Ligon vs.

CA

(G.R. No. 107751, June 1, 1995)

Iglesia ni Kristo (INK) filed a Complaint for Specific Performance with Damages against
Facts: Islamic Directorate of the Philippines (IDP).
INK alleged that IDP sold to them 2 parcels of land, and that IDP undertook to evict all
squatters and illegal occupants.
IDP failed to fulfill its obligation, hence INK prayed the issuance of an Order by the RTC
compelling IDP to evict the illegal occupants.
RTC ruled in favor of INK.
- Leticia Ligon was in possession of the Certificates of Title as a mortgagee of IDP.
- INK therefore filed a motion to compel Ligon to surrender the documents for them to be
able to register the Deed of Sale in their name.
Ligon opposed and questioned the jurisdiction of the trial court because she was not made a
party to the main case.
RTC granted INK’s motion and ordered Ligon to surrender the documents to INK.
- Ligon sought reconsideration. The court granted, now ordering her to surrender it to the
Register of Deeds in Quezon instead.
CA affirmed the decision of the RTC.
WON the lower courts erred in holding that INK has a superior right to the possession of the owner's
Issues: copies of the certificates of title

Ruling: No. INK has a superior right to the possession of the documents.

Under our land registration law, no voluntary instrument shall be registered by the Register of
Deeds unless the owner's duplicate certificate is presented together with such instrument, except
in some cases or upon order of the court for cause shown. In case the person in possession of the
duplicate certificates refuses or fails to surrender the same to the Register of Deeds so that a
voluntary document may be registered and a new certificate issued, Sec. 107, Chapter 10, of
P.D. No. 1529 clearly states:

Sec. 107. Surrender of withheld duplicate certificates. — Where it is necessary to issue a new certificate
of title pursuant to any involuntary instrument which divests the title of the registered owner against his
consent or where a voluntary instrument cannot be registered by reason of the refusal or failure of the
holder to surrender the owner's duplicate certificate of title, the party in interest may file a petition in
court to compel surrender of the same to the Register of Deeds.
In the case at bar, when the sale of the property was upheld by the court in its judgment, and the
defendant was directed to comply with its terms and conditions, the right of INK to have the same
registered with the Register of Deeds could not be disregarded. To assert and enjoy its right,
INK should be allowed to seek the aid of the court to direct the surrender of the certificates
of title

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NOT PART OF THE TOPIC ALREADY BUT JUST IN CASE LANG:

As to the rights of Ligon as a mortgagee,

Art. 2126 of the Civil Code subjects the property, upon which it is imposed, whoever the
possessor may be, to the fulfillment of the obligation for whose security it was constituted. It is
inseparable from the property mortgaged as it is a right in rem or a lien on the property whoever
its owner may be. The lien subsists notwithstanding a change in ownership; in short, the
personality of the owner is disregarded.

In the case at bar, when the sale of the property was upheld by the court in its judgment and the
defendant was directed to comply with its terms and conditions, the right of INK to have the same
registered with the Register of Deeds could not be disregarded. To assert and enjoy its right, INK
should be allowed to seek the aid of the court to direct the surrender of the certificates of title.

The order of the trial court directing the surrender of the certificates to the Register of Deeds
in order that the deed of sale in favor of INK can be registered, cannot in any way prejudice
Ligon’s rights and interests as a mortgagee of the lots because any lien annotated on the
previous certificates of title which subsists should be incorporated in or carried over to the
new transfer certificates of title.

Thus, all subsequent purchasers must respect the mortgage whether the transfer to them be with
or without the consent of the mortgagee, for such mortgage until discharged follows the property.
It is clear therefore that the surrender by petitioner of the certificates of title to the Register of
Deeds as ordered by the trial court will not create any substantial injustice to her