G.R. No. 239983 - REPUBLIC OF THE PHILIPPINES, REPRESENTED BY MAJOR GENERAL DIONISIO R. SANTIAGO, COMMANDING GENERAL OF THE ARMED FORCES OF THE PHILIPPINES (AFP) VISAYAS COMMAND, VS. SPOUSES JOHNNY AND CHONA YU.D E C I S I O N - Supreme Court E-Library

Ruling

accordingly, dismissed petitioner's Complaint against respondents Spouses Johnny and Chona Yu (Spouses Yu). The Facts The present case stemmed from a Complaint [5] filed by petitioner, praying for the RTC to enjoin Spouses Yu from constructing their residential house on the subject 252-square meter (sqm.) portion of Lot No. 933 (Lot 933), situated in Lahug, Cebu City, and direct the Register of Deeds (RD) to cancel Transfer Certificate of Title No. (TCT) 150040 [6] issued in the latter's name and, in lieu thereof, issue a new title in the name of the Republic. [7] Petitioner alleged that it, through the Armed Forces of the Philippines (AFP) Visayas Command, is the absolute owner of Lot 933, consisting of 37,126 square meters, which was originally registered in the names of Francisco Racaza, Pantaleon Cabrera, and Josefina R. Martinez. [8] Additionally, it claimed that the said lot is part and parcel of the Camp Lapu-Lapu military reservation and is valued at more than PHP 100,000,000.00. [9] Petitioner narrated that on October 19, 1938, the then-Commonwealth of the Philippines (Commonwealth) initiated expropriation proceedings and took possession of several parcels of land forming part of the Banilad Friar Lands Estate and included therein is Lot 933 situated in Lahug, Cebu City. The expropriation case was titled Commonwealth of the Philippines v. Borromeo, et. al. , docketed as Civil Case No. 781 before then Court of First Instance, Cebu City, 8 th Judicial District, Branch II (CFI). [10] On May 14, 1940, the CFI rendered a Decision condemning the subject parcels of land in favor of the Commonwealth . The CFI Decision became final and executory and an entry of judgment was made on April 5, 1948. [11] Despite the CFI Decision, however, the original registered owners sold Lot 933 to another person/s and subsequently, sold and resold, and thereafter, new certificates of title/s were issued. Among these new certificates of title is TCT 150040 issued in the names of Spouses Yu covering the 252-sqm. portion of Lot 933, known as Lot 1, Psd-07-00133 (being a portion of the consolidation-­subdivision of Lot Nos. 933-C-1, 933-C-2, 933-C-3, and 933-C-4 LRC PSD-138296 Record No. 5988). Petitioner averred that since it already acquired Lot 933 through expropriation, TCT 150040 issued in Spouses Yu's name is null and void. [12] For their part, [13] the Spouses Yu claimed that they validly purchased the 252-sqm. portion of Lot 933, which they have been in peaceful possession of and for which they have been paying taxes [14] thereon since their acquisition from the previous owner. Additionally, they averred that before they constructed their residential house on the subject lot, they first secured the necessary clearances and permits [15] from the Office of the Building Official, Cebu City, and no opposition whatsoever was interposed by the AFP Visayas Command, Camp Lapu-Lapu. It was only after they began the construction of the fence and residential house on t