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Manotok IV v. Heirs of Barque
Manotok IV v. Heirs of Barque
DECISION
YNARES-SANTIAGO, J : p
These consolidated petitions for review assail, in G.R. No. 162335, the
February 24, 2004 Amended Decision 1 of the Third Division of the Court of
Appeals in CA-G.R. SP No. 66642, ordering the Register of Deeds of Quezon
City to cancel petitioners' TCT No. RT-22481 and directing the Land
Registration Authority (LRA) to reconstitute respondents' TCT No. 210177;
and in G.R. No. 162605, the November 7, 2003 Amended Decision 2 of the
Special Division of Five of the Former Second Division in CA-G.R. SP No.
66700 directing the Register of Deeds of Quezon City to cancel petitioners'
TCT No. RT-22481, and the LRA to reconstitute respondents' TCT No. T-
210177 and the March 12, 2004 Resolution 3 denying the motion for
reconsideration.
The facts as found by the Court of Appeals 4 are as follows:
The said Plan FLS 3168D is indeed authentic and valid coming as
it does from the legal repository and duly signed by the custodian
thereof. The documentary evidence presented is much too
overwhelming to be simply brushed aside and be defeated by the
fabricated statements and concoctions made by Engr. Dalire in his 19
February 1997 letter. . . . 10
SO ORDERED. 12
From the foregoing, respondents filed a petition for review 14 with the
Court of Appeals docketed as CA-G.R. SP No. 66700 and praying that the LRA
be directed to immediately reconstitute TCT No. 210177 without being
subjected to the condition that petitioners' TCT No. RT-22481 [372302]
should first be cancelled by a court of competent jurisdiction. 15 Petitioners
likewise filed a petition for review with the Court of Appeals docketed as CA-
G.R. SP No. 66642.
In CA-G.R. SP No. 66700, the Second Division of the Court of Appeals
rendered a Decision 16 on September 13, 2002, the dispositive portion of
which reads:
SO ORDERED. 17
No pronouncement as to costs.
SO ORDERED. 19
SO ORDERED. 22
In so ruling, the Third Division of the Court of Appeals declared that the
LRA correctly deferred in giving due course to the petition for reconstitution
since there is yet no final judgment upholding or annulling respondents' title.
23
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Respondents' motion for reconsideration was granted by the Third
Division of the Court of Appeals on February 24, 2004, thus:
SO ORDERED. 24
II
Second. Both the trial court and the Court of Appeals made a
factual finding that petitioner's title to the land is of doubtful
authenticity.
The Alabang ruling was premised on the fact that the existing Torrens
title was duly issued and that there is only one title subsisting at the time
the petition for reconstitution was filed. In the instant case, it cannot be said
that petitioners' title was duly issued much less could it be presumed valid
considering the findings of the LRA and the Court of Appeals that the same is
sham and spurious.
The Court of Appeals properly applied the doctrine laid down in Ortigas
in refusing to remand the case to the trial court. As expressly declared in
Ortigas & Company Limited Partnership v. Velasco: 39
SO ORDERED.
Davide, Jr., C.J., concurs.
Quisumbing, J., see dissenting opinion
Carpio, J., see dissenting opinion.
Azcuna, J., I concur in separate opinion.
Separate Opinions
QUISUMBING, J : p
AZCUNA, J :p
From the record it appears undisputed that, as the LRA ruled and the
CA affirmed, petitioners Manotoks' TCT No. RT-22481 [372302] is sham and
spurious. For one thing, the property is purportedly located in barrio Payong,
Quezon City, whereas no such barrio existed or exists therein. It is,
therefore, in my view, unnecessary to go though the exercise of proving this
matter again in the regular courts, as would ordinarily be required, since the
point is indubitable.
I thus find applicable the ruling of this Court in Ortigas and Company
Limited Partnership v. Veloso , 1 as it would be unjust in the circumstances to
require respondents to undergo a time-consuming and pointless exercise to
cancel an evidently sham and spurious title.
I, therefore, concur with Justice Consuelo Ynares-Santiago and vote to
DENY the petitions.
