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VOL. 56, APRIL 29, 1974 647

Martinez vs. Court of Appeals

*
No. L-31271. April 29, 1974.

ROMEO MARTINEZ and LEONOR SUAREZ, spouses,

petitioners-appellants, vs. HON. COURT OF APPEALS,
SECRETARY and UNDERSECRETARY OF PUBLIC
WORKS & COMMUNICATIONS, respondents-appellees.

Land registration; Court may not adjudge title over non-

registerable land.—The Land Registration Court has no
jurisdiction over non-registerable properties, such as public
navigable rivers which are parts of the public domain, and cannot
validly adjudge the registration of title in favor of a private
applicant. Hence, the judgment of the Court of First Instance of
Pampanga as regards the Lot No. 2 of Certificate of Title No.
15856 in the name of petitioners may be attacked at any time,
either directly or collaterally, by the State which is not bound by
any prescriptive period provided for by the Statute of Limitations.
Prescription; Right of State to recover non-registerable land
does not prescribe.—The right of reversion or reconveyance to the
State of the public properties fraudulently registered and which
are not capable of private appropriation or private acquisition
does not prescribe. (Republic vs. Ramona Ruiz, et al., L-23712,
April 29, 1968, 23 SCRA 348; Republic vs. Ramos, L-15484,
January 31, 1963, 7 SCRA 47.)
Secretary of Public Works and Communications; Jurisdiction;
The Secretary of Public Works and Communications has
jurisdiction to order removal of obstructions to navigable waters.—
When it comes to registered properties, the jurisdiction of the
Secretary of Public Works and Communications under Republic
Act 2056 to order the removal of obstruction to navigation along a
public and navigable creek or river included therein, has been
definitely settled and is no longer open to question. (Lovina vs.
Moreno, L-17821, Nov. 29, 1963, 9 SCRA 557; Taleon vs.
Secretary of Public Works & Communications, L-24281, May 16,
1961, 20 SCRA 69, 74.)
Special Contracts; Sales; Vendee two is aware of defect in the
thing he buys cannot later complain thereof.—Before purchasing a
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parcel of land, it cannot be contended that the appellants who

were the vendees did not know exactly the condition of the land
that they were buying and the obstacles or restrictions thereon
that may be put up by the government in connection with their
project of

_______________

* FIRST DIVISION.

648

648 SUPREME COURT REPORTS ANNOTATED

Martinez vs. Court of Appeals

converting Lot No. 2 in question into a fishpond. Nevertheless,

they willfully and voluntarily assumed the risks attendant to the
sale of said lot. One who buys something with knowledge of defect
or lack of title in his vendor cannot claim that he acquired it in
good faith (Leung Lee v. Strong Machinery Co., et al., 37 Phil.
664).

PETITION for review by certiorari of a judgment of the

Court of Appeals.

The facts are stated in the opinion of the Court.

          Flores, Macapagal, Ocampo & Balbastro for
petitioners-appellants.
       Solicitor General Felix Q. Antonio, Acting Assistant
Solicitor General Dominador L. Quiroz and Solicitor
Concepcion T. Agapinan for respondents-appellees.

ESGUERRA, J.:

Petition for review by certiorari of the judgment of the

Court of Appeals dated November 17, 1969 in its CA-G. R.
27655-R which reverses the judgment of the Court of First
Instance of Pampanga in favor of petitioners-appellants
against the Secretary and Undersecretary of Public Works
& Communications in the case instituted to annul the
order of November 25, 1958 of respondent Secretary of
Public Works & Communications directing the removal by
the petitioners of the dikes they had constructed on Lot No.
15856 of the Register of Deeds of Pampanga, which order
was issued pursuant to the provisions of Republic Act No.

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2056. The dispositive portion of the judgment of reversal of

the Court of Appeals reads as follows:

“IN VIEW OF THE FOREGOING CONSIDERATIONS, the

judgment appealed from is hereby reversed, and another entered:
[1] upholding the validity of the decision reached by the
respondent officials in the administrative case; [2] dissolving the
injunction issued by the Court below; and [3] cancelling the
registration of Lot No. 2, the disputed area, and ordering its
reconveyance to the public domain. No costs in this instance.”

