G.R. No. L-23196; October 31, 1967
LAUREANO OLIVA, plaintiff-appellant, vs. NICOLAS V. LAMADRID and ROSA L. VILLALUZ, defendants-appellees.

FACTS

Plaintiff Laureano Oliva was the owner of a parcel of land covered by Homestead Patent No. 18863 and Original Certificate of Title No. 363, issued on May 8, 1932. On October 2, 1958, he mortgaged the property to the Rural Bank of Daet to secure a P250.00 loan. Due to default, the mortgage was extrajudicially foreclosed, and the property was sold at public auction to the Bank on February 4, 1961, for P188.00. The certificate of sale stated the redemption period was “within two (2) years from and after the date of the sale, or until February 4, 1963.” No redemption was made within that period. On February 27, 1963, a deed of sale was executed in favor of the Bank, and Transfer Certificate of Title No. T-3968 was issued in its name. On March 2, 1963, the Bank sold the property to defendant Nicolas V. Lamadrid for P350.00, and Transfer Certificate of Title No. 3978 was issued to him. Prior to May 31, 1963, plaintiff offered to repurchase the property for P350.00, but the offer was rejected. Plaintiff then filed an action to compel defendants to reconvey the property for P350.00, which he deposited with the Clerk of Court, claiming he was entitled to a five-year redemption period under Section 119 of Commonwealth Act No. 141. Defendants contended the right of redemption expired on February 4, 1963, under Section 6 of Republic Act No. 720, as amended. The lower court rendered judgment for the defendants, dismissing the complaint.

ISSUE

Whether the period for redemption of the foreclosed homestead land is governed by Section 119 of Commonwealth Act No. 141 (five years) or by Section 5 of Republic Act No. 720, as amended (two years).

RULING

The Supreme Court reversed the decision of the lower court. It ruled that the plaintiff is entitled to redeem the property within five years from the date of the foreclosure sale, pursuant to Section 119 of Commonwealth Act No. 141. The Court held that Section 119 applies to both voluntary and involuntary conveyances, including foreclosure sales of lands covered by a homestead or free patent. It further held that Section 5 of Republic Act No. 720, as amended, which provides for a two-year redemption period, applies only to lands “not covered by a Torrens Title, a homestead or free patent” or to lands with pending homestead or free patent titles, not to lands already covered by a Torrens title issued under a homestead patent, as in this case. The legislative history of Republic Act No. 2670 indicated the intent to preserve the five-year redemption period under the Public Land Act for homesteaders or free patent holders. Since plaintiff exercised his right of redemption and tendered payment within the five-year period (by May 31, 1963, before February 4, 1966), he is entitled to redeem the property. The Court also held that plaintiff, having litigated in the lower court on the basis of a P350.00 redemption price, cannot on appeal change his theory to claim he need pay only P188.00. The decision directed defendants to execute a deed of reconveyance upon plaintiff’s judicial consignation of P350.00.