Sunday, July 8, 2012

Manotok v. Barque, Part III : The August 24, 2010 En Banc Decision


Part I of this four-part series is a summary of the December 12, 2005 decision of the Supreme Court 1st Division denying the Manotoks’ consolidated petitions and sustaining the order for the cancellation of the their title without a direct proceeding before the RTC and for the reconstitution of the Barques’ title.

Part II, on the other hand, is a summary of the December 18, 2008 en banc resolution that reversed the decision of the 1st Division and remanded the petitions to the CA for further proceedings.

In this entry, we will look at the summary of the Court’s August 24, 2010 en banc decision that (1) DENIED that the Manotoks’ petitions, the Manahans’ petition-in-intervention, and the Barques’ petition for reconstitution; (2) declared NULL AND VOID TCT No. RT-22481 (372302) in the name of Severino Manotok IV, et al., TCT No. 210177 in the name of Homer L. Barque, and Deed of Conveyance No. V-200022 issued to Felicitas B. Manahan; (3) ordered The Register of Deeds of Caloocan City and/or Quezon City to CANCEL the said titles; and (4) DECLARED that the subject Lot 823 of the Piedad Estate, Quezon City, legally belongs to the NATIONAL GOVERNMENT OF THE REPUBLIC OF THE PHILIPPINES, without prejudice to the institution of REVERSION proceedings by the State through the Office of the Solicitor General. We will also look at the dissenting opinions of the minority.


The intervening facts

After the promulgation of the December 12, 2005 decision, the Manotoks filed several motions for reconsideration with the 1st Division but these were all DENIED by the Court. The decision of the 1st Division was later entered in the Book of Entries of Judgment. But when the Barques moved for the execution of the decision, the Manotoks sought the referral of the motion to the Court en banc, which the Court en banc accepted on July 26, 2006. 


Meanwhile, the Manahans sought to intervene in the case, alleging that their predecessor-in-interest, Vicente Manahan, was issued Sales Certificate No. 511 covering the subject lot.

On December 18, 2008, the Court promulgated an en banc resolution that SET ASIDE the decision and resolutions of the 1st Division and RECALLED the entry of judgment. Voting 8-6 with 1 abstention, the Court REVERSED the decisions and resolutions of the CA and the LRA, and REMANDED the cases to the CA for further proceedings to determine the validity of the Manotoks’ title.

In due time, the CA received evidence with primary focus on whether the Manotoks can trace their claim of title to a valid alienation by the Government of Lot No. 823 of the Piedad Estate, which was a Friar Land. The Barques and Manahans were likewise allowed to present evidence on their respective claims that may have an impact on the correct determination of the status of the Manotok title.

The CA then submitted to the SC a Commissioner’s Report that served as basis for Court’s August 24, 2010 en banc decision.

How the court en banc voted

The Court voted 9-5 with 1 abstention. Justice Villarama, Jr. wrote the opinion for the Court. Concurring with him were Chief Justice Corona, and Justices Leonardo-De Castro, Peralta, Bersamin, Del Castillo, Abad, Perez, and Mendoza.

Justice Carpio, with whom Justices Velasco, Jr., and Brion concurred, wrote a dissenting opinion. Justice Carpio Morales wrote a concurring and dissenting opinion. Justice Sereno likewise dissented and reserved the right to issue a separate opinion. Justice Nachura did not take part.

The issue

The “core issue” identified and resolved by the Court was: Does the absence of approval of the Secretary of the Interior/Agriculture and Natural Resources in Sale Certificate No. 1054 and Deed of Conveyance No. 29204 in favor of the Manotoks warrant the annulment of their title?

The Court’s ruling

The Court ruled in the AFFIRMATIVE and held that the absence of approval of the Secretary of the Interior/Agriculture and Natural Resources in Sale Certificate No. 1054 and Deed of Conveyance No. 29204 in favor of the Manotoks’ predecessor-in-interest warrants the annulment of the Manotok title.