The background facts are stated by the Court of Appeals as

follows:

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VOL. 56, APRIL 29, 1974 649

Martinez vs. Court of Appeals

“The spouses Romeo Martinez and Leonor Suarez, now

petitioners-appellees, are the registered owners of two (2) parcels
of land located in Lubao, Pampanga, covered by transfer
certificate of title No. 15856 of the Register of Deeds of the said
province. Both parcels of land are fishponds. The property
involved in the instant case is the second parcel mentioned in the
above-named transfer certificate of title.
“The disputed property was originally owned by one Paulino
Montemayor, who secured a ‘titulo real’ over it way back in 1883.
After the death of Paulino Montemayor the said property passed
to his successors-in-interest, Maria Montemayor and Donata
Montemayor, who in turn, sold it, as well as the first parcel, to a
certain Potenciano Garcia.
“Because Potenciano Garcia was prevented by the then
municipal president of Lubao, Pedro Beltran, from restoring the
dikes constructed on the contested property, the former, on June
22, 1914, filed Civil Case No. 1407 with the Court of First
Instance against the said Pedro Beltran to restrain the latter in
his official capacity from molesting him in the possession of said
second parcel, and on even date, applied for a writ of preliminary
injunction, which was issued against said municipal president.
The Court, by decision promulgated June 12, 1916, declared
permanent the preliminary injunction, which, decision, on appeal,
was affirmed by the Supreme Court on August 21, 1918. From
June 22, 1914, the dikes around the property in question
remained closed until a portion thereof was again opened just
before the outbreak of the Pacific War.
“On April 17, 1925. Potenciano Garcia applied for the
registration of both parcels of land in his name, and the Court of

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First Instance of Pampanga, sitting as land registration court,

granted the registration over and against the opposition of the
Attorney-General and the Director of Forestry. Pursuant to the
Court’s decision, original certificate of title No. 14318, covering
said parcels 1 and 2 was issued to the spouses Potenciano Garcia
and Lorenza Sioson.
“These parcels of land were subsequently bought by Emilio
Cruz de Dios in whose name transfer certificate of title No. 1421
was first issued on November 9, 1925.
“Thereafter, the ownership of these properties changed hands
until eventually they were acquired by the herein appellee
spouses who hold them by virtue of transfer certificate of title No.
15856.

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650 SUPREME COURT REPORTS ANNOTATED

Martinez vs. Court of Appeals

“To avoid any untoward incident, the disputants agreed to refer

the matter to the Committee on Rivers and Streams, by then
composed of the Honorable Pedro Tuason, at that time Secretary
of Justice, as chairman, and the Honorable Salvador Araneta and
Vicente Orosa, Secretary of Agriculture and National Resources
and Secretary of Public Works and Communications, respectively,
as members. This committee thereafter appointed a Sub-
Committee to investigate the case and to conduct an ocular
inspection of the contested property, and on March 11, 1954, said
Sub-Committee submitted its report to the Committee on Rivers
and Streams to the effect that Parcel No. 2 of transfer certificate
of title No. 15856 was not a public river but a private fishpond
owned by the herein appellee spouses.

“On July 7, 1954, the Committee on Rivers and Streams

rendered its decision the dispositive part of which reads:

‘In view of the foregoing considerations, the spouses Romeo Martinez and
Leonor Suarez should be restored to the exclusive possession, use and
enjoyment of the creek in question which forms part of their registered
property and the decision of the courts on the matter be given full force
and effect.’

“The municipal officials of Lubao, led by Acting Mayor Mariano

Zagad, apparently refused to recognize the above decision,
because on September 1, 1954, the spouses Romeo Martinez and
Leonor Suarez instituted Civil Case No. 751 before the Court of
First Instance of Pampanga against said Mayor Zagad, praying
that the latter be enjoined from molesting them in their
possession of their property and in the construction of the dikes
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therein. The writ of preliminary injunction applied for was issued

against the respondent municipal Mayor, who immediately
elevated the injunction suit for review to the Supreme Court,
which dismissed Mayor Zagad’s petition on September 7, 1953.
With this dismissal order herein appellee spouses proceeded to
construct the dikes in the disputed parcel of land.
“Some four (4) years later, and while Civil Case No. 751 was
still pending, the Honorable Florencio Moreno, then Secretary of
Public Works and Communications, ordered another investigation
of the said parcel of land, directing the appellees herein to remove
the dikes they had constructed, on the strength of the authority
vested in him by Republic Act No. 2056, approved on June 13,
1958, entitled ‘An Act To Prohibit, Remove and/or Demolish the
Construction of Dams, Dikes, Or Any Other Walls In Public
Navigable Waters, Or Waterways and In Communal Fishing
Grounds, To Regulate Works

