LAWPHIL

FIRST DIVISION
G.R. No. L-29906 January 30, 1976
RODOLFO GENERAL and CARMEN GONTANG, petitioners,
vs.
LEONCO !ARRAMEDA, respondent.
Augusto A. Pardalis for petitioners.
E.V. Guevarra for respondent.

E"G#ERRA, J.:
Petition for certiorari to review te decision of te !o"rt of Appea#s $Second Division% in !A&'.R. No.
()(*(&R, entit#ed +Leoncio Barrameda, plaintiff-appellant, vs. Development Bank of the Philippines
!aga Branch, !aga "it#$, Rodo#fo 'enera# and !ar,en 'ontan-, defendants&appe##ees,+ wic
reversed te decision of te !o"rt of First Instance of !a,arines S"r in its !ivi# !ase No. .*/0,
+dis,issin- te co,p#aint wit costs a-ainst p#aintiff+.
Appe##ate !o"rt1s decision as te fo##owin- dispositive portion2
We terefore find tat te appea#ed 3"d-,ent so"#d 4e reversed and set aside and
anoter one entered dec#arin- $5% n"## and void te sa#e e6ec"ted on Septe,4er (,
5/*(, 47 defendant Deve#op,ent 8an9 of te Pi#ippines in favor of its defendants
Rodo#fo 'enera# and !ar,en 'ontan-, $:% T.!.T. No. .;;( cance##ed and $(% te
,ort-a-ed propert7 redee,ed< and orderin- te !#er9 of te #ower co"rt to de#iver
te a,o"nt of P0,:05.:: deposited to defendants Rodo#fo 'enera# and !ar,en
'ontan- and te Re-ister of Deeds to iss"e a new Transfer !ertificate of Tit#e in te
na,e of p#aintiff in #ie" of T.!.T. No. .;;( "pon pa7,ent 47 i, of correspondin-
fees< wit costs a-ainst te defendants in 4ot instances.
=ndisp"ted facts are2
P#aintiff see9s to redee, te #and for,er#7 e,4raced in Transfer !ertificate of Tit#e
No. 5>5), containin- an area of ./.>*)0 ectares, sit"ated in 4arrio Ta4an,
?ina#a4ac !a,arines S"r< to ann"# an7 and a## contracts affectin- said propert7
4etween te Deve#op,ent 8an9 of te Pi#ippines $D8P% and Rodo#fo 'enera# and
!ar,en 'ontan- and to recover da,a-es, attorne71s fees and costs.
Te #and in disp"te was ,ort-a-ed 47 p#aintiff to te D8P to sec"re a #oan of
P::,;;;.;;. For fai#"re of te ,ort-a-or to pa7 in f"## te insta##,ents as te7 fa##
d"e, te ,ort-a-ee forec#osed e6tra3"dicia##7 p"rs"ant to te provisions of Act (5(..
On Apri# :(, 5/*:, te provincia# seriff cond"cted an a"ction sa#e in wic te
,ort-a-ee, as te i-est 4idder, 4o"-t te ,ort-a-ed propert7 for P0,:05.::. On
?a7 5(, 5/*(, te seriff e6ec"ted a fina# deed of sa#e in favor of te D8P $@6i4it :%
and te D8P e6ec"ted an affidavit of conso#idation of ownersip $@6i4it (%. =pon
re-istration of te sa#e and affidavit on %eptem&er ', ()*+ $@6i4it 5%, T!T No. 5>5)
in te na,e of p#aintiff was cance##ed and T!T No. .;;( iss"ed to te D8P $@6i4it&
.% in its stead. On Septe,4er (, 5/*(, defendants Rodo#fo 'enera# and !ar,en
'ontan- p"rcased te #and fro, teir codefendant. Te sa#e in teir favor was
annotated on T!T No. .;;( on !ovem&er '*, ()*+ on#7.
Prior to te date #ast ,entioned, or on Nove,4er :;, 5/*(, p#aintiff offered to redee,
te #and. In view of te ref"sa# of te D8P to a##ow te rede,ption, p#aintiff
co,,enced tis s"it. Te ori-ina# co,p#aint was fi#ed in co"rt on Nove,4er :(,
5/*(. On A"-"st 5:, 5/*>, p#aintiff deposited wit te c#er9 of co"rt te s", of
P0,:05.::, representin- te rep"rcase price of te #and.
