PHILIPPINE NATIONAL BANK vs.

THE HONORABLE COURT OF APPEALS, PRAGMACIO VITUG AND MAXIMO VITUG

G.R. No. L-57757 Augus !", "#$7
Po%&%&' GANCA(CO, J.:
N)u*& o+ ,& )-.o%' Petition to review on certiorari of the decision of the Court of Appeals in CA-G.R. No. 60903 which is
an action for reconveyance and daa!es.
Do-*.%&' "he presuption #of con$u!ality of properties% applies to property ac&uired durin! the lifetie of the hus'and and
wife. (n this case) it appears on the face of the title that the properties were ac&uired 'y *onata +onteayor when she was
already a widow. ,hen the property is re!istered in the nae of a spouse only and there is no showin! as to when the
property was ac&uired 'y said spouse) this is an indication that the property 'elon!s e-clusively to said spouse. And this
presuption under Article .60 of the Civil Code cannot prevail when the title is in the nae of only one spouse and the ri!hts
of innocent third parties are involved.
F)-s'
.. *onata +onteayor) throu!h her son) /alvador +. 0itu!) ort!a!ed to the PN1 several parcels of land to
!uarantee the loan !ranted 'y the PN1 to /alvador 2arailla and Pedro 1acani in the aount of P30)900.00 which
was duly re!istered in the 4ffice of the Re!ister of *eeds of Papan!a.
5. *onata also ort!a!ed in favor of PN1 certain properties covered 'y "C" Nos. 5667 and 5666-Papan!a to
!uarantee the payent of the loan account of her son /alvador 0itu! in the aount of P38)500.00) which ort!a!e
was duly re!istered in the Re!ister of *eeds of Papan!a.
3. "he a'ove-entioned "C"s coverin! said properties were all in the nae of *onata) of le!al a!e) 9ilipino) widow
and a resident of :u'ao) Papan!a at the tie they were ort!a!ed to PN1 and were free fro all hens and
encu'rances.
3. /alvador 0itu! failed to pay his account so the 'an; foreclosed the ort!a!ed properties covered 'y "C" Nos.
5667 and 5666. "hey were sold at pu'lic auction on +ay 50) .966 in which the PN1 was the hi!hest 'idder. "he
titles thereto were thereafter consolidated in the nae of PN1.
8. :i;ewise) /alvador 2arailla and Pedro 1acani failed to settle their accounts with the PN1 so the latter foreclosed
the properties covered 'y "C" No. 5669 which were sold at pu'lic auction and li;ewise PN1 was the 'uyer thereof.
4n Au!ust 30) .966) a certificate of sale was issued 'y the Re!ister of *eeds coverin! said properties in favor of
the PN1. ,hen the title of the PN1 was consolidated a new title was issued in its nae.
6. PN1 sold the properties covered 'y "C" Nos. 5667 and 5666 < Papan!a to 2esus +. 0itu!) Anunciacion 0. de
Gu=an) Prudencia 0. 9a$ardo) /alvador 0itu! and Aurora 0. Gutierre= in those naes the correspondin! titles
were issued.
7. *urin! the lifetie of Clodualdo 0itu! he arried two ties. >is first wife was Gervacia 9lores with who he had 3
children) naely) 0ictor) :ucina and 2ulio all surnaed 0itu!. 0ictor now dead is survived 'y his 8 children?
:eonardo) 2uan) Candida 9rancisco and *onaciano) an surnaed 0itu!. 2uan 0itu! is also dead and is survived 'y
his only dau!hter 9lorencia 0itu!.
6. "he second wife of Clodualdo 0itu! was *onata +onteayor with who he had 6 children) naely) Pra!acio)
+a-io) 2esus) /alvador) Prudencio and Anunciacion) all surnaed 0itu!) the late @nri&ue 0itu! represented 'y his
wife Natalia :a&uian) and the late 9rancisco 0itu! who is survived 'y .. children) naely) Antonio) 9rancisco)
Aurora) Pedro) >onorio) Cora=on) Anselo) 1eni!no) @li!io 2esus and :u=.
9. Clodualdo 0itu! died intestate on +ay 50) .959 so his estate was settled and distri'uted in /pecial Proceedin! No.
355 in the Court of 9irst (nstance of Papan!a wherein *onata +onteayor was the Adinistratri-.
.0. +eanwhile) on +ay .5).986) *onata e-ecuted a contract of lease of :ot No. 53) which is covered 'y "C" No. 5667-
R in favor of her children Pra!acio and +a-io 'oth surnaed 0itu!. "his lease was e-tended on Au!ust 3.)
.963. 1y virtue of a !eneral power of attorney e-ecuted 'y *onata +onteayor on /ept. .9) .966 in favor of
Pra!acio 0itu!) the latter e-ecuted a contract of lease on /ept. .9) .967 of the said lot in favor of +a-io 0itu!.
... Pra!acio 0itu! and +a-io 0itu! filed an action for partition and reconveyance with daa!es in the Court of 9irst
(nstance of Papan!a a!ainst +arcelo +endiola) special adinistrator of the intestate estate of *onata
+onteayor who died earlier) 2esus 0itu!) /r.) /alvador) Natalia) Prudencia) Anunciacion) all surnaed 0itu!)
Antonio) 9rancisco) Aurora) Pedro) >onorio) Cora=on) Anselo) 1eni!no) @li!io 2esus and :u=) all surnaed
9a$ardo and the PN1.
.5. "he su'$ect of the action is 30 parcels of land which they clai to 'e the con$u!al property of the spouses *onata
+onteayor and Clodualdo 0itu! of which they clai a share of 5A.. of .A5 thereof. "hey assailed the ort!a!e to
the PN1 and the pu'lic auction of the properties as null and void. "hey invo;ed the case of 0itu! vs. +onteayor)
:-8597 decided 'y this Court on 4ct. 50) .983 which is an action for partition and li&uidation of the said 30 parcels
of land wherein the properties were found to 'e con$u!al in nature.
