G.R. No. L-21544 - J.M. Tuason and Co., Inc. vs. Munar

Plaintiff: J.M. Tuason & Co., Inc., a corporation and the duly registered owner of a parcel of land known as the Sta. Mesa Heights Subdivision, located in Barrio North Tatalon, Quezon City, and identified by Transfer Certificate of Title No. 1267.
Defendant: Atanacio Munar, who allegedly entered into possession of a 150-square meter portion of the said land without authority and consent.

The plaintiff initiated an ejectment action against the defendant, alleging that the defendant unlawfully occupied a portion of the land on July 5, 1958.
Defendant’s defense centered on the claim that the plaintiff’s Torrens title was void due to alleged fraud.
Additionally, the defendant contended that under a 1953 compromise agreement between the plaintiff and the Deudors (defendant’s predecessor-in-interest), his continued occupation and enjoyment of the premises was both valid and enforceable against the plaintiff.

The agreement involved the Deudors, who had previously asserted ownership over parts of the property covered by the plaintiff’s title, relinquishing their claim for certain considerations.
However, the agreement reserved rights for third parties to whom the Deudors had already sold possessory rights on different portions of the land.

The Court of First Instance of Rizal initially denied the defendant’s motion to dismiss, leading to the filing of an answer by the defendant.
In a decision dated January 14, 1959, the trial court ordered the defendant:

To vacate the premises and remove the house and other constructions erected thereon.
To pay a monthly rental of P45.00, with an interest rate of 6% from the time of occupation until final restoration of possession to the plaintiff.
To shoulder the costs of the proceedings.

To provide the defendant with another chance to adduce evidence, the January 14, 1959 decision was set aside, and a new trial was ordered.
The defendant again failed to present any evidence on the set date, merely expressing an intention to purchase the property, prompting the court to render a judgment reaffirming its previous decision.

The defendant filed an appeal with the Court of Appeals, which then certified the case to the Supreme Court given that the issues raised were purely legal in nature.
The Court referenced an earlier ejectment case, J.M. Tuason & Co., Inc. vs. Lumanlan (G. R. No. L-23497, April 26, 1968), wherein arguments similar to those now raised by the defendant were previously dismissed.
The prior ruling noted that objections challenging a Torrens title, years after its issuance, are barred.
Furthermore, a related decision in Tuason & Co. vs. Macalindong (G. R. No. L-15398, December 29, 1962) was cited, which dismissed claims of being a builder in good faith due to the presumption of knowledge and the inherent regularity of Torrens titles.

Whether the defendant’s contention that the plaintiff’s Torrens title is void due to fraud can be sustained.
Whether the defendant’s reliance on the 1953 compromise agreement with the Deudors is legally valid in asserting his right to occupy and enjoy the premises.
Whether the lapse of approximately twenty years since the Torrens title’s issuance precludes any challenge to its validity.
Whether the defendant’s assertion of being a builder in good faith holds merit given the established presumption of regularity in Torrens titles and the evidentiary record.