SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                      8/15/20, 11:49 PM
VOL. 458, MAY 16, 2005                                           595
                                                     Caro vs. Sucaldito
                                                                                          *
                                           G.R. No. 157536. May 16, 2005.
                       MELCHOR CARO, petitioner, vs. SUSANA SUCALDITO,
                       respondent.
                            Actions; Land Registration; Reconveyance and Reversion; Words
                       and Phrases; The essence of an action for reconveyance is that the
                       decree of registration is respected as incontrovertible but what is
                       sought instead is the transfer of the property which has been
                       wrongfully or erroneously registered in another personÊs name, to its
                       right-ful owner or to one with a better right.·The Court notes that
                       the petitionerÊs complaint before the RTC prays for the annulment
                       of the free patent issued in the respondentÊs favor. Considering that
                       the ultimate relief sought is for the respondent to „return‰ the
                       subject property to him, it is in reality an action for reconveyance. In
                       De Guzman v. Court of Appeals, the Court held that „[t]he essence
                       of an action for reconveyance is that the decree of registration is
                       respected as incontrovertible but what is sought instead is the
                       transfer of the property which has been wrongfully or erroneously
                       registered in another personÊs name, to its rightful owner or to one
                       with a better right.‰ Indeed, in an action for reconveyance filed by a
                       private individual, the property does not go back to the State.
                            Same; Same; Same; Same; Reversion is an action where the
                       ultimate relief sought is to revert the land back to the government
                       under the Regalian doctrine.·Reversion, on the other hand, is an
                       action where the ultimate relief sought is to revert the land back to
                       the government under the Regalian doctrine. Considering that the
                       land subject of the action originated from a grant by the
                       government, its cancellation is a matter between the grantor and
                       the grantee.
                            Same; Same; Same; Same; Parties; „Legal Standing‰ and „In-
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       terest,‰ Explained; Every action must be prosecuted or defended in
                       the name of the real party-in-interest, or one „who stands to be
                       benefited or injured by the judgment in the suit.‰·Under Section 2,
                       Rule 3 of the Rules of Court, every action must be prosecuted or
                       defended in the name of the real party-in-interest, or one „who
                       stands to be benefited or injured by the judgment in the suit.‰
                       Corollarily, legal standing has been defined as a personal and
                       substantial interest in
                       _______________
                           *   SECOND DIVISION.
                                                                                                           596
                       596                SUPREME COURT REPORTS ANNOTATED
                                                      Caro vs. Sucaldito
                       the case, such that the party has sustained or will sustain direct
                       injury as a result of the challenged act. Interest means a material
                       interest in issue that is affected by the questioned act or
                       instrument, as distinguished from a mere incidental interest in the
                       question involved.
                             Same; Same; Same; Parties; Free Patents; A mere applicant for
                       a free patent, hence not the owner of the disputed property, cannot be
                       considered as a party-in-interest with personality to file an action for
                       reconveyance.·A suit filed by one who is not a party-in-interest
                       must be dismissed. In this case, the petitioner, not being the owner
                       of the disputed property but a mere applicant for a free patent,
                       cannot thus be considered as a party-in-interest with personality to
                       file an action for reconveyance. The Court, citing several of its
                       holdings, expounded on this doctrine in Tankiko v. Cezar as follows:
                       . . . Thus, in Lucas v. Durian [102 Phil. 1157 (1957)], the Court
                       affirmed the dismissal of a Complaint filed by a party who alleged
                       that the patent was obtained by fraudulent means and,
                       consequently, prayed for the annulment of said patent and the
                       cancellation of a certificate of title. The Court declared that the
                       proper party to bring the action was the government, to which the
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       property would revert. Likewise affirming the dismissal of a
                       Complaint for failure to state a cause of action, the Court in
                       Nebrada v. Heirs of Alivio [104 Phil. 126 (1958)] noted that the
                       plaintiff, being a mere homestead applicant, was not the real party-
                       in-interest to institute an action for reconveyance.
