G.R. No. 193371 - 24-K Property Ventures, Inc. vs. Young Builders Corp.

On August 7, 1996, petitioner 24-K Property Ventures, Inc. and respondent Young Builders Corporation entered into a construction contract.
Respondent was to construct a 20-storey office/residential building named Lansbergh Place in Tomas Morato, Quezon City, for P165,000,000.00.

In 1998, petitioner was financially affected by the 1997 Asian Financial Crisis and fell into arrears.
Respondent refused to continue construction unless petitioner issued securities for unpaid debts.
Petitioner executed a Deed of Real Estate Mortgage over two parcels of land covered by Transfer Certificate of Title (TCT) No. N-164112 and No. N-164113, which were bare lots at that time.

In 1999, respondent filed a complaint for collection before the Construction Industry Arbitration Commission (CIAC), docketed as CIAC Case No. 32-1999.
While arbitration was ongoing, petitioner started construction of another condominium project named Torre Venezia on the mortgaged lots.
On December 19, 2005, the CIAC rendered a final award ordering petitioner to pay respondent P91,084,206.43 plus interest (6% per annum from award date, 12% per annum from finality of award).
The award became final and executory on October 28, 2008.

While the case was on appeal, respondent moved for a writ of execution on May 2, 2006, covering the awarded sum plus P1,208,801.81 in arbitration costs.
Sheriff Villamor R. Villegas of the Regional Trial Court of Makati was designated to enforce the writ.
Sheriff Villegas reported several attempts to serve the writ on petitioner’s officers, who allegedly refused receipt; service was instead made on petitioner’s counsel.
Notices of garnishment were served to multiple banks, but petitioner was found to have no garnishable deposits.
The sheriff levied on sixteen condominium units of Lansbergh Place and the two parcels of land where Torre Venezia was constructed.

Petitioner filed motions to suspend the sale and to set aside the execution sale, alleging violations of execution procedures and inadequate sale price.
The auction proceeded, and properties were sold to respondent for PHP 110,504,888.05; a Certificate of Sale was issued.
CIAC denied petitioner’s motion to set aside the sale and motion for reconsideration.
Petitioner elevated the case to the Court of Appeals (CA), assailing the orders of the CIAC.
The CA affirmed the CIAC’s decisions.

On February 1, 2013, certain buyers of condominium units in Torre Venezia filed a petition-in-intervention.
They claimed petitioner failed to issue Condominium Certificates of Title despite executing Deeds of Absolute Sale and ownership certificates.
The intervenors asserted lack of notification regarding the execution sale and opposed the writ of possession issued in respondent’s favor, citing their right as third parties already in possession.

Whether the Court of Appeals erred in affirming the CIAC’s denial of petitioner’s motions to set aside the execution sale, given alleged irregularities and violations of procedural rules on execution of money judgments.

Whether gross inadequacy of the purchase price is sufficient ground to nullify the execution sale despite prevailing jurisprudence.

Whether the CA erred in validating the execution sale despite the highest bidder (respondent) lacking full payment of the bid price.