GR 170241; (April, 2010) (Digest)
G.R. No. 170241 ; April 19, 2010
PHILIPPINE SAVINGS BANK, Petitioner, vs. SPOUSES DIONISIO GERONIMO and CARIDAD GERONIMO, Respondents.
FACTS
Respondents Spouses Geronimo obtained a loan from petitioner Philippine Savings Bank, secured by a real estate mortgage on their property in Caloocan City. Upon default, petitioner initiated extrajudicial foreclosure. The property was sold at a public auction on March 29, 1996, with petitioner as the highest bidder. Respondents filed a complaint for annulment of the foreclosure, alleging non-compliance with the publication requirement under Act No. 3135 . The Regional Trial Court dismissed the complaint, finding sufficient evidence of publication through the sheriff’s testimony and applying the presumption of regularity in the performance of official duty.
The Court of Appeals reversed the trial court’s decision. It directed an inquiry into whether “Ang Pinoy,” the newspaper where the notice was purportedly published, was a newspaper of general circulation in Caloocan City during the relevant period. The Executive Judge of the Regional Trial Court of Caloocan City certified that “Ang Pinoy” was not an accredited periodical in the city, and the court had no knowledge if it was included in the judicial raffle for notices as required by P.D. No. 1079. Consequently, the appellate court declared the foreclosure null and void.
ISSUE
Whether the extrajudicial foreclosure is void for non-compliance with the statutory publication requirement under Act No. 3135 .
RULING
Yes, the foreclosure is void. The Supreme Court affirmed the Court of Appeals’ decision. Section 3 of Act No. 3135 mandates that the notice of sale must be published once a week for at least three consecutive weeks in a newspaper of general circulation in the municipality or city where the property is located. Compliance with this requirement is mandatory and jurisdictional; failure to adhere strictly renders the foreclosure sale void. The Court emphasized that a newspaper of general circulation is one published for the dissemination of local news and general information, has a bona fide subscription list of paying subscribers, and is published at regular intervals.
The petitioner’s evidence was insufficient to prove that “Ang Pinoy” was a newspaper of general circulation in Caloocan City. The sheriff’s testimony alone could not establish this fact, and the affidavit of publication was correctly excluded as hearsay. Crucially, the certification from the Executive Judge confirmed that “Ang Pinoy” was not an accredited periodical in Caloocan City. The requirement under P.D. No. 1079 for judicial notices to be distributed by raffle to qualified newspapers further underscores the need for official accreditation to ensure widespread dissemination. Since the published notice did not appear in a qualified newspaper, the statutory purpose of informing the public was defeated. Therefore, the foreclosure sale, conducted without proper publication, was null and void.