The ponencia of Justice Villarama

Justice Villarama cited as the central legal basis of the Court’s ruling Section 18 of Act No. 1120, which provides: SECTION 18.  No lease or sale made by Chief of the Bureau of Public Lands under the provisions of this Act shall be valid until approved by the Secretary of the Interior.” He then explained:

It is clear from the foregoing provision that the sale of friar lands shall be valid only if approved by the Secretary of the Interior (later the Secretary of Agriculture and Commerce). . . [T]he approval by the Secretary of Agriculture and Commerce is indispensable for the validity of the sale of friar lands. xxx.

            xxx                   xxx                   xxx

[T]he absence of approval by the Secretary of Agriculture and Commerce in the sale certificate and assignment of sale certificate made the sale null and void ab initio.  Necessarily, there can be no valid titles issued on the basis of such sale or assignment. The Manotoks’ reliance on the presumption of regularity in the statutorily prescribed transmittal by the Bureau of Lands to the Register of Deeds of their deed of conveyance is untenable. In our Resolution denying the motion for reconsideration filed by petitioners in Alonso v. Cebu Country Club, Inc., we underscored the mandatory requirement in Section 18, as follows:
Section 18 of Act No. 1120 or the Friar Lands Act unequivocally provides: “No lease or sale made by the Chief of the Bureau of Public Lands (now the Director of Lands) under the provisions of this Act shall be valid until approved by the Secretary of the Interior (now, the Secretary of Natural Resources).”  Thus, petitioners’ claim of ownership must fail in the absence of positive evidence showing the approval of the Secretary of Interior. Approval of the Secretary of the Interior cannot simply be presumed or inferred from certain acts since the law is explicit in its mandate.  This is the settled rule as enunciated in Solid State Multi-Products Corporation vs. Court of Appeals and reiterated in Liao vs. Court of Appeals.  Petitioners have not offered any cogent reason that would justify a deviation from this rule.

                        xxx                   xxx                   xxx

In the light of the foregoing, we hold that the Manotoks could not have acquired ownership of the subject lot as they had no valid certificate of sale issued to them by the Government in the first place. Sale Certificate No. 1054 dated March 10, 1919 (Exh. 10) purportedly on file with the DENR-LMB, conspicuously lacks the signature of the Director of Lands and the Secretary of Agriculture and Natural Resources.  In fact, Exh. 10 was not included among those official documents submitted by the OSG to the CA.  We underscore anew that friar lands can be alienated only upon proper compliance with the requirements of Sections 11, 12 and 18 of Act No. 1120.  It was thus primordial for the Manotoks to prove their acquisition of its title by clear and convincing evidence.  This they failed to do.  Accordingly, this Court has no alternative but to declare the Manotok title null and void ab initio, and Lot 823 of the Piedad Estate as still part of the Government's patrimonial property, as recommended by the CA.

The decades-long occupation by the Manotoks of Lot 823, their payment of real property taxes and construction of buildings, are of no moment.  It must be noted that the Manotoks miserably failed to prove the existence of the title allegedly issued in the name of Severino Manotok after the latter had paid in full the purchase price.  The Manotoks did not offer any explanation as to why the only copy of TCT No. 22813 was torn in half and no record of documents leading to its issuance can be found in the registry of deeds.  As to the certification issued by the Register of Deeds of Caloocan, it simply described the copy presented (Exh. 5-A) as “DILAPIDATED” without stating if the original copy of TCT No. 22813 actually existed in their records, nor any information on the year of issuance and name of registered owner.  While TCT No. 22813 was mentioned in certain documents such as the deed of donation executed in 1946 by Severino Manotok in favor of his children and the first tax declaration (Exh. 26), these do not stand as secondary evidence of an alleged transfer from OCT No. 614.  This hiatus in the evidence of the Manotoks further cast doubts on the veracity of their claim.