Te tria# co"rt e#d tat te one&7ear period of rede,ption 4e-an to r"n on Apri# :(,
5/*:, wen te sa#e at p"4#ic a"ction was e#d, and ended on Apri# :>, 5/*(< tat te
p#aintiff1s offer to redee, on Nove,4er :;, 5/*( and te deposit of te rede,ption
price on A"-"st 5:, 5/*> were ,ade 4e7ond te rede,ption period< and tat
defendants Rodo#fo 'enera# and !ar,en 'ontan- 1are #e-iti,ate p"rcasers for
va#"e.
Two principa# iss"es raised are2
$5% In te interpretation and app#ication of Section (5, !o,,onwea#t Act >./ $Law
tat created te A-ric"#t"ra# and Ind"stria# 8an9, now Deve#op,ent 8an9 of te
Pi#ippines% wic provides2
Te ?ort-a-or or de4tor to te A-ric"#t"ra# and Ind"stria# 8an9 wose
rea# propert7 was so#d at p"4#ic a"ction, 3"dicia##7 or e6tra& 3"dicia##7,
for te f"## or partia# pa7,ent of an o4#i-ation to said 4an9
sa##, ,ithin one #ear from the date of- the auction sale, ave te ri-t
to redee, te rea# propert7 ... $@,pasis s"pp#ied%,
sa## te period of rede,ption start fro, te date of a"ction sa#e or te date of te
re-istration of te sa#e in te re-ister of deeds as te respondent Appe##ate !o"rt
e#dA
$:% Were petitioners "nder o4#i-ation to #oo9 4e7ond wat appeared in te certificate
of tit#e of teir vendor te Deve#op,ent 8an9 of te Pi#ippines and investi-ate te
va#idit7 of its tit#e 4efore te7 co"#d 4e c#assified as p"rcasers in -ood faitA
Petitioners1 principa# contentions are2 tat Section (5 of !o,,onwea#t Act No. >./ wic created
te A-ric"#t"ra# and Ind"stria# 8an9, predecessor of te Rea4i#itation Finance !orporation and te
Deve#op,ent 8an9 of te Pi#ippines, c#ear#7 provides tat te ri-t to redee, te rea# propert7 so#d
at p"4#ic a"ction 3"dicia##7 or e6tra&3"dicia##7 ,a7 on#7 4e e6ercised .,ithin one #ear from the date of
the auction sale./ tat tere is no provision in !o,,onwea#t Act No. >./ e6press#7 statin- tat te
rede,ption period of one 7ear sa## start fro, te re-istration of te certificate of sa#e in te re-ister
of deeds< tat Sec. (5 of !. A. >./ is a specific provision of #aw wic -overns rede,ption of rea#
propert7 forec#osed 47 te A-ric"#t"ra# and Ind"stria# 8an9 $now te Deve#op,ent 8an9 of te
Pi#ippines%, and prescri4es te rede,ption period for 4ot 3"dicia# and e6tra&3"dicia# forec#os"res of
,ort-a-e< tat insofar as forec#os"res of ,ort-a-e 47 4an9in- and financia# instit"tions are
concerned, te period of rede,ption app#ica4#e ,"st 4e te one prescri4ed in teir respective
carters as, in te case at 4ar, Section (5, !.A. No. >./< tat te r"#in- in te case of Ag&ulos vs.
