GR L 15695; (October, 1920) (Digest)
G.R. No. L-15695, October 26, 1920
THE GOVERNMENT OF THE PHILIPPINE ISLANDS, applicant-appellee, vs. ELADIO ADRIANO, ET AL., objectors. CURTIS W. WHITE and J.C. WEBSTER, appellants.
FACTS:
Cadastral proceedings were initiated to settle titles to land in Nueva Ecija. Appellants Curtis W. White and J.C. Webster claimed ownership over Cadastral Lot No. 2748, relying on a deed of sale (Exhibit A) executed by the Provincial Treasurer of Nueva Ecija on March 23, 1906. The land, originally assessed under the name of Gervasio Diaz, was sold at public auction on February 18, 1905, for nonpayment of taxes amounting to P362.44. After the redemption period expired without the owner redeeming the property, the treasurer issued the deed conveying the land to White and Webster “free from all liens of any kind whatsoever.” The appellants subsequently paid taxes and made improvements on the land. However, the Director of Lands opposed registration, and the trial court dismissed all oppositions, declaring the land public.
ISSUE:
Whether the tax deed executed by the provincial treasurer conveyed an absolute title in fee simple to the appellants, or merely transferred whatever interest the delinquent taxpayer, Gervasio Diaz, had in the property.
RULING:
The Supreme Court affirmed the trial court’s judgment, holding that the tax deed did not confer a new or absolute title upon the appellants. The Court applied the doctrine that in jurisdictions where tax proceedings are in personamas under the then-governing Philippine law ( Act No. 82 , the Municipal Code, as amended)a tax sale transfers only the interest or title of the delinquent taxpayer assessed. The purchaser acquires no better title than what the taxpayer possessed. Since the proceedings under Act No. 82 required exhaustion of personal property remedies before the sale of realty, the tax sale was derivative, not a new grant from the state.
The Court further noted that if the land was in fact public land at the time of the tax sale, it was not subject to taxation, rendering the tax sale void. The appellants were given one year from the decision to present further evidence in the Court of First Instance of Nueva Ecija to establish title, such as by proving possession for the required period. The Court also suggested that, should the appellants fail to prove title, the government should reimburse them for the purchase price and taxes paid, in the interest of justice.