GR 110055; (August, 2001) (Digest)
G.R. No. 110055 ; August 20, 2001
ASUNCION SAN JUAN, petitioner, vs. COURT OF APPEALS and YOUNG AUTO SUPPLY CO., respondents.
FACTS
Petitioner Asuncion San Juan mortgaged her property, covered by TCT No. T-120163, to respondent Young Auto Supply Co., Inc. through her attorney-in-fact. Upon default, the property was extrajudicially foreclosed, and a Certificate of Sale was issued to the respondent as the sole bidder. After the redemption period lapsed, a final Certificate of Sale was issued. However, the respondent could not register this final deed because San Juan refused to surrender her owner’s duplicate certificate of title. Consequently, the respondent filed a petition in the Regional Trial Court (RTC) for the annotation and registration of the sale. The RTC ordered San Juan to deliver the duplicate title within 72 hours. Upon her failure to comply, the court declared her duplicate title null and void and directed the Register of Deeds to annotate the final Certificate of Sale on the original copy on file, without needing the owner’s duplicate.
ISSUE
Whether the courts can validly order the annotation of a final Certificate of Sale and the registration of the sale despite the registered owner-mortgagor’s refusal to surrender the owner’s duplicate certificate of title.
RULING
Yes. The Supreme Court affirmed the decisions of the lower courts. The core legal principle is that the refusal of a registered owner to surrender the duplicate certificate of title cannot frustrate the registration of a voluntary or involuntary dealing that has become final and executory. The court emphasized that the purpose of registration is to give notice, and the Torrens system should not be used as an instrument for the deprivation of a lawful transferee’s rights. Once a foreclosure sale becomes final, the purchaser acquires an absolute right to the conveyance and registration of the property. The law provides a remedy for such situations. Under Section 107 of P.D. No. 1529 (the Property Registration Decree), if the duplicate certificate is not presented, the Register of Deeds shall notify the owner to produce it. If the owner refuses, the Register of Deeds shall report to the court, which may then issue an order compelling production. The RTC proceedings in this case were consistent with this statutory framework. The court’s order to annotate the sale on the original title was a proper exercise of its authority to prevent a miscarriage of justice, as San Juan’s obstinate refusal was a mere dilatory tactic to avoid her obligation after having lost the property through a regular foreclosure process. Her belated challenges to the foreclosure’s validity were correctly deemed insufficient to overcome the presumption of regularity accorded to the public documents involved.