City Mayor v. Rizal Commercial Banking Corporation
REITERATIONFacts
The Antecedents: Spouses Roberto and Monette Naval obtained a loan from Rizal Commercial Banking Corporation (RCBC), secured by a real estate mortgage over properties covered by TCT Nos. N-167986, N-167987, and N-167988. This mortgage was foreclosed in 1998, and RCBC emerged as the highest bidder at the subsequent auction sale. Certificates of Sale were issued to RCBC on August 4, 1998, but were allegedly registered much later, on February 10, 2004. In the interim, on May 30, 2003, the City Treasurer of Quezon City conducted an auction sale for tax-delinquent properties, which included the same properties mortgaged by the Navals. Alvin Emerson S. Yu was the highest bidder for these tax-delinquent properties and received a Certificate of Sale of Delinquent Property. Procedural History: Following the registration of Yu's Certificate of Sale of Delinquent Property on February 10, 2004, RCBC attempted to redeem the properties by tendering payment for the assessed tax delinquencies, interest, and costs on June 10, 2004. The City Treasurer refused to accept this tender. RCBC then filed a petition with the City Treasurer for acceptance of payment and issuance of a certificate of redemption, which was also denied. Consequently, RCBC filed a Petition for Mandamus with Prayer for Issuance of a Temporary Restraining Order and a Writ of Preliminary Injunction before the Regional Trial Court (RTC) of Quezon City. The RTC initially denied the petition, opining that RCBC's reliance on Section 78 of P.D. No. 464 was misplaced due to its repeal by R.A. No. 7160. However, upon motion for reconsideration, the RTC reversed its decision on December 6, 2005, granting the petition and ordering the City Treasurer to accept RCBC's redemption payment and issue a certificate of redemption. The Petition: This case is a petition for review on certiorari filed by the City Mayor, City Treasurer, and City Assessor of Quezon City, along with Alvin Emerson S. Yu, assailing the RTC's December 6, 2005 Decision. The petitioners argue that the RTC erred in ruling that Section 78 of P.D. No. 464 was not repealed by R.A. No. 7160 and in concluding that the redemption period should be reckoned from the date of registration of the certificate of sale. They contend that R.A. No. 7160, specifically Section 261, mandates that the one-year redemption period should be counted from the date of sale. Furthermore, petitioners argue that the RTC improperly considered Section 14(a), Paragraph 7 of the Quezon City Revenue Code of 1993, as this provision was not initially raised in the petition. The core of the petition is that the RTC's interpretation of the redemption period's commencement, particularly its reconciliation of R.A. No. 7160 and the Quezon City Ordinance, is contrary to law and jurisprudence.
Issue(s)
Whether Presidential Decree No. 464 (Real Property Tax Code) was repealed by Republic Act No. 7160 (Local Government Code of 1991). Whether the one (1) year redemption period for tax delinquent properties sold at public auction should be reckoned from the date of sale or the date of registration/annotation of the certificate of sale. Whether the RTC erred in considering Quezon City Ordinance No. SP-91, S-93, which was not initially pleaded by the respondent. Whether the respondent timely exercised its right to redeem the subject properties.
Ruling
The petition is DENIED. The Decision of the RTC is AFFIRMED.
Ratio Decidendi
On the repeal of P.D. No. 464 by R.A. No. 7160: The Court reiterated that R.A. No. 7160, the Local Government Code of 1991, expressly repealed P.D. No. 464, the Real Property Tax Code. The repealing clause of R.A. No. 7160, specifically Section 534(c), clearly lists P.D. No. 464 among the laws repealed, demonstrating a clear legislative intent for R.A. No. 7160 to supersede P.D. No. 464. Therefore, for sales of tax delinquent properties conducted after January 1, 1992, R.A. No. 7160 is the controlling law. On the reckoning of the redemption period: The Court clarified that while Section 261 of R.A. No. 7160 provides that the redemption period is "one (1) year from the date of sale," this general provision must be harmonized with special laws or ordinances. In this case, Quezon City Ordinance No. SP-91, S-93 (Quezon City Revenue Code of 1993) specifically provides in Section 14(a), Paragraph 7, that the redemption period is "one (1) year from the date of the annotation of the sale of the property at the proper registry." Following the principle that a special law or ordinance prevails over a general law on the same subject, and in line with the policy to favor the owner's right to redeem, the Court held that the redemption period should be counted from the date of annotation of the sale. On the RTC's consideration of Quezon City Ordinance No. SP-91, S-93: The Court found no error in the RTC's consideration of the Quezon City Revenue Code. While the respondent initially did not explicitly cite this ordinance in its petition, it brought the provision to the attention of the petitioners in its Memorandum and reiterated its applicability in its motion for reconsideration. The petitioners were given ample opportunity to counter these allegations. Furthermore, the Court noted that petitioners could not feign ignorance of a law they promulgated and were invoking its adherence in conducting the auction sale. Thus, the respondent was not precluded from invoking the ordinance, and the RTC did not err in considering it to reconcile the provisions of the general law and the special ordinance. On the timeliness of the redemption: Applying the harmonized interpretation, the Court found that RCBC's tender of payment on June 10, 2004, was well within the one-year redemption period, which commenced on February 10, 2004 (the date of registration/annotation of the certificate of sale). Therefore, the petitioners' refusal to accept the tender of payment was a manifest error. The Court emphasized that the policy of the law is to aid, rather than defeat, the owner's right to redeem, and thus, redemption laws are to be construed liberally.
Main Doctrine
The one-year redemption period for tax delinquent properties sold at public auction, under the Quezon City Revenue Code of 1993, is reckoned from the date of the annotation of the sale in the proper registry, harmonizing with the policy to favor the owner's right to redeem.