G.R. No. 123586 - SPOUSES BEDER MORANDARTE AND MARINA FEBRERA, VS. COURT OF APPEALS, REPUBLIC OF THE PHILIPPINES, AND SPOUSES VIRGINIO B. LACAYA AND NENITA LACAYA.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, Free Patent No. (IX-8) 785 for Lot No. 7, Csd-09-05-00078-D was issued in the name of Morandarte. On September 20, 1976, the Register of Deeds of Zamboanga del Norte issued the corresponding Original Certificate of Title No. (P-21972) 5954. [5] Subsequently, Morandarte caused a subdivision survey of the lot, dividing the same into Lot No. 6781-A, with an area of 13,939 square meters, and Lot No. 6781-B, with an area of 32,819 square meters. As a result of the subdivision survey, Transfer Certificates of Title Nos. T-1835 and T-1836 covering Lots 6781-A and 6781-B, respectively, were issued in favor of Morandarte on May 12, 1980 by the Registry of Deeds of Dipolog City. [6] On May 22, 1981, Morandarte and his wife, Marina Febrera, executed a real estate mortgage over Lot 6781-B, subject of TCT No. 1836, in favor of the Development Bank of the Philippines, Dipolog City branch (DBP for brevity), in consideration of a loan in the amount of P52,160.00. [7] More than ten years after the issuance of the OCT in Morandartes name, or on March 19, 1987, respondent Republic of the Philippines (Republic for brevity), represented by the Director of Lands, filed before the RTC a Complaint for Annulment of Title and Reversion against the Morandarte spouses, the Register of Deeds of Zamboanga del Norte, the Register of Deeds of Dipolog City, and DBP, docketed as Civil Case No. 3890. [8] The Republic alleged that the BOL found that the subject land includes a portion of the Miputak River which cannot be validly awarded as it is outside the commerce of man and beyond the authority of the BOL to dispose of. It claimed that the Morandarte spouses deliberately and intentionally concealed such fact in the application to ensure approval thereof. Considering that the Morandarte spouses are guilty of fraud and misrepresentation in the procurement of their title, the Republic stressed that their title is vo id. [9] The Register of Deeds of Dipolog City filed a Motion to Dismiss, dated April 7, 1987, praying for the dismissal of the complaint as against her since the complaint failed to state a claim against her. [10] In their Answer dated April 13, 1987, the Morandarte spouses denied the allegations of the complaint and claimed that they were able to secure the title in accordance and in compliance with the requirements of the law. They alleged that the land is a portion of inherited property from Antonio L. Morandarte whose ownership thereof is covered by Tax Declaration No. 2296. As regards the Miputak River, they argued that the river changed its course brought about by the fact that a portion of the Miputak River was leased by the Bureau of Fisheries (BOF for brevity) to a certain Aguido Realiza whose rights were subsequently transferred to Virginio Lacaya. They alleged that they indicated in their survey plan the actual location of the Miputak River in relation to the property but the BOL returned the survey with the directive that the existence of the r