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VOL. 56, APRIL 29, 1974 651

Martinez vs. Court of Appeals

in Such Waters or Waterways And In Communal Fishing

Grounds, And To Provide Penalties For Its Violation, And For
Other Purposes.1 The said order which gave rise to the instant
proceedings, embodied a threat that the dikes would be
demolished should the herein appellees fail to comply therewith
within thirty (30) days.
“The spouses Martinez replied to the order by commencing on
January 2, 1959 the present case, which was decided in their
favor by the lower Court in a decision dated August 10, 1959, the
dispositive part of which reads:

‘WHEREFORE, in view of the foregoing considerations, the Court hereby

declares the decision, Exhibit S, rendered by the Undersecretary of
Public Works and Communications null and void; declares the
preliminary injunction, heretofor issued, permanent, and forever
enjoining both respondents from molesting the spouses Romeo Martinez
and Leonor Suarez in their possession, use and enjoyment of their
property described in Plan Psu-9992 and referred to in their petition.
‘Without pronouncement as to costs.
‘SO ORDERED;

“As against this judgment respondent officials of the

Department of Public Works and Communications took the
instant appeal, contending that the lower Court erred:

“1. In holding that then Senator Rogelio de la Rosa,

complainant in the administrative case, is not an

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interested party and his letter-complaint dated August 15,

1958 did not confer jurisdiction upon the respondent
Undersecretary of Public Works and Communications to
investigate the said administrative case;
“2. In holding that the duty to investigate encroachments
upon public rivers conferred upon the respondent
Secretary under Republic Act No. 7056 cannot be lawfully
delegated by him to his subordinates;
“3. In holding that the investigation ordered by the
respondent Secretary in this case is illegal on the ground
that the said respondent Secretary has arrogated unto
himself the power, which he does not possess, of reversing,
making nugatory, and setting aside the two lawful
decisions of the Court, Exhibits K and I, and even
annulling thereby, the one rendered by the highest
Tribunal of the land;

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652 SUPREME COURT REPORTS ANNOTATED

Martinez vs. Court of Appeals

“4. In not sustaining respondent’s claim that

petitioners have no cause of action because the
property in dispute is a public river and in holding
that the said claim has no basis in fact and in law;
“5. In not passing upon and disposing of respondent’s
counterclaim;
“6. In not sustaining respondent’s claim that the
petition should not have been entertained on the
ground that the petitioners have not exhausted
administrative remedies; and
“7. In holding that the decision of the respondents is
illegal on the ground that it violates the principles
that laws shall have no retroactive effect unless the
contrary is provided and in holding that the said
Republic Act No. 2056 is unconstitutional on the
ground that respondents’ threat of prosecuting
petitioners under Section 3 thereof for acts done
four years before its enactment renders the said law
ex post facto.”

The Court of Appeals sustained the above-mentioned

assignment of errors committed by the Court of First
Instance of Pampanga and, as previously stated, reversed
the judgment of the latter court. From this reversal this
appeal by certiorari was taken, and before this Court,
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petitioners-appellants assigned the following errors

allegedly committed by the Court of Appeals:

1. THE COURT OF APPEALS ERRED IN

DECLARING IN THE INSTANT CASE THAT
PARCEL NO. 2 OF TRANSFER CERTIFICATE OF
TITLE NO. 15856 IS A PUBLIC RIVER AND
ORDERING THE CANCELLATION OF ITS
REGISTRATION BECAUSE THIS CONSTITUTES
A COLLATERAL ATTACK ON A TORRENS
TITLE IN VIOLATION OF THE LAW AND THE
WELL-SETTLED JURISPRUDENCE ON THE
MATTER.
2. THE COURT OF APPEALS ERRED IN
REOPENING AND RE-LITIGATING THE ISSUE
AS TO WHETHER OR NOT LOT NO. 2 OF
TRANSFER CERTIFICATE OF TITLE NO. 15856
REGISTER OF DEEDS OF PAMPANGA, IS A
PUBLIC RIVER NOTWITHSTANDING THE
FACT THAT THIS ISSUE HAS BEEN LONG
RESOLVED AND SETTLED BY THE LAND
REGISTRATION COURT OF PAMPANGA IN
LAND REGISTRATION PROCEEDING NO. 692
AND IS NOW RES JUDICATA.

