Case Summary (G.R. No. 105760)
Applicable Law
The applicable law includes provisions from the 1987 Philippine Constitution and several pertinent statutes such as the Civil Code of the Philippines, Republic Act No. 3135, Presidential Decree Nos. 27, 36, and 583 concerning agrarian reform and related tenancy rights.
Background of the Case
In 1978, the spouses Crisanto de la Cruz and Pepita Montano encumbered two parcels of land to PNB for a loan amounting to P24,000.00. Following the mortgage, PNB conducted an extrajudicial foreclosure on October 12, 1984, acquiring a Certificate of Sale the same day, which was recorded on November 28, 1984. On September 24, 1986, PNB filed a petition for a Writ of Possession, claiming ownership due to the failure of the mortgagors to redeem the properties within the one-year redemption period.
Motion to Dissolve the Writ of Possession
Montano contended that he had been a tenant on the property since before 1972, that there was an ongoing agrarian case regarding his rights as a tenant, and that the issuance of the Writ would constitute a violation of his rights according to agrarian reform laws. The RTC granted Montano's motion to dissolve the Writ of Possession on August 28, 1990.
Case Progression
PNB's appeal to the Court of Appeals initially resulted in a favorable decision for PNB on September 13, 1991. However, upon Montano’s motion for reconsideration, the CA reversed its decision on June 3, 1992, thus affirming the RTC's order to dissolve the Writ of Possession. PNB subsequently filed a Petition for Review on Certiorari, arguing that the CA's ruling was not in accordance with the law.
Arguments from PNB
PNB advanced several arguments, asserting that:
- Its right to a Writ of Possession was not premature as almost eight years had lapsed since the Certificate of Sale was issued, and that consolidation of title was not a precondition for obtaining such a writ.
- The adjudication in the agrarian suit did not adversely affect PNB, insisting that Montano's tenancy claim was barred by laches, negligence, and estoppel due to his failure to notify PNB during the agrarian case.
- It maintained a constitutional right to property and that the CA's reference to social justice provisions was inapplicable.
Arguments from Montano
Montano countered that legal precedent required confirmation of title before issuance of a Writ of Possession, acknowledging PNB’s ownership while simultaneously asserting his rights under tenancy laws that provided him security of tenure. He argued that he had established possession rights before the foreclosure and highlighted that PNB had prior awareness of his occupancy.
Court's Analysis and Findings
The Supreme Court found Montano's possession legally justified, given that he had been determined as the tenant on the landholding. It reiterated that the rights of tenants were protected even if the titleholder was not boun
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Case Citation
- Jurisprudence: 341 Phil. 72; 94 OG No. 17, 2974 (April 27, 1998)
- G.R. No. 105760, July 07, 1997
Parties Involved
- Petitioner: Philippine National Bank (PNB)
- Respondents: Court of Appeals, Hon. Judge of the Regional Trial Court of Gapan, Nueva Ecija, Branch 34, Nildefonso Montano
Procedural History
- This case originates from a Petition for Review on Certiorari concerning a Resolution of the Court of Appeals (CA) dated June 3, 1992.
- The CA granted a Motion for Reconsideration filed by private respondent Montano, reversing its prior decision from September 13, 1991, and affirming the Regional Trial Court's (RTC) Order that dissolved the Writ of Possession in favor of petitioner PNB.
Facts of the Case
- In 1978, spouses Crisanto de la Cruz and Pepita Montano mortgaged two parcels of land to PNB for a loan of P24,000.00.
- The parcels, covered by Transfer Certificate of Title No. NT-117562, are Lot 614-F (3,869 square meters) and Lot 614-H (4,078 square meters).
- PNB extrajudicially foreclosed the mortgage on October 12, 1984, and was the sole bidder at the public auction, leading to the issuance of a Certificate of Sale in its favor.
- PNB filed a Petition for Issuance of a Writ of Possession on September 24, 1986, claiming absolute ownership following the failure of the mortgagors to redeem the property.
- The RTC granted the petition, leading to the issuance of the Writ of Possession on November 20, 1986.
- Montano, claiming tenancy rights, filed a Motion to Dissolve the Writ on December 9, 1986, presenting several arguments, including his longstanding tenancy and his legal rights under various land