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1719-CT (4) Castro v. Mendoza, Sr. - CHING

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TENDER OR CONSIGNATION IS AN INDISPENSABLE REQUIREMENT TO THE PROPER EXERCISE OF

THE RIGHT OF REDEMPTION


In making a repurchase, it is not sufficient that a person offering to redeem merely manifests his desire to
repurchase. This statement of intention must be accompanied by an actual and simultaneous tender of
payment of the full amount of the repurchase price. (Castro v. Mendoza, Sr., G.R. No. 212778, April 26, 2017)

x—————x

TENDER OR CONSIGNATION IS AN INDISPENSABLE REQUIREMENT TO THE PROPER EXERCISE OF


THE RIGHT OF REDEMPTION
Castro v. Mendoza, Sr.
G.R. No. 212778, April 26, 2017
Jardeleza, J.

FACTS:
This is a petition for review on certiorari under Rule 45 assailing the Decision of CA. CA reversed and set aside
issuances of the Provincial Agrarian Reform Adjudicator (PARAD) in connection with the execution of its
decision. 

Petitioners are agricultural tenants of the original Santos property. He has been in its actual possession and
paying the agreed lease rentals. The controversy started when Jesus (owner-heir) sold his share in the original
Santos property to respondent Municipality. Jesus sold his undivided interest therein of 2,132.42 square meters
for the amount of P1.2 Million which the Municipality acquired for the expansion of the Bustos public market.

Sales transaction between Jesus and Municipality were effected without issue from the petitioners. Municipality
began construction of the public market. After the inauguration, petitioners filed their complaint for Maintenance
of Peaceful Possession with prayer for Restraining Order/Preliminary Injunction; Pre-emption and Redemption;
and Damages before the PARAD against Municipality. In their complaint, petitioners "categorically manifested
their serious intent to exercise their rights of pre-emption and redemption provided for under Sections 11 and
12, Republic Act No. 3884, as amended." Petitioners deposited the amount of P2,300.00 as redemption price
for the property. PARAD ruled in favor of the petitioners. DARAB affirmed but ruled that it is impractical to
petitioners to redeem it where there is no showing of petitioners' capacity to pay the redemption price and
directed instead Municipality to pay disturbance compensation to petitioners. Petitioners appealed to the CA.
CA affirmed.

Private respondents directly sought relief from the CA questioning: (xxx) (2) petitioners' belated and invalid
tender of payment of the P1.2 Million redemption price (xxx). CA ruled in the favor of the private respondents.

ISSUE:
Whether petitioners timely and validly exercised their right of redemption under Section 12 of Republic Act No.
3844 (RA 3844), as amended by RA 6389.

HELD:
No, petitioners failed to timely and validly exercised their right of redemption.

Jurisprudence dictates that tender or consignation is an indispensable requirement to the proper exercise of the
right of redemption by the agricultural lessee. An offer to redeem is validly effected through: (a) a formal
tender with consignation, or (b) a complaint filed in court coupled with consignation of the redemption
price within the prescribed period. In making a repurchase, it is not sufficient that a person offering to redeem
merely manifests his desire to repurchase. This statement of intention must be accompanied by an actual and
simultaneous tender of payment of the full amount of the repurchase price, i.e., the consideration of the
sale, otherwise the offer to redeem will be held ineffectual.

Petitioners belatedly tendered payment and effected consignation of the redemption price of P1.2 million.
Petitioners filed on August 26, 1994 a Motion for Consignation of Reasonable Redemption Amount of only
P2,300.00 for the 2,132.42 square meters landholding sold by Jesus to respondent Municipality. The
discrepancy between the amounts of P2,300.00 and P1.2 Million clearly calls to question petitioners'
willingness and ability to pay. Even if we liberally reckon the prescriptive period to tender payment of the
redemption price from the date when the original ruling of the PARAD became final and executory on
November 27, 2003, petitioners still belatedly tendered and consigned payment of the redemption price, on
May 9 and 10, 2006, respectively, way beyond the 180-day prescriptive period provided by law.

Considering that petitioners failed to consign the full redemption price of P1.2 Million when they filed the
complaint before the PARAD in August 22, 1994, there was no valid exercise of the right to redeem the
property. It bears stressing that the right of redemption under Section 12 of RA 3844, as amended, is an
essential mandate of the agrarian reform legislation to implement the State's policy of owner-cultivatorship and
to achieve a dignified, self-reliant existence for small fanners. Such laudable and commendable policy,
however, is never intended to unduly transgress the corresponding rights of purchasers of land. Consequently,
petitioners cannot redeem the property and gain its ownership.

Hence, petitioners failed to timely and validly exercised their right of redemption.

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