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Vicencio
FACTS:
The Tumalads filed a civil case in the Municipal Court praying that Vicencio and
Simeon should vacate the property and pay rent of Php. 200 from March 27, 1956
up to the time the property is surrendered. The Municipal Court granted the prayer.
Vicencio and Simeon in their answer stated that the Municipal Court has no
jurisdiction to try the case because it was about ownership and there was no
allegation of prior possession another is that there was no proof for prior demand.
The Court of First Instance decided in favor of the Tumalads and granted them
motion for execution. But the judgement for the surrender of possession to the
Tumalads cannot be executed anymore because the property was demolished.
ISSUES:
Whether or not Vicencio and Simeon are legally bound to pay rentals within the
one year period that is provided by law for the redemption of the foreclosed
property.
HELD:
No. The Supreme Court stated that in the instant case, the parties specifically
stipulated that "the chattel mortgage will be enforceable in accordance with the
provisions of Special Act No. 3135 ... (Emphasis supplied).
Since the defendants-appellants were occupying the house at the time of the
auction sale, they are entitled to remain in possession during the period of
redemption or within one year from and after 27 March 1956, the date of the
auction sale, and to collect the rents or profits during the said period.
Section 6 of the Act referred to provides that the debtor-mortgagor may, at any
time within one year from and after the date of the auction sale, redeem the
property sold at the extra judicial foreclosure sale.
Section 7 of the same Act allows the purchaser of the property to obtain from the
court the possession during the period of redemption: but the same provision
expressly requires the filing of a petition with the proper Court of First Instance and
the furnishing of a bond. It is only upon filing of the proper motion and the approval
of the corresponding bond that the order for a writ of possession issues as a matter
of course. No discretion is left to the court.