Tinga, J,:: Caveat Emptor

ARANETA INSTITUTE OF AGRI-CULTURE, INC., PETITIONER, VS.
HEIRS OF JOSE
B. DIMSON, REPRESENTED BY HIS COMPULSORY HEIRS: HIS SURVIVING
SPOUSE, ROQUETA R. DIMSON AND THEIR CHILDREN, NORMA AND CELSA
TIRADO, ALSON AND VIRGINIA DIMSON, LINDA AND CARLOS LAGMAN, LERMA
AND RENE POLICAR, AND ESPERANZA R. DIMSON; REGISTER OF DEES OF
MALABON, RESPONDENTS.
RESOLUTION
TINGA, J,:
The stability of the country's Torrens system is menaced by the infestation of fake land
titles and deeds. Any decision of this Court that breathes life into spurious or inexistent
titles all but contributes to the blight. On the contrary, the judicial devotion is towards
purging the system of illicit titles, concomitant to our base task as the ultimate citadel of
justice and legitimacy.
These two petitions[1] involve properties covered by Original Certificate of Title (OCT)

No. 994 which in turn encompasses 1,342 hectares of the Maysilo Estate. [2] The vast
tract of land stretches over three (3) cities, comprising an area larger than the sovereign
states of Monaco and the Vatican.[3] Despite their prime location within Metropolitan
Manila, the properties included in OCT No. 994 have been beset by controversy and
sullied by apparent fraud, cloudy titles and shady transfers. It may as well be renamed
the "Land of Caveat Emptor."
The controversy attending the lands of OCT No. 994 has not eluded this Court. Since
1992, our findings and ruling in MWSS v. Court of Appeals[4] have stood as the Rosetta
Stone in deciphering claims emanating from OCT No. 994, as was done in Gonzaga v.
Court of Appeals, [5] and in the Court's Decision dated 29 November 2005 (2005
Decision) in these cases.[6] Yet in the course of resolving these motions for
reconsideration came the revelation that OCT No. 994 was lost in translation
following MWSS. Certain immutable truths reflected on the face of OCT No. 994 must
emerge and gain vitality, even if we ruffle feathers in the process.
I.
A recapitulation of the facts, which have already been extensively narrated in the 2005
Decision, is in order. For clarity, we narrate separately the antecedent facts in G.R. Nos.
123346 and 134385.
A. G.R. No. 123346, Manotok Realty, Inc.

and Manotok Estate Corporation, vs.
CLT Realty Development Corporation
On 10 August 1992, CLT Realty Development Corporation (CLT) sought to recover from
Manotok Realty, Inc. and Manotok Estate Corporation (Manotoks) the possession of Lot
26 of the Maysilo Estate in an action filed before the Regional Trial Court of Caloocan
City, Branch 129.[7]
CLT's claim was anchored on Transfer Certificate of Title (TCT) No. T-177013 issued in
its name by the Caloocan City Register of Deeds, which title in turn was derived from
Estelita Hipolito (Hipolito) by virtue of a Deed of Sale with Real Estate Mortgage dated
10 December 1988. Hipolito's title emanated from Jose Dimson's (Dimson) TCT No. R-
15169, a title issued pursuant to an order of the Court of First Instance (CFI) of
Caloocan City, Branch 33. Dimson's title appears to have been sourced from OCT No.
994.[8]
For their part, the Manotoks challenged the validity of the title relied on by CLT, claiming
that Dimson's title, the proximate source of CLT's title, was irregularly issued and,
hence, the same and subsequent titles flowing therefrom are likewise void. The
Manotoks asserted their ownership over Lot 26 and claimed that they derived it from
several awardees and/or vendees of the National Housing Authority. [9] The Manotok title
likewise traced as its primary source OCT No. 994 which, on 9 September 1918, was
transferred to Alejandro Ruiz and Mariano Leuterio who had previously acquired the
property on 21 August 1918 by virtue of an "Escritura de Venta" executed by Don
Tomas Arguelles and Don Enrique Llopis. [10] On 3 March 1920, Ruiz and Leuterio sold
the property to Francisco Gonzalez who held title thereto until 22 August 1938 when the
property was transferred to Jose Leon Gonzalez, Consuelo Susana Gonzalez, Juana
Francisca Gonzalez, Maria Clara Gonzalez, Francisco Felipe Gonzalez and Concepcion
Maria Gonzalez under TCT No. 35486. The lot was then, per annotation dated 21
November 1946, subdivided into seven (7) parcels each in the name of each of the
Gonzalezes. [11]
The trial court, ruling for CLT, adopted the factual findings and conclusions arrived at by
the majority commissioners appointed to resolve the conflict of titles. It was established
that the entire Maysilo Estate was registered under Act No. 496 by virtue of which OCT
No. 994 was issued by the Register of Deeds of Rizal; [12] that Lot 26 was transferred to
CLT by Hipolito whose title was derived from the Dimson title and that on the basis of
the technical descriptions of the property appearing in the Manotok titles, the latter's
property indeed encroached on the property described in CLT's title. [13]
The Manotoks appealed to the Court of Appeals, which affirmed the decision of the trial
court.[14] Their motion for reconsideration having been denied, [15] they filed a petition for
review with the Supreme Court, ascribing error to the appellate court in upholding the
trial court's decision which decided the case on the basis of the majority commissioners'
report and overlooked relevant facts in the minority commissioner's report. [16]
B. G.R. No. 134385, Araneta Institute

of Agriculture, Inc. v. Heirs of
Jose B. Dimson, et. al.
On 18 December 1979, Dimson filed with the then CFI of Rizal, Branch 33, Caloocan
City a complaint for recovery of possession and damages against Araneta Institute of
Agriculture, Inc. (Araneta). Dimson alleged that he was the absolute owner of part of the
Maysilo Estate in Malabon covered by TCT No. R-15169 of the Registry of Deeds of
Caloocan City. Alleging that Araneta had been illegally occupying the land and that the
latter refused to vacate the same despite repeated demands, he prayed that Araneta be
ordered to vacate the same and remove all improvements thereon and to return full
possession thereof to him. Araneta for its part admitted occupancy of the disputed land
by constructing some buildings thereon and subdividing portions thereof in the exercise
of its right as absolute owner. He alleged that Dimson's title to the subject land was void
and hence he had no cause of action. [17]
The trial court ruled for Dimson in its Decision dated 28 May 1993 with these findings:
first, there were inherent technical infirmities or defects in the titles that formed each link
in the chain of ownership that culminated in the Manotok title, i.e., that the technical
descriptions in the titles were written in Spanish whereas those in the alleged mother
title, OCT No. 994, were in English, which, an abnormal state that deviated from the
usual practice in the issuance of titles; and second, it was established procedure to
indicate in the certificate of title, whether original or transfer certificate, the date of the
original survey of the mother title together with the succeeding date of subdivision or
consolidation. Thus, the absence of the original survey dates of OCT No. 994 on
Manotok's chain of titles, the trial court added, should mean that OCT No. 994 was not
the mother title not only because the original survey dates were different but also
because the original survey date must always be earlier than the issue date of the
original title. OCT No. 994 was issued on May 3, 1917 which was much ahead of the
survey date indicated in the succeeding titles, which is December 22, 1917. [18]

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ARANETA INSTITUTE OF AGRI-CULTURE, INC., PETITIONER, VS.

These two petitions[1] involve properties covered by Original Certificate of Title (OCT)

A. G.R. No. 123346, Manotok Realty, Inc.

B. G.R. No. 134385, Araneta Institute

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