Al&erto, '.R. No. L&50>)(, B"#7 (5, 5/*:, cited 47 respondent Appe##ate !o"rt as a 4asis for its
decision, is not app#ica4#e to te case at 4ar 4eca"se tis !o"rt 4ased its A-4"#os r"#in- on Section
:* $now Sec. /;% of R"#e (/ of te R"#es of !o"rt, werein it is not c#ear wen te period of
rede,ption so"#d start $date wen e6ec"tion sa#e was cond"cted, or wen te certificate of sa#e
was e6ec"ted 47 seriff, or wen te certificate of sa#e was re-istered in te re-istr7 of deeds%, and
tis !o"rt r"#ed tat as te #and invo#ved in tat case is re-istered "nder te Torrens s7ste,, te
date of rede,ption so"#d 4e-in to r"n fro, te date of re-istration, "n#i9e in te case at 4ar were
Section (5 of !o,,onwea#t Act >./ specifica##7 and c#ear#7 provides tat te r"nnin- of te
rede,ption period sa## startfrom the date of the auction sale< and tat te r"#in- of tis !o"rt
in Gon0ales vs. P.!.B., >) Pi#. ):>, a#so invo9ed 47 respondent Appe##ate !o"rt as a 4asis for its
decision, is #i9ewise not app#ica4#e to te case at 4ar 4eca"se te provisions on te ,atter of te
P.N.8. !arter, Act No. :/(), are different fro, tat of !o,,onwea#t Act >./. Section (: of Act
:/(), wic is now Section :; of R.A. No. 5(;; $PN8 !arter% provides tat te ,ort-a-or sa##
ave te ri-t to redee, ,ithin one #ear the sale of the real estate. Tis is Identica# to te provision
appearin- in Sec. :*, now Sec. (;, R"#e (/, R"#es of !o"rt, wi#e "nder Sec. (5 of !o,,onwea#t
Act >./, te period of redemption should star, on the date of the auction sale, and te #atter provision
is app#ica4#e specifica##7 and e6press#7 to te case at 4ar.
It is a#so petitioners1 principa# ar-",ent tat te r"#in- in ?etropo#itan Ins"rance !o,pan7,
s"4stit"ted 47 spo"ses Loreto 1. 2arcaida and 2iguel de 2arcaida vs. Pigtain 5;5 Pi#. 5555, 555.&
555*, werein tis !o"rt, in constr"in- Sec. * of Act No. (5(., cate-orica##7 stated tat te one 7ear
rede,ption period sa## start from the date of sale and not from the report of the sale or the
registration of the sale certificate in the office of the 3egister of Deeds, is ,ore app#ica4#e to te
present case. Te pertinent portion of te decision in te ?arcaida case fo##ows2
8"t a-ain te appe##ants c#ai, tat in tis partic"#ar case, the statutor# redemption
period of one #ear should &egin from Decem&er (4, ()56, ,hen the auction sale
,as actuall# recorded in the office of the 3egister of Deeds of 2anila and not from
Decem&er (5, ()5+, ,hen the sale at pu&lic auction of the properties in 7uestion
took place. 8e find its contention to &e also untena&le in vie, of the clear provision
of the aforesaid %ection * of Act !o. +(+5 to the effect that the right of redemption
should &e e9ercised ,ithin one #ear from the date of the sale. :t should not &e
overlooked that the e9tra;udicial sale in 7uestion ,as for foreclosure of a mortgage
and ,as not &# virtue of an ordinar# ,rit of e9ecution in a civil case. ... And since te
appea##ants ad fai#ed to redee, te #and in C"estion witin te ti,e a##owed 47
Section * of Act (5(., te appe##ee as perfect ri-t to reC"ire te cance##ation of te
attac,ent #ien in C"estion. $@,pasis s"pp#ied%
Notwitstandin- te i,pressive ar-",ents presented 47 petitioners, te cr"cia# iss"e to deter,ine is
te coice of wat r"#e to app#7 in deter,inin- te start of te one 7ear rede,ption period, weter
fro, te date of te a"ction sa#e or fro, tat of te re-istration of te sa#e wit te re-istr7 of deeds.
