Title
Supreme Court
Salva vs. Magpile
Case
G.R. No. 220440
Decision Date
Nov 8, 2017
Auction sale of Magpile's property declared void due to improper notice of tax delinquency, violating due process and LGC requirements.

Case Summary (G.R. No. 220440)

Background of the Case

The subject matter of this case revolves around a parcel of land in Makati City that was sold at a public auction due to the non-payment of real property taxes. Ildefonso P. Magpile (respondent) acquired the land in 1968 and failed to pay the requisite taxes from 1998 to 2006. Notices and billing statements regarding his tax delinquency were sent to an address he claimed was no longer valid, leading to the auction and subsequent sale of the land to Katherine Rose Salva (petitioner) in May 2006.

Procedural History

After the auction, Magpile filed a petition to annul the sale and cancel the certificate issued to Salva. The case was initially heard in the Makati Regional Trial Court (RTC), which denied Magpile's petition, asserting that he validly received the notices based on the address recorded in official documents. Subsequently, Magpile appealed to the Court of Appeals (CA), which reversed the RTC's ruling and declared the auction sale null and void.

Legal Issues

The case primarily addresses:

  1. The validity of the auction sale conducted on May 24, 2006.
  2. The compliance of the City Treasurer with the provisions of the Local Government Code (specifically, Section 258 concerning notifications).
  3. The question of whether inadequate notice resulted in the invalidity of the sale.

Arguments of the Parties

Magpile contended that he did not receive any notices regarding his tax delinquency because they were sent to an outdated address, supporting his argument with a certification from the Barangay Captain indicating that his former address had been replaced. Salva countered that Magpile had two valid postal addresses: the old one listed in his title and the newer one provided in his Sworn Statement.

Ruling of the Court

The Supreme Court upheld the CA's decision, emphasizing that due process must be observed in tax proceedings, given that sales resulting from tax delinquencies directly impact an individual's property rights. Thus, there should be a definitive and actual notice to the delinquent taxpayer, a standard which was not met in this case. The Court found that the City Treasurer erred in sending notices to the former address despite being aware of the updated postal address.

Compliance with Local Government Code

The ruling analyzed the requirements set forth in the Local Government Code concerning the proper notification procedure prior to the auction. The Court reaffirmed the principle that in tax delinquency sales, actual notice must be sent to the property owner. The lack of evidence showing Magpile received actual notice and the f

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