Republic of the Philippines
SUPREME COURT 
Manila 
THIRD DIVISION 
  
G.R. No. 100709 November 14, 1997 
REPUBLIC OF THE PHILIPPINES, represented by the DIRECTOR OF LANDS, petitioner,  
vs. 
COURT OF APPEALS, JOSEFINA L. MORATO, SPOUSES NENITA CO and ANTONIO 
QUILATAN AND THE REGISTER OF DEEDS OF QUEZON PROVINCE, respondents. 
  
PANGANIBAN, J .: 
Will the lease and/or mortgage of a portion of a realty acquired through free patent constitute 
sufficient ground for the nullification of such land grant? Should such property revert to the State 
once it is invaded by the sea and thus becomes foreshore land? 
The Case 
These are the two questions raised in the petition before us assailing the Court of Appeals' 
1
 Decision 
in CA-G.R. CV No. 02667 promulgated on June 13, 1991 which answered the said questions in the 
negative. 
2
 Respondent Court's dismissed
3
 petitioner's appeal and affirmed in toto the decision of the 
Regional Trial Court
 4
 of Calauag, Quezon, dated December 28, 1983 in Civil Case No. C-608. In turn, the 
Regional Trial Court's decision dismissed petitioner's complaint for cancellation of the Torrens Certificate 
of Title of Respondent Morato and for reversion of the parcel of land subject thereof of the public domain. 
The Facts 
The petition of the solicitor general, representing the Republic of the Philippines, recites the following 
facts: 
5
 
Sometime in December, 1972, respondent Morato filed a Free Patent Application No. 
III-3-8186-B on a parcel of land with an area of 1,265 square meters situated at 
Pinagtalleran, Calauag, Quezon. On January 16, 1974, the patent was approved and 
the Register of Deeds of Quezon at Lucena City issued on February 4, 1974 Original 
Certificate of Title No. P-17789. Both the free paten and the title specifically mandate 
that the land shall not be alienated nor encumbered within five years from the date of 
the issuance of the patent (Sections 118 and 124 of CA No. 141, as amended). 
Subsequently, the District Land Officer in Lucena City, acting upon reports that 
respondent Morato had encumbered the land in violation of the condition of the 
patent, conducted an investigation. Thereafter, it was established that the subject 
land is a portion of the Calauag Bay, five (5) to six (6) feet deep under water during 
high tide and two (2) feet deep at low tide, and not suitable to vegetation. Moreover, 
on October 24, 1974, a portion of the land was mortgaged by respondent Morato to 
respondents Nenita Co and Antonio Quilatan for P10,000.00 (pp. 2, 25, Folder of 
Exhibits). The spouses Quilatan constructed a house on the land. Another portion of 
the land was leased to Perfecto Advincula on February 2, 1976 at P100.00 a month, 
where a warehouse was constructed. 
On November 5, 1978, petitioner filed an amended complaint against respondents 
Morato, spouses Nenita Co and Antonio Quilatan, and the Register of Deeds of 
Quezon for the cancellation of title and reversion of a parcel of land to the public 
domain, subject of a free patent in favor of respondent Morato, on the grounds that 
the land is a foreshore land and was mortgaged and leased within the five-year 
prohibitory period (p. 46, Records). 
After trial, the lower court, on December 28, 1983, rendered a decision dismissing 
petitioner's complaint. In finding for private respondents, the lower court ruled that 
there was no violation of the 5-year period ban against alienating or encumbering the 
land, because the land was merely leased and not alienated. It also found that the 
mortgage to Nenita Co and Antonio Quilatan covered only the improvement and not 
the land itself. 
On appeal, the Court of Appeals affirmed the decision of the trial court. Thereafter, the Republic of 
the Philippines filed the present petition. 
6
 
The Issues 
Petitioner alleges that the following errors were committed by Respondent Court: 
7
 
I 
Respondent court erred in holding that the patent granted and certificate of title 
issued to Respondent Morato cannot be cancelled and annulled since the certificate 
of title becomes indefeasible after one year from the issuance of the title. 
II 
Respondent Court erred in holding that the questioned land is part of a disposable 
public land and not a foreshore land. 
The Court's Ruling 
The petition is meritorious. 
First Issue: Indefeasibility of a Free Patent Title 
In resolving the first issue against petitioner, Respondent Court held: 
8
 