In oter words it is weter a #itera# interpretation of te provision of Section (5 of !o,,onwea#t
Act >./ D that the period of redemption shall start from the date of the auction sa#e D sa## -overn,
or weter te words, +auction sale+ sa## 4e considered in teir ordinar7 ,eanin- or in te sa,e
sense tat site is "sed in te te6ts of Section :*, now (;, of R"#e (/ of te R"#es of !o"rt, and
Section :* of Act :/(), now Section :;, R.A. 5(;; $!arter of PN8%. Stated different#7, so"#d te
word +sale+ "sed in te a4ove indicated provisions of te R"#es of !o"rt and te PN8 !arter, "nder
wicWe r"#ed tat te rede,ption period sa## start fro, te re-istration of te sa#e in te re-istr7 of
deeds 4e app#ied to forec#os"re sa#es for te D8P and -ive to te words a"ction sa#e+ in its carter
te sa,e ,eanin- of +sa#e+ as "sed in connection wit re-istered #andA
We are of te view tat a correct so#"tion to te fore-oin- iss"e ,"st entai# not ,ere#7 tr7in- to
deter,ine te ,eanin- of te words a"ction sa#e+ and +sa#e+ in different #e-is#ative enact,ents, 4"t,
,ore i,portant#7, a deter,ination of te #e-is#ative intent wic is C"ite a tas9 to acieve as it
depends ,ore on a deter,ination of te p"rpose and o43ective of te #aw in -ivin- ,ort-a-ors a
period of rede,ptio, of teir forec#osed properties. ?ort-a-ors wose properties are forec#osed and
are p"rcased 47 te ,ort-a-ee as i-est 4idder at te a"ction sa#e are decided#7 at a -reat
disadvata-e 4eca"se a#,ost invaria4#7 ,ort-a-ors forfeit teir properties at a -reat #oss as te7 are
p"rcased at no,ina# costs 47 te ,ort-a-ee i,se#f wo ordinari#7 4ids in no ,ore tan is credit
or te 4a#ance treof at te a"ction sa#e. Tat is te reason w7 te #aw -ives te, a cance to
redee, teir properties witin a fi6ed period. It cannot 4e denied tat in a## forec#os"res of
,ort-a-es and sa#e of propert7 p"rs"an to e6ec"tion, weter 3"dicia# or e6tra3"dicia# in nat"re,
"nder different #e-is#ative enact,ents, a p"4#ic a"ction sa#e is a indispensa4#e pre&reC"isite to te
va#id disposa# of properties "sed as co##atera# for te o4#i-ation. So tat weter te #e-is#ators in
different #aws "sed as co##atera# for te o4#i-ation. So tat weter te #e-is#ators in different #aws
"sed te ter, +sa#e+ or +a"ction sa#e+ is of no ,o,ent, since te pres",ption is tat wen te7 "sed
tose words +sa#e+ and +a"ction sa#e+ intercan-ea4#e in different #aws te7 rea##7 referred to on#7
one act D te sale at pu&lic auction indispensa4#7 necessar7 in te disposition of ,ort-a-ed
properties and tose #evied "pon to pa7 civi# o4#i-ations of teir owners.
In te case of @rnesto %ala0ar, et al. vs. <lor De Lis 2eneses, et al.,'.R. No.
L&5.(0), pro,"#-ated B"#7 (5, 5/*(, tis !o"rt stated2
Te iss"e decisive of tis appea# is te one raised 47 appe##ants in teir tird
assi-n,ent of error, wic is to tis effect2 that the lo,er court erred in not holding
that the period of redemption in this case, as far as appellants are concerned, started
onl# on 2a# '*, ()5*, registered. So"#d We r"#e to tis effect, it is c#ear tat en
appe##ants atte,pted to e6ercise teir ri-t to redee,, as 3"d-,ent creditors of te
deceased ,ort-a-or 47 3"d-,ent s"4seC"ent to te e6tra3"dicia# forec#os"re sa#e,
and wen te7 initiated te present action on Octo4er 5, 5/.*, te period of
rede,ption ad not 7er e6pired.
8e find appellants- contention to &e meritorious. In te case of Ag&ulos vs.
Al&erto, '.R. No. L&50>)(, pro,"#-ated on B"#7 (5, 5/*:, We e#d2
=he propert# involved in the present case is registered land. :t is the
la, in this ;urisdiction that ,hen propert# &rought under the operation
of the Land 3egistration Act sold, te operative act is the registration
of the deed of conve#ance. =he deed of sale does not take effect this
a conve#ance or &ind the land it is registered. $Section .;, Act >/*<
T"ason vs. Ra7,"ndo, :) Pi#. *(.< Si9at"na vs. '"evara, >( Pi#.
