BACALING V. MUYA ER: please read read full digest
Magulo yung ase! peae
"pouses Baaling #ere t$e o#ners of % parels of land t$at #ere su&se' su&se'uen uently tly su&di( su&di(ide ided d into into ))* su&lot su&lots. s. +$e land$o land$oldi lding ng #as pro proessed and appro(ed &y t$e Nation ional Ur&an ,lanning ing Co-Co--is issi sion on.. +$e +$e Bu Burreau eau of land lands s appr appro( o(ed ed t$e t$e orr orres espo pond ndin ing g su&di(ision plan for purposes of de(eloping t$e property into a lo# ost ost resid esiden enti tial al o-o--un unit ity! y! to &e /no# /no#n n as Baa Baali ling ngM Mor oren eno o su&di(ision. In )012! spouses o&tained a loan fro- G"I"! seured &y a REM o(er t$e t$e land land for t$e t$e de(e de(elo lopp-en entt of t$e t$e su su&d &di( i(is isio ion. n. +$e +$e sp spou ouse ses s defaulted so t$e -ortgaged property #as forelosed. 3note: in )040! t$roug$ a "C ase! Nenita #as a&le to reo(er possession5 possession5
,E+I+I6NER" CLAIM: +$at respondents respondents Muya et. al! landestinely entered and too/ poss posses essi sion on of t$e land land in )0 )027 27.. +$ey +$ey too/ too/ ad(an ad(anta tage ge of t$e t$e pro&le-ati peae and order situation at t$e onset of -artial la# and t$e forelosure of t$e lots &y G"I".
RESPONDENTS CLAIM +$ey #ere legally instituted &y Baaling8s ad-inistrator9o(erseer as tenant-ti tenant-tillers llers of the subject subject par parels els of land In !"#$% their rela relati tion onsh shi& i& 'ith 'ith the the land lando' o'ne ner r 'as 'as chan chan(e (ed d to one one of leasehold. leasehold. +$ey +$ey relig eligio ious usly ly deli deli(er (ered ed t$ei t$eirr rental ental paypay-en ents ts to Baaling as agriultural lessor. In )04*! t$ey seured ertiates of land transfer in t$eir na-es for t$e one $undred ten 3))*5 su&lots. +$ey $a(e -ade (arious pay-ents to t$e Land Ban/ of t$e ,$ilipp ,$i lippine ines s as a-orti a-orti;in ;ing g o#ners o#nersu ulti lti(at (ator ors s of t$eir t$eir respe respeti ti(e (e tillage. 6+residential> and >non agriultural. IN )024 Nelita Baaling #as a&le to register t$e t$e su&?et property property as t$e BaalingMoreno "u&di(ision #it$ t$e National
su&lots o-prising t$e said su&di(ision to onsu--ate t$e original and a&iding design to de(elop a lo#ost residential o--unity. IN )040 "C ase ase #$erein Nenita #as a&le to reo(er possession of t$e property.
In )00*! petitioner @ose @uan +ong &oug$t fro- Nelita Baaling t$e su&?et lots. The said sale 'as e)ected after *acalin( had re&urchased the subject &ro&ert+ fro, the o.ern,ent Ser.ice Insurance S+ste, /SIS0
Petitioner Ton( /to(ether 'ith *acalin(0 1led a &etition for cancellation of the certi1cates of land transfer a(ainst res&ondents 'ith the De&art,ent of A(rarian Refor, /DAR0 Re(ion 2I O3ce in Iloilo Cit+ The DAR% ho'e.er% dis,issed the &etition on the (round that there had been no le(iti,ate con.ersion of the classi1cation of the !!4 sub-lots fro, a(ricultural to residential &rior to October 5!% !"#5 'hen O&eration Land Transfer under PD No #5 too6 e)ect
ISS7E8 9N t$e respondent are agriultural lessee
+$e re'uisites in order to $a(e a (alid agriultural lease$old relations$ip are: 3)5 +$e parties are t$e lando#ner and t$e tenant or agriultural lesseeD 375 +$e su&?et -atter of t$e relations$ip is agriultural landD 3%5 +$ere is onsent &et#een t$e parties to t$e relations$ipD 35 t$e purpose of t$e relations$ip is to &ring a&out agriultural produtionD 315 +$ere is personal ulti(ation on t$e part of t$e tenant or agriultural lesseeD and 3F5 +$e $ar(est is s$ared &et#een t$e lando#ner and t$e tenant or agriultural lessee. 9e 1nd that the 1rst% third and si:th re;uisites are lac6in( in the case at bar One le(al conclusion adduced fro, the facts in o.ern,ent Ser.ice Insurance S+ste, . Court of A&&eal &ro.ides that SIS% not *acalin(% 'as the o'ner of the subject &ro&erties fro, !"
