G.R. No. 247798 - Javate-Asejo vs. Asejo

On February 2, 1944, petitioner Dionisio Rellosa sold to respondent Gaw Chee Hun a parcel of land with the house thereon in Manila for ₱25,000.
On the same date, Rellosa executed a lease with Gaw Chee Hun under which Rellosa remained in possession, paying monthly rent.

Rellosa alleged that the sale was subject to obtaining approval from the Japanese Military Administration under Seirei No. 6 (April 2, 1943), which approval was never secured. He also contended that, even if obtained, the sale was void under article XIII, section 5 of the 1943 Constitution (prohibiting alien acquisition of private agricultural and residential lands).
Rellosa filed in the Court of First Instance of Manila for annulment of the sale and lease, return of the duplicate title, and injunctive relief against dispossession.

Gaw Chee Hun defended the sale as absolute, unconditional, valid, and not contrary to law or public order; he invoked estoppel based on the executed lease as recognition of his title.
The CFI declared both sale and lease valid, dismissed the complaint, ordered Rellosa to deliver the property to Gaw Chee Hun, and to pay rent of ₱50/month from August 1, 1945 until delivery. The Court of Appeals affirmed.

Whether Seirei No. 6 of the Japanese Military Administration (prohibiting alien acquisition of non-agricultural private land without approval) is valid under article 43 of the Hague Regulations and binding on the parties.
Whether the 1943 Philippine Constitution, in force at the time of the February 2, 1944 transaction (article VIII, section 5), applies and renders the sale void.

Whether petitioner may maintain an action to annul the sale and lease and recover the property despite the sale’s illegality under the Constitution.
Whether the doctrine of in pari delicto, as applied in Trinidad Gonzaga de Cabauatan vs. Uy Hoo (88 Phil. 103) and Bough and Bough vs. Cantiveros and Hanopol (40 Phil. 210), bars petitioner’s relief.