G.R. No. L-76884 May 28, 1990
Pedro M. Estella and Fe K. Estella, petitioners, vs. Honorable Court of Appeals, Third Division, Hon. Corona Ibay Somera, Presiding Judge, Branch XXVI, Regional Trial Court of Manila, and Spouses Ricardo M. Perez and Lolita Diaz, respondents.

FACTS

Petitioners Pedro and Fe Estella purchased a property in 1970 from Rosario Concepcion and secured a new Transfer Certificate of Title (TCT) in their names. However, they failed to secure a new tax declaration, leaving the property under Concepcion’s name for taxation purposes. Due to unpaid realty taxes from 1970 to 1977, the City Treasurer of Manila sent delinquency notices to Concepcion, the declared owner on record. After publication and no payment, the property was sold at public auction in 1978 to private respondent Ricardo Perez as the highest bidder. Petitioners, claiming they were never delinquent, paid the back taxes in 1979 after the auction. Perez secured a final deed of sale in 1980 after the redemption period lapsed.
Petitioners filed a suit for quieting of title and annulment of the auction sale. The Regional Trial Court dismissed their complaint and declared the sale valid. Petitioners appealed, but the Court of Appeals dismissed their appeal for failure to prosecute, citing undue delay in the transmittal of records. Petitioners elevated the case to the Supreme Court, challenging both the dismissal of their appeal and, alternatively, the legality of the auction sale.

ISSUE

The primary issues are: (1) whether the Court of Appeals correctly dismissed the appeal for failure to prosecute, and (2) whether the tax delinquency sale was valid despite petitioners’ claim of lack of notice and their subsequent payment of back taxes.

RULING

The Supreme Court denied the petition, upholding both the dismissal of the appeal and the validity of the auction sale. On the procedural issue, the Court found that the petitioners, as appellants, bore the responsibility of ensuring the timely transmittal of the records to the appellate court. The prolonged delay of over a year, even if partly attributable to the branch clerk of court, constituted a failure to prosecute their appeal, warranting dismissal under the Rules.
On the substantive merits, the Court ruled the tax sale was valid. Notice of tax delinquency and the auction was properly sent to the declared owner on record, Rosario Concepcion, as mandated by law. Petitioners’ failure to update the tax declaration in their name was the direct cause of their not receiving personal notice. The government cannot be expected to notify parties not of record. Therefore, there was no denial of due process. Furthermore, petitioners’ payment of back taxes in 1979 did not constitute a valid redemption. Under Section 78 of P.D. 464 (the Real Property Tax Code), redemption requires payment of the total taxes and penalties due up to the date of redemption, costs of sale, and 20% interest on the purchase price. Petitioners paid only the back taxes, not the other required amounts, within the one-year period. Thus, the redemption was ineffective, and Perez validly acquired title.