G.R. No. L-4013 December 28, 1951
James McL. Henderson, Philippine Alien Property Administrator, petitioner-appellant, vs. Jose Garrido and The Register of Deeds, respondents-appellees.

FACTS

On March 25, 1943, Jose Garrido, the registered owner of properties evidenced by Transfer Certificates of Title (TCT) Nos. 40921 to 40925, sold them to the Philippine Liquid Fuel Distribution Union, Inc., a Japanese firm, for P100,000. The deed of sale was registered on May 8, 1943, resulting in the cancellation of Garrido’s titles and the issuance of new titles (TCT Nos. 67460 to 67464) in the name of the Japanese firm. The originals of these new titles remained on file with the Register of Deeds. Subsequently, the Philippine Alien Property Administrator (PAPA) vested title to these properties by virtue of Vesting Order No. P-244 dated June 30, 1947, as the properties belonged to an alien enemy. PAPA filed a petition in the Court of First Instance of Rizal under Section 109 of the Land Registration Act ( Act No. 496 ) for the issuance of new owner’s duplicates of TCT Nos. 67460-67464, which were lost, and after cancellation, the issuance of new titles in PAPA’s name. The lower court initially granted this petition in its order of November 29, 1947. However, Jose Garrido opposed, claiming the deed of sale had been revoked by a bilateral contract on March 30, 1943, and he had obtained reconstitution of his original titles (TCT Nos. 40921-40925) upon alleging they were lost. The lower court sustained Garrido’s opposition and vacated its November 29, 1947 order. PAPA appealed.

ISSUE

Whether the lower court, in a proceeding under Section 109 of the Land Registration Act for the issuance of a new owner’s duplicate certificate of title, can collaterally attack the validity and indefeasibility of the Torrens titles (TCT Nos. 67460-67464) issued in the name of the Japanese firm by declaring the underlying deed of sale null and void for lack of consideration based on a claimed revocation.

RULING

No. The order of the lower court dated June 17, 1948 (reinstating its order of April 12, 1948) is set aside. The Supreme Court reinstated the lower court’s initial order of November 29, 1947. A Torrens title is irrevocable and indefeasible and cannot be collaterally attacked. The validity of TCT Nos. 67460-67464, which were regularly issued and remained uncancelled and unencumbered, can only be challenged in a separate and independent direct proceeding, not in a mere petition for the issuance of a new duplicate. Garrido’s claim of revocation, his failure to register it promptly, and his surrender of his owner’s duplicates for cancellation when the new titles were issued cast suspicion on his claim. Furthermore, Garrido had subsequently transferred the lands to other persons not parties to the proceeding, whose rights would be affected. Therefore, the petition of PAPA under Section 109 of Act No. 496 should be granted, and the Register of Deeds is ordered to issue new owner’s duplicates of TCT Nos. 67460-67464 and issue new titles in PAPA’s name, notwithstanding the reconstituted titles in Garrido’s name. The conflicting titles must remain until their priority is determined in a proper direct action.