SUPREME COURT

THIRD DIVISION
G.R. No. 176929 July 4, 2008
INOCENCIO Y. LUCASAN o! "#$%&l '() '% *"& Ju)#+#'l A)$#(#%*!'*o! o *"& I(*&%*'*& E%*'*& o *"& l'*&
JULIANITA SOR,ITO LUCASAN, petitioner,
vs.
P-ILIPPINE .EPOSIT INSURANCE CORPORATION /P.IC0 '% !&+&#1&! '() l#2u#)'*o! o *"& )&u(+* PACI3IC
,AN4ING CORPORATION, respondents.
The Case:
On appeal is the March 23, 2! Decision o" the Co#rt o" $ppeals %C$& in C$'(.R. CV No. )*+*), a,r-in. the /#l0 21,
23 Order o" the Re.ional Trial Co#rt %RTC& o" 2acolod Cit0, 2ranch 13, .rantin. respondent3s -otion to dis-iss, as
4ell as its s#5se6#ent Resol#tion den0in. petitioner3s -otion "or reconsideration.
7acts:
8etitioner Inocencio 9. :#casan %:#casan& and his 4i"e /#lianita Sor5ito %no4 deceased& 4ere the o4ners o" :ot Nos.
*+'$ and 22;'< sit#ated in 2acolod Cit0, respectivel0, s#5=ect o" a -ort.a.e loan and "or "ail#re to pa0, the lots
4ere sold at p#5lic a#ction and 4ere a4arded to 82C as the hi.hest 5idder.
:#casan, as 4ell as the -ort.a.ee 5an>s, 8N2 and R82, did not redee- the properties 4ithin the rede-ption period.
Nevertheless, 82C did not ?le a petition "or consolidation o" o4nership.
In /an#ar0 *;;@, :#casan, thro#.h co#nsel, 4rote a letter to the 8hilippine Deposit Ins#rance Corporation %8DIC&, 82C3s
receiver and li6#idator see>in. the cancellation o" the certi?cate o" sale and oAerin. to pa0 82C3s clai- a.ainst
:#casan.
Not lon. therea"ter, :#casan paid his loans 4ith the 8N2 and R82. Conse6#entl0, the -ort.a.ee 5an>s eBec#ted their
respective releases o" -ort.a.e, res#ltin. in the cancellation o" the prior enc#-5rances in "avor o" 8N2 and R82.
On $#.#st *3, 2*, 8DIC denied :#casan3s re6#est "or the cancellation o" the certi?cate o" sale advisin. the latter
that said properties 5e disposed o" in a p#5lic 5iddin. in accordance 4ith its polic0.
:#casan then ?led a petition deno-inated as declaratory relief 4ith the RTC o" 2acolod Cit0
On /#l0 21, 23, the RTC .ranted 8DIC3s -otion to dis-iss, ?ndin. the clai- o" an0 clo#d over the titles o" :#casan to
5e 5ere"t o" 5asis in "act and in la4.
:#casan ?led a -otion "or reconsideration, 5#t the RTC denied it on Octo5er 2, 23.
On appeal, the C$ a,r-ed in toto the RTC r#lin.. It declared that :#casan alread0 lost his ri.ht to redee- the
properties 4hen he "ailed to eBercise it 4ithin the prescri5ed period. The eAect o" s#ch "ail#re 4as to vest in 82C
a5sol#te o4nership over the s#5=ect properties.
Iss#e:
CON the RTC correctl0 dis-issed :#casan3s co-plaint "or quieting of title.
Held:
Dn"ort#natel0 "or :#casan3s co-plaint, the "ore.oin. re6#isites to avail o" the re-ed0 o" 6#ietin. o" title are 4antin..
To avail o" the re-ed0 o" 6#ietin. o" title, t4o %2& indispensa5le re6#isites -#st conc#r, na-el0:
%*& the plaintiA or co-plainant has a le.al or an e6#ita5le title to or interest in the real propert0 s#5=ect o" the
actionE and
%2& the deed, clai-, enc#-5rance or proceedin. clai-ed to 5e castin. a clo#d on his title -#st 5e sho4n to 5e in
"act invalid or inoperative despite its prima facie appearance o" validit0 or le.al e,cac0 Stated diAerentl0, the
plaintiA -#st sho4 that he has a le.al or at least an e6#ita5le title over the real propert0 in disp#te, and that
so-e deed or proceedin. 5eclo#ds its validit0 or e,cac0.
$d-ittedl0, the s#5=ect parcels o" land 4ere levied #pon 50 virt#e o" a 4rit o" eBec#tion iss#ed in Civil Case No. *2*)).
On Ma0 *3, *;)*, a p#5lic a#ction o" the s#5=ect parcels o" land 4as held and the lots 4ere a4arded to 82C as the
hi.hest 5idder. $ certi?cate o" sale in "avor o" 82C 4as iss#ed on the sa-e da0, and 4as re.istered and annotated on
TCT Nos. T'!)**+ and T'*3)*! as <ntr0 No. **2++2 on /#ne +, *;)*.
Dnder the *;!1 R#les o" Co#rt, 4hich 4ere in eAect at that ti-e, the =#d.-ent de5tor or rede-ptioner had the ri.ht to
redee- the propert0 "ro- 82C 4ithin t4elve %*2& -onths "ro- the re.istration o" the certi?cate o" sale. Cith the
eBpiration o" the t4elve'-onth period o" rede-ption and no rede-ption havin. 5een -ade, as in this case, the
=#d.-ent de5tor or the rede-ptioner lost 4hatever ri.ht he had over the land in 6#estion.
:#casan ad-itted that he "ailed to redee- the properties 4ithin the rede-ption period, on acco#nt o" his then li-ited
?nancial sit#ation.
23
It 4as onl0 in /an#ar0 *;;@ or ?"teen %*+& 0ears later that he -ani"ested his desire to reac6#ire
the properties. Clearl0 th#s, he had lost 4hatever ri.ht he had over :ot Nos. *+'$ and 22;'<.
The pa0-ent o" loans -ade 50 :#casan to 8N2 and R82 in *;;@ cannot, in an0 4a0, operate to restore 4hatever ri.hts
he had over the s#5=ect properties. S#ch pa0-ent onl0 eBtin.#ished his loan o5li.ations to the -ort.a.ee 5an>s and
the liens 4hich :#casan clai-ed 4ere s#5sistin. at the ti-e o" the re.istration o" the notice o" e-5ar.o and certi?cate
o" sale.