. . . As ruled in Heirs of Gregorio Tengco vs. Heirs of Jose Alivalas, 168 SCRA 198. ". 
. . The rule is well-settled that an original certificate of title issued on the strength of a 
homestead patent partakes of the nature of a certificate of title issued in a judicial 
proceeding, as long as the land disposed of is really part of the disposable land of 
the public domain, and becomes indefeasible and incontrovertible upon the 
expiration of one year from the date of promulgation of the order of the Director of 
Lands for the issuance of the patent. (Republic v. Heirs of Carle, 105 Phil. 1227 
(1959); Ingaran v. Ramelo, 107 Phil. 498 (1960); Lopez v. Padilla, (G.R. No. L-
27559, May 18, 1972, 45 SCRA 44). A homestead patent, one registered under the 
Land Registration Act, becomes as indefeasible as a Torrens Title. (Pamintuan v. 
San Agustin, 43 Phil. 558 (1982); El Hogar Filipino v. Olviga, 60 Phil. 17 (1934); 
Duran v. Oliva, 113 Phil. 144 (1961); Pajomayo v. Manipon, G.R. No. L-33676, June 
30, 1971, 39 SCRA 676). (p. 203). 
Again, in Lopez vs. Court of Appeals, 169 SCRA 271, citing Iglesia ni Cristo 
v. Hon. Judge, CFI of Nueva Ecija, Branch I, (123 SCRA 516 (1983) and Pajomayo, 
et al. v. Manipon, et al. (39 SCRA 676 (1971) held that once a homestead patent 
granted in accordance with the Public Land Act is registered pursuant to Section 122 
of Act 496, the certificate of title issued in virtue of said patent has the force and 
effect of a Torrens Title issued under the Land Registration Act. 
Indefeasibility of the title, however, may not bar the State, thru the Solicitor General, 
from filing an action for reversion, as ruled in Heirs of Gregorio Tengco v. Heirs of 
Jose Aliwalas, (supra), as follows: 
But, as correctly pointed out by the respondent Court of Appeals, Dr. Aliwalas' title to 
the property having become incontrovertible, such may no longer be collaterally 
attacked. If indeed there had been any fraud or misrepresentation in obtaining the 
title, an action for reversion instituted by the Solicitor General would be the proper 
remedy (Sec. 101, C.A. No. 141; Director of Lands v. Jugado, G.R. No. L-14702, 
May 21, 1961, 2 SCRA 32; Lopez v. Padilla, supra). (p. 204). 
Petitioner contends that the grant of Free Patent (IV-3) 275 and the subsequent issuance of Original 
Certificate of Title No. P-17789 to Respondent Josefina L. Morato were subject to the conditions 
provided for in Commonwealth Act (CA) No. 141. It alleges that on October 24, 1974, or nine (9) 
months and eight (8) days after the grant of the patent, mortgaged a portion of the land" to 
Respondent Nenita Co, who thereafter constructed a house thereon. Likewise, on February 2, 1976 
and "within the five-year prohibitory period," Respondent Morato "leased a portion of the land to 
Perfecto Advincula at a monthly rent of P100.00 who, shortly thereafter, constructed a house of 
concrete materials on the subject land."
 9
 Further, petitioner argues that the defense of indefeasibility of 
title is "inaccurate." The original certificate of title issued to Respondent Morato "contains the seeds of its 
own cancellation": such certificate specifically states on its face that "it is subject to the provisions of 
Sections 118, 119, 121, 122, 124 of CA No. 141, as amended." 
10
 
Respondent Morato counters by stating that although a "portion of the land was previously leased," it 
resulted "from the fact that Perfecto Advincula built a warehouse in the subject land without [her] 
prior consent." The mortgage executed over the improvement "cannot be considered a violation of 
the said grant since it can never affect the ownership." 
11
 She states further: 
. . . . the appeal of the petitioner was dismissed not because of the principle of 
indefeasibility of title but mainly due to failure of the latter to support and prove the 
alleged violations of respondent Morato. The records of this case will readily show 
that although petitioner was able to establish that Morato committed some acts 
during the prohibitory period of 5 years, a perusal thereof will also show that what 
petitioner was able to prove never constituted a violation of the grant. 
12
 
