Hechanova Vs Adil Case
Hechanova Vs Adil Case
Hechanova Vs Adil Case
The case under review is for the annulment of a deed of sale dated March 11, 1978, executed by
Jose Y. Servando in favor of Hechanova and Masa covering three parcels of land situated in Iloilo
City.
Pio Servando Claimed that the said parcels of land were mortgaged to him by Jose Servando in
1970 to secure a loan of P20,000.00 with stipulation that the same be solely owned by him (PIO) in
case of failure to redeem the property on the agreed date. He impugned the validity of the sale as
being fraudulent, and prayed that it be declared null and void and the transfer certificates of title
issued to the vendees be cancelled, or alternatively, if the sale is not annulled, to order the
defendant Jose Servando to pay the amount of P20,000.00, plus interests, and to order defendants
to pay damages.
The defendants HECHANOVA AND MASA moved to dismiss the complaint on the grounds that it did
not state a cause of action, the alleged mortgage being invalid and unenforceable since it was a
mere private document and was not recorded in the Registry of Deeds; and that PIO SERVANNDO
was not the real party in interest BEING A mere mortgagee WITH no standing to question the validity
of the sale.
The motion was denied by the respondent Judge, "on the ground that this action is actually one for
collection."
Jose Y. Servando died. HECHANOVA AND MASA filed a Manifestation and Motion, informing the
trial court accordingly, and moving for the dismissal of the complaint pointing out that the action was
for recovery of money based on an actionable document to which only the deceased defendant was
a party. SAME WAS DENIED ON THE GROUND that the instant action is not purely a money claim,
it being only incidental, the main action being one for annulment and damages.
On August 1, 1978, PIO SERVNAVDO plaintiff filed a motion to declare defendants in default, and on
the very next day, August 2, the respondent Judge granted the motion and set the hearing for
presentation of plaintiff's evidence ex-parte on August 24, 1978.
On August 2, 1978, or the same day that the default order was issued, defendants Hechanova and
Masa filed their Answers, denying the allegations of the complaint .
A judgment by default was rendered against the defendants, annulling the deed of sale in question
and ordering the Register of Deeds of Iloilo to cancel the titles issued to Priscilla Masa and Gemma
Hechanova, and to revive the title issued in the name of Jose Y. Servando and to deliver the same to
the plaintiff.
ISSUE: WHETHER OR NOT AN UNREGISTERED DEED OF MORTGAGE IN A PRIVATE
DOCUMENT WITH A pacto comisorio IS VALID.
HELD:
NO. It is clear from the records of this case that the plaintiff has no cause of action. Plaintiff has no
standing to question the validity of the deed of sale executed by the deceased defendant Jose
Servando in favor of his co-defendants Hechanova and Masa. No valid mortgage has been
constituted plaintiff's favor, the alleged deed of mortgage being a mere private document and not
registered; moreover, it contains a stipulation (pacto comisorio) which is null and void under Article
2088 of the Civil Code. Even assuming that the property was validly mortgaged to the plaintiff, his
recourse was to foreclose the mortgage, not to seek annulment of the sale.
WHEREFORE, the decision of the respondent court dated August 25, 1973 and its Order of
February 2, 1979 are set aside, and the complaint filed by plaintiff dated February 4, 1978 is hereby
dismissed.