Facts:
The respondents filed a motion for quieting the title and recovery of possession and ownership against the petitioners. Apparently, they claim they are the owners of the parcel of land by virtue of the deed of sale they entered into with Roberto Marfori to whom the petitioners allegedly sold their land to. The Egaos acquired their land title by virtue of a free patent and transferred their ownership in favor of Marfori by virtue of a deed of sale. However, the Certificate of Title was not transferred in Marfori’s favor. Upon purchase of the land from Marfori, the respondents introduced improvements thereon and paid taxes for the property. However, the petitioners illegally occupied portions of the land. Petitioner answers that they are the true owner of the land by virtue of the Certificate of Title issued by the Register of Deeds pursuant to their Free Patent. The lower court ruled in favor of Egao. Upon appeal, the CA reversed the decision of the lower court on grounds that the main issue should be whether Egao can validly sell the land to Marfori who subsequently transferred the ownership to the respondents. The CA holds both Egao and Marfori to be in pari delicto for violating the 5-year restriction provided by Commonwealth 141 against encumbrance and alienation of public lands acquired thru free patent or homestead patent. They cannot therefore obtain affirmative relief. It also declares the respondents as innocent purchasers for value who the obtained the duplicate of the OCT still in the name of the Egaos from Marfori and ownership was transferred to them by physical possession of the property. It thus promulgated judgment holding the respondents the absolute owners of the land in dispute, to cancel the OCT of the petitioner and its transfer thereof to the respondents and to surrender peaceful possession of the land to the respondents.