Engr. Dalire sent another letter dated 31 January 1997 18 to the LRA
Administrator. The letter states: TEcHCA
For all intent and purposes, please disregard the plan Fls-3168-D
and the letter dated 02 January 1997 as they are proven to be spurious
documents. (Emphasis supplied)
The claim of the oppositors that the property in question per TCT
No. RT-22481 [372302] covers only one [1] lot is also inaccurate and
without any basis. Plan FLS 3168D shows that the property in question
indeed consists of two [2] lots, Lot 823-A and Lot 823-B. The same is
being buttressed and corroborated by the certified copy of the tax map
over the property in question issued by the Quezon City Assessor's
Office [Annex "H" of Petitioners' Position Paper]. Said tax map shows
that similar to TCT No. 210177 and Plan FLS 3168D, the property in
question covers two [2] lots, Lot 823-A and Lot 823-B. Granting
arguendo that Lot 823 of the Piedad Estate has not yet been
subdivided into two [2] lots from the date of original survey in 1907, it
is highly irregular that TCT No. RT-22481 [372302] would have Lot
822-A Psd 2498, Lot 818-A and Lot 818-C Psd 2507 as boundaries when
at the time of the original survey, there were no such Psd's yet.
However, the LRA ruled that TCT No. 210177 could only be
reconstituted after a court of competent jurisdiction has cancelled TCT No.
RT-22481 [372302]. The dispositive portion of the LRA Resolution reads:
SO ORDERED. 26
SO ORDERED. 32
Manotok, et al. appealed to this Court for relief. Their petition was
docketed as G.R. No. 162335.
CA-G.R. SP No. 66700
In a Decision promulgated on 13 September 2002, 33 the Court of
Appeals dismissed the Heirs of Barque's petition and affirmed the LRA
Resolution of 24 June 1998. The Heirs of Barque moved for reconsideration
of the Decision.
In an Amended Decision promulgated on 7 November 2003, 34 the
Court of Appeals reconsidered its 13 September 2002 Decision, as follows:
No pronouncement as to costs.
SO ORDERED. 35
The LRA, in reversing Atty. Bustos' Order, ruled that Atty. Bustos
blatantly disregarded LRA Circular No. 13 41 when he required the
submission of documents other than the owner's duplicate of TCT No.
210177. The LRA ruled that Atty. Bustos should have confined himself to TCT
No. 210177. The LRA cited paragraph 4 of LRA Circular No. 13, thus:
When Atty. Bustos requested Engr. Dalire to furnish his office with a
copy of Fls-3168-D, it was part of the verification process prior to
reconstitution of the title. Considering the numerous petitions for
reconstitution due to the destruction of the Quezon City Hall, Atty. Bustos
was merely exercising caution to avoid the reconstitution of spurious titles.
Atty. Bustos conducted a verification of TCT No. 210177 pursuant to
paragraph 8 of LRA Circular No. 13. Hence, the LRA erred in ruling that Atty.
Bustos should have confined himself to the owner's duplicate of TCT No.
210177.
Section 3 42 of Republic Act No. 26 43 ("RA 26") enumerates the
sources for reconstitution of transfer certificates of title. For administrative
reconstitution of title, the only source documents are the owner's duplicate
of the certificate of title and the co-owner's, mortgagee's, or lessee's
duplicate of the certificate of title. Section 12 44 of RA 26 does not apply in
the present cases since Section 12 refers to judicial reconstitution of title.
The reconstitution of a certificate of title is far from being a ministerial
act. In an administrative reconstitution, the petitioner must submit the
owner's or co-owner's duplicate of the certificate of title as required by
Section 3 of RA 26 and paragraph 4 of LRA Circular No. 13.
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However, the submission of the source documents does not mean that
the reconstituting officer must forthwith grant the petition for reconstitution.
It does not also mean that the reconstituting officer must confine himself
with the owner's or co-owner's duplicate of the certificate of title. In
accordance with paragraph 8 of LRA Circular No. 13, the reconstituting
officer or the Register of Deeds shall issue an order of reconstitution only
after appropriate verification which means that he must be convinced that
the certificate of title is genuine and not spurious. Thus, the reconstituting
officer must go beyond the owner's or co-owner's duplicate certificate of title
to determine whether the title is genuine. The process of verification allows
the reconstituting officer to countercheck with other government agencies to
determine the validity of the title to be reconstituted.
When Atty. Bustos requested for a copy of Fls-3168-D, he was not only
exercising caution but more importantly, it was part of the verification
process under paragraph 8 of LRA Circular No. 13. The Heirs of Barque filed
the petition for reconstitution only in 1996, eight years after the alleged
destruction of the original TCT in 1988. The reconstituting officer should not
be blamed for verifying if he should grant the petition for reconstitution.
