G.R. No. 100153, August 2, 1994
SPOUSES TOMAS CLOMA AND VICTORIA LUZ CLOMA, petitioners, vs. THE HONORABLE COURT OF APPEALS AND MARIANO NOCOM, respondents.

FACTS

Petitioners Spouses Tomas and Victoria Cloma were the registered owners of two parcels of land in Pasay City under TCT Nos. 17138 and 17139. The titles contained multiple annotations of liens and encumbrances, including mortgages and assignments in favor of various entities. The spouses failed to pay realty taxes on the properties for the years 1983 to 1985. Despite receiving a notice of delinquency, a statement of account, a second and final notice, and a final notice of inclusion in a list of delinquent properties scheduled for public auction, the Clomas did not pay the arrears. The City Treasurer of Pasay City posted notices of the sale at public places and published them in the Metropolitan Mail newspaper for three consecutive weeks. At the public auction on November 27, 1985, respondent Mariano Nocom emerged as the highest bidder, and a Certificate of Sale was issued. The Clomas were notified by registered mail but failed to redeem the properties within the one-year period. An attempted redemption by Urban Bank was later canceled by the City Treasurer as null and void. After the redemption period lapsed, the City Treasurer executed a Final Deed of Sale in favor of Nocom, who then paid the subsequent realty taxes. Nocom filed a petition in the RTC for the cancellation of the Clomas’ titles and the issuance of new titles in his name. The Clomas opposed, alleging irregularities in the auction sale, lack of personal notice, and the gross inadequacy of the purchase price. The RTC ruled in favor of Nocom, ordering the cancellation of the old titles and the issuance of new ones free from liens, except one in favor of Sandigan Lending Investors. The Court of Appeals affirmed the RTC decision in toto.

ISSUE

Whether the public auction sale of the delinquent properties for non-payment of realty taxes was valid, thereby entitling respondent Mariano Nocom to the cancellation of the petitioners’ titles and the issuance of new titles in his name.

RULING

The Supreme Court DENIED the petition and AFFIRMED the decision of the Court of Appeals. The public auction sale was conducted in accordance with law. The City Treasurer complied with all statutory requirements: notices of delinquency were sent to the petitioners, the Notice of Sale was posted in conspicuous public places and published in a newspaper of general circulation for three consecutive weeks, and the petitioners were duly notified of the sale and the subsequent certificate of sale. The Court held that the petitioners’ mere denial of receiving notice, without contrary evidence, could not overcome the presumption of regularity in the performance of official duties by the City Treasurer. The claim of gross inadequacy of price was also rejected, as inadequacy of price alone does not invalidate a tax sale, unless it is so shocking as to raise a presumption of fraud or collusion, which was not present. The attempted redemption by Urban Bank was properly canceled, as it was erroneously made and declared null and void. Consequently, the respondent court correctly ordered the cancellation of the petitioners’ titles and the issuance of new ones in favor of Nocom, subject to the existing lien of Sandigan Lending Investors.