As we stressed in Alonso:
Neither may the rewards of prescription be successfully invoked by respondent, as it is an iron-clad dictum that prescription can never lie against the Government. Since respondent failed to present the paper trail of the property's conversion to private property, the lengthy possession and occupation of the disputed land by respondent cannot be counted in its favor, as the subject property being a friar land, remained part of the patrimonial property of the Government.  Possession of patrimonial property of the Government, whether spanning decades or centuries, can not ipso facto ripen into ownership.  Moreover, the rule that statutes of limitation do not run against the State, unless therein expressly provided, is founded on the “the great principle of public policy, applicable to all governments alike, which forbids that the public interests should be prejudiced by the negligence of the officers or agents to whose care they are confided.” (Emphasis supplied.)

xxx                   xxx                   xxx

Considering that none of the parties has established a valid acquisition under the provisions of Act No. 1120, as amended, we therefore adopt the recommendation of the CA declaring the Manotok title as null and void ab initio, and Lot 823 of the Piedad Estate as still part of the patrimonial property of the Government.

The dissent of Justice Carpio

Justice Carpio dissented from the majority opinion insofar as it declared that the absence of approval by the Secretary of the Interior/Agriculture and Natural Resources of Sale Certificate No. 1054 and Deed of Conveyance No. 29204 warrants the annulment of the Manotoks’ title.

On the majority’s reliance on §18 of Act No. 1120, which provides that “[n]o lease or sale made by Chief of the Bureau of Public Lands under the provisions of this Act shall be valid until approved by the Secretary of the Interior,” Justice Carpio noted:

Under Section 18, any sale of friar land by the Chief of the Bureau of Public Lands (now Director of Lands) shall not be valid until approved by the Secretary. This means that the Secretary, under Section 18, approves the sale and thus signs the Deed of Conveyance upon full payment of the purchase price.  However, under Section 12 of Act No. 1120, the Director of Lands signs the Sales Certificate upon payment of the first instalment. xxx.

xxx                   xxx                   xxx

Under Section 12, it is only the Director of Land who signs the Sales Certificate.  The Sales Certificate operates as a contract to sell which, under the law, the Director of Lands is authorized to sign and thus bind the Government as seller of the friar land. This transaction is a sale of private property because friar lands are patrimonial properties of the Government.  In short, the law expressly authorizes the Director of Lands to sell private or patrimonial property of Government under a contract to sell.  On the other hand, under Section 18, the Secretary signs the Deed of Conveyance because the Secretary must approve the sale made initially by the Director of Lands. The Deed of Conveyance operates as a deed of absolute sale which the Secretary signs upon full payment of the purchase price. The Deed of Conveyance, when presented, is authority for the Register of Deeds to issue a new title to the buyer as provided in Section 122 of the Land Registration Act.

On the citation by the majority of the ruling in Alonso v. Cebu Country Club, Inc. and other cases, which held that the approval of the Secretary of Agriculture and Commerce is indispensable for the validity of the sale of friar lands, Justice Carpio disagreed and held:

T]he ruling in Alonso was superseded with the issuance by then Department of Environment and Natural Resources (DENR) Secretary Michael T. Defensor of DENR Memorandum Order No. 16-05, which provides:

WHEREAS, it appears that there are uncertainties in the title of the land disposed by the Government under Act 1120 or the Friar Lands Act due to the lack of the signature of the Secretary on the Deeds of Conveyance;

WHEREAS, said Deeds of Conveyance were only issued by the then Bureau of Lands (now the Land Management Bureau) after full payment had been made by the applicants thereon subject to the approval of the Secretary of the then Department of Interior, then Department of Agriculture and Natural Resources and presently, the Department of Environment and Natural Resources, in accordance with Act 1120;

WHEREAS, some of these Deeds of Conveyance on record in the field offices of the Department and the Land Management Bureau do not bear the signature of the Secretary despite full payment by the friar land applicant as can be gleaned in the Friar Lands Registry Book;

WHEREAS, it is only a ministerial duty on the part of the Secretary to sign the Deed of Conveyance once the applicant had already made full payment on the purchase price of the land;

WHEREFORE, for and in consideration of the above premises, and in order to remove all clouds of doubt regarding the validity of these instruments, it is hereby declared that all Deeds of Conveyance that do not bear the signature of the Secretary are deemed signed or otherwise ratified by this Memorandum Order provided, however, that full payment of the purchase price of the land and compliance with all the other requirements for the issuance of the Deed of Conveyance under Act 1120 have been accomplished by the applicant;

This Memorandum Order, however, does not modify, alter or otherwise affect any subsequent assignments, transfers and/or transactions made by the applicant or his successors-in-interest or any rights arising therefrom after the issuance of a Transfer Certificate of Title by the concerned Registry of Deeds. (Italicization and boldfacing supplied)

Despite the issuance of DENR Memorandum Order No. 16-05, the majority still hold that the memorandum order does not apply to the Manotoks' title. The majority assert that the Manotoks could not benefit from DENR Memorandum Order No. 16-05 because the memorandum order refers only to deeds of conveyance on file with the records of DENR “field offices.”

