G.R. No. L-19496 February 27, 1965
SILVERIO ALMIRAÑEZ and ISIDRA VILLABONA, movants-appellees, vs. GASPARA DEVERA, oppositor-appellant.

FACTS

On August 10, 1931, appellant Gaspara Devera sold a parcel of land (Lot No. 1563, Mauban Cadastre) to Julian Villabona under a contract of sale with right to repurchase for P800, with the redemption period to commence two years from that date. Julian Villabona took possession, paid taxes, and enjoyed the fruits. Upon his death, the land passed to his son Primitivo Villabona, then to his granddaughter Nimfa Villabona, who sold it to appellees Silverio Almirañez and Isidra Villabona on December 10, 1956. In cadastral proceedings, the Court of First Instance of Tayabas, in a decision dated July 16, 1941, adjudicated the lot to Gaspara Devera, but expressly subject to the lien of the sale with right to repurchase in favor of Julian Villabona. This lien was carried over into Decree of Registration No. N-14538 and Original Certificate of Title No. O-1738 issued in Devera’s name. Devera never repurchased the lot. On June 15, 1960, the appellees filed a motion in the cadastral case praying for consolidation of ownership in their favor due to non-redemption and for the cancellation of Devera’s title and issuance of a new one in their names. Devera opposed, arguing the cadastral court lacked jurisdiction to order such consolidation and cancellation. The lower court granted the appellees’ motion. Devera appealed directly to the Supreme Court.

ISSUE

Whether the Court of First Instance, acting as a cadastral court, had jurisdiction to order the consolidation of ownership and cancellation of the original certificate of title based on the recorded lien of a pacto de retro sale.

RULING

Yes. The Supreme Court affirmed the lower court’s orders. The principal issue was the legal effect of the lien recorded in the decision, decree, and certificate of title. The Court held that the appellees’ motion was not a collateral attack on the decree nor an attempt to revoke it. The cadastral court’s 1941 decision and the resulting title expressly recognized and embodied the lien in favor of Julian Villabona. The appellees merely sought to give effect to that recorded lien. By operation of law under the Old Civil Code (which governed the 1931 contract), ownership had consolidated in the vendee (Julian Villabona and his successors) upon the vendor’s failure to repurchase. The lower court’s order to cancel Devera’s title and issue a new one to the appellees was simply making effective the terms of the certificate of title issued pursuant to the decree. The Court further held that the motion, filed under Section 112 of the Land Registration Act, was not barred by the statute of limitations or res judicata, as the recorded right could be asserted at any time by persons in interest. The cadastral court, being a Court of First Instance of general jurisdiction, could resolve the matter for the sake of expediency.