3. Case Digest (G.R. No.

90639)
Facts:
Concordia Lim obtained a real estate loan from GSIS secured by two parcels of land in Manila.

Lim failed to pay the loan, and the properties were foreclosed and sold at public auction, with GSIS as
the highest bidder.

Titles to the properties were consolidated in favor of GSIS in 1977.

Lim's estate was later allowed to repurchase the properties, and a Deed of Absolute Sale was executed.

City Treasurer of Manila required the estate to pay real estate taxes for the years 1977, 1978, and the
first quarter of 1979 before the titles could be transferred.

The estate paid the amount under protest and requested reimbursement from GSIS and the City
Treasurer, but both refused.

The estate filed a complaint for a refund of the taxes paid under protest.

Issue:
Whether the lower court has jurisdiction over the action for refund of real estate taxes paid under
protest.

Whether the estate has the right to recover the amounts paid.

Whether the estate has the personality to sue.

Ruling:
The lower court has jurisdiction over the action for refund/reimbursement of real estate taxes.

The estate has the right to recover the amounts paid.

The estate has the personality to sue.

Ratio:
The courts have jurisdiction to try cases involving the right to recover sums of money.

Section 64 of the Real Property Tax Code allows the court to entertain a suit assailing the validity of a tax
assessed after the taxpayer has paid under protest.

The issue of the right to recover depends on the validity of the tax imposition. If the imposition is valid
and in accordance with the law, there is no right to recover. However, if the imposition is invalid, the
amounts paid must be refunded.

The tax assessed and collected from the estate is not valid, and a refund by the City government is in
order.

GSIS is exempt from payment of real property tax under its charter, and the tax should be based on the
"actual use" of the property. Therefore, the estate is not entitled to reimbursement from GSIS.
The lower court's ruling that the estate had no personality to sue because the titles to the properties
were transferred to a third person is not sufficiently supported by the evidence.

The City of Manila, City Treasurer, and City Assessor are ordered to refund the amount of real estate
taxes paid under protest to the Testate Estate of Concordia Lim.