(05< Worcester vs. Oca,po, (> Pi#. *>*% $@,pasis s"pp#ied%
We find no co,pe##in- reason to deviate fro, te aforeC"oted r"#in- and not app#7 te sa,e to te
present case. To =s petitioners1 ,ain contention tat tere is a -reat dea# of difference in #e-is#ative
intent in te "se of te words /> a"ction sa#e+ in Sec. (5 of !o,,onwea#t Act >./ and te word
+sa#e+ in See. (: of Act :/(), and See. (; of R"#e (/ of te R"#es of !o"rt, pa#es into insi-nificance
in te #i-t of O"r stand tat tose words "sed intercan-ea4#7 refer to one tin-, and tat is te
p"4#ic a"ction sa#e reC"ired 47 #aw in te disposition of properties forec#osed or #evied "pon. O"r
stand in te Sa#aEar case and in tose ,entioned terein $'arcia vs. Oca,po, '.R. No. L&5(;:/,
B"ne (;, 5/./< 'onEa#es et a#. vs. Pi#ippine Nationa# 8an9 et a#. >) Pi#. ):>% is fir,#7 p#anted on
te pre,ise tat re-istration of te deed of conve7ance for properties 4ro"-t "nder te Torrens
S7ste, is te operative act to transfer tit#e to te propert7 and re-istration is a#so te notice to te
wo#e wor#d tat a transaction invo#vin- te sa,e ad ta9en p#ace.
To affir, te previo"s stand tis !o"rt as ta9en on te C"estion of wen te one 7ear period of
rede,ption so"#d start $fro, te ti,e of re-istration of te sa#e% wo"#d 4etter serve te ends of
3"stice and eC"it7 especia##7 in tis case, since to r"#e oterwise wo"#d res"#t in preventin- te
respondent&,ort-a-or fro, redee,in- is ./.>*)0 ectares of #and wic was acC"ired 47 te
Deve#op,ent 8an9 of te Pi#ippines as te i-est 4idder at te a"ction sa#e for te #ow price of
on#7 P0,:05.:: wic was si,p#7 te "npaid 4a#ance of te ,ort-a-e de4t of P::,;;;.;; after te
respondent&,ort-a-or ad paid te s", of P5>,0:).0). As it is, affir,ance of te Appe##ate !o"rt1s
decision wo"#d not res"#t in an7 #oss to petitioners since te a,o"nt of P0,:05.:: te7 paid to te
8an9 wi## 4e ret"rned to 1te,. Wat f"rter stren-ten1s O"r stand is te fact fo"nd 47 te
respondent Appe##ate !o"rt tat respondent 8arra,eda as a#wa7s 4een in possession of te
disp"ted #and.
IN TH@ LI'HT OF TH@ FOR@'OIN', We find it no #on-er necessar7 to deter,ine weter te
petitioners are p"rcasers in -ood fait of te #and invo#ved, since te respondent 8arra,eda
redee,ed te ,ort-a-ed propert7 witin te #e-a# period of rede,ption and, conseC"ent#7 te sa#e
of te propert7 e6ec"ted on Septe,4er (, 5/*(, 47 te Deve#op,ent 8an9 of te Pi#ippine in favor
of te petitioners is n"## and void.
WH@R@FOR@, te decision of te respondent Appe##ate !o"rt is affir,ed, wit costs a-ainst
petitioners.
SCRIDB
General v. Barrameda
January 30, 1976
Rodolfo General and Carmen Gontang !et"t"oner#
$eon%"o Barrameda Re&#ondent
!et"t"on for %ert"orar" to rev"e' t(e de%"#"on of t(e C)
I. *a%t#+
1. !la"nt", #ee-# to redeem t(e land formerly em.ra%ed .y /ran#fer Cert"0%ate /"tle
1/C/2 3o. 1415, %onta"n"ng an area of 69 (e%tare# "n 7"na.ala% Camar"ne# Sur, and
to annul all %ontra%t# a,e%t"ng t(e &ro&erty .et'een t(e Develo&ment Ban- of t(e
!("l"&&"ne# and Rodolfo General.