653

VOL. 56, APRIL 29, 1974 653

Martinez vs. Court of Appeals

3. THE COURT OF APPEALS ERRED IN

ORDERING THE CANCELLATION OF THE
REGISTRATION OF LOT NO. 2 OF TRANSFER
CERTIFICATE OF TITLE NO. 15856
NOTWITHSTANDING THE FACT THAT THE
TORRENS TITLE COVERING IT HAS BEEN
VESTED IN THE PETITIONERS WHO ARE THE
SEVENTH OF THE SUCCESSIVE INNOCENT
PURCHASERS THEREOF AND WHO IN
PURCHASING THE SAME RELIED ON THE
PRINCIPLE THAT THE PERSONS DEALING
WITH REGISTERED LAND NEED NOT GO
BEHIND THE REGISTER TO DETERMINE THE
CONDITION OF THE PROPERTY.

The 1st and 2nd assignment of errors, being closely related,

will be taken up together.

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The ruling of the Court of Appeals that Lot No. 2

covered by Transfer Certificate of Title No. 15856 of the
petitioners-appellants is a public stream and that said title
should be cancelled and the river covered reverted to public
domain, is assailed by the petitioners-appellants as being a
collateral attack on the indefeasibility of the torrens title
originally issued in 1925 in favor of the petitioners-
appellants’ predecessor-in-interest, Potenciano Garcia,
which is violative of the rule of res judicata. It is argued
that as the decree of registration issued by the Land
Registration Court was not reopened through a petition for
review filed within one (1) year from the entry of the decree
of title, the certificate of title issued pursuant thereto in
favor of the appellants for the land covered thereby is no
longer open to attack under Section 38 of the Land
Registration Act (Act 496) and the jurisprudence on the
matter established by this Tribunal. Section 38 of the Land
Registration Act cited by appellants expressly makes a
decree of registration, which ordinarily makes the title
absolute and indefeasible, subject to the exemption stated
in Section 39 of the said Act among which are: “liens,
claims or rights arising or existing under the laws or
Constitution of the United States or of the Philippine
Islands which the statute of the Philippine Islands cannot
require to appear of record in the registry.”
At the time of the enactment of Section 496, one right

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Martinez vs. Court of Appeals

recognized or existing under the law is that provided for in

Article 339 of the old Civil Code which reads as follows:

“Property of public ownership is:

“1. That destined to the public use, such as roads, canals,
rivers, torrents, ports, and bridges constructed by the State, and
banks shores, roadsteads, and that of a similar character.” (Par.
1)

The above-mentioned properties are parts of the public

domain intended for public use, are outside the commerce
of men and, therefore, not subject to private appropriation.
(3 Manresa, 6th ed. 101-104.)
In Ledesma v. Municipality of Iloilo, 49 Phil. 769, this
Court held:

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“A simple possession of a certificate of title under the Torrens

system does not necessarily make the possessor a true owner of
all the property described therein. If a person obtains title under
the Torrens system which includes by mistake or oversight, lands
which cannot be registered under the Torrens system, he does not
by virtue of said certificate alone become the owner of the land
illegally included.”

In Mercado v. Municipal President of Macabebe, 59 Phil.

592, it was also said:

“It is useless for the appellant now to allege that she has obtained
certificate of title No. 329 in her favor because the said certificate
does not confer upon her any right to the creek in question,
inasmuch as the said creek, being of the public domain, is
included among the various exceptions enumerated in Section 39
of Act 496 to which the said certificate is subject by express
provision of the law.”

The same ruling was laid down in Director of Lands v.

