GR 107751; (June, 1995) (Digest)
G.R. No. 107751 June 1, 1995
LETICIA P. LIGON, petitioner, vs. COURT OF APPEALS, JUDGE CELIA LIPANA-REYES, Presiding Judge, Branch 81, Regional Trial Court of Quezon City, IGLESIA NI KRISTO and the REGISTER OF DEEDS OF QUEZON CITY, respondents.
FACTS
Respondent Iglesia ni Kristo (INK) filed a complaint for specific performance against the Islamic Directorate of the Philippines (IDP) concerning two parcels of land sold to INK by IDP. The trial court rendered a partial summary judgment in favor of INK, ordering IDP to comply with its obligations under the deed of sale. Subsequently, INK filed a motion in the same case to compel petitioner Leticia Ligon, who held the owner’s duplicate certificates of title as mortgagee of IDP, to surrender these titles to the Register of Deeds to allow registration of the deed of sale in INK’s name.
Petitioner Ligon opposed the motion, arguing that the trial court lacked jurisdiction over her as she was not a party to the main case, that IDP’s claim for rescission was still pending, and that the motion effectively split a cause of action. The trial court granted INK’s motion and ordered Ligon to surrender the titles. The Court of Appeals affirmed this order.
ISSUE
Whether the trial court acted with jurisdiction and correctly ordered petitioner Ligon, a non-party mortgagee in possession of the certificates of title, to surrender them to allow registration of the deed of sale in favor of INK.
RULING
The Supreme Court affirmed the decision of the Court of Appeals. The trial court properly exercised its jurisdiction under Section 107 of the Property Registration Decree (P.D. No. 1529), which allows a party in interest to petition the court to compel the surrender of an owner’s duplicate certificate when its holder refuses, thereby preventing the registration of a voluntary instrument. INK, as the buyer under a partially adjudged deed of sale, was a party in interest entitled to seek this relief.
The court’s order did not violate rules against splitting a cause of action or forum-shopping, as the motion for surrender was merely an incident to the main case for specific performance, aimed at implementing the court’s partial judgment. This promotes expediency and avoids multiplicity of suits. Furthermore, petitioner’s rights as a mortgagee were not prejudiced. A real estate mortgage is a lien in rem that follows the property regardless of ownership change. The trial court’s order explicitly directed that petitioner’s mortgage lien be annotated on the new certificates of title to be issued to INK, thereby preserving her security interest. Procedural technicalities should not hinder substantive justice where no substantial right is impaired.