8. /(e land "n d"#&ute 'a# mortgaged .y &la"nt", 1General2 to DB! for !88,000. *or
fa"lure to &ay, t(e mortgagee 1DB!2 fore%lo#ed t(e &ro&erty.
3. 9n )&r"l 83, 1968, &rov"n%"al #(er", %ondu%ted au%t"on #ale "n '("%( t(e ("g(e#t
."dder, t(e #a"d mortgagee, .oug(t t(e mortgaged &ro&erty for !7, 871.88
4. 9n Se&tem.er 8, 1963, t(e reg"#trat"on of t(e #ale and a:dav"t '(ere"n /C/ 3o.
1415 "n t(e name of &la"nt", 'a# %an%eled and /C/ 3o. 6003 'a# "##ued to t(e DB!.
6. 9n Se&t 3, 1963 defendant# General and Gontang &ur%(a#ed land from DB!. /(e"r
#ale 'a# annotated "n /C/ 6003 on 3ov. 86. 1963 only.
6. 9n 3ov. 80 1963 &la"nt", o,ered to redeem t(e land. ;(en DB! refu#ed, t(en
&lan"t", 0led #u"t. /(e or"g"nal %om&la"nt 'a# 0led on 3ov. 80, 1963 '("le on )ugu#t
18, 1964, &la"nt", de&o#"ted '"t( t(e %ler- of %ourt t(e #um of !7,871.88
re&re#ent"ng t(e &ur%(a#e &r"%e of t(e land.
7. In t(e tr"al %ourt, t(e <udge a##erted t(at t(e oneyear &er"od of redem&t"on
.egan to run on a&r"l 83, 1968, '(en t(e #ale at &u.l"% au%t"on 'a# (eld, and ended
on )&r"l 84, 1963 and t(e de&o#"t of redem&t"on &r"%e on )ugu#t 18, 1964 'ere
made .eyond t(e redem&t"on &er"od and t(at defendant# Rodolfo General and
Carmen Gontang 'ere leg"t"mate &ur%(a#er#.
5. In t(e a&&ellate %ourt, t(e a&&ealed <udgment 'a# rever#ed and t(e ot(er one
entered de%lar"ng 1. 3ull and vo"d t(e #ale e=e%uted on Se&tem.er 3, 1963, .y
defendant DB! to Gontang and General 8. /C/ 6003 %an%elled and 3. 7ortaged
&ro&erty redeemed and order"ng t(e %ler- of %ourt to del"ver to General and
Gontang and t(e Reg"#ter of Deed# to "##ue a ne' tran#fer %ert"0%ate of t"tle "n t(e
name of &la"nt", "n l"eu of /C/ 6003 u&on &ayment of fee#.
II. I##ue>#+
1. ;o3 t(e "nter&retat"on of Se%t"on 31, Common'ealt( )%t 469 1la' t(at %reated
t(e DB!2, '("%( &rov"de# t(at mortgager (a# r"g(t to redeem t(e real &ro&erty u&on
full or &art"al &ayment '"t("n one year from t(e date of t(e au%t"on #ale, #(all #tart
from t(e date of t(e au%t"on #ale or t(e date of t(e reg"#trat"on of #ale "n t(e
reg"#ter of deed#. 1#tart from t(e reg"#trat"on of #ale2
8. ;ere &et"t"oner# under o.l"gat"on to loo- .eyond '(at a&&eared "n t(e %ert"0%ate
of t"tle of t(e"r vendor t(e Develo&ment Ban- of t(e !("l"&&"ne# and "nve#t"gate t(e
val"d"ty of "t# t"tle .efore t(ey %ould .e %la##"0ed a# &ur%(a#er# "n good fa"t(?
III. De%"#"on
De%"#"on of )&&ellate Court a:rmed '"t( %o#t# aga"n#t &et"t"oner#.
3o longer ne%e##ary to determ"ne ;93 t(e &et"t"oner# 'ere &ur%(a#er# "n good
fa"t( of t(e land "nvolved #"n%e Barrameda redeemed t(e mortgaged &ro&erty '"t("n
t(e legal &er"od of redem&t"on.