Respondent-Spouses Quilatan, on the other hand, state that the mortgage contract they entered into 
with Respondent Morato "can never be considered as [an] 'alienation' inasmuch as the ownership 
over the property remains with the owner." 
13
 Besides, it is the director of lands and not the Republic of 
the Philippines who is the real party in interest in this case, contrary to the provision of the Public Land 
Act which states that actions for reversion should be instituted by the solicitor general in the name of 
Republic of the Philippines. 
14
 
We find for petitioner. 
Quoted below are relevant sections of Commonwealth Act No. 141, otherwise known as the Public 
Land Act: 
Sec. 118. Except in favor of the Government or any of its branches, units or 
institutions, or legally constituted banking corporations, lands acquired under free 
patent or homestead provisions shall not be subject to encumbrance or alienation 
from the date of the approval of the application and for a term of five years from and 
after the date of issuance of the patent or grant nor shall they become liable to the 
satisfaction of any debt contracted prior to the expiration of said period; but the 
improvements or crops on the land may be mortgaged or pledged to qualified 
persons, associations, or corporations. 
No alienation, transfer, or conveyance of any homestead after five years and before 
twenty-five years after issuance of title shall be valid without the approval of the 
Secretary of Agriculture and Natural Resources, which approval shall not be denied 
except on constitutional and legal grounds. (As amended by Com. Act No. 456, 
approved June 8, 1939.) 
xxx xxx xxx 
Sec. 121. Except with the consent of the grantee and the approval of the Secretary of 
Agriculture and Natural Resources, and solely for educational, religious, or charitable 
purposes or for a right of way, no corporation, association, or partnership may 
acquire or have any right, title, interest, or property right whatsoever to any land 
granted under the free patent, homestead, or individual sale provisions of this Act or 
to any permanent improvement on such land. (As amended by Com. Act No. 615, 
approved May 5, 1941) 
Sec. 122. No land originally acquired in any manner under the provisions of this Act, 
nor any permanent improvement on such land, shall be encumbered, alienation or 
transferred, except to persons, corporations, association, or partnerships who may 
acquire lands of the public domain under this Act or to corporations organized in the 
Philippines authorized therefore by their charters. 
Except in cases of hereditary successions, no land or any portion thereof originally 
acquired under the free patent, homestead, or individual sale provisions of this Act, 
or any permanent improvement on such land, shall be transferred or assigned to any 
individual, nor shall such land or any permanent improvement thereon be leased to 
such individual, when the area of said land, added to that of this own, shall exceed 
one hundred and forty-four hectares. Any transfer, assignment, or lease made in 
violation hereto shall be null and void. (As amended by Com Act No. 615, Id.). 
xxx xxx xxx 
Sec. 124. Any acquisition, conveyance, alienation, transfer, or other contract made or 
executed in violation of any of the provisions of sections one hundred and eighteen, 
one hundred and twenty, one hundred and twenty-one, one hundred and twenty-two, 
and one hundred and twenty-three of this Act shall be unlawful and null and void 
from its execution and shall produce the effect of annulling and cancelling the grant, 
title, patent, or permit originally issued, recognized or confirmed, actually or 
presumatively, and cause the reversion of the property and its improvements to the 
State. (Emphasis supplied) 
The foregoing legal provisions clearly proscribe the encumbrance of a parcel of land acquired under 
a free patent or homestead within five years from the grant of such patent. Furthermore, such 
encumbrance results in the cancellation of the grant and the reversion of the land to the public 
domain. Encumbrance has been defined as "[a]nything that impairs the use or transfer of property; 
anything which constitutes a burden on the title; a burden or charge upon property; a claim or lien 
upon property." It may be a "legal claim on an estate for the discharge of which the estate is liable; 
and embarrassment of the estate or property so that it cannot be disposed of without being subject 
to it; an estate, interest, or right in lands, diminishing their value to the general owner; a liability 
resting upon an estate." 
15
 Do the contracts of lease and mortgage executed within five (5) years from 
the issuance of the patent constitute an "encumbrance" and violate the terms and conditions of such 
patent? Respondent Court answered in the negative: 
16
 
