OF ENVIRONMENT AND NATURAL RESOURCES, VS. HEIRS OF FELIPE ALEJAGA SR., REPRESENTED

Ruling

WHEREFORE, the appealed decision is hereby REVERSED, SET ASIDE and RECALLED . [2] The Facts The factual antecedents of the case are summarized by the CA thus: On December 28, 1978, [Respondent] Felipe Alejaga, Sr. x x x filed with the District Land Office, Roxas City, Free Patent Application No. (VI-2) 8442 covering a parcel of land identified as Lot 1, Mli-06-000020-D, with an area of .3899 hectares, more or less located at Dumolog, Roxas City (Exh. A; Exh 9). It appears that on December 27, 1978, when the application was executed under oath, Efren L. Recio, Land Inspector, submitted a report of his investigation and verification of the land to the District Land Office, Bureau of Lands, City of Roxas. On March 14, 1979, the District Land Officer of Roxas City approved the application and the issuance of [a] Free Patent to the applicant. On March 16, 1979, the patent was also ordered to be issued and the patent was forwarded to defendant Register of Deeds, City of Roxas, for registration and issuance of the corresponding Certificate of Title. Thereafter, Original Certificate of Title No. P-15 Free Patent No. (VI-2) 3358 was issued to [respondent] by defendant Register of Deeds. On April 4, 1979, the heirs of Ignacio Arrobang, through counsel in a letter-complaint requested the Director of Lands, Manila, for an investigation of the District Land Officer, Roxas City, and the Regional Office, Region VI, Iloilo City, for irregularities in the issuance of the title of a foreshore land in favor of [respondent]. Isagani Cartagena, Supervising Special Investigator, Legal Division, Land Management Bureau (formerly Bureau of Lands) submitted his Report dated April 17, 1989. The Chief, Legal Division, Land Management Bureau, Manila, recommended to the Director of Lands appropriate civil proceeding for the cancellation of Free Patent Title No. (VI-2) 3358 and the corresponding Original Certificate of Title No. P-15 in the name of [respondent]. In the meantime, [respondent] obtained a NACIDA loan under the Cottage Industry Guarantee and Loan Fund by the defendant Philippine National Bank (hereinafter referred to as PNB) executed in Cebu City in the amount of P 100,000.00 on August 18, 1981. The loan was secured by a real estate mortgage in favor of defendant PNB. The promissory note of appellant was annotated at the back of the title. On April 18, 1990, the government through the Solicitor General instituted an action for Annulment/Cancellation of Patent and Title and Reversion against [respondent], the PNB of Roxas City and defendant Register of Deeds of Roxas City covering Free Patent Application (VI-2) 8442 of the parcel of land with an area of .3899 hectares more or less located at Dumolog, Roxas City. On November 17, 1990, while the case is pending hearing, [respondent] died. He was substituted by his wife Roqueta Alejaga and his children, namely: Everette Alejaga, Lynnette Alejaga, Felipe Alejaga, Jr., Maria Dulla Alejaga. Roqueta Alejaga, Jen