Rat"o+
1. !et"t"oner or"g"nally %ontended t(at Se% 31 of Common'ealt( )%t 469 %learly
#tate# t(at t(e r"g(t to redeem t(e t(e real &ro&erty #old at &u.l"% au%t"on <ud"%"ally
or e=tra<ud"%"ally may only .e e=er%"#ed @'"t("n one year from t(e date of t(e
au%t"on #aleA and t(at t(ere 'a# no &rov"#"on "n t(e #ame a%t t(at e=&re##ly #tated
t(at t(e redem&t"on &er"od of one year #(all #tart from t(e reg"#trat"on of t(e
%ert"0%ate of #ale "n t(e reg"#trat"on of deed#.
)l#o, (e %ontended t(at t(e #ame &rov"#"on govern# redem&t"on of real &ro&erty
fore%lo#ed .y t(e DB! and &re#%r".e# t(e redem&t"on &er"od for <ud"%"al fore%lo#ure#
of mortgage.
/(e )lgu.o# v )l.erto rul"ng %"ted .y re#&ondent a&&ellate %ourt 'a#nBt a&&l"%a.le
to t(e %a#e at .ar .e%au#e "t 'a# not %lear '(en t(e &er"od of redem&t"on #(ould
#tart 1date '(en e=e%ut"on #ale 'a# %ondu%ted, or '(en t(e %ert"0%ate of #ale 'a#
e=e%uted .y #(er",, or '(en t(e %ert"0%ate of #ale 'a# reg"#tered "n t(e reg"#try of
deed#2, and t("# Court ruled t(at a# t(e land "nvolved "n t(at %a#e "# reg"#tered
under t(e /orren# #y#tem, t(e date of redem&t"on #(ould .eg"n to run from t(e date
of reg"#trat"on, unl"-e "n t(e %a#e at .ar '(ere Se%t"on 31 of Common'ealt( )%t 469
#&e%"0%ally and %learly &rov"de# t(at t(e runn"ng of t(e redem&t"on &er"od #(all
#tart from t(e date of t(e au%t"on #ale.
7oreover, t(e &et"t"oner# re.u,ed GonCale# v#. !.3.B.B# a&&l"%a."l"ty to t(e %a#e at
.ar .e%au#e t(e &rov"#"on# on t(e matter of t(e !.3.B. C(arter, )%t 3o. 8935, are
d",erent from t(at of Common'ealt( )%t 469. Se%t"on 38 of )%t 8935, '(ere"n "t
&rov"ded mortgagor #(all (ave t(e r"g(t to redeem '"t("n one year t(e #ale of t(e
real e#tate. /("# 'a# Ident"%al to t(e &rov"#"on a&&ear"ng "n Se%. 86, no' Se%. 30,
Rule 39, Rule# of Court, '("le under Se%. 31 of Common'ealt( )%t 469, t(e &er"od
of redem&t"on #(ould #tart, on t(e date of t(e au%t"on #ale, and t(e latter &rov"#"on
"# a&&l"%a.le #&e%"0%ally and e=&re##ly to t(e %a#e at .ar.
/(e &et"t"oner#, on t(e ot(er (and, a##erted t(e a&&l"%a."l"ty of t(e 7ar%a"de v
!"gta"n %a#e '(ere "t %ategor"%ally #tated t(at t(e one year redem&t"on &er"od #(all
#tart from t(e date of #ale and not from t(e re&ort of t(e #ale or t(e reg"#trat"on of
t(e #ale %ert"0%ate "n t(e o:%e of t(e Reg"#ter of Deed#, "# more a&&l"%a.le to t(e
&re#ent %a#e.
8. /(e %ourt 'a# of t(e v"e' t(at a %orre%t #olut"on to t(e forego"ng "##ue mu#t
enta"l not merely try"ng to determ"ne t(e mean"ng of t(e 'ord# @au%t"on #aleD and
D#aleD "n d",erent leg"#lat"ve ena%tment#, .ut, more "m&ortantly, a determ"nat"on of
t(e leg"#lat"ve "ntent '("%( "# Eu"te a ta#- to a%("eve a# "t de&end# more on a
determ"nat"on of t(e &ur&o#e and o.<e%t"ve of t(e la' "n g"v"ng mortgagor# a &er"od
of redem&t"on of t(e"r fore%lo#ed &ro&ert"e#.
