G.R. No. 173186. September 16, 2015.

*
 
ANICETO UY, petitioner, vs. COURT OF APPEALS,
MINDANAO STATION, CAGAYAN DE ORO CITY,
CARMENCITA NAVAL-SAI, rep. by her Attorney-in-Fact
RODOLFO FLORENTINO, respondents.

Remedial Law; Civil Procedure; Certification Against Forum

Shopping; A certification against forum shopping must be executed
by the party-pleader, not by his counsel. If, however, for reasonable
or justifiable reasons, the party-pleader is unable to sign, he must
execute a Special Power of Attorney (SPA) designating his counsel
of record to sign on his behalf.—A certification against forum
shopping is a peculiar and personal responsibility of the party, an
assurance given to the court or other tribunal that there are no
other pending cases involving basically the same parties, issues
and causes of action. It must be executed by the party-pleader, not
by his counsel. If, however, for reasonable or justifiable reasons,
the party-pleader is unable to sign, he must execute a Special
Power of Attorney (SPA) designating his counsel of record to sign
on his behalf.
Same; Same; Same; Verification; In the case of Far Eastern
Shipping Company v. Court of Appeals, 297 SCRA 30 (1998),
while the Supreme Court (SC) said that, strictly, a certification
against forum shopping by counsel is a defective certification, the
verification, signed by petitioner’s counsel in said case, is
substantial compliance because it served the purpose of the Rules
of informing the Court of the pendency of another action or
proceeding involving the same issues.— In the case of Far Eastern
Shipping Company v. Court of Appeals, 297 SCRA 30 (1998),
while we said that, strictly, a certification against forum shopping
by counsel is a defective certification, the verification, signed by
petitioner’s counsel in said case, is substantial compliance
because it served the purpose of the Rules of informing the Court
of the pendency of another action or proceeding involving the
same issues. We then explained that procedural rules are
instruments in the speedy and efficient administration of justice
which should be used to achieve such end and not to derail it.

_______________
 *  THIRD DIVISION.

 
 
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Same; Same; Same; The rules on forum shopping are designed

to promote and facilitate the orderly administration of justice and
“should not be interpreted with such absolute literalness as to
subvert its own ultimate and legitimate objective or the goal of all
rules of procedure — which is to achieve substantial justice as
expeditiously as possible.”—We have ruled that the general rule is
that noncompliance or a defect in the certification is not curable
by its subsequent submission or correction. However, there are
cases where we exercised leniency and relaxed the rules on the
ground of substantial compliance, the presence of special
circumstances or compelling reasons. The rules on forum
shopping are designed to promote and facilitate the orderly
administration of justice and “should not be interpreted with such
absolute literalness as to subvert its own ultimate and legitimate
objective or the goal of all rules of procedure — which is to achieve
substantial justice as expeditiously as possible.”
Civil Law; Reconveyance; Words and Phrases; An action for
reconveyance is a legal and equitable remedy granted to the
rightful owner of land which has been wrongfully or erroneously
registered in the name of another for the purpose of compelling the
latter to transfer or reconvey the land to him.—An action for
reconveyance is a legal and equitable remedy granted to the
rightful owner of land which has been wrongfully or erroneously
registered in the name of another for the purpose of compelling
the latter to transfer or reconvey the land to him. In an action for
reconveyance, the decree of registration is respected as
incontrovertible. What is sought instead is the transfer of the
property, which has been wrongfully or erroneously registered in
another person’s name, to its rightful and legal owner, or to one
with a better right. However, such recourse cannot be availed of
once the property has passed to an innocent purchaser for value.
For an action for reconveyance to prosper, the property should not
have passed into the hands of an innocent purchaser for value.
Same; Same; An action for reconveyance is based on Section
53, paragraph 3 of Presidential Decree (PD) No. 1529.—An action
for reconveyance is based on Section 53, paragraph 3 of
Presidential Decree (PD) No. 1529, which provides: In all cases of
registration procured by fraud, the owner may pursue all his legal
and equitable remedies against the parties to such fraud without
prejudice, how-

 
 

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ever, to the rights of any innocent holder for value of a

