G.R. No. 11721. October 02, 1917

ANDRES GRIMALT, PLAINTIFF AND APPELLEE, VS. MACARIA V. VELAZQUEZ AND SY QUIO, DEFENDANTS. SY QUIO, APPELLANT.

Decisions / Signed Resolutions October 2, 1917 JOHNSON, J.:
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JOHNSON, J.:


The only question presented by this appeal is whether or not the debtor, in
proceedings for the foreclosure of a mortgage, must be given notice of a motion
made to have the sale of the mortgaged premises confirmed.

The facts out of which the appeal grew are not disputed and may be stated as
follows: That on the 26th day of April, 1915, the plaintiff commenced an action
in the Court of First Instance of the city of Manila to foreclose a mortgage
executed and delivered by the defendant Macaria V. Velazquez to the plaintiff
upon a certain piece or parcel of land; that a general denial was made by the
defendant to the petition; that upon the issue thus joined a trial was had, and
on the 3d day of August a judgment was rendered ordering the foreclosure of said
mortgage; that the defendant was given time, in accordance with the provisions
of the law, in which to deposit the amount due on said mortgage with the court;
that in default of such deposit the land was ordered to be sold; that the
defendant failed to make said deposit and an execution was issued in accordance
with the provisions of the judgment theretofore rendered on the 7th day of
October, 1915; that by reason of a motion of the defendant the sale of the
mortgaged premises was suspended by the court until the 9th day of November,
1915; that on the 9th day of November, 1915, the mortgaged premises was sold to
Francisco Dominguez, but by reason of his failure to pay to the sheriff the
amount bid the property was again sold, after some proceedings were had, not
important here to mention, on the 22d day of November, 1915, to Sy Quio, the
appellant herein; that on the 4th day of January, 1916, the said purchaser (Sy
Quio), by a motion, asked the court to confirm said sale; that on the 5th day of
January, 1916, the court granted said motion and confirmed said sale; that on
the 7th day of January, 1916, the defendant presented a motion in court praying
that said order confirming said sale be annulled and set aside for the reason
that no notice of said motion had been given to him, it appearing at the same
time that he had, on the 6th day of January, 1916, deposited with the sheriff
the full amount due upon said judgment of foreclosure. Said motion was duly
heard. After hearing the respective parties the Honorable Simplicio del Rosario,
judge, found that the defendant had not been given notice of said motion, and
annulled and set aside his order theretofore made confirming the said sale, upon
condition that the defendant Macaria V. Velazquez return to the purchaser Sy
Quio the amount which he had theretofore paid to the sheriff, together with 10
per cent interest from the date of the payment, or from the 21st day of
December, 1915, until paid. From that judgment the said Sy Quio appealed to this
court.

The question of the necessity of giving the defendant notice of a motion to
confirm the sale of premises under foreclosure proceedings has heretofore been
discussed by this court. Section 257 of Act No. 190 provides that the title to
premises sold under foreclosure proceedings does not pass until the sale of the
same has been confirmed by the court. In the case of Raymundo vs.
Sunico (25 Phil. Rep., 365), we held that, in order that a foreclosure sale may
be validly confirmed by the court, it is necessary that a hearing be given the
interested parties at which they may have an opportunity to show cause why the
sale should not be confirmed; that a failure to give notice is good cause for
setting aside the sale. In the present case, however, in view of the fact that
the defendant had, before the sale was finally confirmed, deposited with the
sheriff the full amount of the judgment, with interest and costs, there is no
occasion for ordering a resale of the premises.

In view of the foregoing, the judgment of the lower court should be and is
hereby affirmed, with costs. So ordered.

Arellano, C. J., Carson, Araullo, Street, and Malcolm, JJ.,
concur.