G.R. No. 152663 - EDGARDO D. DOLAR, VS. BARANGAY LUBLUB (NOW P.D. MONFORT NORTH) OF THE MUNICIPALITY OF DUMANGAS, HEREIN REPRESENTED BY ITS PUNONG BARANGAY, PEPITO DUA, PHILIPPINE LONG DISTANCE TELEPHONE COMPANY, DUMANGAS WATER DISTRICT, 4TH ILOILO MOBILE GROUP, ILOILO PROVINCIAL POLICE, ILOILO REGI

Ruling

accordingly, awarded the property. On May 6, 1998, in the Regional Trial Court (RTC) at Iloilo City, petitioner filed against Brgy. Lublub a complaint for Quieting of Title and Recovery of Possession With Damages involving the 4.6-hectare area he had earlier donated. Basically, petitioner claimed that the donation in question had ceased to be effective, the donee barangay having failed to comply with the conditions of the donation. Impleaded as co-defendants of Brgy. Lublub were entities each occupying a portion of the donated property, such as the Philippine Long Distance Company (PLDT), the Dumangas Water District, Branch 86 of RTC-Iloilo and the Iloilo Provincial Police. Docketed in the trial court as Civil Case No. 98-033 , the complaint alleged, inter alia, as follows: That ... defendant [barangay] failed to build or establish within the period therein stipulated, a public plaza, sports complex ... and like structures for the use of Barangay Lublub and neither had it designated in a proper landmark that the area donated is known as the 'Don Venancio Dolar Plaza' That ... defendant barangay allowed the use of the area donated to be converted to uses other than those provided in the donation documents when it allowed entities like defendants PLDT, Dumangas Water District, PNP Mobile Force, and Branch 68 of the RTC of Iloilo, to construct buildings and occupy portions of the lot in question . . .; That because of the failure of defendant barangay to declare the lot in question in its name for taxation purposes, the same was sold at public auction for non-payment of real property taxes . . . . That in the light of the terms and conditions in the Deeds of Donation and actuations of the defendant barangay in relation to the property donated; the donation . . . has automatically lost its force and effect whatsoever and the ownership of the property has reverted to the plaintiff or the donation has been deemed automatically revoked . . .; That the act of defendant barangay in allowing the construction of buildings by public and private entities on the donated property and holding offices therein has cast a doubt or cloud on the title of the plaintiff over the property in litigation . . . . That the plaintiff, as exclusive, absolute, and registered owner of the property in question is entitled to the possession of the same. [6] In its Answer With Counterclaim , [7] Brgy. Lublub, after traversing the material allegations of the complaint, alleged the following as affirmative defenses: 3.2. The said donation was made and accepted on the same public instrument duly notarized by notary public Nicolas P. Sonalan xxx 3.3. The acceptance of donation was made by then Barangay Captain of Barangay Lublub Jose Militar with authority from the barangay council; 3.4. After the said deed of donation was executed in compliance with the conditions set forth in the deed of donation and within five (5) years from its execution thereof several structures/buildings were