) &u.l"% au%t"on #ale "# an "nd"#&en#".le &rereEu"#"te to t(e val"d d"#&o#al of
&ro&ert"e# u#ed a# %ollateral for t(e o.l"gat"on.
So t(at '(et(er t(e leg"#lator# "n d",erent la'# u#ed t(e term D#aleD or Dau%t"on
#aleD "# of no moment, #"n%e t(e &re#um&t"on "# t(at '(en t(ey u#ed t(o#e 'ord#
D#aleD and Dau%t"on #aleD "nter%(angea.le "n d",erent la'# t(ey really referred to
only one a%t F t(e #ale at &u.l"% au%t"on "nd"#&en#a.ly ne%e##ary "n t(e d"#&o#"t"on
of mortgaged &ro&ert"e# and t(o#e lev"ed u&on to &ay %"v"l o.l"gat"on# of t(e"r
o'ner#.
3. /(e %ourt ad(ered to SalaCar v. 7ene#e#, '(ere t(e &er"od of redem&t"on 'a#
(eld a# #tarted on t(e date '(en t(e %ert"0%ate of #ale "##ued 'a# reg"#tered. /(e
deed of #ale doe# not ta-e e,e%t unt"l "t "# reg"#tered.
/(ey found no %om&ell"ng rea#on to dev"ate from t(e rul"ng and not a&&ly t(e #ame
to t(e &re#ent %a#e. Be%au#e, to t(e %ourt, t(e "m&ortant "##ue 'a# '(et(er
@au%t"on #aleA #(all .e %on#"dered "n "t# ord"nary mean"ng or "n t(e #ame mean"ng
of @#ale@ u#ed "n t(e te=t# of Se% 86 of Rule# of Court and )%t 8935 1!3B C(arter2
and Se% 30 )nd Rule 39 of t(e Rule# of Court. /o t(em t(e#e 'ord# u#ed
"nter%(angea.ly refer to one t("ng and t(at "# t(e &u.l"% au%t"on #ale reEu"red .y
la' "n t(e d"#&o#"t"on of &ro&ert"e# fore%lo#ed or lev"ed u&on. /("# v"e' 'a# %ontrary
to t(e &et"t"oner# ma"n %ontent"on t(at t(ere 'a# a great deal of d",eren%e "n
leg"#lat"ve "ntent "n t(e t'o 'ord#.
/(e #tand# ment"oned .y t(e Court "n t(e ment"oned %a#e# and ot(er one# 1Gar%"a
v#. 9%am&o and GonCale# et al. v#. !("l"&&"ne 3at"onal Ban- et al.2 'ere 0rmly
&lanted on t(e &rem"#e t(at reg"#trat"on of t(e deed of %onveyan%e for &ro&ert"e#
.roug(t under t(e /orren# Sy#tem "# t(e o&erat"ve a%t to tran#fer t"tle to t(e
&ro&erty and reg"#trat"on "# al#o t(e not"%e to t(e '(ole 'orld t(at a tran#a%t"on
"nvolv"ng t(e #ame (ad ta-en &la%e.
/o a:rm t(e &rev"ou# #tand t("# Court (a# ta-en on t(e Eue#t"on of '(en t(e one
year &er"od of redem&t"on #(ould #tart 1from t(e t"me of reg"#trat"on of t(e #ale2
'ould .etter #erve t(e end# of <u#t"%e and eEu"ty e#&e%"ally "n t("# %a#e, #"n%e to
rule ot(er'"#e 'ould re#ult "n &revent"ng t(e re#&ondentmortgagor from redeem"ng
("# 69.4657 (e%tare# of land '("%( 'a# a%Eu"red .y t(e Develo&ment Ban- of t(e
!("l"&&"ne# a# t(e ("g(e#t ."dder at t(e au%t"on #ale for t(e lo' &r"%e of only
!7,871.88 t(e un&a"d .alan%e of t(e mortgage de.t of !88,000.00 after t(e
re#&ondentmortgagor (ad &a"d t(e #um of !14,785.75.
3o an#'er on 8nd Eue#t"on &o#ted .y &la"nt",#.