G.R. No. 129572 - PHILBANCOR FINANCE, INC. AND VICENTE HIZON, JR., VS. COURT OF APPEALS, THE HONORABLE DEPARTMENT OF AGRARIAN REFORM ADJUDICATION BOARD (DARAB), ALFREDO PARE, PABLO GALANG AND AMADO VIE.D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, judgment is hereby rendered: "1. Ordering the redemption by the plaintiffs of the land in question at the price of P201,182.92; "2. Ordering the defendant, Philbamcor Finance, Inc., to execute the necessary Deed of Redemption in favor of the plaintiffs; and "3. Ordering the Register of Deeds of the Province of Pampanga to cause the registration of the land in question to be conveyed to and redeemed by the plaintiffs; "The counterclaim of the defendant Philbancor Finance, Inc. is hereby dismissed." (Ibid., pp. 81-90) "Petitioners filed a motion for reconsideration but the same was denied by the Provincial Adjudicator (CA Rollo, pp. 108-109). On appeal, public respondent Department of Agrarian Reform Adjudication Board (DARAB) affirmed in toto the findings of the Provincial Adjudicator in a Decision dated March 8, 1996 (Ibid., pp. 26-35). "Petitioners' motion for reconsideration was denied by respondent DARAB in a Resolution (Ibid., pp. 36-38) dated July 22, 1996, x x x." [2] On August 14, 1996, petitioners filed with the Court of Appeals a petition for review of the decision of the DARAB. [3] After due proceedings, on March 17, 1997, the Court of Appeals rendered a decision dismissing the petition. [4] On April 18, 1997, petitioners filed with the Court of Appeals a motion for reconsideration of the decision; however, on May 19, 1997, the Court of Appeals denied the motion. [5] Hence, this appeal. [6] The petition raises three issues; however, the last issue raised is decisive, hence, only this issue is herein resolved, that is, whether or not the private respondents could still exercise their right of redemption of the parcels of land sold at public auction due to foreclosure of the mortgages thereon considering that they invoked their right to redeem only on July 14, 1992, seven years after the date of registration of the certificate of sale with the Register of Deeds. We grant the petition. Republic Act No. 3844, Section 12, provides as follows: "In case the landholding is sold to a third person without the knowledge of the agricultural lessee, the latter shall have the right to redeem the same at a reasonable price and consideration. Provided, that the entire landholding sold must be redeemed. Provided further, that where there are two or more agricultural lessees, each shall be entitled to said right of redemption only to the extent of the area actually cultivated by him. The right of redemption under this section may be exercised within two (2) years from the registration of the sale and shall have priority over any other right of legal redemption." [7] In this case, the certificate of sale of the subject property, which was sold at public auction, was registered with the Register of Deeds of Pampanga on July 31, 1985. [8] The two-year redemption period thus expired on July 31, 1987. The complaint for redemption was filed by respondents only on July 14, 1992, [9] five (5) years after expiration of the redemption period prescribed