13. "he /o0&* -ou* 1.s2.ss&1 ,& -o23/).% 0., -oss )g).%s ,& 3/).%.++s and ordered the to pay attorneyBs
fees of P8)000.00 to the defendantBs counsel.
.3. Plaintiffs then interposed an appeal to the Court of Appeals) wherein in due course a decision was rendered on +ay
50) .96.) the dispositive part of which reads as follows? ,>@R@94R@) in the li!ht of the fore!oin!) the decision
appealed fro is here'y reversed and set aside) and another one entered in accordance with the tenor of the prayer
of appellantBs coplaint with the odification that the sale at pu'lic auction of the 55 parcels 'e considered valid
with respect to the .A5 thereof. No costs.
.8. >ence the herein petition for certiorari filed 'y the PN1.
Issu&' Do&s ,& 3*&su23.o% o+ -o%4ug)/.5 o+ 3*o3&*.&s )-6u.*&1 75 ,& s3ous&s 1u*.%g -o8&*u*& 3*o8.1&1 +o* .%
A*.-/& "9: o+ ,& C.8./ Co1& )33/5 o 3*o3&*5 -o8&*&1 75 ) To**&%s -&*.+.-)& o+ ./& .% ,& %)2& o+ ,& 0.1o0;
H&/1' No<
"he petition is ipressed with erit.
.. ,hen the su'$ect properties were ort!a!ed to the PN1 they were re!istered in the nae of *onata +onteayor)
widow. Relyin! on the torrens certificate of title coverin! said properties the ort!a!e loan applications of *onata
were !ranted 'y the PN1 and the ort!a!es were duly constituted and re!istered in the office of the Re!ister of
*eeds.
5. (n processin! the loan applications of *onata +onteayor) the PN1 had the ri!ht to rely on what appears in the
certificates of title and no ore. 4n its face the properties are owned 'y *onata +onteayor) a widow. "he PN1
had no reason to dou't nor &uestion the status of said re!istered owner and her ownership thereof. (ndeed) there
are no liens and encu'rances coverin! the sae.
3. "he well-;nown rule in this $urisdiction is that a person dealin! with a re!istered land has a ri!ht to rely upon the
face of the torrens certificate of title and to dispense with the need of in&uirin! further) e-cept when the party
concerned has actual ;nowled!e of facts and circustances that would ipel a reasona'ly cautious an a;e
such in&uiry.
4. A torrens title concludes all controversy over ownership of the land covered 'y a final de!ree of re!istration. 4nce
the title is re!istered the owner ay rest assured without the necessity of steppin! into the portals of the court or
sittin! in the mirador de su casa to avoid the possi'ility of losin! his land.
5. A*.-/& "9: o+ ,& C.8./ Co1& provides as follows? Art. .60. All property of the arria!e is presued to 'elon! to
the con$u!al partnership) unless it 'e proved that it pertains e-clusively to the hus'and or to the wife.
9. T,& 3*&su23.o% )33/.&s o 3*o3&*5 )-6u.*&1 1u*.%g ,& /.+&.2& o+ ,& ,us7)%1 )%1 0.+&. I% ,.s -)s&, .
)33&)*s o% ,& +)-& o+ ,& ./& ,) ,& 3*o3&*.&s 0&*& )-6u.*&1 75 Do%)) Mo%&2)5o* 0,&% s,& 0)s
)/*&)15 ) 0.1o0. =,&% ,& 3*o3&*5 .s *&g.s&*&1 .% ,& %)2& o+ ) s3ous& o%/5 )%1 ,&*& .s %o s,o0.%g )s
o 0,&% ,& 3*o3&*5 0)s )-6u.*&1 75 s).1 s3ous&, ,.s .s )% .%1.-).o% ,) ,& 3*o3&*5 7&/o%gs
&>-/us.8&/5 o s).1 s3ous&. A%1 ,.s 3*&su23.o% u%1&* A*.-/& "9: o+ ,& C.8./ Co1& -)%%o 3*&8)./ 0,&%
,& ./& .s .% ,& %)2& o+ o%/5 o%& s3ous& )%1 ,& *.g,s o+ .%%o-&% ,.*1 3)*.&s )*& .%8o/8&1.
7. Pra!acio and +a-io 0itu! are now estopped fro &uestionin! the title of *onata +onteayor to the said
properties. "hey never raised the con$u!al nature of the property nor too; issue as to the ownership of their other)
*onata +onteayor) over the sae. "hey were in possession of the property for a lon! tie and they ;new that the
sae were ort!a!ed 'y their other to the PN1 and thereafter were sold at pu'lic auction) 'ut they did not do
anythin!. (t is only after .7 years that they ree'ered to assert their ri!hts. Certainly) they are !uilty of laches.
6. +oreover) as correctly held 'y the lower court. Pra!acio and +a-io 0itu! as occupants and lessees of the
property in &uestion cannot now dispute the ownership of their other over the sae who was their lessor.
=HEREFORE, ,& su74&- 1&-.s.o% o+ ,& *&s3o%1&% Cou* o+ A33&)/s .s ,&*&75 REVERSED )%1 s& )s.1& )%1
)%o,&* 1&-.s.o% .s ,&*&75 *&%1&*&1 DISMISSING ,& -o23/).% )%1 o*1&*.%g 3*.8)& *&s3o%1&%s o 3)5 )o2&5?s
+&&s )%1 &>3&%s&s o+ /..g).o% o 3&..o%&* PNB .% ,& )2ou% o+ P@:,:::.:: )%1 ,& -oss o+ ,& su..
SO ORDERED.