certificate of title. x  x  x In Caro v. Court of Appeals, 180 SCRA
401 (1989), we said that this provision should be read in
conjunction with Article 1456 of the Civil Code, which provides:
Article 1456. If property is acquired through mistake or fraud, the
person obtaining it is, by force of law, considered a trustee of an
implied trust for the benefit of the person from whom the property
comes.
Same; Same; Prescription; Correlating Section 53, paragraph
3 of Presidential Decree (PD) No. 1529 and Article 1456 of the
Civil Code with Article 1144(2) of the Civil Code, the prescriptive
period for the reconveyance of fraudulently registered real property
is ten (10) years reckoned from the date of the issuance of the
certificate of title.—The law creates the obligation of the trustee to
reconvey the property and its title in favor of the true owner.
Correlating Section 53, paragraph 3 of PD No. 1529 and Article
1456 of the Civil Code with Article 1144(2) of the Civil Code, the
prescriptive period for the reconveyance of fraudulently registered
real property is ten (10) years reckoned from the date of the
issuance of the certificate of title. This ten-year prescriptive
period begins to run from the date the adverse party repudiates
the implied trust, which repudiation takes place when the adverse
party registers the land. An exception to this rule is when the
party seeking reconveyance based on implied or constructive trust
is in actual, continuous and peaceful possession of the property
involved. Prescription does not commence to run against him
because the action would be in the nature of a suit for quieting of
title, an action that is imprescriptible.
Same; Same; Same; When the action for reconveyance is based
on a void contract, as when there was no consent on the part of the
alleged vendor, the action is imprescriptible.—Under Article 1390
of the Civil Code, a contract is voidable when the consent of one of
the contracting parties is vitiated by mistake, violence,
intimidation, undue influence or fraud. When the consent is
totally absent and not merely vitiated, the contract is void. An
action for reconveyance may also be based on a void contract.
When the action for reconveyance is based on a void contract, as
when there was no consent on the part of the alleged vendor, the
action is imprescriptible. The property may be reconveyed to the
true owner, notwithstanding the TCTs already issued in another’s
name. The issuance of a certificate of title in the latter’s favor
could not vest upon him or her ownership of the prop-

 
 
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erty; neither could it validate the purchase thereof which is

null and void. Registration does not vest title; it is merely the
evidence of such title. Our land registration laws do not give the
holder any better title than what he actually has. Being null and
void, the sale produces no legal effects whatsoever.
Same; Laches; Laches is a doctrine in equity, and applied only
in the absence of, and never against, statutory law.—The elements
of laches must be proven positively. Laches is evidentiary in
nature, a fact that cannot be established by mere allegations in
the pleadings. Therefore, at this stage, the dismissal on the
ground of laches would be premature. The issues must be resolved
in the trial on the merits. Moreover, laches is a doctrine in equity,
and applied only in the absence of, and never against, statutory
law. The positive mandate of Article 1410 of the Civil Code
conferring imprescriptibility to actions or defense for the
declaration of the inexistence of a contract should preempt and
prevail over all abstract arguments based only on equity.

PETITION for review on certiorari of the decision and

resolution of the Court of Appeals, Mindanao Station,
Cagayan de Oro City.
The facts are stated in the opinion of the Court.
  Edgar D. Rabor for petitioner.
  Frederico M. Gapuz for private respondent.

JARDELEZA, J.:
 
This is a Petition for Review on Certiorari1 under Rule
45 of the Revised Rules of Court assailing the Decision2
dated January 26, 2006 of the Court of Appeals, Mindanao
Station,

_______________

1  Rollo, pp. 15-27.

2   C.A.-G.R. CV No. 70648, penned by Associate Justice Teresita Dy-
Liacco Flores and concurred in by Associate Justices Rodrigo F. Lim, Jr.
and Ramon R. Garcia of the Twenty-First Division, Rollo, pp. 53-64.

 
 
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Cagayan de Oro City in C.A.-G.R. CV No. 70648, and its

Resolution3 dated May 18, 2006 denying petitioner’s motion
for reconsideration.
 
The Facts
 
In 1979, private respondent Carmencita Naval-Sai
(Naval-Sai) acquired ownership of a parcel of land
described as Lot No. 54-B (LRC) Psd 39172 and covered by
Transfer Certificate of Title (TCT) No. T-19586 from her
brother. The land was later subdivided, with the
corresponding titles issued in Naval-Sai’s name in the
Register of Deeds of North Cotabato.4 Two of these
subdivided lots, Lots No. 54-B-8 (LRC) Psd 173106 and No.
54-B-9 (LRC) Psd 173106, covered by TCTs No. T-58334
and No. T-58335,5 respectively, are the subject of this case.
Subsequently, Naval-Sai sold Lot No. 54-B-76 (LRC) Psd
173106 to a certain Bobby Adil on installment, on the
condition that the absolute deed of sale will be executed
only upon full payment. Adil failed to pay the amortization,
forcing him to sell his unfinished building on the property
to spouses Francisco and Louella Omandac.7
Meanwhile, Naval-Sai borrowed money from a certain
Grace Ng. As security, Naval-Sai delivered to Ng TCTs No.
T-58334 and No. T-58335 covering Lots No. 54-B-8 and No.
54-B-9, respectively. Ng, on the other hand, borrowed
money from petitioner and also delivered to the latter the
two titles to guarantee payment of the loan.8
_______________

3  Id., at p. 77.
4  RTC Records, pp. 1-2.
5  Id., at p. 6.
6  It appears from the records that there is a mistake as to the number
of the lot Naval-Sai sold to Adil. Following the turn of events, this lot
could only be either Lot No. 54-B-8 or 54-B-9.
7  RTC Records, p. 2.
8  Id.