I find the majority's limited application of DENR Memorandum Order No. 16-05 erroneous.

While the third WHEREAS clause of  DENR Memorandum Order No. 16-05 refers to Deeds of Conveyance on record in the “field offices” of the DENR, the dispositive portion categorically states that “all Deeds of Conveyance that do not bear the signature of the Secretary are deemed signed or otherwise ratified” by the Memorandum Order.  The word “all” means everything, without exception.  DENR Memorandum Order No. 16-05 should apply to all Deeds of Conveyance, as declared in its dispositive portion, and should not be limited to those on file in DENR “field offices.” Clearly, as expressly stated in Section 20 of Executive Order No. 192, all DENR Regional Offices, including the Regional Office in NCR, are “field offices” of the DENR.


Quezon City, where the land in question is situated, is under DENR's NCR “field office.”  In 1919, when the Government sold the subject friar land to the Manotoks' predecessors-in-interest, the land was part of the province of Rizal, which also has a “field office.”  Indisputably, DENR Memorandum Order No. 16-05 applies to all Deeds of Conveyance of friar lands anywhere in the Philippines without exception.  Thus, conveyances of land within the NCR, including the conveyance to the Manotoks, are covered by  DENR Memorandum Order No. 16-05.

The first WHEREAS clause clearly states that what DENR Memorandum Order No. 16-05 seeks to cure are the “uncertainties in the title of the land disposed by the Government under Act 1120 or the Friar Lands Act due to the lack of signature of the Secretary on the Deeds of Conveyance.” If we apply DENR Memorandum Order No. 16-05 only to Deeds of Conveyance on record in the “field offices” outside of NCR, the purpose of the issuance of  DENR Memorandum Order No. 16-05  will not be fully accomplished.

xxx                   xxx                   xxx

The total area of friar lands in NCR, specifically in Muntinlupa, Piedad, San Francisco de Malabon, Santa Cruz de Malabon, and Tala is 86,567.50 acres or 35,032.624 hectares. If DENR Memorandum Order No. 16-05 will not be applied to these areas, the Court will be disquieting the titles held by generations of landowners since the passage in 1904 of Act No. 1120. Thousands, if not hundreds of thousands, of landowners could be dispossessed of their lands in these areas.

Justice Carpio held that Manotoks became owners of the subject land upon their full payment of the purchase price to the Government on 7 December 1932.  Upon such full payment, the Manotoks had the right to demand conveyance of the land and issuance of the corresponding title to them. He continued:

Thus, the Court has held that in cases of sale of friar lands, the only recognized resolutory condition is non-payment of the full purchase price. Pursuant to Section 12 of Act No. 1120, “upon payment of the last installment together with all accrued interest[,] the Government will convey to [the] settler and occupant the said land so held by him by proper instrument of conveyance, which shall be issued and become effective in the manner provided in section one hundred and twenty-two of the Land Registration Act.”  Once it is shown that the full purchase price had been paid, the issuance of the proper certificate of conveyance necessarily follows. There is nothing more that is required to be done as the title already passes to the purchaser.


The Court has ruled that equitable and beneficial title to the friar land passes to the purchaser from the time the first installment is paid and a certificate of sale is issued.  When the purchaser finally pays the final installment on the purchase price and is given a deed of conveyance and a certificate of title, the title, at least in equity, retroacts to the time he first occupied the land, paid the first installment and was issued the corresponding certificate of sale.  The sequence then is that a certificate of sale is issued upon payment of the first installment.  Upon payment of the final installment, the deed of conveyance is issued.

