Case Digest (G.R. No. L-53998)
Facts:
Spouses Enrico Malonzo and Avelina Malonzo, Barbara Brown, and Bonifacia Monzon v. Hon. Herminio Mariano, Judge, CFI, Manila, Br. IV, Banco Filipino Savings and Mortgage Bank, and the City Sheriff of Manila, G.R. No. 53998, May 31, 1989, the Supreme Court First Division, Narvasa, J., writing for the Court.The property involved comprised two parcels with an apartment and commercial building in Sta. Mesa, Manila. At the time, Universal Ventures, Inc. was owner and executed a mortgage in favor of Banco Filipino Savings and Mortgage Bank as security for a loan (initially P350,000, later consolidated to P400,000). The mortgage authorized extra-judicial foreclosure in case of default. Universal Ventures failed to redeem the loan; the bank proceeded with an extra-judicial foreclosure through the City Sheriff of Manila. The bank was the highest bidder at the sheriff’s sale, registered the sheriff’s certificate of sale, and on July 27, 1976 obtained a certificate of title in its name (No. 122496), with the mortgagor’s title cancelled.
On the same day title issued to the bank, it filed in the Court of First Instance (now Regional Trial Court), Manila, Branch IV, a petition under Section 7 of Act No. 3135, as amended by Act No. 4118, for the issuance of a writ of possession to place the purchaser in possession after the one-year redemption period lapsed. The petition named as persons “claiming under” Universal Ventures several occupants including petitioners Avelina Malonzo, Barbara Brown, and Bonifacia Monzon, and alleged that the mortgagor had not redeemed and remained in possession. Copies of the petition were served on Universal Ventures and those alleged to be claiming under it.
After hearings, Judge Herminio Mariano of the CFI issued an order dated September 20, 1979 directing issuance of a writ of possession to put the bank in actual possession and to eject the mortgagor, its officers and agents, and other persons claiming under it. A writ of possession was issued on March 4, 1980, and the City Sheriff attempted eviction of occupants.
Three occupants — Enrico Malonzo (husband of Avelina), Barbara Brown, and Bonifacia Monzon — sued Banco Filipino and the City Sheriff in the same CFI (Civil Case No. 132075) seeking perpetual injunction against enforcement of the writ of possession and damages, alleging they occupied under verbal lease contracts with Universal Ventures and were not parties to the bank’s petition; they further invoked Presidential Decree No. 20 and Batas Pambansa Blg. 25 as precluding ejectment by transfer of ownership.
Fourteen days later the same persons (adding Avelina) filed a special civil action for prohibition in this Court (petition dated June 6, 1980) naming Judge Mariano, Banco Filipino, and the City Sheriff as respondents. They maintained they could not be ousted by the writ of possession because (a) no ejectment case had been filed against them and they were not made parties to the writ petition, and (b) transfer of ownership was not a ground for eject...(Subscriber-Only)
Issues:
- May a writ of possession issued under Section 7 of Act No. 3135, as amended, be enforced against persons other than the mortgagor who occupy the foreclosed property and were not parties to the petition for the writ?
- Were the petitioners — lessees by verbal lease from the mortgagor — "third persons actually holding the property adversely to the mortgagor" such that the writ cou...(Subscriber-Only)
Ruling:
- (Subscriber-Only)
Ratio:
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Doctrine:
- (Subscriber-Only)