Paragraph 8 of LRA Circular No. 13 mandates that Atty. Bustos shall issue an
order of reconstitution only after appropriate verification.
The Jurisdiction of the Land Registration Authority
Section 6 of PD 1529 enumerates the general functions of the Land
Registration Commissioner, 45 as follows:
The Court stresses once more that lands already covered by duly
issued existing Torrens Titles (which become incontrovertible upon the
expiration of one year from their issuance under Section 38 of the Land
Registration Act) cannot be the subject of petitions for reconstitution of
allegedly lost or destroyed titles filed by third parties without first
securing by final judgment the cancellation of such existing titles. . . .
The courts simply have no jurisdiction over petitions by such
third parties for reconstitution of allegedly lost or destroyed
titles over lands that are already covered by duly issued
subsisting titles in the names of their duly registered owners.
The very concept of stability and indefeasibility of titles covered under
the Torrens System of registration rules out as anathema the issuance
of two certificates of title over the same land to two different holders
thereof. A fortiori, such proceedings for "reconstitution" without actual
notice to the duly registered owners and holders of Torrens Titles to the
land are null and void. Applicants, land officials and judges who
disregard these basic and fundamental principles will be held duly
accountable therefor. (Emphasis supplied)
The Court has repeatedly reiterated this ruling in subsequent cases. 51
By cancelling the TCT of Manotok, et al., and upholding the TCT of the
Heirs of Barque, the Court of Appeals resolved in the administrative
reconstitution case the issue of ownership over the property in dispute. This
is grave error because ownership is never in issue in a petition for
reconstitution of title. As this Court ruled in Alonso v. Cebu Country Club,
Inc. 52 :
Hence, the Court of Appeals may not extend jurisdiction to the LRA
where the law has not granted such jurisdiction. The Court of Appeals may
not also allow a collateral attack on a Torrens title, either before the LRA or
before itself, in gross violation of Section 48 of PD 1529. The present cases
involve a vast tract of land in a prime district. The property in question
contains an area of 342,945 square meters. At a conservative estimate of
P5,000 per square meter, the value of the property amounts to
P1,714,725,000. The documents submitted by the parties are conflicting.
The parties question the authenticity of each other's documents. Manotok, et
al. claim that they and their predecessors-in-interest have been in
possession of the property since 1919 while the Heirs of Barque allegedly
have never set foot on the property.
The determination of the authenticity of the documents and veracity of
the claims of both parties requires a trial on the merits. The LRA exceeded
its jurisdiction when it made a conclusive finding on the validity of the titles
of the parties. Such function falls under the "exclusive original jurisdiction" of
the RTC under Section 19 of BP Blg. 129. The Court of Appeals should not
have resolved the factual issues by adopting as its own the LRA's finding.
This Court accords respect, if not finality, to factual findings of an
administrative body. However, this rule does not apply when the
administrative body has no jurisdiction to make a conclusive factual finding
particularly when the findings might conflict with findings of the tribunal or
agency which has jurisdiction on the matter.
Respondents claim that there is no Barrio Payong in Quezon City.
Respondents point to the 24 June 1998 Resolution of the LRA stating that
Barrio Payong is non-existent. However, the Decision of the Court of Agrarian
Relations, the court of origin in Spouses Tiongson, et al. v. Court
Appeals and Macaya, 58 shows that Lot 823 of the Piedad Estate is located
at Barrio Payong, Old Balara, Quezon City. 59 Indeed, the Court of Agrarian
Relations made an ocular inspection of the property, thus: aDHScI
On June 20, 1978, the Court issued an Order directing the Clerk
of Court to conduct an ocular inspection of the landholding in question,
which is as follows:
The findings of the LRA that Barrio Payong does not exist is based
merely on LRA's evaluation of the documents. In contrast, the findings of the
Court of Agrarian Relations that the property of the Spouses Tiongson is
located in Barrio Payong, Quezon City, is based on ocular inspection. The
majority opinion adopts the findings of the LRA. This issue, however, should
be threshed out by the proper trial court in an action directly attacking the
validity of the Torrens title of Manotok, et al.
