G.R. No. 127296 January 22, 1998
EDUBIGIS GORDULA, CELSO V. FERNANDEZ, JR., CELSO A. FERNANDEZ, NORA ELLEN ESTRELLADO, DEVELOPMENT BANK OF THE PHILIPPINES, J.F. FESTEJO AND CO., INC. AND REGISTER OF DEEDS OF LAGUNA, petitioners, vs. THE HONORABLE COURT OF APPEALS and REPUBLIC OF THE PHILIPPINES (represented by the National Power Corporation), respondents.

FACTS

On June 26, 1969, President Ferdinand E. Marcos issued Proclamation No. 573, withdrawing certain parcels of the public domain from sale and settlement and setting them aside as permanent forest reserves, subject to private rights. Parcel No. 9 was the Caliraya-Lumot River Forest Reserve, primarily for use as a watershed area. The parcel of land subject of the case, located in Talaongan, Cavinti, Laguna, is within this reserve. On January 9, 1973, petitioner Edubigis Gordula filed an Application for a Free Patent over the land. The National Power Corporation (Napocor), through its General Manager, issued a letter dated October 24, 1973, interposing no objection to the free patent applications, finding that applicants had “priority rights” and that agricultural improvements were not detrimental to the watershed. Gordula’s application was approved, Free Patent No. 693 was issued, and Original Certificate of Title No. P-1405 was issued on January 30, 1974. Gordula subsequently sold the land to Celso V. Fernandez, Jr., who then sold it to Celso A. Fernandez, who subdivided it and sold the lots to Nora Ellen Estrellado. Estrellado mortgaged some lots to the Development Bank of the Philippines and sold one lot to J.F. Festejo and Co., Inc. On July 16, 1987, President Corazon Aquino issued Executive Order No. 224, vesting in the Napocor complete jurisdiction over the Caliraya-Lumot Watershed Reservation. The Napocor, upon discovering constructions on the land, assigned security guards to bar construction workers. On November 18, 1987, the Republic, through the Napocor, filed a Complaint for Annulment of Free Patent and Cancellation of Titles and Reversion. The Regional Trial Court ruled in favor of the petitioners, but the Court of Appeals reversed this decision.

ISSUE

Whether Free Patent No. 693 and the derivative titles issued to the petitioners are null and void because the land was part of an inalienable forest reserve at the time of the patent application.

RULING

Yes. The Court of Appeals’ decision is affirmed. The land was already reserved as a permanent forest under Proclamation No. 573 on June 26, 1969, making it non-disposable and inalienable public land. At the time Gordula filed his free patent application on January 9, 1973, the land was no longer alienable. The “subject to private rights” clause in the proclamation does not apply because Gordula failed to prove he had acquired ownership or title to the property by June 26, 1969. The letter from the Napocor General Manager interposing no objection did not validate the patent, as the land was not disposable. The free patent and all subsequent titles derived from it are therefore null and void. The land reverts to the state.