SECOND DIVISION
G.R. No. 196476, September 28, 2020
DEVELOPMENT BANK OF THE PHILIPPINES, PETITIONER, V. HEIRS OF JULIETA L. DANICO, NAMELY, ROGELIO L. DANICO, CORAZON D. EMETERIO, NENITA D. YBAÑEZ, RODRIGO L. DANICO, DANILO L. DANICO, DANIEL L. DANICO, GLORIA ESCRUPULO, VILMA MOSQUEDA, AND NATIONAL POWER CORPORATION, RESPONDENTS.
D E C I S I O N
HERNANDO, J.:
Challenged in this Petition1 is the December 2, 2010 Decision2 of the Court of Appeals (CA) in CA-G.R. CV No. 78619 which affirmed in toto the Regional Trial Court's (RTC) January 2, 2003 Decision3 which: (a) declared the extrajudicial foreclosure of the property covered by Transfer Certificate of Title (TCT) No. T-81274 and its subsequent consolidation under TCT No. T-19241 in the name of the Development Bank of the Philippines (DBP) as valid and legal; (b) directed the DBP to accept the total amount of P301,350.50 as full payment for Julieta and Daniel Danico's (Spouses Danico) loan obligation; and (c) declared the National Power Corporation (NPC) as without any liability.
I, DANIEL DANICO, x x x married to JULIETA LUBOS DANICO, x x x for and in consideration of the sum of FIVE HUNDRED ELEVEN THOUSAND TWO HUNDRED NINETY PESOS ONLY (P511,290.00), x x x, do hereby SELL, TRANSFER AND CONVEY unto the said NATIONAL POWER CORPORATION, x x x that certain parcel of land x x x with TCT No. T- P-1439 x x xOn the other hand, the Deed of Absolute Sale of a Portion of Registered Land12 states that Lot No. 857-B covered by TCT No. T-3278 was sold by the Spouses Danico to NPC in the total amount of P242,644.50 provided that: ChanRoblesVirtualawlibrary
x x x x
That pursuant to the Statement of Account and Certification issued by the DEVELOPMENT BANK OF THE PHILIPPINES, x x x the herein aforementioned parcel of land is presently mortgaged at said bank at a total amount of P393,353.97, account as of December 31, 1985, that the consideration of the sale shall be that the remaining amount of the proceeds of the sale of the above-mentioned lot after paying the herein tenants and the Realty Taxe[s] and Capital Gain[s] Tax to the concerned parties, whatever amount left be paid and issued in separate check to the herein DEVELOPMENT BANK. OF THE PHILIPPINES;11
I, DANIEL DANICO, x x x married to JULIETA LUBOS DANICO, x x x for and in consideration of the sum of TWO HUNDRED FOURTY TWO THOUSAND SIX HUNDRED FOURTY FOUR PESOS & 50/100 ONLY (P242,644.50), Philippine Currency, x x x do hereby SELL, TRANSFER AND CONVEY unto the said NATIONAL POWER CORPORATION, x x x that certain parcel of land x x x with TCT No. T-3278 x x xDBP agreed to the sale of the two lots to NPC on the condition that a portion of the proceeds would be applied to the Spouses Danico's outstanding obligation with DBP. However, NPC paid DBP only the total amount of P92,003.4714 from the proceeds of the sale of a portion of land covered by TCT No. T-3278 as per Official Receipt No. 2205487 dated November 17, 1986.15 NPC did not remit to DBP the amount P301,350.50 from the proceeds of the sale of the land covered by OCT No. P-1439.16
x x x x
That pursuant to the Statement of Account and Certification issued by the DEVELOPMENT BANK OF THE PHILIPPINES, x x x the herein aforementioned parcel of land is presently mortgaged at said bank at a total cost of P509,320.82, account as of April 30, 1985, that the consideration of the sale shall be that the remaining amount unpaid after the proceeds of another parcel of land had been applied to the said mortgaged loan to the herein bank and consumated (sic) out of the proceeds of the aforementioned parcel of land herein conveyed, and same shall be issued in separate check in favor of the herein bank;13
1. That the amount of ONE, HUNDRED EIGHTEEN THOUSAND TWENTY ONE & 20/100 PESOS (P118,021.20) previously paid by the Vendee to the Vendor prior to the execution of the contract of conditional sale, shall constitute the downpayment on this contract and the balance of THREE HUNDRED SEVENTY THREE THOUSAND FIVE HUNDRED SEVENTY EIGHT & 70/100 (P 373,578.70) shall be paid within a period of one (1) year/s on the annual amortization plan with interest at the rate of twenty-one per centum (21%) per annum. The first amortization shall be due on September 30, 1986 in the amount of FOUR HUNDRED FIFTY TWO THOUSAND THIRTY & 35/100 PESOS (P452,030.35) which includes principal and interest;On February 24, 1987, NPC requested DBP to release the copy of OCT No. P-1439 (now TCT No. T-21793 in the name of NPC).19 It reasoned that Disbursement Voucher No. P4-2-0-85-11-344920 dated November 12, 1986 in the amount of P301,350.50 had already been issued by NPC to DBP in payment for the sale of the land covered by OCT No. P-1439. However, payment to DBP was put on hold pending compliance with the requirement of the Commission on Audit.21
2. That the interest and expenses with interest thereon accruing from September 30, 1985 up to the date of execution of the sale document shall be paid by the Vendee (applicable to sales to former owners);18 (Emphasis supplied)
On March 1, 2001, the RTC issued an Order29 holding in abeyance the trial of the case pending the tender of payment by NPC to DBP of the amount of P301,350.50.
