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v
CA
FACTS:
1. Generosa
Mendoza
filed
with
the
CFI
Bulacan
an
application
for
the
registration
of
2
parcels
of
land,
with
a
residential
house.
2. A
notice
was
issued
on
Dec.
3,
1964,
setting
the
date
of
the
initial
hearing
on
June
18
1965.
Notice
was
duly
published,
posted
and
served
but
nobody
appeared
nor
filed
an
answer
or
opposition
within
the
period
allowed
for
that
purpose.
3. Consequently,
the
registration
court
entered
on
July
6,
1965,
an
order
of
general
default
and
allowed
the
applicant
to
present
his
evidence
exparte
4. From
the
evidence
presented
it
was
proven
that
Mendoza
and
his
wife
were
the
owners
of
the
parcels
of
land
subject
of
the
application
but
the
same
were
sold
by
them
to
the
Spouses
Cruz
subject
to
the
vendors
usufructory
rights.
5. On
the
basis
of
such
evidence,
the
registration
court
rendered
a
decision
ordering
the
registration
of
the
subject
lands
into
the
name
of
the
vendees,
Spouses
Cruz,
subject
to
the
usufructory
rights
of
Generosa
Mendoza.
6. After
the
decision
had
become
final,
Generosa
Mendoza
filed
a
motion
for
issuance
of
decree.
It
was
then
issued
confirming
title
to
the
land
of
the
vendees
and
ordering
the
registration
of
the
vendees
subject
to
the
usufructuary
rights
of
the
venders.
An
OCT
was
issued
to
the
Spouses
Cruz.
7. Subsequently,
Generosa
Mendoza
filed
a
petition
for
reconsideration
to
set
aside
the
decree
that
let
to
the
issuance
of
OCT
for
the
reason
that
Spouses
Cruz
failed
to
pay
the
purchase
price.
8. Registration
Courts
decision:
o Set
aside
the
decree
of
registration
for
the
court
does
not
have
a
jurisdiction
to
order
the
registration
of
the
lands
in
the
name
of
the
vendees,
Spouses
Cruz,
who
are
not
parties
to
the
application
for
registration.
o It
directed
the
registration
of
lands
to
Generosa
Mendoza.
9. Upon
appeal,
CA
set
aside
the
order
of
the
registration
Court
o Set
aside
the
registration
of
lands
in
the
name
of
Generosa
Mendoza.
o Upheld
the
registration
in
the
names
of
Spouses
Cruz,
purchasers
of
the
landholdings
subject
matter
of
an
application
for
registration,
notwithstanding
that
they
were
not
parties
in
the
original
registration
proceedings.
o CA
based
its
decision
on
the
following:
Mendoza
himself
caused
the
registration
of
the
title
to
the
land
in
the
name
of
the
vendees
No
formal
amendment
of
the
application
for
registration
substituting
the
vendees
for
the
applicant.
Thus,
the
registration
court
could
legally
order
the
title
issued
in
the
name
of
vendees
because
the
applicant
himself
provided
the
basis
for
adjudication.
10. Hence,
this
petition.
o Mendoza
never
testified
on
court
so
he
could
not
have
possibly
caused
the
registration
of
the
title
to
land
to
the
vendees.
ISSUE:
W/N
title
to
land
should
be
given
to
the
vendees
who
were
not
parties
in
the
original
registration
proceedings
HELD:
1. On
the
first
assignment
of
error,
that
Mendoza
himself
caused
the
registration
of
title
to
the
lands,
SC
held
that
CA
made
no
error.
The
transcript
of
the
stenographic
notes
of
the
hearing
on
the
application
for
registration
showed
that
petitioner
and
his
wife
testified
before
the
court
that
they
sold
the
land
to
the
Spouses
Cruz.
The
deed
of
sale
was
showed
and
was
confirmed
by
Mendoza
that
the
land
in
said
deed
was
the
subject
matter
of
the
registration
proceedings.
2. Second
error:
The
registration
court
could
not
legally
order
the
registration
f
the
land
in
the
names
of
the
vendees,
who
were
neither
the
applicants
nor
the
oppositors
in
the
registration
case
under
Section
29
of
the
LRA.
o Section
29
expressly
authorizes
the
registration
of
the
land
subject
matter
of
a
registration
proceeding
in
the
name
of
the
buyer
or
of
the
person
to
whom
the
land
has
been
conveyed
by
an
instrument
executed
during
the
interval
of
time
between
the
filing
of
the
application
for
registration
and
the
issuance
of
the
decree
of
title
o Petitioner
overlooked
the
express
provision
of
Section
29.
It
is
clear
that
it
allows
the
land,
subject
matter
of
an
application
for
encumbered
during
the
interval
of
time
between
the
filing
of
the
application
and
issuance
of
the
decree
of
title,
and
to
have
the
instruments
embodying
such
disposition
or
encumbrance
presented
to
the
registration
court
to
either:
(1)
Order
such
land
registered
subject
to
the
encumbrance
created
by
said
instruments
or
(2)
Order
the
decree
of
registration
issued
in
the
name
of
the
buyer
or
of
the
person
to
whom
the
property
has
been
conveyed
by
said
instrument.
o The
law
does
not
require
that
the
application
for
registration
be
amended
by
substituting
the
buyer
or
the
person
to
whom
the
property
has
been
conveyed
for
the
applicant.
o Neither
does
it
require
that
the
buyer
or
the
person
to
whom
the
property
has
been
conveye
be
a
party
to
the
case.
He
may
thus
be
a
total
stranger
to
the
land
registration
proceedings.
The
only
requirements
of
the
law
are:
(1)
that
the
instrument
be
presented
to
the
court
by
the
interested
party
together
with
a
motion
that
the
same
be
considered
in
relation
with
the
application;
and
(2)
that
prior
notice
be
given
to
the
parties
to
the
case.
And
the
peculiar
facts
and
circumstances
obtaining
in
this
case
show
that
these
requirements
have
been
complied
with.
o In
the
case
at
bar,
the
instrument
embodying
the
sale
of
the
subject
property
was
duly
presented
to
the
registration
court
for
consideration.
It
was
the
petitioner-applicant
who
presented
the
deed
of
sale
and
testified
before
the
same
that
he
did
sell
the
land
to
the
respondents.
The
petitioner
even
filed
the
motion
for
the
issuance
of
the
decree
of
confirmation
of
title
after
having
received
the
decision
of
the
court
ordering
the
registration
of
the
title
to
the
land
in
the
names
of
vendees-respondents,
subject
to
the
stipulated
usufructuary
rightsthereby
signifying
his
full
assent
to
the
same.
3. Third
assignment
of
error:
CA
erred
in
holding
that
he
was
not
a
victim
of
fraud
by
the
vendees
who
failed
to
pay
the
purchase
price.
o Under
Section
38,
the
only
ground
upon
which
a
decree
of
registration
may
be
set
aside
is
fraud
in
obtaining
the
same.
o Failure
to
pay
the
purchase
price
is
not
fraud
in
contemplation
of
Section
38.
o It
is
not
within
the
jurisdiction
of
CA
to
look
whether
the
DOS
should
be
rescinded
due
to
failure
to
pay
the
purchase
price.
It
should
be
litigated
in
the
ordinary
court.
AQUINO,
DISSENTING
1. Main
premise:
The
registration
in
the
name
of
Spouses
Cruz
is
not
proper
because
they
did
not
intervene
in
the
land
registration
proceeding.
They
did
not
defray
expenses
thereof
and
have
not
paid
the
purchase
price.