G.R. No. L-9664 July 31, 1957.
Fernando Manuel, plaintiff-appellant, vs. Philippine National Bank, et al., defendants-appellees.

FACTS

The plaintiff, Fernando Manuel, was the registered owner of a homestead. In 1937, he mortgaged the land to the Philippine National Bank (PNB) to secure a loan. Due to non-payment, the mortgage was extrajudicially foreclosed under Act No. 3135 , and the land was sold at public auction to PNB on September 8, 1941. The sheriff’s certificate of sale was registered on September 13, 1941. The plaintiff had a one-year period from the date of sale to redeem the land under the Rules of Court, which expired on September 9, 1942. He failed to redeem. The sheriff issued the final deed of sale to PNB on September 2, 1950, which was then registered, and a certificate of title was issued to the bank. PNB subsequently sold the land to Roberto Avena, who then sold it to Lucia L. Babaran; a transfer certificate of title was issued to Babaran on September 4, 1950. In October 1954, the plaintiff, invoking the homesteader’s right of redemption under Section 119 of the Public Land Law, offered to repurchase the land. Upon rejection of his offer, he deposited the redemption money in court and filed an action to compel the defendants to reconvey the land to him. The lower court dismissed the complaint, ruling that his right to redeem had expired.

ISSUE

Whether the five-year redemption period for a homestead under Section 119 of the Public Land Law, in the case of an extrajudicial foreclosure sale, should be counted from the date of the auction sale or from the date of the sheriff’s final deed of sale.

RULING

The Supreme Court affirmed the lower court’s decision, ruling that the five-year redemption period under Section 119 of the Public Land Law is counted from the date of the auction sale, not from the date of the sheriff’s final deed. The Court applied its ruling in Galanza vs. Nuesa and Leoncio Monge, et al. vs. Lino Angeles, et al., which held that the redemption period for a homestead sold subject to a right of redemption begins from the date of the sale. The Court clarified that its earlier decision in Paras vs. Court of Appeals did not support the plaintiff’s position, as it accepted the view that the five-year period begins “on the day after the expiration of the period of repurchase” provided in foreclosure sales. Here, the one-year redemption period under the Rules of Court expired on September 9, 1942, making the sheriff’s sale absolute. The issuance of the final deed in 1950 was a mere formality confirming title already vested in the purchaser. The Court also noted that, as between the parties, a conveyance is effective from the date of sale, not from the registration of the deed. Consequently, the plaintiff’s attempt to redeem in 1954, approximately 13 years after the auction sale and 12 years after the expiration of his right of redemption under the Rules of Court, was untimely. The complaint was properly dismissed.