G.R. No. 160409 - LANDCENTER CONSTRUCTION AND DEVELOPMENT CORPORATION, VS. V.C. PONCE, CO., INC. AND VICENTE C. PONCE. D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, TCT No. 97084 was partially canceled and, in lieu thereof, TCT Nos. 110001 to 110239 were issued. Sometime in January 1974, respondent Vicente C. Ponce (Vicente) mortgaged the properties covered by TCT Nos. 175575, 175758, 129847, and 207492 to 207544, including TCT No. 97084, with the Philippine Commercial International Bank (PCI Bank) in the amount of P1,327,000.00. PCI Bank was not informed that the subject property covered by the mortgage had been previously subdivided into 239 smaller lots. Respondents failed to pay their mortgage indebtedness, resulting in the foreclosure of the mortgage and the subsequent sale of the property at auction, with PCI Bank as the highest bidder. Respondents filed a complaint against PCI Bank for the annulment of the extra-judicial foreclosure sale conducted on January 22, 1975, docketed as Civil Case No. 24608. The Court of First Instance (CFI) of Rizal rendered a Decision [6] on September 1, 1978, dismissing the complaint and upholding the right of PCI Bank over the subject property. On appeal to the CA, [7] and subsequently to this Court, [8] the CFI's decision was affirmed with finality on August 13, 1987. [9] Respondents filed another complaint against PCI Bank with the RTC of Pasig City, Branch 164, docketed as Civil Case No. 33017, for reconveyance of 54 lots, and for refund of the amount representing overpayment and unused letters of credit. While the case was pending resolution, respondents caused the annotation of a notice of lis pendens over the 54 lots. Meanwhile, TCT No. 97084 was detached from the Register of Deeds (RD) of Pasig and transferred to Makati. On June 25, 1976, the RD of Makati canceled TCT No. 97084 and issued TCT No. S-30409 [10] in the name of PCI Bank. Meanwhile, on April 27, 1987, PCI Bank sold the subject property to petitioner Landcenter Construction and Development Corporation (Landcenter), including other properties embraced under TCT Nos. S-30410 to S-30463, S-30464, and S-30465, in the amount of P1,200,000.00. [11] The sale was registered with the RD of Parañaque. Thereafter, TCT No. S-30409 was canceled and, in its place, TCT No. 123917 [12] was issued in the name of Landcenter. On October 20, 1987, the RTC rendered a decision in favor of respondents and against PCI Bank, granting the former's prayer for return/reconveyance of the 54 lots, and refund of overpayment and unused letters of credit. By way of amicable settlement in Civil Case No. 33017, respondents, Landcenter and PCI Bank entered into a compromise agreement concerning the 54 lots. Instead of the 54 lots, however, Landcenter was to sign and reconvey to respondents merely 24 lots worth P2,700,161.47, representing full and final compromise settlement of the RTC's judgment of reconveyance. In return, respondents obligated themselves to cancel the lis pendens annotated on the titles other than the 24 lots reconveyed. The transaction was set forth in a Deed of Assignment dated December 27, 1988 and signed