G.R. No. L-2664; May 30, 1951
THE DIRECTOR OF LANDS (Banilad Friar Lands Estate), appellant, vs. GAN TAN, petitioner-appellant.

FACTS

Petitioner-appellant Gan Tan, a Chinese citizen, purchased Lots Nos. 2 and 3, Block No. 36, Subdivision Plan FLS 1544-D from the Cebu Heights Company on March 14, 1940, and was issued the corresponding transfer certificate of title by the Register of Deeds. This certificate of title was lost during the last war. Gan Tan filed a petition for its reconstitution under Republic Act No. 26 . The Court of First Instance of Cebu denied the petition on the ground that Gan Tan, being an alien, was not qualified to acquire the land under the ruling in the Krivenko case, which pertains to constitutional restrictions on alien land ownership.

ISSUE

Whether the lower court correctly denied the petition for reconstitution of a lost transfer certificate of title on the basis that the petitioner, an alien, is disqualified from owning land under the Constitution.

RULING

No. The order of the lower court is set aside. The case is remanded for further proceedings. The Supreme Court held that the only issue in a reconstitution proceeding under Republic Act No. 26 is whether there is a title to be reconstituted based on compliance with the statutory requirements. The court’s duty under Section 15 of the Act is mandatory to issue an order of reconstitution if it finds the evidence sufficient, the petitioner is the registered owner, and the title was in force when lost. The constitutional qualification of the petitioner to acquire land is beyond the province of this summary proceeding. A Torrens title is indefeasible and cannot be collaterally attacked; such an attack must be made in a direct action expressly instituted for that purpose. Whether Gan Tan has the right to acquire the land should be threshed out in a proper action, not in a reconstitution case.