Roman Catholic Bishop of Zamboanga, 61 Phil. 644, as
regards public plaza.
In Dizon, et al. v. Rodriguez, et al., G.R. No. L-20300-01
and G.R. No. L-20355-56, April 30, 1965, 20 SCRA 704, it
was held that the incontestable and indefeasible character
of a Torrens

655

VOL. 56, APRIL 29, 1974 655

Martinez vs. Court of Appeals

certificate of title does not operate when the land covered

thereby is not capable of registration.
It is, therefore, clear that the authorities cited by the
appellants as to the conclusiveness and incontestability of a
Torrens certificate of title do not apply here. The Land
Registration Court has no jurisdiction over non-register
able properties, such as public navigable rivers which are
parts of the public domain, and cannot validly adjudge the
registration of title in favor of a private applicant. Hence,
the judgment of the Court of First Instance of Pampanga as
regards the Lot No. 2 of Certificate of Title No. 15856 in the
name of petitioners-appellants may be attacked at any
time, either directly or collaterally, by the State which is
not bound by any prescriptive period provided for by the
Statute of Limitations (Article 1108, par. 4, new Civil
Code). The right of reversion or reconveyance to the State
of the public properties fraudulently registered and which
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are not capable of private appropriation or private

acquisition does not prescribe. (Republic v. Ramona Ruiz,
et al., G. R. No. L-23712, April 29, 1968, 23 SCRA 348;
Republic v. Ramos, G. R. No. L-15484, January 31, 1963, 7
SCRA 47.)
When it comes to registered properties, the jurisdiction
of the Secretary of Public Works & Communications under
Republic Act 2056 to order the removal or obstruction to
navigation along a public and navigable creek or river
included therein, has been definitely settled and is no
longer open to question (Lovina v. Moreno, G. R. No L-
17821, November 29, 1963, 9 SCRA 557; Taleon v.
Secretary of Public Works & Communications, G. R. No. L-
24281, May 16, 1961, 20 SCRA 69, 74).
The evidence submitted before the trial court which was
passed upon by the respondent Court of Appeals shows
that Lot No. 2 (Plan Psu 992) of Transfer Certificate of
Title No. 15856, is a river of the public domain. The
technical description of both Lots Nos. 1 and 2 appearing in
Original Certificate of Title No. 14318 of the Register of
Deeds of Pampanga, from which the present Transfer
Certificate of Title No. 15856 was derived, confirms the fact
that Lot No. 2 embraced in said title
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656 SUPREME COURT REPORTS ANNOTATED

Martinez vs. Court of Appeals

is bounded practically on all sides by rivers. As held by the

Court of First Instance of Pampanga in Civil Case No. 1247
for injunction filed by the petitioners’ predecessors-in-
interest against the Municipal Mayor of Lubao and decided
in 1916 (Exh. “L”), Lot No. 2 is a branch of the main river
that has been covered with water since time immemorial
and, therefore, part of the public domain. This finding
having been affirmed by the Supreme Court, there is no
longer any doubt that Lot No. 2 of Transfer Certificate of
Title No. 15856 of petitioners is a river which is not capable
of private appropriation or acquisition by prescription.
(Palanca v. Com. of the Philippines, 69 Phil. 449; Meneses
v. Com. of the Philippines 69 Phil. 647). Consequently,
appellants’ title does not include said river.

II.

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As regards the 3rd assignment of error, there is no weight

in the appellants’ argument that, being a purchaser for
value and in good faith of Lot No. 2, the nullification of its
registration would be contrary to the law and to the
applicable decisions of the Supreme Court as it would
destroy the stability of the title which is the core of the
system of registration. Appellants cannot be deemed
purchasers for value and in good faith as in the deed of
absolute conveyance executed in their favor, the following
appears:

“6. Que la segunda parcela arriba descrita y

mencionada esta actualmente abierta, sin
malecones y excluida de la primera parcela en
virtud de la Orden Administrative No. 103, tal como
fue enmendada, del pasado regimen o Gobierno.
“7. Que los citados compradores Romeo Martinez y
Leonor Suarez se encargan de gestionar de las
autoridades correspondientes para que la citada
segunda parcela pueda ser convertida de nuevo en
pesqueria, corriendo a cuenta y cargo de los mismos
todos los gastos.
“8. Que en el caso de que dichos compradores no
pudiesen conseguir sus propositos de convertir de
nuevo en pesquera la citada segunda parcela, los
aqui vendedores no devolveran ninguna cantidad de
dinero a los referidos compradores; este es, no se
disminuiriai el precio de esta venta.” (Exh. 13-a, p.
52, respondents record of exhibits)