From the evidence adduced by both parties, it has been proved that the area of the 
portion of the land, subject matter of the lease contract (Exh. "B") executed by and 
between Perfecto Advincula and Josefina L. Morato is only 10 x 12 square meters, 
where the total area of the land granted to Morato is 1,265 square meters. It is clear 
from this that the portion of the land leased by Advincula does not significantly affect 
Morato's ownership and possession. Above all, the circumstances under which the 
lease was executed do not reflect a voluntary and blatant intent to violate the 
conditions provided for in the patent issued in her favor. On the contrary, Morato was 
compelled to enter into that contract of lease 
out of sympathy and the goodness of her heart to accommodate a fellow man. . . . 
It is indisputable, however, that Respondent Morato cannot fully use or enjoy the land during the 
duration of the lease contract. This restriction on the enjoyment of her property sufficiently meets the 
definition of an encumbrance under Section 118 of the Public Land Act, because such contract 
"impairs the use of the property" by the grantee. In a contract of lease which is consensual, bilateral, 
onerous and commutative, the owner temporarily grants the use of his or her property to another 
who undertakes to pay rent therefor. 
17
 During the term of the lease, the grantee of the patent cannot 
enjoy the beneficial use of the land leased. As already observed, the Public Land Act does not permit a 
grantee of a free patent from encumbering any portion of such land. Such encumbrance is a ground for 
the nullification of the award. 
Morato's resort to equity, i.e. that the lease was executed allegedly out of the goodness of her heart 
without any intention of violating the law, cannot help her. Equity, which has been aptly described as 
"justice outside legality," is applied only in the absence of, and never against, statutory law or judicial 
rules of procedure. Positive rules prevail over all abstract arguments based on equity contra 
legem. 
18
 
Respondents failed to justify their position that the mortgage should not be considered an 
encumbrance. Indeed, we do not find any support for such contention. The questioned mortgage 
falls squarely within the term "encumbrance" proscribed by Section 118 of the Public Land 
Act. 
19
 Verily, a mortgage constitutes a legal limitation on the estate, and the foreclosure of such 
mortgage would necessarily result in the auction of the property. 
20
 
Even if only part of the property has been sold or alienated within the prohibited period of five years 
from the issuance of the patent, such alienation is a sufficient cause for the reversion of the whole 
estate to the State. As a condition for the grant of a free patent to an applicant, the law requires that 
the land should not be encumbered, sold or alienated within five years from the issuance of 
the patent. The sale or the alienation of part of the homestead violates that condition. 
21
 
The prohibition against the encumbrance  lease and mortgage included  of a homestead which, 
by analogy applies to a free patent, is mandated by the rationale for the grant, viz.: 
22
 
It is well-known that the homestead laws were designed to distribute disposable 
agricultural lots of the State to land-destitute citizens for their home and cultivation. 
Pursuant to such benevolent intention the State prohibits the sale or incumbrance of 
the homestead (Section 116) within five years after the grant of the patent. After that 
five-year period the law impliedly permits alienation of the homestead; but in line with 
the primordial purpose to favor the homesteader and his family the statute provides 
that such alienation or conveyance (Section 117) shall be subject to the right of 
repurchase by the homesteader, his widow or heirs within five years. This section 
117 is undoubtedly a complement of section 116. It aims to preserve and keep in the 
family of the homesteader that portion of public land which the State had gratuitously 
given to him. It would, therefore, be in keeping with this fundamental idea to hold, as 
we hold, that the right to repurchase exists not only when the original homesteader 
makes the conveyance, but also when it is made by his widow or heirs. This 
construction is clearly deducible from the terms of the statute. 
By express provision of Section 118 of Commonwealth Act 141 and in conformity with the policy of 
the law, any transfer or alienation of a free patent or homestead within five years from the issuance 
of the patent is proscribed. Such transfer nullifies said alienation and constitutes a cause for the 
reversion of the property to the State. 
The prohibition against any alienation or encumbrance of the land grant is a proviso attached to the 
approval of every application. 
23
 Prior to the fulfillment of the requirements of law, Respondent Morato 
had only an inchoate right to the property; such property remained part of the public domain and, 
therefore, not susceptible to alienation or encumbrance. Conversely, when a "homesteader has complied 
with all the terms and conditions which entitled him to a patent for [a] particular tract of public land, he 
acquires a vested interest therein and has to be regarded an equitable owner thereof." 
24
 However, for 
Respondent Morato's title of ownership over the patented land to be perfected, she should have complied 
with the requirements of the law, one of which was to keep the property for herself and her family within 
the prescribed period of five (5) years. Prior to the fulfillment of all requirements of the law, Respondent 
Morato's title over the property was incomplete. Accordingly, if the requirements are not complied with, 
the State as the grantor could petition for the annulment of the patent and the cancellation of the title. 
Respondent Morato cannot use the doctrine of the indefeasibility of her Torrens title to bar the state 
from questioning its transfer or encumbrance. The certificate of title issued to her clearly stipulated 
that its award was "subject to the conditions provided for in Sections 118, 119, 121, 122 and 124 of 
Commonwealth Act (CA) No. 141." Because she violated Section 118, the reversion of the property 
to the public domain necessarily follows, pursuant to Section 124. 
Second Issue: Foreshore Land 
Revert to the Public Domain 
There is yet another reason for granting this petition. 
Although Respondent Court found that the subject land was foreshore land, it nevertheless 
sustained the award thereof to Respondent Morato: 
25
 
