Manuel v. Philippine National Bank
REITERATIONFacts
The Antecedents: Plaintiff Fernando Manuel was the registered owner of a homestead. In 1937, he mortgaged the land to the Philippine National Bank (PNB) as security for a loan. Upon failure to pay, the mortgage was foreclosed extrajudicially under Act No. 3135, and the land was sold at public auction on September 8, 1941, with PNB as the buyer. The provincial sheriff issued a certificate of sale, which was recorded on September 13, 1941. Plaintiff failed to exercise his right to redeem the land within the one-year period provided by Act No. 3135, which expired on September 9, 1942. A final deed of sale was issued by the sheriff and recorded on September 2, 1950, and a corresponding certificate of title was issued to PNB. The land was subsequently sold by PNB to Roberto Avena, and then by Avena to Lucia L. Babaran, who obtained a transfer certificate of title on September 4, 1950. Procedural History: In October 1954, plaintiff offered to repurchase the land under Section 119 of the Public Land Law, depositing the redemption money in court and filing an action against PNB and subsequent buyers to compel reconveyance. The defendants asserted that the plaintiff's right to redeem had expired. The lower court upheld this defense and dismissed the complaint. The Petition: Plaintiff appealed the dismissal directly to the Supreme Court, raising purely legal questions regarding the computation of the redemption period.
Issue(s)
Whether the five-year redemption period under Section 119 of the Public Land Law should be counted from the date of the auction sale or from the date of the sheriff's final deed of sale in cases of extrajudicial foreclosure of a homestead. Whether the plaintiff's attempt to repurchase the land was timely.
Ruling
The Supreme Court affirmed the decision of the lower court, dismissing the complaint. The Court ruled that the plaintiff's attempt to exercise his right of redemption was too late.
Ratio Decidendi
On whether the five-year redemption period under Section 119 of the Public Land Law should be counted from the date of the auction sale or from the date of the sheriff's final deed of sale: The Court held that the five-year redemption period under Section 119 of the Public Land Law should be counted from the date of the sale, not from the date of the sheriff's final deed of sale, in cases of extrajudicial foreclosure. This is consistent with previous rulings in Galanza vs. Nuesa and Leoncio Monge, et al. vs. Lino Angeles, et al.. The Court clarified that while Paras vs. Court of Appeals, et al. mentioned that the five-year period does not begin from the date of the sale when only a provisional certificate is issued, it also accepted the view that the period begins "on the day after the expiration of the period of repurchase" provided for in foreclosure sales. In this case, the plaintiff failed to exercise his one-year redemption right under Act No. 3135, which expired on September 9, 1942. The issuance of the final deed of sale on September 2, 1950, was merely a formality and confirmatory of the title already vested in the purchaser. The Court emphasized that under the Rules of Court, the expiration of the one-year redemption period forecloses the owner's right to redeem, making the sheriff's sale absolute. On whether the plaintiff's attempt to repurchase the land was timely: The Court found that the plaintiff's attempt to repurchase the land in October 1954 was too late. He attempted to exercise his right of redemption approximately thirteen years after the auction sale and twelve years after the expiration of his statutory one-year redemption period under the Rules of Court. This extended period far exceeded the five-year redemption period provided by Section 119 of the Public Land Law, even if counted from the date of the sale. Therefore, the plaintiff had lost his right to repurchase the property.
Main Doctrine
The five-year redemption period under Section 119 of the Public Land Law for a homestead sold as a result of an extrajudicial foreclosure is counted from the date of the sale, not from the date of the sheriff's final deed of sale, especially when the owner fails to exercise the one-year redemption period provided under Act No. 3135.