- That [Spouses Danico] obtained an agricultural loan from defendant DBP in the amount of P150,000.00 x x x secured by a real estate mortgage on four (4) titled properties, three (3) of which were agricultural lands and one (1) was a residential land and a chattel mortgage over a tractor.
- That [NPC] and [Spouses Danico] entered into a contract of sale over two (2) agricultural lands as aforementioned and it was agreed that the proceeds thereof will be used to pay [Daniel's] loan with the x x x DBP.
- That [DBP] maintained that [it only received] the sum of P92,003.47 out of the total proceeds of the sale x x x. Hence, the rest of the amours: has to be accounted for. However, [NPC] is willing to pay the amount of P301,350.00 for which it has already prepared a check which has become stale because it was never given to the DBP and that neither DBP took it from the [NPC].
- At the lime of the execution of the contract of sale over the two (2) agricultural lands the total pending account of the [Spouses Danico] with the x x x DBP was in the amount of P509,520.82 as of April 30, 1985, which x x x defendant NAPOCOR was ready to pay the amount of P301,350.00.
- That Annex B to the complaint is a statement of account admittedly sent by defendant DBP to the [Spouses Danico] showing a balance only of P393,353.90 inclusive of interest as of tine date of the statement of account x x x.
- That x x x Annex B to the complaint x x x refers to the account as of December 31, 1985; that the residential house at that time was already foreclosed by the DBP on August 6, 1982, now consolidated on September 12, 1983 under [DBP'S] name.
- That x x x the other collateral covered by OCT No. P-1439, TCT No. T- 3278 and TCT No. T-537 (sic) and one unit Massey Fergusson agricultural tractor with trailer harrow and accessories remained unforeclosed up to the present time.
- That the said three (3) unforeclosed real properties were all tenanted and presently covered by the Land Reform Program under PD No. 27 on July 12, 1982 as Annex D to the answer.
- That on November 15, 1984 x x x Julieta x x x requested for statement of account of the two (2) unforeclosed real estate property covered by TCT No. T-3278 and OCT No. P-1439 which she alleged [have already been] paid by [NPC] and that according to her she will obtain a DAR clearance for that purpose.
- That according to defendant DBP the total loan account of the foreclosed property as of April 30,1985 amounted to P509,520.82 x x x
- That the amount of P301,350.00 was not yet paid by defendant [NPC] to defendant DBP although the corresponding check voucher has already been prepared by [NPC] x x x.28
