Teofilo Cacho v CA GR No. 123361, March 31, 1997

Land Registration as a Proceeding In Rem

Facts:

Doña Cacho applied for a registration of two parcels of land in Lanao Province and is situated within the limits of a military conservation. The two petitions were jointly tried and the court promulgated a decision for the issuance of two decrees subject to certain conditions of submitting the deed of sale for the first lot and the new plan for the second lot. The sole heir of Doña Cacho, Teofilo Cacho files a motion for the reconstitution of the two original certificates of title. His petition was opposed by the respondents Republic of the Philippines, National Steel Corporation (NSC), and the City of Iligan. The lower court dismissed the petition for the reason that the proper remedy would be to file a motion for reconstitution of the decrees after appreciating that two decrees were already issued which although subject to certain conditions are indisputably final. The petitioner’s motion to amend their petition was denied by the court but upon appeal, the SC remanded the case back to the lower court to hear their petition for the re-issuance of the decrees. The lower court upheld the decrees previously issued to Doña Cacho and order the Register of Deeds to re-issue said decrees. On appeal to the CA by the respondents, they assail the decision on grounds that the petition suffers from jurisdictional infirmities, with no compliance to the conditions over the decrees and there is no real party of interest involved to prosecute the case. The CA sustained the validity of the decrees while brushing aside the issue on jurisdictional infirmities but nevertheless reversed the lower court decision on the re-issuance of the decrees on the grounds that the final decision was reserved pending compliance to the conditions imposed by the court, hence this petition before the SC.

Issue:

Whether or not the decree of registration may be validly upheld for re-issuance in favor to the petitioner?

Ruling:

The SC held that a land registration proceeding is “in rem” thus the decree of registration is binding and conclusive against all persons and government irrespective of whether they were personally notified of the application for registration because the publication requirement is construed to be a notice to the whole world. The final decree of registration is deemed to be conclusive to all matters that can be litigated in a land registration proceeding. Both the lower court and CA found no doubt as to the finality of the decision for the decree after 1 year of its entry to the register of deeds according to the Torrens System. To sustain the CA requirement for compliance of the conditions to the decree would constitute derogation to the doctrine of res judicata and such would cause assault on the integrity and indefeasible character of the Torrens System. The issuance of the decree is merely the ministerial act on the Land Registration Commission upon the final judicial judgment of the court. A land registration proceeding is an in rem proceeding in that any final judgment promulgated upon by the court binds the whole world. The SC sets aside the decision of the CA and reinstated the decision of the lower court.