G.R. No. 141970 - METROPOLITAN BANK, & TRUST COMPANY, VS. HON. FLORO T. ALEJO, IN HIS CAPACITY AS PRESIDING JUDGE OF BRANCH 172 OF THE REGIONAL TRIAL COURT OF VALENZUELA; AND SY TAN SE, REPRESENTED BY HIS ATTORNEY-IN-FACT, SIAN SUAT NGO. D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, the petition for annulment of judgment is DENIED DUE COURSE and DISMISSED outright for being insufficient in form and substance (Section 2, Rule 47, 1997 Rules of Civil Procedure)." Also challenged is the January 27, 2000 CA Resolution [2] denying petitioner's Motion for Reconsideration. The Facts On November 21, 1995 [3] and January 30, 1996, [4] Spouses Raul and Cristina Acampado obtained loans from petitioner in the amounts of P5,000,000 and P2,000,000, respectively. As security for the payment of these credit accommodations, the Acampados executed in favor of petitioner a Real Estate Mortgage [5] and an Amendment of Real Estate Mortgage [6] over a parcel of land registered in their names. The land was covered by TCT No. V-41319 in the Registry of Deeds of Valenzuela City, where the contracts were also registered on November 20, 1995 and January 23, 1996, respectively. [7] On June 3, 1996, a Complaint for Declaration of Nullity of TCT No. V-41319 was filed by Respondent Sy Tan Se against Spouses Acampado. In the Regional Trial Court (RTC) of Valenzuela, Branch 172, it was docketed as Civil Case No. 4930-V-96, [8] the progenitor of the present controversy. Despite being the registered mortgagee of the real property covered by the title sought to be annulled, petitioner was not made a party to Civil Case No. 4930-V-96, [9] nor was she notified of its existence. Because the spouses defaulted in the payment of their loan, extrajudicial foreclosure proceedings over the mortgaged property were initiated on April 19, 1997. On June 17, 1997, the sheriff of Valenzuela conducted an auction sale of the property, during which petitioner submitted the highest and winning bid. [10] On July 15, 1997, a Certificate of Sale was issued in its favor. [11] This sale was entered in the Registry of Deeds of Valenzuela on July 28, 1997. When the redemption period lapsed exactly a year after, on July 28, 1998, petitioner executed an Affidavit of Consolidation of Ownership to enable the Registry of Deeds of Valenzuela to issue a new TCT in its name. Upon presentation to the Register of Deeds of the Affidavit of Consolidation of Ownership, petitioner was informed of the existence of the August 12, 1998 RTC Decision in Civil Case No. 4930-V-96, annulling TCT No. V-41319. The dispositive portion of the Decision [12] stated: "WHEREFORE, judgment is hereby rendered declaring as null and void Transfer Certificate of Title No.V-41319 in the name of defendant Raul Acampado for having proceeded from an illegitimate source. With costs against the defendant. SO ORDERED.