Althou(h the con1r,ation onl+ ca,e in !"#>% the o'nershi& is dee,ed to ha.e been .ested to SIS 'a+ bac6 in !"residential> or >su&di(ision> &y t$e National Ur&an ,lanning Co--ission 3NU,C5. +$e Bureau of Lands appro(ed t$e orresponding su&di(ision plan for purposes of de(eloping t$e said property into a lo#ost residential o--unity #$i$ t$e spouses referred to as t$e Baaling Moreno "u&di(ision. In !">#% a real estate loan a,ountin( to P<44%44444 'as (ranted to the s&ouses *acalin( b+ SIS for the de.elo&,ent of the subdi.ision. +o seure t$e repay-ent of t$e loan! t$e Baalings eHeuted in fa(or of t$e G"I" a real estate -ortgage o(er t$eir parels of land inluding t$e one $undred ten 3))*5 su&lots. +$e Baalings failed to pay t$e a-orti;ations on t$e loan and onse'uently t$e -ortgage onstituted on t$e one $undred ten 3))*5 su&lots #as forelosed &y t$e G"I". After a ourt ase t$at rea$ed all t$e #ay to t$e "C !Nelita Baaling 3&y t$en a #ido#5 in )040 #as e(entually a&le to restore to $erself o#ners$ip of t$e one $undred ten 3))*5 su&lots. Aording to t$e ,etitioners 3Baaling and @ose @an +ong5 ! in )027! respondents Muya and ot$erpersons! landestinely entered and oupied t$e entire su&lots and gra&&ed eHlusi(ely for t$e-sel(es t$e said lots. Apparently! respondents too/ ad(antage of t$e pro&le-ati peae and order situation at t$e onset of -artial la# and t$e forelosure of t$e lots &y G"I". +$ey so#ed t$e lots as if t$e sa-e #ere t$eir o#n! and altered t$e roads! drainage! &oundaries and -onu-ents esta&lis$ed t$ereon. Respondents! on t$e ot$er $and! lai- t$at in )0F t$ey #ere legally instituted &y Baaling8s ad-inistrator9o(erseer as tenant tillers of t$e su&?et parels of land. In )02! t$eir relations$ip #it$
t$e lando#ner #as $anged to one of lease$old. +$ey religiously deli(ered t$eir rental pay-ents to Baaling as agriultural lessor. In )04*! t$ey seured ertiates of land transfer in t$eir na-es for t$e one $undred ten 3))*5 su&lots. +$ey $a(e -ade (arious pay-ents to t$e Land Ban/ of t$e ,$ilippines as a-orti;ing o#ners ulti(ators of t$eir respeti(e tillage. In )022! $o#e(er! t$e City Counil of Iloilo enated =oning 6rdinane No. 7)7 delaring t$e one $undred ten 3))*5 su&lots as >residential> and >non agriultural.> In )024! Nelita Baaling #as a&le to register t$e su&?et property as t$e BaalingMoreno "u&di(ision #it$ t$e National
% the o'nershi& is dee,ed to ha.e been .ested to SIS 'a+ bac6 in !"
+$e respondents argue t$at G"I" annot &e onsidered as t$e o#ner of t$e said properties fro- )0F) up to )040 inas-u$ as t$e forelosure proeedings t$at started in )012 only attained nality during its pro-ulgation &y t$is Court in )040. Respondents ontend t$at G"I" #as t$e o#ner of t$e said parels of land only fro- )040.
e disagree. +$e pendeny of t$e G"I" ase annot &e onstrued as a -aintenane of status 'uo #it$ Baaling as t$e o#ner fro- )012 up to )040 for t$e reason t$at #$at #as appealed to t$is Court #as only t$e issue of rede-ption! and not t$e (alidity of t$e forelosure proeedings inluding t$e pu&li aution sale! t$e onr-ation of t$e pu&li aution sale and t$e onr-ation and transfer of o#ners$ip of t$e forelosed parels of land to G"I". +$e o#ners$ip of G"I" o(er t$e su&?et parels of land #as not disputed. It #as t$e eHistene of t$e rig$t to redee- in a ?udiial forelosure t$at #as t$e su&?et of t$e ontro(ersy. e ruled t$at t$ere #as no longer any rig$t of rede-ption in a ?udiial forelosure proeeding after t$e onr-ation of t$e pu&li aution. 6nly forelosures of -ortgages in fa(or of &an/ing institutions and t$ose -ade eHtra?udiially are su&?et to legal rede-ption. "ine G"I" is not a &an/ing institution and t$e proedure of t$e forelosure is not eHtra?udiial in nature! no rig$t of rede-ption eHists after t$e ?udiial onr-ation of t$e pu&li aution sale of t$e said lots.