[ Manila Bulletin Online ] April 29, 2008
By REY G. PANALIGAN
The Supreme Court (SC) has ordered the Cebu provincial government to convey to the heirs of a Cebu City resident the ownership over a 210-square meter lot bought in a public auction in 1965 as it settled a litigation that spanned more than four decades.
In a decision written by Justice Consuelo Ynares Santiago, the SC said that Lot 646-A-3 with Transfer Certificate of Title No. 104310 must be turned over to the heirs of Rufina Morales — Felomina V. Panopio, Nenita Villanueva, Erlinda V. Adriano, and Catalina V. Quesada — and execute the necessary deed in their favor.
Justices Ma. Alicia Austria-Martinez, Renato C. Corona, Antonio Eduardo B. Nachura, and Ruben T. Reyes concurred in the decision.
Case records showed that the 210-square meter lot, part of the Banilad Estate, was leased to Morales in 1961 by the Cebu provincial government.
In 1964, several parcels of land in the Banilad Estate were donated by the Cebu provincial government to Cebu City. The lot leased by Morales was part of the donation.
The Cebu City government, in turn, sold the donated lots, including Morales’ property in a public auction, to raise money for infrastructure projects. Morales won in the auction and paid the required deposit and partial payment for the lot.
The controversy started when the provincial government asked a lower court to rescind the donation. Under a compromise agreement upheld by the court, the donated lots were returned to the province, including the lot bought by Morales in a public auction.
The heirs of Morales filed a reconveyance suit before the trial court after the provincial government ignored their plea to turn over to them the ownership of the property.
While the case was pending, the Morales heirs failed to settle the balance of the price for the lot since they were confused on whom the payment should be tendered.
When the heirs lost in the trial court, they elevated the case to the Court of Appeals (CA) which sustained the sale of the lot to Morales in a public auction. The Cebu provincial government elevated the case to the SC.
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