 
 
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Sometime thereafter, Naval-Sai learned that petitioner

filed a case for recovery of possession (Civil Case No. 1007)
against Francisco Omandac. Branch 17 of the Regional
Trial Court (RTC) in Kidapawan City ruled in favor of
petitioner.9 Naval-Sai filed a motion for new trial before
the Court of Appeals, arguing that her signature in the
purported deed of sale presented in the case between her
and petitioner was a forgery. Civil Case No. 1007, however,
became final and executory in 2001.10 The spouses
Omandac were ejected from the property and petitioner
gained possession of the same.11
In July 1999, Naval-Sai filed a Complaint for
Annulment of Deed with Damages12 before the same
Branch 17 of the RTC in Kidapawan City against
petitioner. The subject of the complaint was the deed of
sale allegedly executed between Naval-Sai and petitioner
involving Lots No. 54-B-8 and No. 54-B-9. Naval-Sai
prayed that the deed of sale be declared null and void ab
initio because the alleged sale between her and petitioner
was a forgery. Naval-Sai argued that she never sold the
lots and that her signature in the purported deed of sale is
spurious.
      Naval-Sai filed an Amended Complaint13 dated July
29, 1999. She asserted that the subject TCTs were already
cancelled by virtue of the deed of sale. TCT No. T-62446
was issued in lieu of TCT No. T-58334 and TCT No. T-
62447 replaced TCT No. T-58335. Hence, the Amended
Complaint added as a relief the declaration of TCTs No. T-
62446 and No. T-62447, which were registered in the name
of petitioner, as null and void ab initio. Unlike the original
complaint, however, the Amended Complaint was not
signed by Naval-Sai, but by her counsel.

_______________

9   Id., at p. 6.
10  CA Rollo, p. 47.  
11  Memorandum of petitioner dated November 15, 2007, Rollo, p. 144.
12  Rollo, pp. 28-35.
13  Id., at pp. 36-43.

 
 
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In his Answer with Counterclaim14 dated October 4,

1999, petitioner specifically denied that the two TCTs were
delivered to him by Ng as a guaranty for payment of her
loan. Petitioner claimed that he and Naval-Sai entered into
a valid contract of sale in 1981 and that the lots were sold
for value. The corresponding TCTs were issued in his name
shortly thereafter and since then, he had been in complete
control of the properties. When Francisco Omandac
constructed a house in one of the properties, petitioner filed
Civil Case No. 1007.
Petitioner also raised special and affirmative defenses
of, among others, noncompliance with the requisite
certification of non-forum shopping and prescription. He
asserted that jurisdiction has never been acquired over the
parties and the subject matter because the certification
against forum shopping in the Amended Complaint was
defective, for having been merely signed by Naval-Sai’s
counsel. He further claimed that the action for annulment
of deed of sale is already barred by the statute of
limitations and that Naval-Sai is guilty of estoppel and
laches.
The RTC dismissed the complaint on the grounds of
prescription and a defective certification against forum
shopping. The dispositive portion of its order reads:
 WHEREFORE, finding the defendant’s defense meritorious,
this Court hereby orders the dismissal of the instant complaint
without prejudice to the prosecution in the same action of the
counterclaim pleaded in the answer pursuant to Section 6 Rule 16
of the Rules of Court.
Let the hearing on the counterclaim be set on March 30, 2001.
SO ORDERED.15

_______________

14  Id., at pp. 44-49.

15  RTC Records, p. 99.

 
 
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520 SUPREME COURT REPORTS ANNOTATED

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The RTC found the action for annulment of deed of sale

to be a collateral attack on the titles, which is prohibited by
law under the principle of indefeasibility of title after the
lapse of one year from registration. The RTC explained that
Naval-Sai’s complaint was not only for the annulment of
deed of sale but, ultimately, for the cancellation of the titles
in the name of petitioner, thus:

It is true that an action to set aside a contract which is

void [ab initio] does not prescribe. However, a closer glance
on the substance of the plaintiff’s claim would reveal that
its ultimate thrust is to have the Transfer Certificate of
Title Nos. T-62446 and T-62447 cancelled. This is evidenced
by the plaintiff’s prayer asking for the declaration of TCT
Nos. T-62446 and TCT No. 62447 registered in the name of
the defendant as null and void [ab initio] in addition to her
prayer for the declaration of nullity of the subject deed of
sale. x x x
Under the Land Registration Act, a title is valid and
effective until annulled or reviewed in a direct proceeding
and not in a collateral one, which review must be made
within one year from the issuance of the title. After the
lapse of such period, the title would be conclusive against
the whole world including the government. In other words,
the title, after the lapse of one year from registration
become[s] indefeasible.16
  
On the issue of noncompliance with the required
certification on non-forum shopping, the RTC noted that
Naval-Sai did not explain why she failed to comply with the
Rules. The RTC cited the case of Five Star Bus Company,
Inc. v. Court of Appeals17 where we, faced with the similar
issue of whether or not to dismiss a petition on the ground
that the certification was signed by counsel, ruled that
there was noncompliance

_______________

16  Rollo, pp. 50-51.

17  G.R. No. 127064, August 31, 1999, 313 SCRA 367.

 
 