                            Same; Same; Same; Same; Only the Solicitor General or the
                       officer acting in his stead may bring the action for reversion.·This
                       provision was applied and discussed in Sumail v. Judge of the Court
                       of First Instance of Cotabato, et al., a case on all fours with the
                       present one, as follows: Under Section 101 of the above reproduced,
                       only the Solicitor General or the officer acting in his stead may
                       bring the action for reversion. Consequently, Sumail may not bring
                       such action or any action which would have the effect of cancelling a
                       free patent and the corresponding certificate of title issued on the
                       basis thereof, with the result that the land covered thereby will
                       again form part of the public domain. Furthermore, there is another
                       reason for withholding legal personality from Sumail. He does not
                       claim the land to be his private property. In fact, by his application
                       for a free patent, he had formally acknowledged and recognized the
                       land to be a part of the public domain; this, aside from the
                       declaration made by the cadastral court that lot 3633 was public
                       land. Consequently, even if
                                                                                                           597
                                           VOL. 458, MAY 16, 2005                                          597
                                                      Caro vs. Sucaldito
                       the parcel were declared reverted to the public domain, Sumail does
                       not automatically become the owner thereof. He is a mere public
                       land applicant like others who may apply for the same.
                       PETITION for review on certiorari of the decision and
                       resolution of the Court of Appeals.
                       The facts are stated in the opinion of the Court.
                             Rey G. Canindo for petitioner.
                             Manuel S. Gemarino for respondent.
                       CALLEJO, SR., J.:
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       This is a petition for review on certiorari under
                                                                   1
                                                                         Rule 45 of
                       the Rules of Court, assailing the Decision of the Court of
                       Appeals (CA) in CA-G.R. CV No. 45503, affirming the
                       dismissal of Civil Case No. 15529 by the Regional Trial
                       Court (RTC) of Iloilo City, Branch 39, as well as the
                       resolution denying the motion for reconsideration thereof.
                          The antecedent facts are as follows:
                          Gregorio Caro bought a parcel of land known as
                       AssessorÊs Lot No.2 160 from Ruperto Gepilano as evidenced
                       by a Deed of Sale dated October 21, 1953. The said lot was
                       situated in Sitio Bangyan, Barrio Calaya, Municipality of
                       Nueva Valencia, Iloilo City, consisting more or less of
                       17.9849 hectares. Thereafter, Gregorio Caro sold a portion
                       of the said lot to his son Melchor Caro, consisting of 70,124
                       square meters, and now identified as Lot No. 4512 of the
                       Cadastral survey of Nueva Valencia, 3Pls-775. Father and
                       son executed a Deed of Definite Sale dated January 31,
                       1973 covering Lot No. 4512.
                          On August 1, 1974, Melchor Caro applied for a free
                       patent before the Bureau of Lands, District Land Office No.
                       6-1,
                       _______________
                          1   Penned by Associate Justice Roberto A. Barrios, with Associate
                       Justices Bienvenido L. Reyes and Edgardo F. Sundiam, concurring.
                          2   Records, p. 301.
                          3   Id., at p. 302.
                                                                                                           598
                       598             SUPREME COURT REPORTS ANNOTATED
                                                     Caro vs. Sucaldito
                       covering the said area of the property which he bought
                       from his father. The application was, however, opposed by
                       Deogracias de la Cruz. On November4
                                                            6, 1980, the Regional
                       Director rendered a Decision         canceling the said
                       application, thusly:
                       „This is a claim of Deogracias de la Cruz to Lot No. 4512, Pls-775 of
                       Calaya, Nueva Valencia, Guimaras, covered by the above-noted
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       application of Melchor Caro.
                          In the investigation, respondent claims preferential rights over
                       the land as he acquired it through sale from his father Gregorio
                       Caro who had likewise bought the land from Ruperto Cepellano (sic)
                       in 1953. On the other hand, protestant De la Cruz testified that the
                       land in controversy was bought by him from Cipriano Gallego in
                       1965; that he thereafter occupied, possessed and improved the land
                       by planting coconut trees; and that in 1968 he was forcibly driven
                       out by Gregorio Caro from the land in question.
