Digest Oliva vs. Lamadrid
Digest Oliva vs. Lamadrid
Digest Oliva vs. Lamadrid
Facts: Plaintiff Laureano Oliva owns a parcel of land in Camarines Norte. He mortgaged the property to the Rural Bank of Daet
as security for the payment of a loan. Having defaulted in the payment of his obligation, the mortgage was extrajudicially
foreclosed and the property sold at public auction, to the Bank, as the sole bidder, on February 4, 1961. The certificate of sale,
issued by the sheriff stated that the property could be redeemed within two (2) years from and after the date of the sale, or until
February 4, 1963. No redemption having been made within said period, the corresponding deed of sale was executed in favor of
the Bank, on February 27, 1963.
Prior to May 31, 1963, plaintiff offered to repurchase the property but the offer was turned down. He claimed that, as holder of a
free patent and a torrens title, he is entitled to redeem the property within five (5) years from the date of the auction sale,
pursuant to Section 119 of Commonwealth Act No. 141. Upon the other hand, defendants alleged in their answer that the right of
redemption expired on February 4, 1963, under the provisions of Section 6 of Republic Act No. 720, as amended by Republic Act
No. 2670, which, they maintain, is controlling.
Issue:
Whether the period of redemption is governed by Section 119 of Commonwealth Act No. 141, as asserted by the plaintiff, or by
Section 5 of Republic Act No. 720, as amended, as contended by the defendants
Held:
The plaintiff herein has the right to repurchase the property in question within five (5) years from the date of the conveyance or
foreclosure sale or up to February 4, 1966, and that having exercised such right and tendered payment long before the date last
mentioned, defendants herein are bound to reconvey said property to him.
Ratio:
The legislative history of the bills which later became said Republic Act No. 2670, amending Republic Act No. 720, shows that
the original proposal was to give homesteaders or free patent holders a period of ten (10) years within which to redeem their
property foreclosed by rural banks; that this proposal was eventually found to be unwise, because its effect would have been to
dissuade rural banks from granting loans to homesteaders or free patent holders — which were sought to be liberalized — said
period of redemption being too long, from the viewpoint of said banks; and that, consequently, the proposal was given up, with
the specific intent and understanding that homesteaders or holders of free patent would retain the right to redeem within five
(5) years from the conveyance of their properties, as provided in the general law, that is to say the Public Land Act, or
Commonwealth Act No. 141.
Where the general law is the Commonwealth Act and the specific law is the Republic Act, they should be unified, and should
abide by the conditions of the times.