G.R. No. 173829 ; June 10, 2013
VALBUECO, INC., Petitioner, vs. PROVINCE OF BATAAN, represented by its Provincial Governor ANTONIO ROMAN; EMMANUEL M. AQUINO, in his official capacity as Registrar of the Register of Deeds of Balanga, Bataan; and PASTOR P. VICHUACO, in his official capacity as Provincial Treasurer of Balanga, Bataan, Respondents.

FACTS

Petitioner Valbueco, Inc. was the registered owner of eight parcels of land in Bagac, Bataan. Due to unpaid real property taxes, the properties were sold at a public auction in 1987 or 1988, with the Province of Bataan as the winning bidder for ₱70,762.90. Years later, on March 29, 1995, petitioner filed a complaint to nullify the tax sale and the consolidation of title, alleging procedural defects. Petitioner claimed the Provincial Treasurer failed to first distrain personal property, omitted to annotate the distraint, conducted the auction sale without proper publication and notice, and failed to serve notice of the sale. Petitioner alleged it only learned of the sale in 1992.
Respondents countered that under the then-prevailing law, Presidential Decree No. 464, the remedies for tax collection were cumulative and simultaneous; distraint of personal property was not a prerequisite to distraint of real property. They asserted full compliance with all legal requirements for the auction. The properties were later placed under the Comprehensive Agrarian Reform Program (CARP) and distributed to beneficiaries, prompting petitioner to file an amended complaint impleading the DAR Secretary and the beneficiaries.

ISSUE

Whether the public auction sale of the subject properties for delinquency in real property tax payments is valid.

RULING

The Supreme Court affirmed the lower courts’ dismissal of the complaint and upheld the validity of the tax sale. The Court ruled that petitioner failed to substantiate its allegations of procedural irregularities with clear and convincing evidence. The burden of proof to show the nullity of the sale rested on petitioner. Testimonies from the Provincial Treasurer and other witnesses established that the statutory requirements under P.D. No. 464 were followed: notices of delinquency were sent, the auction was properly advertised by posting in conspicuous places and by crier, and a notice was sent to petitioner’s address of record. The Court found the testimonial and documentary evidence presented by respondents to be credible and sufficient.
The legal logic is anchored on the presumption of regularity in the performance of official duties. In the absence of strong, persuasive, and conclusive evidence to the contrary, the official acts of the Provincial Treasurer in conducting the tax sale are presumed lawful. Petitioner’s mere allegations, unsupported by convincing proof, cannot overcome this presumption. Furthermore, the Court noted that petitioner’s attempt to redeem the properties by depositing money with the clerk of court years after the sale and the filing of the complaint was not a valid tender of payment or exercise of the right of redemption under the law. Consequently, the auction sale and the subsequent consolidation of title in favor of the Province of Bataan were declared valid and binding.