REPUBLIC OF THE PHILIPPINES v.

COURT OF APPEALS, HEIRS OF CARAG

G.R. No. 155450 | August 6, 2008

FACTS:

Timeline

 1930 – CFI Cagayan issued decree in favor of Spouses Carag and heirs for a
land of 7M sqm in Cagayan.
 1938 – Register of Deeds issued OCT
 1952 – 2 TCTs: Province of Cagayan, and Heirs (6.9M sqm)
 1994 – De Dayag wanted decree annulled: CFI had no jurisdiction, and land
was still timber land (portion: 2.6M sqm), which was not alienable under
1935, 1973, 1938 Constitutions
 DENR investigated: land was timber land and only became alienable in 1982;
De Dayag had been in possession of land since time immemorial
 1996 – Director of Lands ordered cancellation of OCT
 1998 – DENR filed for cancellation in CA
 2001 – CA dismissed the complaint:
-annulment could only be based on either extrinsic fraud or lack of jurisdiction,
both were absent
-issues raised were factual in nature and should be raised in trial court

Issues:
1. Whether or not the land was agricultural or timber land
2. Whether or not, the land titles should be cancelled

Ruling:

1. Agricultural, and therefore alienable.

 When the trial court issued the decision for the issuance of Decree No. 381928
in 1930, the trial court had jurisdiction to determine whether the subject
property, including the disputed portion, applied for was agricultural, timber
or mineral land. The trial court determined that the land was agricultural and
that spouses Carag proved that they were entitled to the decree and a
certificate of title. The government, which was a party in the original
proceedings in the trial court as required by law, did not appeal the decision of
the trial court declaring the subject land as agricultural. Since the trial court
had jurisdiction over the subject matter of the action, its decision rendered in
1930, or 78 years ago, is now final and beyond review.
2. No:
Even as the 1935 Constitution declared that all agricultural, timber and mineral
lands of the public domain belong to the State, it recognized that these lands were
“subject to any existing right, grant, lease or concession at the time of the
inauguration of the Government established under this Constitution.