Edu vs Gomez

G.R. No. L-33397 June 22, 1984

RELOVA, J.

FACTS:
The 1968 model Volkswagen, bantam car, allegedly owned by Lt. Walter A. Bala under whose name it was
originally registered, was reported to the Office of the Commission on Land Transportation as stolen on June 29,
1970 from the residence of Lt. Bala. Upon receipt of such information the agents of Anti-Carnapping Unit
(ANCAR) of the Philippine Constabulary, on detail with the Land Transportation Commission recognized subject
car on 2 February 1971 in the possession of LUCILA ABELLO and immediately seized and impounded the car as
stolen property.

Romeo F. Edu, then Commissioner of Land Transportation, seized the car pursuant to Section 60 of Republic Act
4136 which empowers him to seize the motor vehicle for delinquent registration aside from his implicit power
deducible from Sec. 4(5), Sec. 5 and 31 of said Code, "to seize motor vehicles fraudulently or otherwise not properly
registered.”

Lucia Abello filed a complaint for replevin with damages in the Court of First Instance of Manila. CFI ruled in facor
of ABELLO. CFI found that the car was acquired by ABELLO by purchase from its registered owner Marcelino
Guansing for P9,000 and that she has been in possession thereof since then until when the car was seized from her
by ANCAR who acted in belief that the car was stolen from Lt. Bala.

ISSUE:
Whether or not the seizure of the car by the officials are valid.

RULING:
NO.
There is no merit in the petition considering that the acquirer or the purchaser in good faith of a chattel of movable
property is entitled to be respected and protected in his possession as if he were the true owner thereof until a
competent court rules otherwise. In the meantime, as the true owner, the possessor in good faith cannot be
compelled to surrender possession nor to be required to institute an action for the recovery of the chattel, whether or
not an indemnity bond is issued in his favor. The filing of an information charging that the chattel was illegally
obtained through estafa from its true owner by the transferor of the bona fide possessor does not warrant disturbing
the possession of the chattel against the will of the possessor.

Finally, the claim of petitioners that the Commission has the right to seize and impound the car under Section 60 of
Republic Act 4136 which reads:

Sec. 60. The lien upon motor vehicles. Any balance of fees for registration, re-registration or
delinquent registration of a motor vehicle, remaining unpaid and all fines imposed upon any
vehicle owner, shall constitute a first lien upon the motor vehicle concerned.

is untenable. it is clear from the provision of said Section 60 of Republic Act 4136 that the Commissioner's right to
seize and impound subject property is only good for the proper enforcement of lien upon motor vehicles. The Land
Transportation Commission may issue a warrant of constructive or actual distraint against motor vehicle for
collection of unpaid fees for registration, re-registration or delinquent registration of vehicles.