GR L 45255; (April, 1939) (Digest)
G.R. No. L-45255; April 29, 1939
SIMEON RAEL, applicant-appellant, vs. THE PROVINCIAL GOVERNMENT OF RIZAL, oppositor-appellee.
FACTS
Miguel Paterno and his sureties, including Manuel Madriñal, executed a bond to guarantee cabaret license fees for Caloocan municipality. After Paterno defaulted, the municipality won a judgment against them. To execute the judgment, the sheriff attached Manuel Madriñal’s interest in a land co-owned with Maximo Madriñal, which was registered under the Torrens system (TCT No. 12141). The attachment was annotated on the title on January 24, 1934. Earlier, on May 2, 1931, the Madriñals had sold the same land to Simeon Rael under a pacto de retro sale, but this deed was only annotated on February 19, 1934. After the redemption period expired, Rael consolidated ownership and obtained a new title (TCT No. 25437), which carried over the annotation of the attachment. Rael filed a motion to cancel the attachment annotation, claiming he became the absolute owner free from encumbrances. The Provincial Government of Rizal (successor-in-interest) opposed, asserting its lien was superior.
ISSUE
Whether the attachment lien in favor of the municipality/provincial government is superior to Rael’s right acquired under the pacto de retro sale, such that the annotation on the title should not be cancelled.
RULING
Yes. The Supreme Court affirmed the denial of Rael’s motion. Under the Torrens system, the act of registration gives validity to a deed and affects the registered land. The attachment was registered and annotated on the title on January 24, 1934, prior to the annotation of Rael’s pacto de retro sale on February 19, 1934. Therefore, the right acquired by the provincial government through the earlier registered attachment is superior and preferred to Rael’s subsequent registered right. Additionally, the Court noted the sale could be considered fraudulent under the Civil Code because when the pacto de retro contract was perfected and executed, judgment had already been rendered against Manuel Madriñal and the attachment was already annotated.
AI Generated by Armztrong.