Case Summary (G.R. No. 177168)
Key Dates
- July 12, 1957: Proclamation No. 423 establishes FBMR
- Sept. 29, 1965: Proclamation No. 461 segregates 2,455,310 sqm as “AFP Officers’ Village”
- Oct. 25, 1965: Proclamation No. 478 re-reserves 537,520 sqm (including the subject parcel) for Veterans Rehabilitation, Medicare and Training Center
- Nov. 15, 1991: Deed of Sale executed between Republic (LMB Director) and NOVAI
- Jan. 9, 1992: TCT No. T-15387 issued in NOVAI’s name
- Dec. 23, 1993: Republic’s complaint for cancellation filed with RTC
- Aug. 20, 2004: RTC dismisses cancellation case
- Dec. 28, 2006: CA reverses RTC, orders cancellation of TCT
- Aug. 3, 2015: SC denies NOVAI’s petition
Applicable Law
- 1987 Philippine Constitution (decision post-1990)
- Commonwealth Act No. 141 (Public Land Act)
- Batas Pambansa Blg. 878
- Republic Act No. 7227 (Bases Conversion and Development Act of 1992)
- Acts Nos. 274 & 730, Act No. 3038
- Civil Code Articles 420–422 (public dominion vs. patrimonial property)
- Rules of Court, Rule 45 (certiorari procedure)
- Torrens system principles
Factual Background
The 47.5009-hectare parcel covered by TCT T-15387 lies within FBMR. Although Proclamation No. 461 purportedly opened a portion of FBMR for AFP officers’ housing, Proclamation No. 478—issued one month later—reserved the very parcel for veterans’ rehabilitation purposes under public dominion. In November 1991, LMB Director Palad executed a Deed of Sale in NOVAI’s favor, leading to issuance of the contested Torrens title.
Procedural History
- RTC (Pasig City, Branch 67) dismissed the Republic’s complaint, holding that Proclamation No. 461 had alienated the property, the deed was presumptively valid, and NOVAI’s title had become indefeasible.
- CA reversed, finding the parcel remained a reserved public-domain land under Proclamation No. 478; Proclamation No. 2487 authorizing sale did not exist; the sale and title were void; and prescription did not apply.
- NOVAI elevated to SC by petition for certiorari; BCDA intervened to protect its statutory interest in FBMR lands.
Issues
- Whether the parcel remained a reserved, inalienable public domain land.
- Existence and effect of Proclamation No. 2487.
- Validity of the Deed of Sale and LMB Director’s authority.
- Applicability of Torrens indefeasibility and prescription.
- BCDA’s standing to intervene.
Supreme Court Analysis
Land Character and Reservation
- Under C.A. No. 141 and Civil Code Articles 420–422, parcels reserved for public or quasi-public uses are public dominion property—non-alienable until expressly withdrawn by law or presidential proclamation.
- Proclamation No. 478 re-reserved the parcel after Proclamation No. 461; no valid subsequent act liberated it for sale.
Nonexistence of Proclamation No. 2487
- Official correspondence (Solicitor General ↔ Office of the President), DOJ Secretary Drilon’s memorandum, NBI findings, and lack of publication confirm Proclamation No. 2487 was never issued.
- Sequentially numbered Aquino proclamations in 1991 do not support a “No. 2487.”
Void Sale and Title
- Sale of reserved public-domain land is void ab initio; Torrens registration cannot validate a void transaction.
- Handwriting experts, absence of LMB application/payment records, and Director Palad’s denial of authorship establish forgery.
- Receipts presented by NOVAI bear unissued series numbers.
Authority Defects
- Act No. 3038 permits sale only of private-domain lands by the Secretary of Agriculture and Natural Resources, not by the LMB Director, and excludes lands “necessary for public servic
Case Syllabus (G.R. No. 177168)
Factual Antecedents
- TCT No. T-15387 covers 475,009 sqm within the former Fort Andres Bonifacio Military Reservation (FBMR) in Taguig, Metro Manila.
- The larger FBMR was created by Proclamation No. 423 (July 12, 1957).
- Proclamation No. 461 (Sept. 29, 1965) excluded 2,455,310 sqm for “AFP Officers’ Village” to be disposed under R.A. Nos. 274 and 730.
- Proclamation No. 478 (Oct. 25, 1965) then reserved 537,520 sqm of that area for veterans’ rehabilitation under Veterans Federation of the Philippines.
- On Nov. 15, 1991, a Deed of Sale was executed—purportedly under Proclamation No. 478 as amended by Proclamation No. 2487—by LMB Director Abelardo G. Palad, Jr. in favor of NOVAI; TCT No. T-15387 was issued in NOVAI’s name.
Republic’s Complaint for Cancellation of Title
- Filed Dec. 23, 1993 in RTC Pasig City Branch 67.
- Alleged grounds:
• The land remained part of an inalienable military reservation.
• The Deed of Sale was fictitious and irregular.
• No LMB record of NOVAI’s application or of full payment of ₱14,250,270.00.
• Proclamation No. 2487 authorizing the sale was itself fictitious.
NOVAI’s Answer and Defenses
- Asserts Proclamation No. 461 had already withdrawn the land from public domain, rendering it alienable.
- Alleged it filed a letter-application and paid installments; LMB prepared plans and deed.
- Contends any sale irregularity concerns formalities only—proper remedy would be reformation, not cancellation.
- Asserts the Republic’s action is barred by prescription (close to two years after title issuance).
RTC Decision (Aug. 20, 2004)
- Issues narrowed to character of the land and validity of the Deed of Sale.
- Held in NOVAI’s favor:
• Land was alienable under Proclamation No. 461.
• Deed of Sale presumed valid and properly notarized.
• Signature of Dir. Palad appeared genuine.
• NOVAI’s Torrens title had become indefeasible; action barred by prescription.
CA Decision (Dec. 28, 2006 & Mar. 28, 2007)
- Reversed and set aside the RTC ruling.
- Key holdings:
• Property remained inalienable public domain reserved under Proclamation N