G.R. No. 153726 & 154014. March 28, 2007.
Republic of the Philippines vs. Democrito T. Mendoza, Sr., et al. and Silot Bay Fisherman’s Association, Inc. vs. Republic of the Philippines.

FACTS

Democrito T. Mendoza, Sr. held various permits over portions of Silot Bay in Liloan, Cebu, culminating in Ordinary Fishpond Permit No. F-6029-Y covering approximately 70.07 hectares. On 24 September 1969, he filed a sales patent application for this area. The Bureau of Lands resurveyed the land, finding it to be over 89 hectares. On 17 August 1970, the Acting Director of Forestry issued a certification releasing the 70.07 hectares specifically described in the permit as alienable and disposable for fishpond purposes only, pursuant to a 1967 Presidential Memorandum. Mendoza complied with publication and posting requirements, and despite a protest from the local mayor, a public auction was held on 19 January 1973 where Mendoza was the sole winning bidder.
On 9 November 1972, however, Presidential Decree No. 43 took effect. It declared all public lands suitable for fishponds and not needed for forestry as automatically transferred to the Bureau of Fisheries for administration and disposition. Subsequently, on 16 February 1973, Presidential Decree No. 177 was issued, which explicitly stated that no public lands suitable for fishponds shall be disposed of by sale, except for sales patent applications already processed and approved on or before 9 November 1972. The Director of Lands eventually issued an Order of Award and Deed of Sale to Mendoza on 30 August 1973 and 2 July 1974, respectively, leading to the issuance of Original Certificates of Title in his and his assignees’ names in 1975.

ISSUE

Whether the sales patent and subsequent titles issued to Democrito T. Mendoza, Sr. and his assignees are valid, considering the effect of Presidential Decree No. 43 and Presidential Decree No. 177.

RULING

No, the sales patent and titles are void. The Supreme Court affirmed the Court of Appeals’ decision dismissing the application. The legal logic hinges on the application of the law in force at the time of the patent’s issuance. While Mendoza’s application was filed in 1969 and the forestry certification was issued in 1970, the crucial act of approval by the Director of Lands—the issuance of the Order of Award—occurred on 30 August 1973. By this date, Presidential Decree No. 177 was already in effect. This decree expressly prohibited the sale of public lands for fishpond purposes, saving only those sales patent applications “processed and approved on or before November 9, 1972.” The Court ruled that “processed and approved” means the application must have received final approval from the Director of Lands, culminating in the issuance of the sales patent itself, by 9 November 1972. Mendoza’s application had not reached this stage by the cutoff date; it was merely pending. Therefore, the Director of Lands no longer had authority to approve and issue the sales patent in 1973. Since the patent was issued without legal authority, it is void ab initio, and the Torrens titles emanating from it are consequently also void. The land remains part of the public domain.