It is the Deed of Conveyance that must bear the signature of the Secretary of Interior/Agriculture because it is only when the final installment is paid that the Secretary can approve the sale, the purchase price having been fully paid. This is why DENR Memorandum Order No. 16-05 refers only to the Deed of Conveyance, and not to the Sale Certificate, as the document that is “deemed signed” by the Secretary.  In short, Section 18 of Act No. 1120 which states that “(n)o xxx sale xxx shall be valid until approved by the Secretary of Interior” refers to the approval by the Secretary of the Deed of Conveyance. 

DENR Memorandum Order No. 16-05 expressly acknowledges that “it is only a ministerial duty on the part of the Secretary to sign the Deed of Conveyance once the applicant had already made full payment on the purchase price of the land.” The majority expressly admit in their Reply to the Dissenting Opinion that Memorandum Order No. 16-05:
x x x correctly stated that it is only a ministerial duty on the part of the Secretary to sign the Deed of Conveyance once the applicant had made full payment on the purchase price of the land.  Jurisprudence teaches us that notwithstanding the failure of the government to issue the proper instrument of conveyance when the purchaser finally pays the final installment of the purchase price, the purchaser of friar land still acquired ownership over the subject land. (Italicization supplied)

xxx                   xxx                   xxx

To repeat, Deed of Conveyance No. 29204 expressly and unequivocally acknowledged that Severino Manotok had fully paid the purchase price to the Government.  Since the majority expressly admit that upon full payment of the purchase price it becomes the ministerial duty of the Secretary to approve the sale, then the majority must also necessarily admit that the approval of the Secretary is a mere formality that has been complied with by the issuance of Memorandum Order No. 16-05.  Since the majority further expressly admit that upon  full payment of the purchase price ownership of the friar land passes to the purchaser, despite the failure of the Secretary to sign the Deed of Conveyance, then the majority must also necessarily admit that the Manotoks became the absolute owners of the land upon their full payment of the purchase price on 7 December 1932.  

xxx                   xxx                   xxx

Indisputably, upon full payment of the purchase price, full and absolute ownership passes to the purchaser of friar land.  In the case of the Manotoks’ title, the Deed of Conveyance was issued except that it lacked the signature of the Secretary which the majority erroneously hold is still indispensable pursuant to Alonso. However, Alonso should not be applied to the Manotoks' title because DENR Memorandum Order No. 16-05 was not yet issued when the Court decided Alonso. The absence of the Secretary’s signature in the Deed of Conveyance in Alonso was never cured and hence the Court in Alonso voided the Deed of Conveyance. Besides, in Alonso the corresponding Torrens title was never issued even after a lapse of 66 years from the date of the Deed of Conveyance. In sharp contrast, here the lack of the Secretary’s signature in the Manotoks’ Deed of Conveyance No. 29204 was cured by the issuance of DENR Memorandum Order No. 16-05, which expressly states that “all Deeds of Conveyance that do not bear the signature of the Secretary are deemed signed or ratified x x x.” Moreover, the Manotoks have been issued their torrens title way back in 1933. Section 122 of Act No. 496 states that “[i]t shall be the duty of the official issuing the instrument of alienation, grant, or conveyance in behalf of the Government to cause such instrument, before its delivery to the grantee, to be filed with the register of deeds for the province where the land lies and to be there registered like other deeds and conveyances, whereupon a certificate shall be entered as in other cases of registered land, and an owner's duplicate certificate issued to the grantee.”  TCT No. 22813 would not have been issued in the name of Severino Manotok if Deed of Conveyance No. 29204 had not been delivered to the Register of Deeds of the Province of Rizal to which the land covered by the Manotoks’ title then belonged.  The Manotoks should not be punished if the documents leading to the issuance of TCT No. 22813 could no longer be found in the files of the government office, considering that these were pre-war documents and considering further the lack of proper preservation of documents in some government agencies.