657

VOL. 56, APRIL 29, 1974 657

Martinez vs. Court of Appeals

These stipulations were accepted by the petitioners-

appellants in the same conveyance in the following terms:

“Romeo Martinez y Leonor Suarez, mayores de edad, filipinos y

residentes en al Barrio de Julo, Municipio de Malabon, Provincia
de Rizal, por la presente, declaran que estan enterados del
contenido de este documento y lo aceptan en los precisos terminos
en que arriba quedan consignados.” (Exh. 13-a, ibid)

Before purchasing a parcel of land, it cannot be contended

that the appellants who were the vendees did not know
exactly the condition of the land that they were buying and
the obstacles or restrictions thereon that may be put up by
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the government in connection with their project of

converting Lot No. 2 in question into a fishpond.
Nevertheless, they willfully and voluntarily assumed the
risks attendant to the sale of said lot. One who buys
something with knowledge of defect or lack of title in his
vendor cannot claim that he acquired it in good faith
(Leung Lee v. Strong Machinery Co., et al., 37 Phil. 664).
The ruling that a purchaser of a registered property
cannot go beyond the record to make inquiries as to the
legality of the title of the registered owner, but may rely on
the registry to determine if there is no lien or
encumbrances over the same, cannot be availed of as
against the law and the accepted principle that rivers are
parts of the public domain for public use and not capable of
private appropriation or acquisition by prescription.
FOR ALL THE FOREGOING, the judgment of the Court
of Appeals appealed from is in accordance with law, and
the same is hereby affirmed with costs against the
petitioners-appellants.

          Makalintal, C. J., Castro, Teehankee and Muñoz

Palma, JJ., concur.
     Makasiar, J., on leave.

Judgment affirmed.

Notes.—Authority of the Secretary of Public Works and

658

658 SUPREME COURT REPORTS ANNOTATED

Martinez vs. Court of Appeals

Communications over Public Rivers and Streams. Under

Republic Act 2056, authorizing the Secretary of Public
Works and Communications, after notice and hearing, to
order the removal of any dam, dike, or other works
encroaching on any public navigable rivers, streams,
coastal waters, or other navigable public waters or
waterways, the exercise of the Secretary’s power under said
Act necessarily involves the determination of some
questions of fact, and such findings are, upon judicial
review, entitled to respect from the courts in the absence of
fraud, collusion, or grave abuse of discretion. Macatangay
vs. Secretary of Public Works and Communications, L-
21673, May 16, 1966.
The authority of the Secretary of Public Works and
Communications to inquire into and decide the question of

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the public or private character of a river or stream is

incidental to the power conferred upon him by Republic Act
2056 to conduct the necessary investigation and to order
the removal of any works that constitute obstructions
therein. Borja vs. Secretary of Public Works and
Communications, L-16487, July 31, 1964.

LEGAL RESEARCH SERVICE

See SCRA Quick Index-Digest, Volume One, page 453 on

Contracts; and page 501 on Courts.
See also SCRA Quick Index-Digest, Volume Two, page
1114 on Jurisdiction; page 1248 on Land Registration; page
1748 on Prescription; and page 1882 on Sales.
Caguioa, E. P., Comments and Cases on Civil Law, 6
vols., 1970-74 Editions.
Padilla, A., Civil Law—Civil Code Annotated, 6 vols.,
1969-73 Editions.
Feria, J., Civil Procedure with Judiciary Act of 19148
and Arbitration Act, 1969 Edition with 1970 Supplement.
Moran, M. V., Comments on the Rules of Court, vols. 1, 2
and 3, 1970 Edition.
659

VOL. 56, APRIL 29, 1974 659

People vs. Puno

Peña, N., Registration of Land Titles and Deeds, 1964

Edition.
Ponce, F. D. R., The Philippine Torrens System, 1964
Edition.
Jacinto, G. V., Special Proceedings, 1965 Edition.

————o0o————

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