1. Is respondent NPC liable to pay the total amount of P902,674,79?; and
2. Is respondent NPC liable to pay interest and penalty charges?
The Mortgagor shall not sell, dispose of, mortgage, nor in any manner encumber the mortgage property without the written consent of the Mortgagee. If in spite of this stipulation the property is sold, the Vendee shall assume the mortgage in the terms and conditions under which it is constituted it being understood that the assumption by the Vendee shall not release the Vendor of his obligation to the Mortgagee; on the contrary, both Vendor and Vendee shall be jointly and severally liable for said mortgage obligation. In case a second mortgage of other involuntary encumbrance is constituted, the second Mortgagee or junior encumbrances shall recognize the existing mortgage in favor of the Mortgagee as first lien and shall further agree, promise and bind himself to recognize and consider the extension of any term of said mortgage by the Mortgagee in favor of the Mortgagor or a new mortgage covering the same property to be executed by said Mortgagor in favor of the Mortgages as first and superior encumbrance.38DBP further argues that since NPC and the Spouses Danico failed to comply with the two Deeds of Sale by delivering the proceeds of the sale and applying the same on their loan accounts, DBP's consent to the Deeds of Sale is deemed not to have been given which renders the above-quoted provision instantly applicable to the present case. As a result, both NPC as vendee, and the Spouses Danico as vendors, shall be jointly and severally liable for the mortgage obligation including interests and penalty charges for default payment.
Deed of Conditional Sale dated October 10, 1985According to the DBP, the amount indicated in the Statement of Account as of December 31, 1985 refers to the loan obligation of the Spouses Danico under the Deed of Conditional Sale or the CMR agricultural loan to repurchase TCT No. T-8127 (now TCT No. T-19241). The deed of sale further stipulates that after paying the tenants, real property tax and capital gains tax, the remaining amount from the proceeds of the sale, that is, P511,290.00, shall be remitted to DBP in payment for the Spouses Danico's obligation as per the Statement of Account as of December 31, 1985. The first deed of sale also mentioned that the balance of the proceeds of the sale of Lot No. 861 which is covered by OCT No. P-1439 shall be applied to the remaining balance of Daniel Danico's loan secured by his other parcel of land, that is, a portion of Lot No. 857 covered by TCT No. T-3278, which is likewise purchased and acquired by respondent NPC. The first deed of sale provides, thus: ChanRoblesVirtualawlibrary
1. That the amount of ONE HUNDRED EIGHTEEN THOUSAND TWENTY ONE & 20/100 PESOS (P118,021.20) previously paid by the Vendee to the Vendor prior to the execution of the contract of conditional sale, shall constitute the downpayment on this contract and the balance of THREE HUNDRED SEVENTY THREE THOUSAND FIVE HUNDRED SEVENTY EIGHT (P373,578.70) shall be paid within a period of one (1) year/s on the annual amortization plan with interest at the rate of twenty-one per centum (21%) per annum. The first amortization shall be due on September 30, 1986 FOUR HUNDRED TWO THOUSAND THIRTY & 35/100 PESOS (P52,030.35) which includes principal and interest;42 [Emphasis supplied.]
Statement of Account as of December 31, 1985
x x x x
UNMATURED
Principal portion........................ P373,578.80Interest on unmatured principal 19,775.17 P393.353.9743
That pursuant to the Statement of Account and Certification issued by the DEVELOPMENT BANK OF THE PHILIPPINES, Malaybalay Branch, Malaybalay, Bukidnon, a copy of which is hereto attached to form part and integral hereof, the herein aforementioned parcel of land is presently mortgaged at said bank at a total amount of P393,353.97, account as of December 31, 1985, that the consideration of the sale shall be that the remaining amount of the proceeds of the sale of the above-mentioned lot after paying the herein tenants and the Realty Taxes (sic) and Capital Gain Tax to the concerned parties, whatever amount left be paid and issued in separate cheek to the herein DEVELOPMENT BANK OF THE PHILIPPINES;On the other hand, the second deed of sale provides that as of April 30, 1985, Lot No. 857 is presently mortgaged to petitioner DBP for P509,320.82. It further provides that the balance of the proceeds in the first deed of sale shall be applied to this mortgage loan as per Statement of Account as of April 30, 1985, that is, P509,320.82. Any remaining unpaid amount shall be paid out of the proceeds of the sale of a portion of Lot No. 857, that is, P242,644.50. Thus, the second deed of sale provides that: ChanRoblesVirtualawlibrary
That the herein Vendee, DANIEL DANICO, agrees and hereby agree that the remaining balance of his mortgaged loan/mortgaged amount to DBP, be also deducted and applied on his other parcel of land, identified as Lot No. 857, Pls-9, covered by TCT No. T-3278, which said particular parcel of land is also to be affected, acquired and purchased by NATIONAL POWER CORPORATION for its RESERVOIR AREA, for its Pulangi IV-HE Project at Maramag, Bukidnon;44 [Emphasis supplied.]