The fact remains that the Manotoks were able to present a certified true copy of Deed of Conveyance No. 29204 secured from the National Archives which is the official repository of government and public documents.  This Deed of Conveyance No. 29204 was signed by the Director of Lands and lacked only the signature of the Secretary of Interior/Agriculture.  Memorandum Order No. 16-05 speaks of “all Deeds of Conveyance that do not bear the signature of the Secretary” and thus includes Deed of Conveyance No. 29204.  Under Memorandum Order No. 16-05, such Deeds of Conveyance “are deemed signed” by the Secretary.  Clearly, Memorandum Order No. 16-05 applies squarely to the Manotoks’ title for two reasons.  First, Deed of Conveyance No. 29204 was signed by the Director of Lands but lacked only the signature of the Secretary.  Second, the purchase price for the land subject of Deed of Conveyance No. 29204 had been fully paid on 7 December 1932, more than 77 years ago. 

The concurring and dissenting opinion of Justice Carpio Morales

Justice Carpio Morales held that the absence of the signature of the Secretary of the Interior/Agriculture and Natural Resources in the Manotoks’ Sale Certificate No. 1054 and Deed of Conveyance No. 29204 issued in 1919 and 1932, respectively, does not warrant the annulment of their title.

She advanced the thesis the “[t]here is no absence of approval to speak of, since [the Manotoks’] Deed of Conveyance is, pursuant to Order 16-05, deemed signed by the Department Secretary, and there is no legal basis for requiring another signature of the Department Secretary on the Sale Certificate.” She continued: “Contrary to the ponencia's position, Order 16-05 does not contravene Act No. 1120.  Order 16-05 did not dispense with the requirement of the Department Secretary’s approval.  It recognizes that the approval of the Secretary is still required, the grant or ratification of which is made subject only to certain conditions, precisely “to remove all clouds of doubt regarding the validity of these instruments” which do not bear his signature.  The fulfillment of the conditions must be proven to be extant in every case.

Justice Carpio Morales likewise submitted the proposition that “there is no statutory basis for the requirement of the Department Secretary's signature on the Certificate of Sale, apart from a strained deduction of Section 18.” On the majority’s general proposition that a claim of ownership must fail in the absence of positive evidence showing the Department Secretary’s approval, which cannot simply be presumed or inferred from certain acts, Justice Carpio Morales countered: “Jurisprudential review is gainful only insofar as settling that the “approval” by the Department Secretary is indispensable to the validity of the sale.  Case law does not categorically state that the required “approval” must be in the form of a signature on the Certificate of Sale.

On what constitutes the positive evidence of “approval” to lend validity to the sale of friar lands, Justice Carpio Morales held:

The ponencia concludes, as a matter of course on the strength of Sections 11, 12 and 15, that the certificate of sale must be signed by the Department Secretary for the sale to be valid.  As discussed earlier, these three Sections neither support the theory that such signing is required in the sale certificate nor shed light to the specifics of approval.

I submit that the Department Secretary’s signature on the certificate of sale is not one of the “requirements for the issuance of the Deed of Conveyance under Act No. 1120.”  To require another signature of the Department Secretary on the Certificate of Sale, on top of that deemed placed by Order 16-05 on the Deed of Conveyance, is to impose a redundant requirement and render irrelevant the spirit of said Order.

IN FINE, petitioners having complied with the conditions for the applicability of Order 16-05, their Deed of Conveyance is “deemed signed or otherwise ratified” by said Order.

It bears emphasis that Order 16-05 is a positive act on the part of the Department Secretary to remedy the situation where, all other conditions having been established by competent evidence, the signature of the Department Secretary is lacking.  The Order aims to rectify a previous governmental inaction on an otherwise legally valid claim, or affirm an earlier approval shown to be apparent and consistent by a credible paper trail.

Obviously, the incumbent Department Secretary can no longer probe into the deep recesses of his deceased predecessors, or unearth irretrievably tattered documents at a time when the country and its records had long been torn by war, just to satisfy himself with an explanation in the withholding of the signature.  The meat of Order 16-05 contemplates such bone of contention as in the present case.

The cloud of doubt regarding the validity of the conveyance to petitioners’ predecessors-in-interest having been removed by Order No. 16-05, petitioners’ title over Lot 823 of the Piedad Estate is, I submit, valid.

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