Fil-Estate Management v. Trono

FIL-ESTATE MANAGEMENT INC., MEGATOP REALTY DEVELOPMENT, INC.
,
PEAKSUN ENTERPRISES AND EXPORT CORP., ARTURO DY, AND ELENA DY
JAO, Petitioners,
v.
GEORGE H. TRONO, MA. TERESA TRONO, MA. VIRGINIA TRONO, JESSE
TRONO, MA. CRISTINA TRONO, PATRICIA TRONO, MA. DIVINA TRONO,
INOCENCIO TRONO, JR., CARMEN TRONO, AND ZENAIDA TRONO, Respondents.
G.R. NO. 130871, February 17, 2006
Facts:
This petition alleges that herein Respondents Trono filed an application for registration of
a parcel of land with the Regional Trial Court of Pasay. The land is located at Las Piñas City,
consisting of 245,536 square meters.
The Chief of the Docket Division, Land Registration Authority (LRA) issued a Notice of
Initial Hearing, stating that the lot is covered portion of Lot 2271 that which is overlapped by Lot
10, Psu-80886 Lot 2276, that which is overlapped by Lot 2, Psu-56007 which is also Lot 6, Psu-
80886; Lot 2270, portion of that which is overlapped by Lot 7, Psu-56007 and the whole Lot 8,
Psu-56007.
In 1995, herein Petitioners filed their opposition to the application of the Respondents,
alleging that Respondents’ property partly overlaps their lot as evidenced by a survey plan. The
Petitioners’ lot was registered under their names under a TCT registered at the Registry of Deeds
of Las Piñas. Ayala Land filed an opposition as well to respondents' application for registration,
stating that land applied for overlaps the parcels of land covered by several TCTs registered
under Ayala Land’s name.
Petitioners and Ayala Land filed their respective motions to dismiss respondents'
application for registration on the ground of lack of jurisdiction. They claimed that the RTC has
no jurisdiction over the subject matter since the property was previously Torrens registered in
their names.
RTC:
RTC denied the motions to dismiss of Petitioners and Ayala Land, holding that the RTC
has exclusive original jurisdiction over all applications for original registration of title to lands.
CA:
Petitioners and Ayala Land appealed to the CA. CA granted the appeal and reversed and
set aside the decision of the RTC, stating that the incontrovertibility of a title prevents a land
registration court from acquiring jurisdiction over a land that is applied for registration if that
land is already decreed and registered under the Torrens System.
CA ordered the RTC to dismiss the application of registration of Respondents without

prejudice.
Petitioners then filed their motion for partial reconsideration praying that the application
of registration of Respondents be dismissed with prejudice and to declare that the right of
respondents to file any action for reconveyance of the property has prescribed.
CA denied the motion for partial reconsideration of the Petitioners.
Issue:
1. Whether Respondents’ application for registration is a collateral attack against petitioners'
land titles; and
2. Whether the action for annulment of title or reconveyance of the property involved has
prescribed.
Held:
The petition is impressed with merit.
Before we go to the issues, it is important to resolve whether the RTC has jurisdiction over
respondents' application for registration of a parcel of land.
Section 2 of Presidential Decree (PD) 1529 partly provides:

Sec. 2. Nature of registration proceedings; jurisdiction of courts. - Judicial proceedings
for the registration of lands throughout the Philippines shall be in rem, and shall be based
on the generally accepted principles underlying the Torrens System.
Courts of First Instance shall have exclusive jurisdiction over all applications for original
registration of title to lands, including improvements and interests therein, and over all
petitions filed after original registration of title, with power to hear and determine all
questions arising upon such applications or petitions. x x x
Pursuant to the above provisions, the Regional Trial Court has the authority to act, not only on
applications for original registration of title to land, but also on all petitions filed after the
original registration of title. Thus, it has the authority and power to hear and determine all
questions arising from such applications or petitions.
1. A certificate of title shall not be subject to collateral attack
Section 48 of PD 1529 provides:

Sec. 48. Certificate not subject to collateral attack. - A certificate of title shall not be
subject to collateral attack. It cannot be altered, modified, or cancelled except in a direct
proceeding in accordance with law.
Respondents' application for registration of a parcel of land already covered by a Torrens

title is actually a collateral attack against petitioners' title not permitted under the principle of
indefeasibility of a Torrens title. It is well settled that a Torrens title cannot be collaterally
attacked.
2. The petition for reopening and review of the decree of registration by the
Respondents already prescribed.
Section 32 of the same law states:

Sec. 32. Review of decree of registration; Innocent purchaser for value. - The decree of
registration shall not be reopened or revised by reason of absence, minority, or other
disability of any person adversely affected thereby, nor by any proceeding in any court
for reversing judgment, subject, however, to the right of any person, including the
government and the branches thereof, deprived of land or of any estate or interest therein
by such adjudication or confirmation of title obtained by actual fraud, to file in the
proper Court of First Instance a petition for reopening and review of the decree of
registration not later than one year from and after the date of the entry of such
decree of registration, but in no case shall such petition be entertained by the court
where an innocent purchaser for value has acquired the land or an interest therein whose
rights may be prejudiced. Whenever the phrase "innocent purchaser for value" or an
equivalent phrase occurs in this Decree, it shall be deemed to include an innocent lessee,
mortgagee, or other encumbrancer for value.
Upon the expiration of said period of one year, the decree of registration and the
certificate of title issued shall become incontrovertible. Any person aggrieved by such
decree of registration in any case may pursue his remedy by action for damages against
the applicant or any other person responsible for the fraud.
A decree of registration that has become final shall be deemed conclusive not only on the
questions actually contested and determined, but also upon all matters that might be litigated or
decided in the land registration proceedings. Record shows that the TCT was registered in
petitioners' name as early as April 28, 1989, or five (5) years before the filing of respondents'
application for registration. Thus, it is too late for them (respondents) to question petitioners'
titles considering that the Certificates of Title issued to the latter have become incontrovertible
after the lapse of one year from the decree of registration.

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FIL-ESTATE MANAGEMENT INC., MEGATOP REALTY DEVELOPMENT, INC.

G.R. NO. 130871, February 17, 2006

CA ordered the RTC to dismiss the application of registration of Respondents without

CA denied the motion for partial reconsideration of the Petitioners.

The petition is impressed with merit.

Section 2 of Presidential Decree (PD) 1529 partly provides:

1. A certificate of title shall not be subject to collateral attack

Section 48 of PD 1529 provides:

Respondents' application for registration of a parcel of land already covered by a Torrens

Section 32 of the same law states:

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