                          Verification of the records disclosed that the land which was
                       actually sold to Gregorio Caro by Ruperto Gepellano (sic) is
                       AssessorÊs Lot No. 160. The description and physical identity of Lot
                       No. 160 is basically different and distinct from Lot No. 4512, the
                       land in question. This could be clearly seen in the Certified True
                       Copy of the Sketch Plan from the AssessorÊs Office of AssessorÊs Lot
                       No. 160 and the Sketch Plan marked as Exhibit „9‰ of the
                       Respondent-Applicant. It has been established that AssessorÊs Lot
                       No. 160 corresponds to Lot No. 4511 and not Lot No. 4512 claimed
                       by the protestant. Moreover, Ruperto Cepellano (sic) in his affidavit
                       testified that what he sold to Gregorio Caro is a land distinct and
                       different from the land in question.
                          IN VIEW OF THE FOREGOING FINDINGS, it is ordered that
                       the F.P.A. No. (VI-1)8548 of applicant-respondent Melchor Caro be,
                       as hereby it is, cancelled. Protestant Deogracias de la Cruz if
                       qualified, is given one hundred twenty (120) days from the finality
                       of this decision to file an appropriate public land application
                       otherwise he shall lose his preferential right thereto.
                                           5
                          SO ORDERED.‰
                       _______________
                          4   Id., at p. 432.
                          5   Records, p. 432.
                                                                                                           599
                                          VOL. 458, MAY 16, 2005                                          599
                                                     Caro vs. Sucaldito
                       Caro filed a notice of appeal before the Regional Land
                       Office in Iloilo City, docketed as MNR Case No.6 5207.
                       However, the appeal was dismissed in an Order dated
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       June 29, 1982, on the ground of failure to file an appeal
                       memorandum within the reglementary period therefor.
                          On August 29, 1982, Susana R. Sucaldito, as the buyer7
                       of Lot No. 4512, filed an Application for a Free Patent
                       covering the said lot, and was issued Free Patent No.
                       597599. Consequently, the Register of Deeds of Iloilo City
                       issued Original Certificate of Title (OCT) No. F-27162 in
                       her favor. 8 Sucaldito then filed a Petition for Writ of
                       Possession before 9the RTC of Iloilo City, which was
                       granted in an Order dated May 7, 1984.
                          Thereafter,
                                   10
                                        on February 20, 1984, Caro filed a
                       Complaint against Sucaldito for „Annulment of Title,
                       Decision, Free Patent and/or Recovery of Ownership and/or
                       Possession with Damages‰ before 11the RTC of Iloilo City. He
                       later filed an amended complaint, alleging that he was the
                       owner of the subject lot, and had been in possession of the
                       same „since 1953 and/or even prior thereto in the concept of
                       owner, adversely, openly, continuously and notoriously.‰ He
                       further alleged that the said lot had been declared for tax
                       purposes in his name and that of his predecessors-in-
                       interest, and that the corresponding land taxes had been
                       paid therefor. He claimed that AssessorÊs Lot No. 160 had
                       actually been divided into two lots, namely, Lot No. 4511
                       and Lot No. 4512; Sucaldito had actually been claiming Lot
                       No. 989 (Lot No. 4512), which was located two kilometers
                       away. He lamented that despite the overwhelming evidence
                       proving his ownership and possession of the said property,
                       the Bureau of Lands did not award it to him.