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with the Supreme Court Revised Circular No. 28-9118 and

that substantial compliance cannot be applied.19
The Court of Appeals set aside the order of the RTC in
the now assailed Decision20 dated January 26, 2006. The
Court of Appeals ruled that there was substantial
compliance with the requirement of verification and
certification of non-forum shopping. It noted that the
original complaint has a proper verification and
certification of non-forum shopping signed by Naval-Sai
herself. What was signed by Naval-Sai’s counsel was the
amended complaint dated July 29, 1999. Its verification
and certification carries the statement “x  x  x that this
[a]mended [c]omplaint should be taken and read together
with the original complaint; x  x  x”21 which the Court of
Appeals found to be a “cautionary move” tantamount to
substantial compliance.22 The Court of Appeals further
explained that the rule on certification against forum
shopping was complied with in the original complaint
because although an amended complaint supersedes the
pleading that it amends, it is not an initiatory pleading
contemplated under the Rules of Court.23
On the issue of whether the action is a collateral attack
in relation to prescription, the Court of Appeals ruled that
it is neither a direct nor a collateral attack. According to
the Court of Appeals, the action is a direct attack when the
object of an action is to annul or set aside the judgment in
the registration proceeding. On the other hand, a collateral
attack is when, in an action to obtain a different relief, an
attack on the judg-

_______________

18   Additional Requisites for Petitions Filed with the Supreme Court

and the Court of Appeals to Prevent Forum Shopping or Appeals to
Prevent Forum Shopping or Multiple Filing of Petitions and Complaints,
February 8, 1994.
19  Rollo, p. 52.
20  Id., at pp. 53-64.
21  Id., at p. 43.
22  Id., at p. 62.
23  Id., at p. 63.

 
 
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ment or registration proceeding is nevertheless made as an

incident thereof.
Here, however, Naval-Sai is seeking a relief for an
annulment of the deed of sale, which is not an attack on the
judgment or registration proceeding pursuant to which the
titles were decreed. It does not seek to set aside the
judgment of registration of titles nor does it seek to nullify
the title by challenging the judgment or proceeding that
decreed its issuance. The action is in reality one for
reconveyance, which is imprescriptible when based on a
void contract. Thus:

A perusal of the records of the case shows that the caption of

appellant’s Complaint before the RTC is annulment of deed.
However considering that the ultimate relief sought is for the
appellee to “return” the subject property to him, it is in reality an
action for reconveyance. In De Guzman [v.] Court of Appeals, the
Court held that, “the essence of an action for reconveyance is that
the decree of registration is respected as incontrovertible but
what is sought instead is the transfer of the property which has
been wrongfully or erroneously registered in another person’s
name, to its rightful owner or to one with a better right.”
x x x
An action for reconveyance on the ground that the certificate of
title was obtained by means of a fictitious or forged deed of sale is
virtually an action for the declaration of the nullity of the forged
deed, hence, it does not prescribe. x x x 24

 
However, the Court of Appeals emphasized that despite
its discussion on the prescriptibility of the action, it has not
made a finding that the deed of sale is indeed fictitious or
forged because it is for the RTC to rule on after evidence
has been presented and evaluated. Thus, the relevant
dispositive portion of the Court of Appeals’ decision reads:  

_______________

24  Id., at p. 61.

 
 
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WHEREFORE, premises considered, the petition is

GRANTED. The assailed Order of dismissal dated 30 March 2001
is hereby SET ASIDE and deemed of no effect.
Let this case be remanded to the lower court for further
proceedings.
SO ORDERED.25

 
Petitioner filed a Motion for Reconsideration26 on March
3, 2006, which was denied by the Court of Appeals in its
Resolution27 dated May 18, 2006.

Hence, this petition, which raises the following issues:

I.
THE COURT OF APPEALS ERRED WHEN IT RULED THAT
THERE WAS SUBSTANTIAL COMPLIANCE WITH THE
REQUIREMENTS ON CERTIFICATION FOR NON-FORUM
SHOPPING.
 
 II.
THE COURT OF APPEALS ERRED IN NOT HOLDING
THAT THE ACTION HAS PRESCRIBED AND/OR THE
PRIVATE RESPONDENT IS GUILTY OF INACTION, LACHES
OR ESTOPPEL.

 
Our Ruling
 
There was substantial com-
pliance with the requirements
on certification against forum
shopping.
 