The Applicability of Ortigas & Company
Limited Partnership v. Velasco
In ordering the Register of Deeds to cancel Manotok, et al.'s title and
the LRA to reconstitute the title of the Heirs of Barque, the Court of Appeals
relied on Ortigas & Company Limited Partnership v. Velasco . 61 The
Court of Appeals ruled that it would be unjust to the Heirs of Barque to
initiate a new proceeding before the RTC for the sole purpose of seeking the
cancellation of Manotok, et al.'s title.
The Heirs of Barque claim that the pendency of the cases for a long
period of time justifies the application of the Ortigas case in their favor. On
the other hand, Manotok, et al. argue that if ever the Ortigas case is
applicable, it will apply in their favor since this Court in a prior decision 62
involving tenancy relationship affirmed their right to the property in
question.
The Ortigas case is not authority to deprive Manotok, et al. of their
right to a direct proceeding before the proper court concerning the validity of
their Torrens title. In Ortigas, the Court ruled that a remand of the case
would be pointless and unduly circuitous, and that to defer adjudication on
the matter would be unwarranted and unjust. This is because the records
showed that Ortigas' titles had already been upheld and affirmed in three
other cases, involving either the original registration or direct attacks on the
titles, decided in 1906, 1985 and 1987. 63 The Court ruled that Ortigas'
documents of ownership have been passed upon, sanctioned and sustained
by the Court more than once. This peculiar circumstance is absent in the
cases before us.
However, the Ortigas case, which the Heirs of Barque insist applies to
the present cases, is authority to hold that the Register of Deeds, the LRA
and the Court of Appeals have no jurisdiction to entertain the petition for
reconstitution filed by the Heirs of Barque. The Court held in Ortigas: 64
This is the specific ruling in Ortigas that applies to the present cases.
In summary, the Heirs of Barque filed before the Register of Deeds an
administrative petition to reconstitute their allegedly destroyed TCT. The
Register of Deeds, as reconstituting officer, denied the petition of the Heirs
of Barque because, based on official records, the property involved is
already registered under the Torrens system in the name of Manotok, et al.
The LRA affirmed the Register of Deeds, stating that only the proper trial
court could cancel the TCT of Manotok, et al. although the LRA believed that
the TCT of Manotok, et al. was a sham. The LRA recognized that in an
administrative reconstitution, the decision of the reconstituting body is either
to deny or approve the reconstitution of the applicant's title, never to cancel
the Torrens title of a third party. However, on appeal, the Court of Appeals
declared the TCT of Manotok, et al. void and the TCT of the Heirs of Barque
valid. Clearly, the Court of Appeals deprived Manotok, et al. of their property
without due process of law. The Court of Appeals blatantly disregarded
Section 48 of PD 1529 and Section 19 of BP Blg. 129 which confer on the
proper trial court exclusive original jurisdiction to cancel a Torrens title in an
action directly attacking the validity of the Torrens title. The Court should not
countenance this gross injustice and patent violation of the law.
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Accordingly, I vote to grant the petitions and set aside the 24 February
2004 Amended Decision of the Court of Appeals in CA-G.R. SP No. 66642 and
the 7 November 2003 Amended Decision and the 12 March 2004 Resolution
of the Court of Appeals in CA-G.R. SP No. 66700. The Land Registration
Authority must defer its ruling in Admin. Recons. No. Q-547-A [97] until after
the proper Regional Trial Court shall have rendered a final judgment on the
validity of the titles of the parties.
CASaEc
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Footnotes
1. Â Rollo of G.R. No. 162335, pp. 113-118. Penned by Associate Justice Eubulo
G. Verzola and concurred in by Associate Justices Remedios Salazar-
Fernando and Edgardo F. Sundiam.
6. Â Id.
7. Â Id. at 87.
8. Â Id. at 90.
9. Â Id. at 91.
21. Â CA-G.R SP No. 66642, Rollo of G.R. No. 162335, pp. 106-111. Penned by
Associate Justice Eubulo G. Verzola and concurred in by Associate Justices
Remedios Salazar-Fernando and Edgardo F. Sundiam.
23. Â Id.
30. Â Bataan Shipyard and Engineering Corp. v. NLRC, 336 Phil. 193, 204
[1997].
31. Â Paterno v. Paterno, G.R. No. 63680, March 23, 1990, 183 SCRA 630, 636-
637.
32. Â Villanueva v. Court of Appeals, G.R. No. 143286, April 14, 2004, 427 SCRA
439, 449.
33. Â G.R. No. 133465, September 25, 2000, 341 SCRA 58, 62-63.