                       _______________
                          6   Id., at pp. 447-449.
                          7   Id., at p. 452.
                          8   Id., at pp. 458-460.
                          9   Id., at pp. 461-463.
                          10   Records, pp. 1-4.
                          11   Id., at pp. 16-20.
                                                                                                           600
                       600             SUPREME COURT REPORTS ANNOTATED
                                                     Caro vs. Sucaldito
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                      8/15/20, 11:49 PM
                       Caro further alleged that since the issuance of the free
                       patent over the subject lot in favor of Sucaldito was
                       wrongful and fraudulent, she had no right whatsoever over
                       the subject lot. Hence, as a „trustee of a constructive trust,‰
                       she was obliged to return the same to him as the lawful
                       owner. The complaint contained the following prayer:
                       „WHEREFORE, it is prayed that judgment be rendered:
                               1. Ordering the annulment and voiding of the decision of the
                                  Bureau of Lands, the free patent and the Original
                                  Certificate of Title No. F-27162 or in the alternative;
                               2. Ordering defendant to reconvey the ownership and in the
                                  event she wrests possession from plaintiff then, also the
                                  possession of Lot 4512 PLS-775 of Nueva Valencia,
                                  Guimaras Cadastre, back to plaintiff;
                               3. Declaring plaintiff as the lawful owner and possessor of Lot
                                  4512 PLS-775 of Nueva Valencia, Guimaras Cadastre and
                                  ordering the issuance of a free patent or a torrens title in
                                  favor of plaintiff;
                               4. Ordering defendant to pay the plaintiff P50,000.00 as moral
                                  damages, P2,000.00 as attorneyÊs fees and P2,000.00 as
                                  expenses on litigation plus exemplary damages in an
                                  amount at the discretion of this Court.
                          Plaintiff further prays for such other relief just and equitable in
                                      12
                       the premises.‰
                       In her answer with counterclaim, Sucaldito interposed, as a
                       special affirmative defense, the fact that she intervened in
                       the proceedings on CaroÊs application for a free patent over
                       Lot No. 4512 before the Bureau of Lands having bought the
                       subject land from De la Cruz. Moreover, contrary to the
                       allegations of the petitioner, Lot No. 989 and Lot No. 4512
                       were one and the same lot, as per the findings of the
                       Bureau of Lands.
                          The parties thereafter presented
                                                         13
                                                            evidence to prove their
                       respective claims. In a Decision dated December 7, 1993,
                       the
                       _______________
                          12   Records, p. 20.
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                          13   Id., at pp. 523-533.
                                                                                                           601
                                         VOL. 458, MAY 16, 2005                                           601
                                                      Caro vs. Sucaldito
                       trial court ruled in favor of the respondent and dismissed
                       the petitionerÊs complaint. The dispositive portion reads:
                       „WHEREFORE, premises considered, the complaint filed by
                       plaintiff is dismissed. The counterclaim of defendant which is
                       merely the result of the filing of the complaint, is likewise
                       dismissed.
                          Costs against the plaintiff.
                                          14
                          SO ORDERED.‰
                       Citing the case 15
                                          of Maximo v. Court of First Instance of
                       Capiz, Br. III, the trial court ruled that Caro had no
                       personality to file the action for the annulment of the free
                       patent issued in favor of Sucaldito, which could only be
                       brought by the Solicitor General. It held that „an applicant
                       for a free patent who is not the owner of a parcel of land
                       cannot bring an action in court to recover the land, for the
                       court may not usurp the authority of the Director of Lands
                       and the Secretary of Agriculture to dispose lands of the
                       public domain through   16
                                                  administrative proceedings under
                       the Public Land Act,‰ or Commonwealth Act No. 141, as
                       amended. The trial court further stressed that the remedy
                       of a rival-applicant for a free patent over the same land
                       was through administrative channels, not judicial, because
                       even if the oppositor succeeds in annulling the title of the
                       applicant, the former17
                                               does not thereby become the owner of
                       the land in dispute.
                          The trial court also declared that contrary to CaroÊs
                       claims, the evidence clearly showed that Lot No. 4512, with
                       an area of 70,677 square meters, was not included in
                       AssessorÊs Lot No. 160, thus:
                       AssessorÊs Lot 160 is Cadastral Lot 4511, which has an original area
                       of around 17 hectares, more or less, later on, increased to 21
                       hectares. If we add Lot 4512 to Lot 4511 following the contention of
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       _______________
                          14   Id., at p. 533.
                          15   G.R. No. 61113, 21 February 1990, 182 SCRA 420.
                          16   CA Rollo, p. 32.
                          17   Id., at p. 34.
                                                                                                           602
                       602                      SUPREME COURT REPORTS ANNOTATED
                                                      Caro vs. Sucaldito
                       the plaintiff, then the area would be more than 28 hectares. Thus,
                       belying the claim of plaintiff that Lot 4512 was formerly a part of
                       AssessorÊs Lot 160.
