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Mantok Vs Tecson

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MANOTOK REALTY, INC. vs TECSON, G.R. No.

L-47475 August 19, 1988


Facts:
In a complaint filed by the petitioner for recovery of possession and damages against the
private respondent, the then Court of First Instance of Manila rendered judgment declaring
the defendant Nilo Madlangawa as a builder or possessor in good faith; and ordering the
plaintiff to recognize the right of said defendant to remain in Lot No. 345, Block 1, of the
Clara Tambunting Subdivision until after he shall have been reimbursed by the plaintiff the
sum of P7,500.00, without pronouncement as to costs. Not satisfied with the trial court’s
decision, the petitioner appealed to the Court of Appeals and upon affirmance by the latter of
the decision below, the petitioner elevated its case to this Court which dismissed the case for
lack of merit. The petitioner filed with the trial court, presided over by respondent Judge
Jose H. Tecson, a motion for the approval of petitioner’s exercise of option and for
satisfaction of judgment, praying that the court issue an order: a) approving the exercise of
petitioner’s option to appropriate the improvements introduced by the private respondent on
the property; b) thereafter, private respondent be ordered to deliver possession of the
property in question to the petitioner.
After a denial of its motion for reconsideration, the petitioner filed the present petition for
mandamus alleging that the respondent judge committed grave abuse of discretion in denying
his motion to exercise option and for execution of judgment on the grounds that under
Articles 448 and 546 of the Civil Code, the exercise of option belongs to the owner of the
property, who is the petitioner herein, and that upon finality of judgment, the prevailing
party is entitled, as a matter of right, to its execution which is only a ministerial act on the
part of the respondent judge.
Issue
Should the motion for the approval of the exercise of option be granted?
Held:
Yes. When the decision of the trial court became final and executory, it became incumbent
upon the respondent judge to issue the necessary writ for the execution of the same. There
is, therefore, no basis for the respondent judge to deny the petitioner’s motion to avail of its
option to appropriate the improvements made on its property. To be deemed a builder in good
faith, it is essential that a person assert title to the land on which he builds; i.e., that he be a
possessor in the concept of owner and that he be unaware ‘that there exists in his title or
mode of acquisition any flaw which invalidates it. The private respondent’s good faith ceased
after the filing of the complaint below by the petitioner. Thus, the repairs and improvements
introduced by the said respondents after the complaint was filed cannot be considered to
have been built in good faith, much less, justify the denial of the petitioner’s exercise of
option. Since the improvements have been gutted by fire, and therefore, the basis for private
respondent’s right to retain the premises has already been extinguished without the fault of
the petitioner, there is no other recourse for the private respondent but to vacate the
premises and deliver the same to herein petitioner.

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