Elena Salenillas and Bernardino Salenillas Vs. Court of Appeals

Elena Salenillas and Bernardino Salenillas, Petitioners

Vs.

Hon. Court of Appeals and Hon. Raymundo Seva, Judge of Branch 38 of the Regional Trial Court of Camarines Norte and William Guerra, Respondents


G.R. No. 78687, January 31, 1989



Facts:

 Florencia H. De Enciso and Miguel Enciso owned a property which was formerly covered by Original Certificate Title (OCT) No. P-1248, issued by virtue of Free Patent Application No. 192765. The Original Certificate of Title was inscribed in the registration book for the province of Camarines Norte on December 10, 1961.

On February 28, 1970, the patentees, the Enciso spouses, by an Absolute Deed of Sale, sold the property in favor of the petitioners, the spouses, Elena Salenillas and Bernardino Salenillas for a consideration of P900. Petitioner Elena is a daughter of the Encisos.

Transfer Certificate of Title No. T-8104 of the Register of Deeds of Camarines Norte was issued in the name of the Salenillas, cancelling the OCT in the name of the Enciso.

On June 30, 1971, the petitioners mortgaged the property with the Rural Bank of Daet, Inc. the petitioner was able to pay the loan for the amount of P1000. Later on, December 4, 1975, the petitioners mortgaged the property in PNB as a security for the loan of P2500.

However, petitioners failed to pay the loan. Extrajudicial Foreclosure of the mortgage was instituted by PNB and the property was sold at a public auction. Private respondent William Guerra emerged as the highest bidder.

On August 17, 1983, PNB filed with RTC of Camarines Norte at Daet. A motion for writ of attachment in favor of the private respondent. However, petitioners refused to vacate the land and instead offered to repurchase the property by virtue of Section 119 of the Public Land Act.

Trial Court issued an alias writ of attachment. The petitioners moved for a motion of consideration but were denied.

The petitioners appealed to the Court of Appeals. The respondent Trial Court Judge, according to petitioner, acted with grave abuse of discretion. Court of Appeals dismissed the case for lack of merit. According to Court of Appeals, the transfer of property from the parent to the child for a nominal sum was not the conveyance contemplated by the law.

Issue:

 Whether or Not the petitioners have the right to repurchase the contested property under Section 119 of the Public Land Act.

Held:

Yes. The Petitioners have the right to repurchase the property under "Section 119 of the Public Land Act. Every conveyance of land acquired under the free patent of homestead provisions, when proper, shall be subject to repurchase by the applicant, his widow, or legal heirs within a period of 5 years from the date of re conveyance."

It is clear that only three types of persons are bestowed the right to repurchase that is the applicant, his widow and legal heirs. Elena Salenillas is a legal heir of the Enciso being their daughter.

The provision makes no distinction between the legal heirs. The distinction made by respondent contravenes the very purpose of the act. Between two statutory interpretations, that which better serves the purpose of the law shall prevail.

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