                          The contention of the plaintiff that the defendant is claiming Lot
                       989 which is owned by Felix Galabo and located at Brgy. Olacon, is
                       not well taken, because the identification of the lot as stated in the
                       tax declaration is not binding and conclusive. What is binding and
                       conclusive is what is stated in the title of the land and its technical
                       description. In the technical description as found in the title of the
                       defendant [Sucaldito], it is clearly stated therein that the lot is Lot
                       4512 and is located at Brgy. Calaya and not Brgy. Olacon, Nueva
                                            18
                       Valencia, Guimaras.
                       Aggrieved by the trial courtÊs ruling, Caro elevated the case
                       to the CA on the following grounds:
                       THE COURT A QUO ERRED IN RULING THAT PLAINTIFF HAS
                       NO PERSONALITY TO BRING THE ACTION;
                                                                  II
                         THE COURT A QUO ERRED IN RULING THAT EVEN IF THE
                       PLAINTIFF HAS THE PERSONALITY TO BRING THE ACTION
                       STILL HE CANNOT RECOVER THE LOT IN QUESTION, CAD.
                       LOT NO. 4512;
                                                                 III
                         THE COURT ERRED IN NOT ORDERING THE DEFENDANT
                       TO RECONVEY THE LAND IN QUESTION TO PLAINTIFF AND
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                                                    19
                       TO PAY DAMAGES.
                                                                                            20
                       The CA dismissed the petition in its Decision dated July
                       31, 2002. The appellate court agreed with the ruling of the
                       RTC that the petitioner had no personality to file the action
                       under Section 101 of Commonwealth Act No. 141,
                       considering further that he was a mere applicant for a free
                       patent. Citing
                       _______________
                          18   CA Rollo, pp. 35-36.
                          19   Id., at p. 45.
                          20   Id., at pp. 80-87.
                                                                                                           603
                                          VOL. 458, MAY 16, 2005                                          603
                                                         Caro vs. Sucaldito
                                            21
                       several cases, the appellate court ruled that the findings
                       of fact made by administrative agencies which are
                       supported by substantial evidence must be respected,
                       particularly where the question demands the exercise of
                       sound administrative 22discretion requiring special
                       knowledge and experience.
                          Caro filed a motion for reconsideration of the said     23
                       decision, which the appellate court denied in a Resolution
                       dated February 7, 2003.
                          Caro, now the petitioner, assails the ruling of the
                       appellate court on the following grounds:
                       THAT THE HONORABLE APPELLATE COURT COMMITTED AN
                       ERROR IN HOLDING THAT PETITIONER HAS NO LEGAL
                       PERSONALITY TO FILE THIS ACTION;
                         THAT THE HONORABLE APPELLATE COURT ERRED IN
                       DISMISSING THE APPEAL INTERPOSED BY PETITIONER ON
                       THE GROUND THAT ONLY THE SOLICITOR GENERAL CAN
                       FILE AN ACTION FOR RECONVEYANCE OF PROPERTY
                                           24
                       ACQUIRED BY PATENT.
                       The petitioner insists that contrary to the ruling of the CA,
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       he has the legal personality to bring and institute the
                       present action against the respondent, considering that
                       title issued on the basis of a patent is annullable on the
                       ground of fraud. Furthermore, the one-year period within
                       which to file an action to cancel a torrens title under
                       Section 32 of Presidential Decree No. 1529 does not apply
                       where the registered owner, or the successor-in-interest,
                       knew that the property described in the title actually
                       belongs to another, as in this
                       _______________
                          21   Floralde v. Court of Appeals, 337 SCRA 371 (2000); Crusaders
                       Broadcasting System, Inc. v. National Telecommunications Commission,
                       332 SCRA 819 (2000); and Ocampo v. Commission on Elections, 325
                       SCRA 636. (Id., at p. 86).