First of all, the issue here is whether the land in question, is really part of the 
foreshore lands. The Supreme Court defines foreshore land in the case of Republic 
vs. Alagad, 169 SCRA 455, 464, as follows: 
Otherwise, where the rise in water level is due to, the "extraordinary" 
action of nature, rainful, for instance, the portions inundated thereby 
are not considered part of the bed or basin of the body of water in 
question. It cannot therefore be said to be foreshore land but land 
outside of the public dominion, and land capable of registration as 
private property. 
A foreshore land, on the other hand has been defined as follows: 
. . . that part of (the land) which is between high 
and low water and left dry by the flux and reflux of the 
tides . . . . (Republic vs. C.A., Nos. L-43105, L-43190, 
August 31, 1984, 131 SCRA 532; Government vs. 
Colegio de San Jose, 53 Phil 423) 
The strip of land that lies between the high and low 
water marks and that is alternatively wet and dry 
according to the flow of the tide. (Rep. vs. CA,supra, 
539). 
The factual findings of the lower court regarding the nature of the parcel of land in question reads: 
Evidence disclose that the marginal area of the land radically 
changed sometime in 1937 up to 1955 due to a strong earthquake 
followed by frequent storms eventually eroding the land. From 1955 
to 1968, however, gradual reclamation was undertaken by the lumber 
company owned by the Moratos. Having thus restored the land thru 
mostly human hands employed by the lumber company, the area 
continued to be utilized by the owner of the sawmill up to the time of 
his death in 1965. On or about March 17, 1973, there again was a 
strong earthquake unfortunately causing destruction to hundreds of 
residential houses fronting the Calauag Bay including the Santiago 
Building, a cinema house constructed of concrete materials. The 
catastrophe totally caused the sinking of a concrete bridge at 
Sumulong river also in the municipality of Calauag, Quezon. 
On November 13, 1977 a typhoon code named "Unding" wrought 
havoc as it lashed the main land of Calauag, Quezon causing again 
great erosion this time than that which the area suffered in 1937. The 
Court noted with the significance of the newspaper clipping entitled 
"Baryo ng Mangingisda Kinain ng Dagat" (Exh. "11"). 
xxx xxx xxx 
Evidently this was the condition of the land when on or about 
December 5, 1972 defendant Josefina L. Morato filed with the Bureau 
of Lands her free patent application. The defendant Josefina Morato 
having taken possession of the land after the demise of Don Tomas 
Morato, she introduced improvement and continued developing the 
area, planted it to coconut tree. Having applied for a free patent, 
defendant had the land area surveyed and an approved plan (Exh. 
"9") based on the cadastral survey as early as 1927 (Exh. "10") was 
secured. The area was declared for taxation purposes in the name of 
defendant Josefina Morato denominated as Tax Declaration No. 4115 
(Exh. "8") and the corresponding realty taxes religiously paid as 
shown by Exh. "8-A"). (pp. 12-14, DECISION). 
Being supported by substantial evidence and for failure of the appellant to show 
cause which would warrant disturbance, the aforecited findings of the lower court, 
must be respected. 
Petitioner correctly contends, however, that Private Respondent Morato cannot own foreshore land: 
Through the encroachment or erosion by the ebb and flow of the tide, a portion of the 
subject land was invaded by the waves and sea advances. During high tide, at least 
half of the land (632.5 square meters) is 6 feet deep under water and three (3) feet 
deep during low tide. The Calauag Bay shore has extended up to a portion of the 
questioned land. 
While at the time of the grant of free patent to respondent Morato, the land was not 
reached by the water, however, due to gradual sinking of the land caused by natural 
calamities, the sea advances had permanently invaded a portion of subject land. As 
disclosed at the trial, through the testimony of the court-appointed commissioner, 
Engr. Abraham B. Pili, the land was under water during high tide in the month of 
August 1978. The water margin covers half of the property, but during low tide, the 
water is about a kilometer (TSN, July 19, 1979, p. 12). Also, in 1974, after the grant 
of the patent, the land was covered with vegetation, but it disappeared in 1978 when 
the land was reached by the tides (Exh. "E-1", "E-14"). In fact, in its decision dated 
December 28, 1983, the lower court observed that the erosion of the land was 
caused by natural calamities that struck the place in 1977 (Cf. Decision, pp. 17-18). 
26
 