That pursuant to the Statement of Account and Certification issued by the DEVELOPMENT BANK OF THE PHILIPPINES, Malaybalay Branch, Malaybalay, Bukidnon, a copy of which is hereto attached to form part and integral hereof, the herein aforementioned parcel of land is presently mortgaged at said bank at a total cost of P509,320.82, account as of April 30, 1985, that the consideration of the sale shall be that whatever be the remaining amount unpaid after the proceeds of another parcel of land had been applied to the said mortgaged loan to the herein bank, the remaining amount unpaid shall all be fully paid and consumated (sic) out of the proceeds of the aforementioned parcel of land herein conveyed, and same shall be issued in separate check in favor of the herein bank;In fine, the NPC and the Spouses Danico entered into two deeds of sale and stipulated that of the two Statements of Account, the Statement of Account as of December 31, 1985 pertained to the first deed of sale while the Statement of Account as of April 30, 1985 pertained to the second deed of sale. Contrary to the ruling of the CA, the two deeds of sale are clear and unambiguous as to the existence of the two statements of account. In fact, both the Spouses Danico and the NPC adhered and agreed to the terms, conditions and stipulations embodied in the two deeds of sale knowing fully well the existence of the two statements of account.
That the other parcel of land owned by the herein named Vendor is also affected by the NATIONAL POWER CORPORATION'S Reservoir Area, and same is acquired and purchased by the herein corporation, that the proceeds of the sale of said land had been applied to the loan/mortgaged amount of the Vendor to the herein DEVELOPMENT BANK OF THE PHILIPPINES, identified as Lot No. 861, Pls-9, with a total area of 113,620 square meters fully acquired and purchased by the NATIONAL POWER CORPORATION;45 [Emphasis supplied.]
The remaining amount of P301,350.50 is the amount to be delivered to DBP as payment for the obligation of the Spouses Danico in the total amount of P393,353.97 pursuant to the Statement of Account as of December 31, 1985. This amount of P301,350.50 had already been consigned by respondent NPC with the RTC Clerk of Court, Branch 9, Malaybalay City per the June 28, 2001 Order of the RTC.
Sale Consideration of Lot No. 861 P 511,290.00(OCT No. P-1439) Less: a) Daniel Danico (Capital Gain Tax, Documentary Stamp Tax and Certification Fee) P 96,319.50b) Various Heirs of V. Lubos P 100,000.00c) Clodualdo Emeterio - Tenant P 13,620.00TOTAL P 301,350.50
First Deed of SaleUnder the deeds of sale, the proceeds of the sale shall be applied to the outstanding loan obligation of the Spouses Danico. However, NPC cannot be held liable in case the proceeds of the sale of the subject properties are insufficient to satisfy the total loan obligation of Spouses Danico.
I, DANIEL DANICO, x x x married to JULIETA LUBOS DANICO, x x x for and in consideration of the sum of FIVE HUNDRED ELEVEN THOUSAND TWO HUNDRED NINETY PESOS ONLY (P511,290.00), Philippine Currency, x x x do hereby SELL, TRANSFER AND CONVEY unto the said NATIONAL POWER CORPORATION, x x x that certain parcel of land belonging to me x x x with TCT No. P-1439 (sic) x x x48 [Emphasis supplied.]
Second Deed of Sale
I, DANIEL DANICO, x x x married to JULIETA LUBOS DANICO, x x x for and in consideration of the sum of TWO HUNDRED FOURTY TWO THOUSAND SIX HUNDRED FOURTY FOUR PESOS & 50/100 ONLY (P242,644.50), x x x do hereby SELL, TRANSFER AND CONVEY unto the said NATIONAL POWER CORPORATION, x x x that certain parcel of land x x x with TCT No. T-3278 x x x49 [Emphasis supplied.]
First Deed of SaleNowhere is it stated in the said deeds of sale that respondent NPC assumed the total obligation of the Spouses Danico. Hence, based on the foregoing, respondent NPC is liable to pay DBP only the following amounts: (a) P301,350.50 out of the proceeds of the first deed of sale in the fulfillment of the obligation of the Spouses Danico in the total amount of P393,353.97 as per Statement of Account as of December 31, 1985; and (b) P150,641.03 out of the proceeds of the second deed of sale in the fulfillment of the Spouses Danico's obligation in the total amount of P509,320.82 as per Statement of Account as of April 30, 1985.