                          22   Ibid.
                          23   Rollo, pp. 55-56.
                          24   Id., at p. 26.
                                                                                                           604
                       604             SUPREME COURT REPORTS ANNOTATED
                                                     Caro vs. Sucaldito
                                                                                              25
                       case. The petitioner cites Vital v. Anore, et al. to bolster
                       his claim.26
                                    The petitioner also cites Director of Lands v.
                       Abanilla     where the Court stressed that any false
                       statement in the application, which is an essential
                       condition of the patent or title under Section 91 of
                       Commonwealth Act No. 141, „shall ipso facto produce the
                       cancellation of the concession, title or permit granted.‰
                          In her comment, the respondent points out that the
                       decision of the Bureau of Lands itself would show that the
                       petitioner is not the true and lawful owner of the subject
                       lot; as such, the argument that he has the legal personality
                       to file the action for annulment of patent based on
                       constructive trust is untenable. The respondent further
                       contends that the CA did not err in upholding the ruling of
                       the RTC.
                          The petitioner merely reiterated his previous arguments
                       in his Reply dated December 30, 2003.
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                           The Court agrees with the ruling of the RTC and the
                       CA, and holds that the petitioner has no personality to file
                       a suit for reconveyance of the subject property.
                           The Court notes that the petitionerÊs complaint before
                       the RTC prays for the annulment of the free patent issued
                       in the respondentÊs favor. Considering that the ultimate
                       relief sought is for the respondent to „return‰ the subject
                       property to him, it is in reality an action
                                                             27
                                                                   for reconveyance.
                       In De Guzman v. Court of Appeals, the Court held that
                       „[t]he essence of an action for reconveyance is that the
                       decree of registration is respected as incontrovertible but
                       what is sought instead is the transfer of the property which
                       has been wrongfully or erroneously registered in another
                       personÊs
                              28
                                 name, to its rightful owner or to one with a better
                       right.‰ Indeed, in
                       _______________
                          25   90 Phil. 855 (1952).
                          26   G.R. No. L-26324, 31 August 1983, 124 SCRA 358.
                          27   442 Phil. 534; 394 SCRA 302 (2002).
                          28   Id., at p. 543. (Citations omitted).
                                                                                                           605
                                          VOL. 458, MAY 16, 2005                                          605
                                                      Caro vs. Sucaldito
                       an action for reconveyance filed by a private
                                                               29
                                                                     individual, the
                       property does not go back to the State.
                          Reversion, on the other hand, is an action where the
                       ultimate relief sought is to revert the land back to the
                       government under the Regalian doctrine. Considering that
                       the land subject of the action originated from a grant by the
                       government, its cancellation
                                                 30
                                                         is a matter between the
                       grantor and the grantee.                             31
                          Under Section 2, Rule 3 of the Rules of Court, every
                       action must be prosecuted or defended in the name of the
                       real party-in-interest, or one „who stands to be benefited or
                       injured by the judgment in the suit.‰ Corollarily, legal
                       standing has been defined as a personal and substantial
                       interest in the case, such that the party has sustained or
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       will sustain direct injury as a result of the challenged act.
                       Interest means a material interest in issue that is affected
                       by the questioned act or instrument, as distinguished
                                                                           32
                                                                               from
                       a mere incidental interest in the question involved.
                          Clearly then, a suit filed by one who is not a party-in-
                       interest must be dismissed. In this case, the petitioner, not
                       being the owner of the disputed property but a mere
                       applicant for a free patent, cannot thus be considered as a
                       party-in-interest with personality to file an action for
                       reconveyance.
                       _______________
                          29   Section 122 of the Land Registration Act; See also Republic of the
                       Philippines v. Heirs of Angeles, 439 Phil. 349; 390 SCRA 502 (2002).
