
and 3 Deeds of Real Estate Mortgage
over the property. All mortgages were
registered with Register of Deeds Manila
and the TCTs were free from all liens and
encumbrances at that time.
Spouses later failed to pay their monthly
amortizations, so the bank foreclosed the
mortgage and was the highest bidder at
the public auction. Architect Ramos also
filed an action against spouses to collect
on unpaid cost of the construction and later
succeeded in obtaining a writ of
preliminary attachment over the property.
The trial court ruled in favor of Architect
Ramos but the writ of execution was not
satisfied. Ramos wrote a letter to PSB for
the delivery to him of his pro-rata share
over the property. PSB refused to pay.
Issue:
Whether architect Ramos is entitled to claim
a pro-rata share in the value of the property
in question.
Arguments:
The bank cited De Barretto vs Villanueva-
not the proceedings contemplated- there
must be an insolvency proceeding or other
liquidation proceeding; architect's lien did
not acquire the character of a statutory lien
equal to PSB's registered mortgage
Ramos averred that the proceedings in trial
court can qualify as a general liquidation of
the estate of the spouses Tabligan because
the only existing property of spouses is the
duplex apartment
Ruling:
The proceedings in the trial court does not
partake of the nature of the insolvency
proceedings or settlement of a decedent's
estate. the action filed by Ramos was only
to COLLECT THE UNPAID COST of the
construction of the duplex apartment.
Insolvency proceedings and settlement of
a decedent's estate are both proceedings
in rem which are binding against the whole
world regardless of WON persons having
interest were notified or not- they are
equally bound.
Although the lower court found that there
were no known creditors other than the
plaintiff and defendant herein, it will not bar
other creditors in the event they show up
and present their claims against PSB
claiming that they also have preferred liens
against the property involved. The TCT
issued in favor of bank is supposed to be
indefeasible, it wouldn’t hurt if it was
annotated. As far as bank knew, it financed
the entire construction.
"equivalent general liquidation"-
purchaser in good faith and for value
takes the registered land free from liens
and encumbrances other than the
statutory liens and those recorded in the
TCT.