That the herein DEVELOPMENT BANK OF THE PHILIPPINES, x x x shall signify its conformity in this Deed of Absolute Sale of Registered Land and hereby consents to the annotation of this instrument in the said TCT No. P-1439, and shall also conform and consent to the issuance of a new TCT in the name of the NATIONAL POWER CORPORATION upon full payment of the purchase price;50 [Emphasis supplied.]
Second Deed of Sale
That the herein DEVELOPMENT BANK OF THE PHILIPPINES, x x x shall signify its conformity in this Deed of Absolute Sale of a Portion of Registered Land and hereby consent to the annotation of this instrument in the said TCT No. T-3278; upon full payment of the purchase price;51 [Emphasis supplied.]
The Mortgagor shall not sell, dispose of, mortgage, nor in any manner encumber the mortgage property without the written consent of the Mortgagee. If in spite of this stipulation the property is sold, the Vendee shall assume the mortgage in the terms and conditions under which it is constituted it being understood that the assumption by the Vendee shall not release the Vendor of his obligation to the Mortgagee; on the contrary, both Vendor and Vendee shall be jointly and severally liable for said mortgage obligation. In case a second mortgage of other involuntary encumbrance is constituted, the second Mortgagee or junior encumbrances shall recognize the existing mortgage in favor of the Mortgagee as first lien and shall further agree, promise and bind himself to recognize and consider the extension of any term of said mortgage by the Mortgagee in favor of the Mortgagor or a new mortgage covering the same property to be executed by said Mortgagor in favor of the Mortgagee as first and superior encumbrance.53 [Emphasis supplied.]Moreover, the two deeds of sale contain no provision that NPC expressly assumed the loan obligation of the Spouses Danico. As correctly ruled by the CA: ChanRoblesVirtualawlibrary
Also, We agree with the OSG that DBP could neither claim interest from NPC by reason of the provision/stipulation in the mortgage instrument between the spouses Danico and DBP that the vendee and vendor shall be jointly and severally liable for the said mortgage obligations including payment of interest because said provision applies only when the mortgagor conveys or encumbers the mortgaged properties without the written consent of the mortgagee, which circumstance is not obtaining in the instant case since DBP signified its consent to the sale of the two mortgaged properties.54As to DBP's claim for interest by reason of NPC's delay in the payment of the purchase price of the two deeds of sale, We hold that the interest accrues only from the time judicial or extrajudicial demand is made.55 However, a thorough review of the records would reveal that petitioner DBP failed to make any extrajudicial demand for the payment of the purchase of price of the two deeds of sale. Again, as correctly observed by the appellate court: ChanRoblesVirtualawlibrary
Moreover, DBP can neither claim interest by reason of delayed payment, since it failed to present evidence that it made any extrajudicial demand upon NPC for the payment of the principal amount and interest prior to the tender of payment of the balance of P301,350.50 by NPC. Verily, the DBP Certifications dated 24 February 1987 and 22 June 1999 cannot, in any way, be construed as demand letters as said certifications did not demand that NPC should pay the remaining balance but merely acknowledged that it has not yet received the balance of P310,350.50 (sic). Also, DBP's letters to NPC's Regional Manager dated 4 December 1997 and 25 March 1999 did not demand for payment, rather, said letters merely asked for "clarification" on the transactions regarding the sale of the parcels of land covered by OCT No. P-1439 and TCT No. T-3278.56 [Emphasis supplied.]Although petitioner DBP judicially demanded payment through its Answer with Counterclaim and Crossclaim, the consequent tender of payment and consignation on June 28, 2001 by NPC in the total amount of P301,350.50 suspends the accrual of interest as to the payment of the purchase price of the first deed of sale. Nonetheless, NPC is liable to pay compensatory interest of twelve percent (12%) per annum from the time of its judicial demand, i.e. the filing of its Answer with Counterclaim and Crossclaim on July 13, 1999 until the date of its consignment of P301,350.50 on June 28, 2001.
