EN BANC

[G.R. No. L-47566. July 3, 1942.]

THE DIRECTOR OF LANDS , petitioner, vs . BASILIO ABACHE, ET AL.,

claimants; SANTIAGO IMPERIAL , movant-appellee, vs. LUIS MENESES ,
oppositor-appellant.

Luis Meneses in his own behalf.

Calleja & Sierra for appellee.

SYLLABUS

1. CADASTRAL ACT; ISSUANCE OF TITLE TO NON-CLAIMANTS; NULLITY

AND CANCELLATION OF SUCH TITLE. — In registration proceedings, a cadastral court
has no authority to award a property in favor of persons who have put in no claims to it
and have never asserted any right of ownership thereover, and the certi cate of title
issued under the circumstances to such persons would be declared null and void.
2. ID.; ID.; INNOCENT THIRD PERSONS. — Where, however, innocent third
persons, relying on the correctness of the certi cate of title thus issued, acquire rights
over the property, the court cannot disregard such rights and order the total
cancellation of the certi cate. The effect of such an outright cancellation would be
impair public con dence in the certi cates of title, for everyone dealing with property
registered under the Torrens system would have to inquire in every instance as to
whether the title has been regularly or irregularly issued by the court. And this is
contrary to the evident purpose of the law. (Section 39, Act No. 496.) Every person
dealing with registered land may safely rely on the correctness of the certi cate of title
issued therefor and the law will in no way oblige him to go behind the certi cate to
determine the condition of the property.

DECISION

MORAN , J : p

In a cadastral proceeding in the Court of First Instance of Albay, Lina F. Vda. de

Imperial and Santiago Imperial, mother and son, appeared and claimed lot No. 8305,
the latter asserting ownership and the former her usufructuary right as widow. After
hearing at which Santiago Imperial appeared as the sole witness for the claimants, the
court awarded to them the said property. However, in the written decision subsequently
rendered the lot was awarded in favor of Inocencio, Simeona, David, Constancio,
Salvacion and Solomon, all surnamed Adornado, who had neither presented any claim
nor appeared at the trial, and thereafter, original certi cate of title No. 15150 was
issued in their names. The lot was later mortgaged by the Adornados to Luis Meneses.
Santiago Imperial led a motion asking that said certi cate of title and the lien noted
thereon be declared null and void and that a new certi cate of title be issued in his
favor, her mother having died.
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 Upon the authority of Laureano vs. Stevenson (45 Phil., 252) and the Government
of the Philippines vs. Trino (50 Phil., 763), we a rmed the order on appeal wherein
certi cate of title No. 15150 was declared null and void as well as the lien noted
thereon in favor of Luis Meneses and a new certi cate of title ordered issued in the
name of Santiago Imperial. Luis Meneses moved for reconsideration praying that the
ruling laid down in the two cases above cited be reexamined and abandoned. We
granted the motion and, after a careful deliberation, we have decided to modify the
ruling.
We still hold that, in registration proceedings, a cadastral court has no authority
to award a property in favor of persons who have put in no claims to it and have never
asserted any right of ownership thereover, and the certi cate of title issued under the
circumstances to such persons would be declared null and void. Where, however,
innocent third persons, relying on the correctness of the certi cate of title thus issued,
acquire rights over the property, the court cannot disregard such rights and order the
total cancellation of the certi cate. The effect of such an outright cancellation would be
to impair public con dence in the certi cates of title, for everyone dealing with property
registered under the Torrens System would have to inquire in every instance as to
whether the title has been regularly or irregularly issued by the court. And this is
contrary to the evident purpose of the law. Section 39 of Act No. 496 provides that
every person receiving a certi cate of title in pursuance of a decree of registration, and
every subsequent purchaser of registered land who takes a certi cates of title for value
in good faith, shall hold the same free of all encumbrance except those noted on said
certi cate. We have heretofore emphasized, and do so now, that every person dealing
with registered land may safely rely on the correctness of the certi cate of title issued
therefor and the law will in no way oblige him to go behind the certi cate to determine
the condition of the property.
Modifying the judgment rendered in this case, we declare null and void certi cate
of title No. 15150 issued in favor of the Adornados and order that a new certi cate of
title be issued in favor of Santiago Imperial, but subject to the mortgage lien of Luis
Meneses which appears duly noted in the certi cate to be cancelled. Luis Meneses
may, in a single complaint, sue the Adornados and Santiago Imperial for the collection
of his mortgage credit, the former as primary obligors and the latter as owner of the
property mortgaged without prejudice to any right which Santiago Imperial may have
against the assurance fund. We make no pronouncement as to costs in this instance.
Yulo, C.J., Ozaeta, Paras and Bocobo, JJ., concur.

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