A certification against forum shopping is a peculiar and
personal responsibility of the party, an assurance given to
the

_______________

25  Id., at p. 63.
26  CA Rollo, pp. 145-154.
27  Rollo, p. 79.

 
 
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court or other tribunal that there are no other pending

cases involving basically the same parties, issues and
causes of action.28 It must be executed by the party-
pleader, not by his counsel. If, however, for reasonable or
justifiable reasons, the party-pleader is unable to sign, he
must execute a Special Power of Attorney (SPA)
designating his counsel of record to sign on his behalf.29
Here, the original complaint contained a proper
verification and certification against forum shopping duly
signed by Naval-Sai as plaintiff. The verification and
certification in the amended complaint, on the other hand,
was only signed by her counsel, Atty. Norberto L. Ela. Atty.
Ela was not authorized to sign on behalf of Naval-Sai, as in
fact, she assigned one Rodolfo Florentino as agent.30 The
Court of Appeals pointed out that in the certification in the
amended complaint, Atty. Ela specified that it should be
taken and read together with the original complaint. The
Court of Appeals took this as a cautionary move on the part
of Naval-Sai, justifying the relaxation of the rules on the
ground of substantial compliance. We find, however, that
this cautionary move is ineffectual because under the Rules
of Civil Procedure, an amended complaint supersedes the
original complaint.31 For all intents and purposes,
therefore, the original complaint and its verification and
certification ceased to exist. This, notwithstanding, we find
there was still substantial compliance with the Rules.  
In the case of Far Eastern Shipping Company v. Court of
Appeals,32 while we said that, strictly, a certification
against

_______________

28  Negros Merchants Enterprises, Inc. v. China Banking Corporation,

G.R. No. 150918, August 17, 2007, 530 SCRA 478, 485.
29   Ingles v. Estrada, G.R. Nos. 141809, 147186 and 173641, April 8,
2013, 695 SCRA 285, 317-319, citing Altres v. Empleo, G.R. No. 180986,
December 10, 2008, 573 SCRA 583, 597-598.
30  RTC Records, p. 9.
31  Rules of Civil Procedure, Rule 10, Sec. 8.
32  G.R. No. 130068, October 1, 1998, 297 SCRA 30, 53.

 
 
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forum shopping by counsel is a defective certification, the

verification, signed by petitioner’s counsel in said case, is
substantial compliance because it served the purpose of the
Rules of informing the Court of the pendency of another
action or proceeding involving the same issues. We then
explained that procedural rules are instruments in the
speedy and efficient administration of justice which should
be used to achieve such end and not to derail it.33
We also find that the prima facie merits of the case
serve as a special circumstance or a compelling reason to
relax the rules on certification against forum shopping.  
In Sy Chin v. Court of Appeals,34 we recognized the flaw
in the certification against forum shopping which was
signed only by the counsel, and not by the party. In LDP
Marketing, Inc. v. Monter,35 there was initially no proof
that the one who signed the certification was authorized to
do so in behalf of the corporation. In these two cases, we
nonetheless chose to overlook the procedural lapses in the
interest of substantial justice and the existence of prima
facie merit in the petitions.
We have ruled that the general rule is that
noncompliance or a defect in the certification is not curable
by its subsequent submission or correction. However, there
are cases where we exercised leniency and relaxed the
rules on the ground of substantial compliance, the presence
of special circumstances or compelling reasons.36 The rules
on forum shopping are designed to promote and facilitate
the orderly administration of justice and “should not be
interpreted with such absolute literalness as to subvert its
own ultimate and legitimate ob-

_______________

33  Ty-De Zuzuarregui v. Villarosa, G.R. No. 183788, April 5, 2010, 617

SCRA 377, 385.
34  G.R. No. 136233, November 23, 2000, 345 SCRA 673, 684.
35  G.R. No. 159653, January 25, 2006, 480 SCRA 137.
36   Shipside Incorporated v. Court of Appeals, G.R. No. 143377,
February 20, 2001, 352 SCRA 334, 346.

 
 
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jective or the goal of all rules of procedure — which is to

achieve substantial justice as expeditiously as possible.”37
 
The nature of Naval-Sai’s action
is an action for reconveyance
based on a void contract, which
does not prescribe.
 
Petitioner argues that Naval-Sai’s action has already
prescribed because her action should have been filed within
one year from the time of the registration of the titles. He
asserts that even if the action is in reality one for
reconveyance as found by the Court of Appeals, the same is
still barred by prescription based on judicial
pronouncements that an action for reconveyance of
registered land based on implied trust prescribes in ten
(10) years. Petitioner also accuses Naval-Sai guilty of
laches and estoppel for her failure to assert her right over
the two lots for more than eighteen (18) years.
In order to arrive at a conclusion on whether the action
has prescribed, we have to determine the nature of the
action.
We agree with the Court of Appeals that the action of
Naval-Sai is one for reconveyance. Although the
designation of the complaint is annulment of deed, and
does not include reconveyance, the facts alleged and reliefs
sought show that reconveyance is the end goal. What
determines the nature of the action are the allegations in
the complaint. The cause of action in a complaint is not
determined by the designation given by the complaint, but
by what the allegations in the

_______________

37  Dar v. Alonzo-Legasto, G.R. No. 143016, August 30, 2000, 339
SCRA 306, 309, citing Gabionza v. Court of Appeals, G.R. No. 112547, July
18, 1994, 234 SCRA 192, 198.