Respondent-Spouses Quilatan argue, however, that it is "unfair and unjust if Josefina Morato will be 
deprived of the whole property just because a portion thereof was immersed in water for reasons not 
her own doing." 
27
 
As a general rule, findings of facts of the Court of Appeals are binding and conclusive upon this 
Court, unless such factual findings are palpably unsupported by the evidence on record or unless 
the judgment itself is based on a misapprehension of facts. 
28
 The application for a free patent was 
made in 1972. From the undisputed factual findings of the Court of Appeals, however, the land has since 
become foreshore. Accordingly, it can no longer be subject of a free patent under the Public Land 
Act. Government of the Philippine Islands vs. Cabagis 
29
 explained the rationale for this proscription: 
Article 339, subsection 1, of the Civil Code, reads: 
Art. 339. Property of public ownership is  
1. That devoted to public use, such as roads, canals, rivers, torrents, ports and 
bridges constructed by the State, riverbanks, shores, roadsteads, and that of a 
similar character. 
xxx xxx xxx 
Article 1, case 3, of the law of Waters of August 3, 1866, provides as follows: 
Art. 1. The following are part of the national domain open to public use. 
xxx xxx xxx 
3. The Shores. By the shore is understood that space covered and uncovered by the 
movement of the tide. Its interior or terrestrial limit is the line reached by the highest 
equinoctal tides. Where the tides are not appreciable, the shore begins on the land 
side at the line reached by the sea during ordinary storms or tempests. 
In the case of Aragon vs. Insular Government (19 Phil. 223), with reference to article 
339 of the Civil Code just quoted, this Court said: 
We should not be understood, by this decision, to hold that in a case of gradual 
encroachment or erosion by the ebb and flow of the tide, private property may not 
become "property of public ownership." as defined in article 339 of the code, where it 
appear that the owner has to all intents and purposes abandoned it and permitted it 
to be totally destroyed, so as to become a part of the "playa" (shore of the sea), 
"rada" (roadstead), or the like. . . . 
In the Enciclopedia Juridica Espaola, volume XII, page 558, we read the following: 
With relative frequency the opposite phenomenon occurs; that is, the sea advances 
and private properties are permanently invaded by the waves, and in this case they 
become part of the shore or breach. The then pass to the public domain, but the 
owner thus dispossessed does not retain any right to the natural products resulting 
from their new nature; it is a de facto case of eminent domain, and not subject to 
indemnity. 
In comparison, Article 420 of the Civil Code provides: 
Art. 420. The following things are property of public dominion: 
(1) Those intended for public use, such as roads, canals, rivers, torrents, ports and 
bridges constructed by the State, banks, shores, roadsteads, and others of similar 
character; 
(2) Those which belong to the State, without being for public use, and are intended 
