G.R. No. L-45200; April 10, 1939
THE GOVERNMENT OF THE PHILIPPINE ISLANDS, plaintiff-appellee, vs. APOLONIA S. ZAPANTA and SY CHING & COMPANY, defendants. APOLONIA S. ZAPANTA, appellant.

FACTS

The Government of the Philippines, as plaintiff, obtained a judgment against defendant Apolonia S. Zapanta. After the judgment became final, the court issued a writ of execution. The sheriff sold the mortgaged properties at public auction for P43,000 to the Pension and Investment Board as the highest bidder. The Government moved for confirmation of the sale and for a writ of execution to satisfy the deficiency judgment of P19,735.39. Zapanta opposed the confirmation, alleging inadequacy of the price, and submitted affidavits from two real estate brokers suggesting the properties’ reasonable value was P66,000. The lower court granted the Government’s motion and confirmed the sale.

ISSUE

Whether the price of P43,000 for which the properties were sold at public auction is so grossly inadequate as to justify setting aside the sale.

RULING

No. The Supreme Court affirmed the lower court’s order confirming the sale. The Court held that the price of P43,000, even assuming the properties were worth P66,000, was not so grossly inadequate as to “shock the conscience of the court.” Citing established doctrine, the Court ruled that inadequacy of price alone is not sufficient to set aside a judicial sale unless it is shocking to the conscience, or unless there is a showing that a better price could be obtained at a resale, or that the sale was attended by fraud, collusion, mistake, surprise, unfairness, or irregularity. None of these vitiating circumstances were present. The Court noted that in forced sales, properties are not expected to fetch their full market value as in ordinary sales due to the absence of free bargaining. The order of confirmation was affirmed.

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