Thus, from the foregoing, in the absence of an express stipulation as to the rate of interest that would govern the parties, the rate of legal interest for loans or forbearance of any money, goods or credits and the rate allowed in judgments shall no longer be twelve percent (12%) per annum — as reflected in the case of Eastern Shipping Lines and Subsection X305.1 of the Manual of Regulations for Banks and Sections 4305Q.1, 4305S.3 and 4303P.1 of the Manual of Regulations for Non-Bank Financial Institutions, before its amendment by BSP-MB Circular No. 799 — but will now be six percent (6%) per annum effective July 1, 2013. It should be noted, nonetheless, that the new rate could only be applied prospectively and not retroactively. Consequently, the twelve percent (12%) per annum legal interest shall apply only until June 30, 2013. Come July 1, 2013 the new rate of six percent (6%) per annum shall be the prevailing rate of interest when applicable.Thus, NPC shall be liable to pay DBP: (a) compensatory interest of twelve percent (12%) per annum on P301,350.50 from the time of DBP's judicial demand on July 13, 1999 until the date of NPC's consignment of P301,350.50 on June 28, 2001; (b) compensatory interest of twelve percent (12%) per annum on P150,641.03 from the time of DBP's judicial demand on July 13, 1999 until June 30, 2013 and six percent (6%) interest per annum from July 1, 2013 until the judgment becomes final; (c) six percent (6%) interest per annum on the total judgment award including interest from the time of finality of this Decision until its full satisfaction.
x x x
II. With regard particularly to an award of interest in the concept of actual and compensatory damages, the rate of interest, as well as the accrual thereof, is imposed, as follows: ChanRoblesVirtualawlibrary1. When the obligation is breached, and it consists in the payment of a sum of money, i.e., a loan or forbearance of money, the interest due should be that which may have been stipulated in writing. Furthermore, the interest due shall itself earn legal interest from the time it is judicially demanded. In the absence of stipulation, the rate of interest shall be 6% per annum to be computed from default, i.e., front judicial or extrajudicial demand under and subject to the provisions of Article 1169 of the Civil Code.
x x x x
3. When the judgment of the court awarding a sum of money becomes final and executory, the rate of legal interest, whether the case falls under paragraph 1 or paragraph 2, above, shall be 6% per annum from such finality until its satisfaction, this interim period being deemed to be by then an equivalent to a forbearance of credit.59 [Emphasis and underscoring supplied.]
Endnotes:
1Rollo, pp. 9-29.
2 CA rollo, pp. 150-167; penned by Associate Justice Angelita A. Gacutan and concurred in by Associate Justices Edgardo A. Camello and Rodrigo F. Lim, Jr.
3 Records, pp. 234-245; penned by Judge Rolando S. Venadas, Sr.
4 Also mentioned as T-8147 in some parts of the records.
5 Also mentioned as TCT No. T-537 in some parts of the records.
6Records, p. 197.
7 Id.
8 Id. at 198.
9 Id. at 20.
10 Id. at 183-184.
11 Id.
12 Id. at 185-186.
13 Id.
14 Alternatively mentioned as P93,003.97 in some parts of the records.
15 Records, p. 190.
16 Id. at 188.
17 Id. at 216-220.
18 Id. at 216.
19 Id. at 193.
20 Id. at 192.
21 Id. at 193.
22 Id. at 194.
23 Id. at 1-8.
24 Id. at 240.
25 Id. at 37-43.
26 Id. at 62-65.
27 Id. at 105.
28 Id. at 127-128.
29 Id. at 130.
30 Id. at 143-144.
31 Id. at 146.
32 Id. at 234-245.
33 Id. at 249-251.
34 CA rollo, pp. 145-147.
35 Id. at 150-167.
36 Id., unpaginated.
37 P393,353.97 + P509,320.827.
38 Records, p. 44.
39 Id. at 183-184.
40 Id. at 185-186.
41 P373,578.80 + P19,775.17 (interest on unmatured principal) = P393,353.97
42 Records, p. 216.
43 Id. at 187.
44 Id. at 184.
45 Id. at 186.
46Buce v. Court of Appeals, 387 Phil. 897, 905 (2000).
47 Records, p. 191.
48 Id. at 183.
49 Id. at 185.
50 Id. at 184.
51 Id. at 186.
52Philippine National Bank v. Heirs of Spouses Monday, 191 Phil. 152, 165-166 (2016) citing Siga-an v. Villanueva, 596 Phil. 760 (2009).
53 Records, p. 44.
54 CA rollo, p. 164.
55 CIVIL CODE, Article 1169.
56 CA rollo, p. 165.
57 304 Phil. 236 (1994).
58 716 Phil. 267 (2013).
59 Id. at 281-283.chanRoblesvirtualLawlibrary