Luna v Encarnacion
G.R. No. 4637 (1952)

Facts:

  • Jose Luna executed a chattel mortgage on a house of mixed materials in favor of Trinidad Reyes. This was registered in the register of deeds for the Province of Rizal.
  • When Luna couldn’t pay the loan when it was due, Reyes requested the Sheriff of Rizal to sell the house at a public auction with the indebtedness paid from the proceeds.
  • When Luna failed to take action within the period of redemption, Reyes demanded that the former surrender the possession of the property. Luna refused.
  • Judge of First Instance ruled in favor of Reyes to possess the property in question.

Issue:

  • WoN Act No. 3135, as amended by Act No. 4118, which deals with real property mortgage, can be used in the present case.

Ruling:

  • No, the law cited is only applicable to real property mortgages. Although the procedure given in Act No. 3135 is almost identical to the Chattel Mortgage Law (Act No. 1508) as far as a request is made by the mortgagee through a public officer, there is no pronouncement as to the requirements of the law relative to notice and registration.
  • The purchaser cannot take possession of the property by force, either directly or through the sheriff. And the reason for this is “that the creditor’s right of possession is conditioned upon the fact of default, and the existence of this fact may naturally be the subject of controversy” (Bachrah Motor Co. vs. Summers, 42 Phil., 3, 6)
  • Reyes should have filed an Action for Recovery of Possession, not Writ of Possession.

Disclaimer: All case digests posted in this blog are my own. If you think I missed important points raised in the case, feel free to let me know and I will credit you for corrections and/or suggestions you may have. Hope this helps!

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