                          30   De Guzman v. Court of Appeals, supra.
                          31   The provision reads in full:
                       Sec. 2. Parties in interest.·A real party in interest is the party who stands to
                       be benefited or injured by the judgment in the suit. Unless otherwise
                       authorized by law or these Rules, every action must be prosecuted or defended
                       in the name of the real party in interest.
                          32   Tichangco v. Enriquez, G.R. No. 150629, 30 June 2004, 433 SCRA
                       324, citing Velarde v. Social Justice Society, 428 SCRA 283 (2004).
                                                                                                           606
                       606            SUPREME COURT REPORTS ANNOTATED
                                                     Caro vs. Sucaldito
                       The Court, citing several of 33its holdings, expounded on this
                       doctrine in Tankiko v. Cezar as follows:
                       . . . Thus, in Lucas v. Durian [102 Phil. 1157 (1957)], the Court
                       affirmed the dismissal of a Complaint filed by a party who alleged
                       that the patent was obtained by fraudulent means and,
                       consequently, prayed for the annulment of said patent and the
                       cancellation of a certificate of title. The Court declared that the
                       proper party to bring the action was the government, to which the
                       property would revert. Likewise affirming the dismissal of a
                       Complaint for failure to state a cause of action, the Court in
                       Nebrada v. Heirs of Alivio [104 Phil. 126 (1958)] noted that the
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       plaintiff, being a mere homestead applicant, was not the real party-
                       in-interest to institute an action for reconveyance. . . .
                          ...
                          Verily, the Court stressed that „. . . [i]f the suit is not brought in
                       the name of or against the real party-in-interest, a motion to
                       dismiss may be filed on the ground that the complaint states no
                       cause of action [Travel Wide v. CA, 199 SCRA 205, 209 (1991), per
                       Cruz, J. See also Suguister v. Tamayo, 176 SCRA 579, August 21,
                       1989]. In fact, a final judgment may be invalidated if the real
                       parties-in-interest are not included. This was underscored by the
                       Court in Arcelona v. CA [280 SCRA 20, October 2, 1997], in which a
                       final judgment was nullified because indispensable parties were not
                       impleaded.
                          In the present dispute, only the State can file a suit for
                       reconveyance of a public land. Therefore, not being the owners of
                       the land but mere applicants for sales patents thereon, respondents
                       have no personality to file the suit. Neither will they be directly
                                                                34
                       affected by the judgment in such suit.
                                                                         35
                       In De la Peña v. Court of Appeals, the Court, in dismissing
                       the petitionerÊs imputation of fraud in securing a free
                       patent and title over a parcel of land, declared that
                       reconveyance is a remedy granted only to the owner of the   36
                       property alleged to be erroneously titled in anotherÊs name.
                       The Court further expounded:
                       _______________
                          33   G.R. No. 131277, 2 February 1999, 302 SCRA 559.
                          34   Id., at pp. 569-570.
                          35   G.R. No. 81827, 28 March 1994, 231 SCRA 456.
                          36   Id., at p. 461.
                                                                                                           607
                                          VOL. 458, MAY 16, 2005                                          607
                                                      Caro vs. Sucaldito
                       Persons who have not obtained title to public lands could not
                       question the titles legally issued by the State [Reyes v. Rodriguez,
                       62 Phil. 771, 776 (1936)]. In such cases, the real party-in-interest is
                       the Republic of the Philippines to whom the property would revert if
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                           8/15/20, 11:49 PM
                       it is ever established, after appropriate proceedings, that the free
                       patent issued to the grantee is indeed vulnerable to annulment on
                       the ground that the grantee failed to comply with the conditions
                       imposed by the law. Not being an applicant, much less a grantee,
                                                               37
                       petitioner cannot ask for reconveyance.
                                                                                                                38
                       In VSC Commercial Enterprises, Inc. v. Court of Appeals,
                       where the private respondents therein were mere lessees of
                       the property in question, the Court ruled that as mere
                       lessees, they had „no present substantial and personal
                       interest with respect to issues involving ownership of the
                       disputed property.‰ The Court went on to declare:
                       . . . The only interest they have, in the event the petitionerÊs title
                       over the subject property is cancelled and ownership reverts to the
                       State, is the hope that they become qualified buyers of the subject
                       parcel of land. Undoubtedly, such interest is a mere expectancy.
