G.R. No. 75082 . January 31, 1989.
JOSE F. PUZON, petitioner-appellant, vs. ALEJANDRA ABELLERA, substituted by TOMASA D. DOMONDON, oppositor-appellee.

FACTS

The oppositor-appellee, Alejandra Abellera (substituted by Tomasa Domondon), was the registered owner of a two-hectare lot in Baguio City covered by TCT No. 8103. This title was originally issued under Republic Act No. 931 , a law allowing judicial reopening of land registration cases. However, in Republic v. Marcos (1969), the Supreme Court declared titles issued under RA 931 for lands within the Baguio Townsite Reservation null and void, as the law applied only to cadastral areas, not townsite reservations. This ruling was later codified in Presidential Decree No. 1271 (1977), which nullified such titles but provided a mechanism for their validation upon compliance with specific conditions. Consequently, the subject lot was reverted to the public domain. In 1977, the City of Baguio auctioned the property for alleged unpaid realty taxes from 1971 to 1977. Petitioner Jose Puzon was the winning bidder. He subsequently filed a petition for consolidation of ownership. Domondon opposed, consigned a redemption amount, and argued the tax sale was invalid.

ISSUE

The primary issue is whether the auction sale of the property for delinquent real property taxes was valid, considering the legal status of the title under PD 1271.

RULING

The Supreme Court ruled the tax sale was null and void. The legal logic hinges on the retroactive validation condition of PD 1271 and the lack of due process. While PD 1271 is curative and can validate titles ab initio upon compliance, such validation is not automatic; it occurs only after the owner fulfills the decree’s conditions. At the time of the tax assessments (1971-1977) and the auction (1977), the oppositor-appellee’s title was still legally void, and the land was considered public domain. She could not be held liable for taxes on property she did not yet own in fee simple. Therefore, the assessment and sale were premature. The sale was also void for violating due process. The trial court and the Intermediate Appellate Court found the registered owner was not properly notified of the delinquency and the sale, a fatal defect for an in personam proceeding like a tax sale. The Court affirmed these factual findings. The decision was modified to clarify that upon the oppositor-appellee’s compliance with PD 1271, her title would be validated, but she would then be liable for the accrued taxes from 1971-1977. The auction sale itself was declared invalid.