G.R. No. 81524 - PHILIPPINE NATIONAL BANK, VS. COURT OF APPEALS AND CONSUELO YU.R E S O L U T I O N - Supreme Court E-Library

Ruling

Accordingly, a credit agreement (Exhibit 3) and a real estate mortgage (Exhibit 4) have been executed by and between defendant PNB and Manuel de los Santos. Likewise, Manuel de los Santos executed a promissory note (Exhibit 5) for the same amount of P3,000. The loan was for a period of one year. To support his claim of ownership over the property in question, defendant Manuel de los Santos submitted to the bank the following documents: affidavit denominated as "Affidavit of Principal Borrower/Co-maker" (Exhibit 6) wherein he stated, among other things, that he acquired the subject property by inheritance from his parents; a joint affidavit of adjoining owners, dated February 9, 1974 (Exhibit 7) purportedly executed by Andres Aguinaldo and Lazaro Baloaloa; a certification of payment of taxes prepared and signed by one Manuel Martinez, Clerk, Municipal Treasury of Bangui, Ilocos Norte (Exhibit 8); tax receipt for 1974 marked as Exhibit 9; tax declaration of the property for the year 1974, in the name of Manuel de los Santos, marked as Exhibit 10; a deed of confirmation of ownership purportedly executed by the brothers of Manuel de los Santos, namely: Carlos de los Santos and Constante de los Santos, marked Exhibit 11; and a "Notice of Adverse Claim of Ownership" executed by defendant Manuel de los Santos, marked Exhibit 13. Upon the maturity of the loan, defendant Manuel de los Santos failed to pay it and so, the bank, on July 12, 1979, sent a telegram to him advising him to pay his account otherwise the property will be foreclosed (Exhibit 12). The telegram appears to have been received by Barangay Captain Esmeraldo Aguinaldo of Brgy. Abaca, Bangui, Ilocos Norte. A demand leter was likewise sent to defendant Manuel de los Santos to pay his account, marked as Exhibit 12-a. [2] On November 17, 1983, the Regional Trial Court rendered a decision, the dispositive portion of which reads as follows: "WHEREFORE, in view of all the foregoing, judgment is hereby rendered as follows: "1. Declaring plaintiff Consuelo Yu as the true and lawful owner of the land described in the complaint; "2. Declaring the deed of mortgage (Exhibit 4) entered into by and between defendant Manuel de los Santos and defendant Philippine National Bank as null and void ab initio ; "3. Ordering defendant Manuel de los Santos to pay defendant Philippine National Bank the sum of THREE THOUSAND ( P 3,000.00) PESOS with interest at the rate of 12% per annum from February 20, 1975 until fully paid; "4. Ordering defendants Manuel de los Santos and the Philippine National Bank, jointly and severally to pay the plaintiff reasonable attorney's fees of P 2,000.00 and to pay the costs. "SO ORDERED.