                       Even the private respondents themselves claim that in case of
                       reversion of ownership to the State, they only have „pre-emptive
                       rights‰ to buy the subject property; that their real interest over the
                       said property is contingent upon the governmentÊs consideration of
                       their application as buyers of the same. It is settled that a suit filed
                                                                                      39
                       by a person who is not a party-in-interest must be dismissed.
                       In fact, Section 101 of Commonwealth Act No. 141 states·
                       Section 101. All actions for the reversion to the government of lands
                       of the public domain or improvements thereon shall be instituted by
                       the Solicitor General or the officer acting in his stead, in the proper
                       courts, in the name of the Commonwealth [now Republic] of the
                       Philippines.
                       _______________
                          37   Supra.
                          38   G.R. No. 121159, 16 December 2002, 394 SCRA 74.
                          39   Id., at pp. 79-80. (Citations omitted).
                                                                                                           608
                       608              SUPREME COURT REPORTS ANNOTATED
                                                     Caro vs. Sucaldito
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                       8/15/20, 11:49 PM
                       This provision was applied and discussed in Sumail40 v.
                       Judge of the Court of First Instance of Cotabato, et al., a
                       case on all fours with the present one, as follows:
                       Under Section 101 of the above reproduced, only the Solicitor
                       General or the officer acting in his stead may bring the action for
                       reversion. Consequently, Sumail may not bring such action or any
                       action which would have the effect of cancelling a free patent and
                       the corresponding certificate of title issued on the basis thereof,
                       with the result that the land covered thereby will again form part of
                       the public domain. Furthermore, there is another reason for
                       withholding legal personality from Sumail. He does not claim the
                       land to be his private property. In fact, by his application for a free
                       patent, he had formally acknowledged and recognized the land to be
                       a part of the public domain; this, aside from the declaration made
                       by the cadastral court that lot 3633 was public land. Consequently,
                       even if the parcel were declared reverted to the public domain,
                       Sumail does not automatically become the owner thereof. He is a
                       mere public land applicant like others who may apply for the same.
                       To reiterate, the petitioner is not the proper party to file an
                       action for reconveyance that would  41
                                                              result in the reversion
                       of the land to the government. The petitioner has no
                       personality to „recover‰ the property42 as he has not shown
                       that he is the rightful owner thereof.
                          WHEREFORE, premises considered, the petition is
                       DENIED for lack of merit. The Decision of the Court of
                       Appeals in CA-G.R. CV No. 45503 and the Resolution dated
                       February 7, 2003 are AFFIRMED.
                          SO ORDERED.
                                Puno (Chairman), Austria-Martinez, Tinga and
                       Chico-Nazario, JJ., concur.
                       _______________
                          40   96 Phil. 946 (1955).
                          41   Abejaron v. Nabasa, 411 Phil. 552; 359 SCRA 47 (2001).
                          42   De Ocampo v. Arlos, G.R. No. 135527, 19 October 2000, 343 SCRA
                       716.
                                                                                                           609
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SUPREME COURT REPORTS ANNOTATED VOLUME 458                                                                      8/15/20, 11:49 PM
                                         VOL. 458, MAY 16, 2005                                           609
                                      Mayon Hotel & Restaurant vs. Adana
                       Petition denied, judgment and resolution affirmed.
                          Notes.·The rightful application of the docrine
                       highlighted in Heirs of Jose Olgiva vs. C.A., 227 SCRA 330
                       (1993), that the right to seek reconveyance of property
                       actually in possession of the plaintiff is imprescriptible
                       would only cover a sitution where the possession is in the
                       concept of an owner. (Tan vs. Court of Appeals, 295 SCRA
                       247 [1998])
                          It is only the State which may institute reversion
                       proceedings under Sec. 101 of the Public Land Act.
                       (Urquiaga vs. Court of Appeals, 301 SCRA 738 [1999])
                                                          ··o0o··
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