 
 
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body of the complaint define or describe,38 as well as the

character of the relief sought.39
An action for reconveyance is a legal and equitable
remedy granted to the rightful owner of land which has
been wrongfully or erroneously registered in the name of
another for the purpose of compelling the latter to transfer
or reconvey the land to him.40 In an action for
reconveyance, the decree of registration is respected as
incontrovertible. What is sought instead is the transfer of
the property, which has been wrongfully or erroneously
registered in another person’s name, to its rightful and
legal owner, or to one with a better right.41 However, such
recourse cannot be availed of once the property has passed
to an innocent purchaser for value. For an action for
reconveyance to prosper, the property should not have
passed into the hands of an innocent purchaser for value.42
Here, Naval-Sai does not only seek to annul the
purported deed of sale but also to cancel TCTs No. T-62446
and No. 62447 in the name of petitioner. If the reliefs are
granted and the TCTs are cancelled, the titles to the lots
will revert to Naval-Sai as she was the previously
registered owner. Thus, a ruling in favor of Naval-Sai
would be equal to what an action for reconveyance seeks to
accomplish.  
An action for reconveyance is based on Section 53,
paragraph 3 of Presidential Decree (PD) No. 1529,43 which
provides:

_______________

38   Hernudd v. Lofgren, G.R. No. 140337, September 27, 2007, 534

SCRA 205, 213.
39   Cañiza v. Court of Appeals, G.R. No. 110427, February 24, 1997,
268 SCRA 640, 647-648.
40  Hi-Tone Marketing Corporation v. Baikal Realty Corporation, G.R.
No. 149992, August 20, 2004, 437 SCRA 121, 143.
41  Id., citing Walstrom v. Mapa, Jr., G.R. No. 38387, January 29, 1990,
181 SCRA 431, 442.
42  Philippine Economic Zone Authority v. Fernandez, G.R. No. 138971,
June 6, 2001, 358 SCRA 489, 499.
43  Otherwise known as the Property Registration Decree.

 
 
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In all cases of registration procured by fraud, the owner

may pursue all his legal and equitable remedies against the
parties to such fraud without prejudice, however, to the
rights of any innocent holder for value of a certificate of
title. x x x

 
In Caro v. Court of Appeals,44 we said that this provision
should be read in conjunction with Article 1456 of the Civil
Code, which provides:
 Article 1456. If property is acquired through mistake or
fraud, the person obtaining it is, by force of law, considered
a trustee of an implied trust for the benefit of the person
from whom the property comes.

 
The law creates the obligation of the trustee to reconvey
the property and its title in favor of the true owner.
Correlating Section 53, paragraph 3 of PD No. 1529 and
Article 1456 of the Civil Code with Article 1144(2) of the
Civil Code,45 the prescriptive period for the reconveyance of
fraudulently registered real property is ten (10) years
reckoned from the date of the issuance of the certificate of
title.46 This ten-year prescriptive period begins to run from
the date the adverse party repudiates the implied trust,
which repudiation takes place when the adverse party
registers the land.47 An exception to this rule is when the
party seeking reconveyance based on implied or
constructive trust is in actual, continuous and

_______________

44  G.R. No. 76148, December 20, 1989, 180 SCRA 401, 407.
45   ART. 1144. The following actions must be brought within ten
years from the time the right of action accrues:  
(1) Upon a written contract;  
(2) Upon an obligation created by law;
(3) Upon a judgment.
46  Id.
47  Crisostomo v. Garcia, Jr., G.R. No. 164787, January 31, 2006, 481
SCRA 402; Salvatierra v. Court of Appeals, G.R. No. 107797, August 26,
1996, 261 SCRA 45; Amerol v. Bagumbaran, No. L-33261, September 30,
1987, 154 SCRA 396.

 
 
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peaceful possession of the property involved.48 Prescription

does not commence to run against him because the action
would be in the nature of a suit for quieting of title, an
action that is imprescriptible.49
 The foregoing cases on the prescriptibility of actions for
reconveyance apply when the action is based on fraud, or
when the contract used as basis for the action is voidable.
Under Article 1390 of the Civil Code, a contract is voidable
when the consent of one of the contracting parties is
vitiated by mistake, violence, intimidation, undue influence
or fraud. When the consent is totally absent and not merely
vitiated, the contract is void.50 An action for reconveyance
may also be based on a void contract.51 When the action for
reconveyance is based on a void contract, as when there
was no consent on the part of the alleged vendor, the action
is imprescriptible.52 The property may be reconveyed to the
true owner, notwithstanding the TCTs already issued in
another’s name. The issuance of a certificate of title in the
latter’s favor could not vest upon him or her ownership of
the property; neither could it validate the purchase thereof
which is null and void. Registration does not vest title; it is
merely the evidence of such title. Our land registration
laws do not give the holder any

_______________

48  Vda. de Gualberto v. Go, G.R. No. 139843, July 21, 2005, 463 SCRA
671, 681.
49   Brito, Sr. v. Dianala, G.R. No. 171717, December 15, 2010, 638
SCRA 529, 538.
50   ART. 1318. There is no contract unless the following requisites
concur:
(1) Consent of the contracting parties;
(2) Object certain which is the subject matter of the contract;  
(3) Cause of the obligation which is established.
51   Aquino, Amado D., Land Registration and Related Proceedings, p.
133, 4th ed., 2007.
52  Id., at p. 136.