35. Â G.R. No. L-62089, March 9, 1988, 158 SCRA 508, 514.
39. Â G.R. Nos. 109645 & 112564, July 25, 1994, 234 SCRA 455, 500-501.
45. Â Jose v. Court of Appeals , G.R. No. 85157, December 26, 1990, 192 SCRA
735, 741.
AZCUNA, J.:
CARPIO, J.:
2. Â The Regional Trial Courts have jurisdiction when the assessed value of the
property involved exceeds P20,000 or for civil actions in Metro Manila, where
the value exceeds P50,000.
   In reply to your letter dated October 29, 1996 requesting for certified
copy of plan Fls-3168-D for reference in connection with administrative
reconstitution of TCT No. 210177. Relative to the plan Fls-3168-D, please be
informed that we have no records (sic) of Fls-3168-D.
23. Â Penned by Administrator Reynaldo Y. Maulit. Rollo , G.R. No. 162605, pp.
88-95.
27. Â Penned by Administrator Senecio O. Ortile. Rollo , G.R. No. 162605, pp. 96-
97.
30. Â Rollo , G.R. No. 162335, pp. 106-111. Penned by Associate Justice Eubulo
G. Verzola, with Associate Justices Remedios Salazar-Fernando and Edgardo
F. Sundiam, concurring.
33. Â CA Rollo , CA-G.R. SP No. 66700, pp. 244-248. Penned by Associate Justice
Juan Q. Enriquez, Jr., with Associate Justices Buenaventura J. Guerrero and
Eloy R. Bello, Jr., concurring.
42. Â SEC. 3. Transfer certificates of title shall be reconstituted from such of the
sources hereunder enumerated as may be available, in the following order:
44. Â SEC. 12. Petitions for reconstitution from sources enumerated in Sections
2(c), 2(d), 2(e), 2(f), 3(c), 3(d), 3(e), and/or 3(f) of this Act, shall be filed with
the proper Court of First Instance, by the registered owner, his assigns, or
any person having an interest in the property. The petition shall state or
contain, among other things the following: (a) that the owner's duplicate of
the certificate of title had been lost or destroyed; (b) that no co-owner's
mortgagee's or lessee's duplicate had been issued, or if any had been issued
the same had been lost or destroyed; (c) the location area and boundaries of
the property; (d) the nature and description of the buildings or
improvements, if any, which do not belong to the owner of the land, and the
names and addresses of the owners of such buildings or improvements; (e)
the names and addresses of the occupants or persons in possession of the
property, of the owners of the adjoining properties and of all persons who
may have any interest in the property; (f) a detailed description of the
encumbrances, if any, affecting the property; and (g) a statement that no
deeds or other instruments affecting the property have been presented for
registration, or, if there be any, the registration thereof has not been
accomplished, as yet. All the documents, or authenticated copies thereof, to
be introduce in evidence in support to the petition for reconstitution shall be
attached thereto and filed with the same: Provided, That in case the
reconstitution is to be made exclusively from sources enumerated in Section
2(f) or 3(f) of this Act, the petition shall be further accompanied with a plan
and technical description of the property duly approved by the Commissioner
of Land Registration, or with a certified copy of the description taken from a
prior certificate of title covering the same property.
48. Â Ibid.
50. Â 201 Phil. 727 (1982). Reported as Alabang Dev. Corp., et al. v. Hon.
Valenzuela, etc., et al.
51. Â MWSS v. Hon. Sison, etc., et al., 209 Phil. 325 (1983); Serra Serra v. Court
of Appeals, G.R. No. 34080, 22 March 1991, 195 SCRA 482; Ortigas &
Company Limited Partnership v. Velasco, supra note 38.
52. Â Resolution, G.R. No. 130876, 5 December 2003 417 SCRA 115.
53. Â Caraan v. Court of Appeals, et al., G.R. No. 140752, November 11, 2005.
54. Â Reyes v. Lim , G.R. No. 134241, 11 August 2003, 408 SCRA 560.
57. Â Imperial Victory Shipping Agency v. NLRC, G.R. No. 84672, 5 August 1991,
200 SCRA 178 citing Zabat, Jr. v. CA, 226 Phil. 489 (1986).
63. Â The Court cited the Resolution in Widows & Orphans Association, Inc. v.
Court of Appeals, G.R. No. 91797, 7 August 1992, 212 SCRA 360.