for some public service or for the development of the national wealth. 
When the sea moved towards the estate and the tide invaded it, the invaded property became 
foreshore land and passed to the realm of the public domain. In fact, the Court in Government 
vs. Cabangis 
30
 annulled the registration of land subject of cadastral proceedings when the parcel 
subsequently became foreshore land. 
31
 In another case, the Court voided the registration decree of a trial 
court and held that said court had no jurisdiction to award foreshore land to any private person or 
entity. 
32
 The subject land in this case, being foreshore land, should therefore be returned to the public 
domain. 
WHEREFORE, the petition is GRANTED. This Court hereby REVERSES and SETS ASIDE the 
assailed Decision of Respondent Court and ORDERS the CANCELLATION of Free Patent No. (IV-
3) 275 issued to Respondent Morato and the subsequent Original Certificate of Title No. P-17789. 
The subject land therefore REVERTS to the State. No costs. 
SO ORDERED. 
Romero, Melo and Francisco, JJ., concur. 
Narvasa, C.J., is on leave. 
Footnotes 
1 First Division composed of J. Asaali S. Isnani, ponente; and JJ. Rodolfo A. Nocon 
and Antonio M. Martinez, concurring. 
2 Rollo, pp. 25-32. 
3 Ibid., p. 32. 
4 Branch 63. 
5 Petition, pp. 3-5; rollo, pp. 9-11. 
6 The case was deemed submitted for resolution upon receipt by the Court of Private 
Respondent Quilatans' Memorandum, dated July 19, 1996, on February 16, 1996. 
(Rollo, p. 143). 
7 Ibid., p. 5; rollo, p. 11. 
8 Decision, p. 3; rollo, p. 27. 
9 Petition, pp. 6-7; rollo, pp. 12-13. 
10 Ibid., pp. 11-12; rollo, pp. 17-18. 
11 Respondent Morato's Comment, p. 2; rollo, p. 44. 
12 Ibid., pp. 3-4; rollo, pp. 45-46. 
13 Respondents Quilatan's Comment, p. 1; rollo, p. 64. 
14 Ibid., p. 2; rollo, p. 65. 
15 Moreno, Philippine Law Dictionary, second edition, 1972, pp. 207-208. 
16 CA Decision, p. 6; rollo, p. 30. 
17 Lim Si vs. Lim, 98 Phil. 868, 870, April 25, 1956. 
18 Causapin vs. Court of Appeals, 233 SCRA 615, 625, July 4, 1994, citing Zabat vs. 
Court of Appeals, No. L-36958, July 10, 1986, 142 SCRA 587. 
20 Prudential Bank vs. Panis, 153 SCRA 390, 397, August 31, 1987. 
21 Republic of the Philippines vs. Garcia, et al., 105 Phil. 826, May 27, 1959. 
22 Pascua vs. Talens, 80 Phil 792, 793-794, April 30, 1948, per Bengzon, J. 
23 Republic vs. Ruiz, 23 SCRA 348, 353-354, April 29, 1968. 
24 Vda. de Delizo vs. Delizo, 69 SCRA 216, 229, January 30, 1976 citing Juanico vs. 
American Land Commercial Company, Inc., 97 Phil. 221, Simmons vs. Wagner, 10 
U.S. 260, 68 C.J.S. 875; Balboa vs. Farrales, 51 Phil. 498; Fiel, et al vs. Wagas, 48 
O.G., 195, January 9, 1950. SEE Uy Un vs. Perez and Villaplana, 71 Phil. 508. 
25 CA Decision, pp. 4-5; rollo, pp. 28-29. 
26 Petition, pp. 12-13; rollo, pp. 18-19. 
27 Respondents Quilatan's Comment, p. 2; rollo, p. 65. 
28 Valenzuela vs. Court of Appeals, 253 SCRA 303, 313, February 7, 1996. 
29 53 Phil. 112, 115-116, March 27, 1929, per Villa-Real, J. 
30 Supra. 
31 Ibid., p. 119. 
32 Republic vs. Lozada, 90 SCRA 503, 510, May 31, 1979. 
 
The Lawphil Project - Arellano Law Foundation