G.R. No. 235484 , August 09, 2023.
THE CITY GOVERNMENT OF ANTIPOLO AND THE CITY TREASURER OF ANTIPOLO, PETITIONERS, VS. TRANSMIX BUILDERS & CONSTRUCTION, INC., RESPONDENT.

FACTS

Clarisa San Juan Santos originally owned three parcels of land in Antipolo City. In January 1997, Transmix Builders & Construction, Inc. (respondent) bought the lots, and new Transfer Certificates of Title (TCTs) were issued in its name. However, respondent failed to transfer the tax declarations to its name. Due to unpaid real property taxes (RPT), the City Treasurer of Antipolo published a Notice of Delinquency on October 30, 2005, and issued Warrants of Levy on November 21, 2005, which were sent to Santos at her address on record, not to respondent. A public auction was held on December 28, 2005, and the properties were forfeited in favor of the City Government of Antipolo due to lack of bidders. In 2010, the City enacted an ordinance offering amnesty from interest for delinquent RPT paid by December 31, 2010. Respondent, upon receiving notices sent to Santos’s address but “c/o” its company, paid the delinquent RPT in November 2010. The City Treasurer accepted the payment but later informed respondent the properties were already forfeited and the payment would be held in trust. The properties were registered under the City’s name in March 2011. Respondent filed a complaint seeking nullity of the auction and forfeiture, arguing lack of notice.

ISSUE

Whether the levy, sale, and forfeiture of the subject properties were valid despite the failure to send the required notices to the registered owner, respondent Transmix Builders & Construction, Inc.

RULING

No. The levy, sale, and forfeiture were void. Under Section 258 of the Local Government Code (LGC), the treasurer must send the warrant of levy to the delinquent owner of the real property. The “delinquent owner” refers to the person registered as the owner in the certificate of title, not merely the one named in the tax declaration. Since respondent was the registered owner per the TCTs, the City Treasurer’s failure to send the notices of levy and delinquency to respondent constituted a violation of due process. This fatal defect rendered the subsequent auction and forfeiture proceedings null and void. The Court affirmed the Regional Trial Court’s order nullifying the forfeiture proceedings and directing the cancellation of the City’s titles and reinstatement of respondent’s original titles. The acceptance of respondent’s tax payment under the city ordinance did not cure the void proceedings, and the deposit made by respondent was ordered returned.