 
 
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530 SUPREME COURT REPORTS ANNOTATED

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better title than what he actually has. Being null and void,
the sale produces no legal effects whatsoever.53
Whether an action for reconveyance prescribes or not is
therefore determined by the nature of the action, that is,
whether it is founded on a claim of the existence of an
implied or constructive trust, or one based on the existence
of a void or inexistent contract. This is evident in several of
our past decisions. In Casipit v. Court of Appeals,54 we
rejected the claim of imprescriptibility and applied the 10-
year prescription where the action filed was based on
fraud:
There is no dispute that an action for reconveyance
based on a void contract is imprescriptible (Castillo, et al. v.
Madrigal, et al., G.R. No. 62650, June 27, 1991; Baranda,
et al. v. Baranda, et al., G.R. No. 73275, May 20, 1987, 150
SCRA 59). However, We simply cannot apply this principle
to the present case because the action filed by petitioner
before the trial court was 1) for reconveyance based on
fraud since the ownership of private respondents over the
questioned property was allegedly established on “false
assertions, misrepresentations and deceptive allegations”
(p. 182, Records); and 2) for rescission of the “Kasulatan ng
Pagmamana at Paghahati”
(pp. 173, 187, Records). x x x 55
On the other hand, in Daclag v. Macahilig,56 we rejected
the claim of petitioners that prescription is applicable
because the action was based on fraud. We ruled that the
action was not subject to prescription because it was, in
fact, based on a deed of sale that was null and void. Thus:

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53   Macababbad, Jr. v. Masirag, G.R. No. 161237, January 14, 2009,

576 SCRA 70, 86.
54  G.R. No. 96829, December 9, 1991, 204 SCRA 684, 693.
55  Id.
56  G.R. No. 159578, February 18, 2009, 579 SCRA 556.

 
 

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However, a review of the factual antecedents of the case

shows that respondents’ action for reconveyance was not even
subject to prescription.
The deed of sale executed by Maxima in favor of
petitioners was null and void, since Maxima was not the
 owner of the land she sold to petitioners, and the one-half
northern portion of such land was owned by respondents.
Being an absolute nullity, the deed is subject to attack
anytime, in accordance with Article 1410 of the Civil Code
that an action to declare the inexistence of a void contract
does not prescribe. x  x  x An action for reconveyance based
on a void contract is imprescriptible. As long as the land
wrongfully registered under the Torrens system is still in
the name of the person who caused such registration, an
action in personam will lie to compel him to reconvey the
property to the real owner.57 (Citations omitted)

 
In Santos v. Heirs of Dominga Lustre,58 the complaint
alleged that the deed of sale was simulated by forging the
signature of the original registered owner. We ruled in
favor of imprescribility applying the doctrine that the
action for reconveyance on the ground that the certificate of
title was obtained by means of a fictitious deed of sale is
virtually an action for the declaration of its nullity, which
does not prescribe.
Also, and more illustrative of the discussion above, in
Castillo v. Heirs of Vicente Madrigal,59 it was alleged by
the plaintiffs that they never signed any document. We
ruled as follows:

_______________

57   Id., at pp. 559-560; See also Philippine National Bank v. Heirs of

Estanislao Militar and Deogracias Militar, G.R. Nos. 164801 and 165165,
August 18, 2005, 467 SCRA 377; and Santos v. Santos, G.R. No. 133895,
October 2, 2001, 366 SCRA 395.
58  G.R. No. 151016, August 6, 2008, 561 SCRA 120, 133.
59  G.R. No. 62650, June 27, 1991, 198 SCRA 556.

 
 
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Uy vs. Court of Appeals, Mindanao Station, Cagayan de
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Petitioners allege that a reading of paragraphs 9 and 10 of

their complaint reveals that they impugn the existence and
validity of the alleged deed of sale. As contained therein,
petitioners never entered into any transaction with any person
conveying the subject property. They did not sign any document
in favor of [anyone] neither did they give [anyone] authorization
for that purpose. Therefore, consent and cause did not exist in the
execution of the deed of sale, invoking Articles 1318, 1352 and
1409(3) of the Civil Code. And, pursuant to Article 1410 of the
Civil Code, an action for the declaration of the inexistence of a
contract does not prescribe.
In dismissing petitioners’ complaint on the ground of
prescription, the trial court opined (p. 123, Rollo):
“x  x  x, any action for annulment of the deed and TCT
72066 should have been instituted within ten (10) years
from the accrual of the cause of action, that, (sic) is, ten
years from 1943 when the deed was executed at the earliest,
or ten years from 1944 at the latest. This action was filed on
December 17, 1979, or after more than 30 years from 1943
and 1944. The action, therefore, has long prescribed. x x x.”
The Court of Appeals expressed the same opinion (p. 51,
Rollo):
“x  x  x, even as We consider that there was fraud in the
registration and the issuance of title in favor of defendant
Madrigal creating thereby a constructive trust in favor of
the plaintiffs, the remedy of the plaintiffs is an action for
reconveyance within ten (10) years from the registration of
the property in the name of defendant Madrigal (Alzona v.
Capunitan, 4 SCRA 450; Gonzales v. Jimenez, 13 SCRA 80).
Again, the filing of the complaint was way beyond the ten-
year period of limitation.”

