G.R. No. 206168 - REPUBLIC OF THE PHILIPPINES, REPRESENTED BY RAW-AN POINT ELEMENTARY SCHOOL, V. SPOUSES DOLORES AND ABE LASMARIAS; AND COOPERATIVE BANK OF LANAO DEL NORTE, REPRESENTED BY THE BRANCH MANAGER, LAARNI ZALSOS.

Ruling

Accordingly, the respondents were given five (5) years to redeem the property. In the meantime, a relocation survey was conducted on the disputed lot and Geodetic Engr. Rogelio Manoop, Jr. found that a portion of petitioner, Raw-An Point Elementary School, partly encroached on Lot 1991-A-1, Csd-12-000051. Respondents informed the school principal and they agreed to have another survey that resulted to the same findings. Thus, respondents sent a letter to vacate dated July 26, 2001 to the petitioner, but to no avail. Respondents then, on September 13, 2001, filed a complaint for recovery of possession against the petitioner. Respondents presented Engr. Manoop's sketch plan and Certification dated October 30, 2001 stating that a portion of the petitioner's structure containing an area of 7,700 sq. m., more or less, is within Lot 1991-A-1, Csd-12-000051. Respondents knew that petitioner, through the then Department of Education Culture and Sports ( DECS ), owns a lot in the same area donated to it by Necias Balatero through a Deed of Donation executed on January 14, 1992, however, respondents insisted that the lot donated is not the present school site but rather the lot adjacent thereto. Respondents further claimed that Nicanor Aguilar, Sr. previously donated a 1.179-hectare lot to the school, first in the early 1950s or 1960s and second in the early 1990s, but upon seeing the sketch, respondents saw that the present school site is also different from the one Nicanor Aguilar, Sr. donated. The Cooperative Bank of Lanao del Norte intervened in the proceedings before the RTC claiming that it is the present registered owner of the subject lot under TCT No. T-23418 by virtue of the auction sale after the respondents failed to pay their loan secured by the property mortgaged. According to the bank, although the OCT presented to them was registered in Solijon's name, it allowed respondents to use it as security because the Special Power of Attorney executed by Solijon allowed respondents to mortgage the same property. The bank claimed good faith and prayed that it be declared the legitimate owner of the land and for petitioner to vacate the property. Petitioner, on the other hand, insisted that the school building has been in existence on the subject lot since 1950 as supported by school records showing its operation as early as 1955. It, however, conceded that the lot donated to them by Necias Balatero is adjacent to the school but maintained that the donation was only in addition to the present school site. Petitioner also admitted that it has no title on the property where the school presently stands, but according to petitioner, considering the length of the school's existence thereon, it would have been improbable for another person to obtain title thereto, much less, a free patent. Petitioner further averred that respondents' action has already prescribed. It also argued that at the time Solijon applied for a Free Patent, the lot was already occupie