G.R. No. 162333 - BIENVENIDO C. TEOCO AND JUAN C. TEOCO, JR., VS. METROPOLITAN BANK AND TRUST COMPANY. D E C I S I O N - Supreme Court E-Library

Ruling

WHEREFORE, judgment is hereby rendered dismissing the petition for a writ of possession under Section 7 of Act 3135 it appearing that intervenor Atty. Juan C. Teoco, Jr. and his brother Atty. Bienvenido C. Teoco have legally and effectively redeemed Lot 61 and 67 of Psd-66654, Catbalogan, Cadastre, from the petitioner Metropolitan Bank and Trust Company. Accordingly, Metrobank may now withdraw the aforesaid redemption money of P356,297.57 deposited by Juan C. Teoco, Jr., on February 10, 1992 with the clerk of court and it is ordered that the Transfer Certificate of Title Nos. T-8492 and T-8493 of Metropolitan Bank and Trust Company be and are cancelled and in their place new transfer certificates of title be issued in favor of Intervenors Attys. Bienvenido C. Teoco and Juan C. Teoco, Jr., of legal age, married, and residents of Calbiga, Samar, Philippines, upon payment of the prescribed fees therefore. No pronouncement as to costs. [4] According to the RTC, the case filed by Metrobank should be dismissed since intervenor Juan C. Teoco, Jr., by his tender of P356,297.57 to Metrobank on February 10, 1992, within the reglementary period of redemption of the foreclosed property, had legally and effectively redeemed the subject properties from Metrobank. This redemption amount is a fair and reasonable price and is in keeping with the letter and spirit of Section 78 of the General Banking Act because Metrobank purchased the mortgaged properties from the sheriff of the same court for only P316,916.29. In debunking the argument that the amount tendered was insufficient, the RTC held: It is contended for Metrobank that the redemption money deposited by Juan C. Teoco, Jr., is insufficient and ineffective because the spouses Ramon Co and Lydia T. Co owe it the total amount of P6,856,125 excluding interest and other charges and the mortgage contract executed by them in favor of Metrobank in 1985 and 1986 (Exh. A and B) are not only security for payment of their obligation in the amount of P200,000 but also for those obligations that may have been previously and later extended to the Co couple including interest and other charges as appears in the accounts, books and records of the bank. Metrobank cites the case of Mojica v. Court of Appeals , 201 SCRA 517 (1991) where the Supreme Court held that mortgages given to secure future advancements are valid and legal contracts; that the amounts named as consideration in said contract do not limit the amount for which the mortgage may stand as security; that a mortgage given to secure the advancements is a continuing security and is not discharged by repayment of the amount named in the mortgage until the full amount of the advancements are paid. In the opinion of this court, it is not fair and just to apply this rule to the case at bar. There is no evidence offered by Metrobank that these other obligations of Ramon Co and his wife were not secured by real estate mortgages of other lands. If the other indebtedness o