 
 
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Both courts ruled incorrectly. It is evident in paragraphs 9,

10 and 12 of the complaint, supra, that petitioners sought
the declaration of the inexistence of the deed of sale because
of the absence of their consent. Thus, following the
provision of Article 1410 of the Civil Code, this kind of
action is imprescriptible. The action for reconveyance is
likewise imprescriptible because its basis is the alleged void
contract of sale. x x x 60 (Citations omitted)

 
 We conclude that, contrary to the claim of petitioner, the
action for reconveyance is based neither on an implied or
constructive trust nor fraud. Naval-Sai alleged that the
purported deed of sale, which became the basis to transfer
the titles in petitioner’s name, was an absolute forgery
because she never sold the two lots to any person.61 Naval-
Sai also alleged that her signature and that of her
husband’s, in the deed of sale are forgeries.62 These
allegations make the action one based on a void or
inexistent contract for lack of consent on the part of the
alleged vendor, Naval-Sai. Based on the complaint, Naval-
Sai only consented to use the titles of the two lots as
security to a loan she obtained from Ng.63
Resolution of the issue of prescription hinges on whether
the deed of sale was indeed forged and, thus, void.
Unfortunately, both the RTC and the Court of Appeals did
not make actual findings on the alleged forgery. No full-
blown trial occurred in the RTC to prove that the deed of
sale was indeed simulated and that the signatures were
forgeries. The case was dismissed based on the pleadings of
the parties. The Court of Appeals also resolved to decide
the case on available records and pleadings, in order to
avoid further delay, due to several resettings and motions
for postponement filed by the parties one after another.
The lack of factual findings on the

_______________

60  Id., at pp. 560-561.

61  Rollo, pp. 29-30.
62  Id., at p. 32.
63  Id., at p. 29.

 
 
534

534 SUPREME COURT REPORTS ANNOTATED

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alleged forgery from the lower courts prevents us from

ruling on the issue of prescription.
Since it is apparent that the complaint on its face does
not show that the action has already prescribed, the RTC
erred in dismissing it. We emphasize once more that a
summary or outright dismissal of an action is not proper
where there are factual matters in dispute, which require
presentation and appreciation of evidence.64
Applying the foregoing cases and without prejudging the
issue of forgery, the action for reconveyance will not be
subject to prescription if the trial court finds that the deed
of sale is indeed forged, because the action would now be
based on a fictitious and void contract. If the trial court
finds otherwise, then the issue of prescription would not
matter as the sale would stand and remain binding
between Naval-Sai and petitioner.
Similarly, the elements of laches must be proven
positively. Laches is evidentiary in nature, a fact that
cannot be established by mere allegations in the
pleadings.65 Therefore, at this stage, the dismissal on the
ground of laches would be premature. The issues must be
resolved in the trial on the merits.
Moreover, laches is a doctrine in equity, and applied
only in the absence of, and never against, statutory law.66
The positive mandate of Article 1410 of the Civil Code
conferring imprescriptibility to actions or defense for the
declaration of the inexistence of a contract should preempt
and prevail over all abstract arguments based only on
equity.67

_______________

64  Sanchez v. Sanchez, G.R. No. 187661, December 4, 2013, 711 SCRA

541, 547.
65  Id.
66  Santos v. Heirs of Dominga Lustre, supra note 58 at pp. 133-134.
67   Philippine National Bank v. Heirs of Estanislao Militar and
Deogracias Militar, supra note 57 at p. 389.

 
 

535

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WHEREFORE, the petition is DENIED. Let the

records of this case be remanded for further proceedings to
the Regional Trial Court of Kidapawan City, Branch 17,
which is hereby ORDERED to try and decide the case with
dispatch.
SO ORDERED.
 Velasco, Jr. (Chairperson), Peralta, Villarama, Jr. and
Perez,** JJ., concur.

Petition denied.

Notes.—The prescriptive period for the reconveyance of

fraudulently registered real property is 10 years reckoned
from the date of the issuance of the certificate of title.
(Daclag vs. Macahilig, 579 SCRA 556 [2009])
As a ground for the dismissal of a complaint, the
doctrine of laches is embraced in the broad provision in
Section 1 of Rule 16 of the Rules of Court, which
enumerates the various grounds on which a motion to
dismiss may be based. Paragraph (h) thereof states that
the fact that the claim or demand set forth in the plaintiff’s
pleading has been paid, waived, abandoned, or otherwise
extinguished, may be raised in a motion to dismiss.
(Navarro vs. Metropolitan Bank & Trust Company, 594
SCRA 149 [2009])
 
 
——o0o——

_______________

**  Designated as acting member, in view of the leave of absence of

Hon. Bienvenido L. Reyes, per Special Order No. 2084 dated June 29,
2015.

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