GR L 45803; (April, 1939) (Digest)
G.R. No. L-45803; April 18, 1939
In the matter of the intestate of the deceased Valentin Guidote y de Leon. VICENTA C. VDA. DE GUIDOTE, administratrix-appellant, vs. THE BANK OF THE PHILIPPINE ISLANDS, oppositor-appellee.
FACTS
The judicial administratrix of the intestate estate of Valentin Guidote filed a project of partition, proposing to adjudicate the estate’s properties to the heirs, subject to an existing mortgage in favor of the Rufinos, except for one unencumbered parcel of land in Antipolo, Rizal. The Bank of the Philippine Islands opposed the project, asserting an unpaid credit of P20,000 against the estate. The lower court conditionally approved the project, ordering that the bank’s credit be paid either by selling the unencumbered Antipolo land or by conveying it to the bank, within thirty days. Failing that, the court would approve the partition but subject the properties to both the Rufinos’ mortgage and the bank’s credit. The administratrix appealed.
ISSUE
Whether the lower court erred in not approving the project of partition as originally filed by the administratrix, and in ordering the sale of mortgaged properties despite the mortgagees not requesting such sale.
RULING
No, the lower court did not err. The Supreme Court affirmed the lower court’s order. Under Section 745 of Act No. 190 (Code of Civil Procedure), the estate’s properties cannot be partitioned and delivered to the heirs until all debts, including the bank’s credit, are paid or provided for, unless the heirs post a bond to secure payment. Since the bank’s credit remained unpaid, the lower court correctly conditioned the approval of the partition on ensuring provision for this debt. The court’s order for the sale of the unencumbered property to satisfy the debt was a proper measure to protect the creditor’s interest, and its alternative ruling—to approve the partition but subject the properties to the bank’s credit—was in accordance with the law.
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