G.R. No. L-2354 December 13, 1949
ALFONSO ARANETA, plaintiff-appellant, vs. MARTA CUI VDA. DE SANSON, defendant and appellee.

FACTS

On June 17, 1941, Alfonso Araneta and his wife sold two parcels of land to Julian Sanson and his wife Marta Cui under a pacto de retro sale for P2,000, with a one-year repurchase period. The vendors remained as lessees, paying a monthly rent of P20. The repurchase period expired without exercise, making the vendees absolute owners. On June 24, 1946, Marta Cui Vda. de Sanson (widow) resold the property to the original vendors for the original price plus P1,000 representing unpaid back rents. Alfonso Araneta later consulted lawyers who allegedly advised him he was not obligated to pay the P1,000, prompting him to demand its return and, upon refusal, file an action for recovery. He invoked the debt moratorium under Executive Order No. 25, as amended, claiming the payment was premature.

ISSUE

Whether the debt moratorium law (Executive Order No. 25, as amended) entitles Alfonso Araneta to recover the P1,000 he paid as back rents, on the ground that such payment was suspended by the moratorium.

RULING

No. The Supreme Court affirmed the lower court’s decision absolving Marta Cui Vda. de Sanson. The debt moratorium law does not condone debts; it merely suspends collection and payment. The right to suspend payment is a privilege that may be waived by the debtor. By voluntarily paying the P1,000, Araneta effectively waived this right. Furthermore, under the original deed of sale, the right to repurchase was conditioned upon payment of all rents; Araneta could not have compelled the reconveyance without first settling the back rents. The Court also noted that the repurchase period had long expired, and the reconveyance was an act of charity by the appellee, making the appellant’s claim untenable.

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