MAGDALENO GOMEZ, PLAINTIFF AND APPELLANT, VS. “LA GERMINAL” AND JUAN TUASON, DEFENDANTS AND APPELLANTS.

The only question presented by this appeal is whether or not the plaintiff is
the owner of the equity of redemption of the property in question and is
entitled to a conveyance of the same by the defendants to him.

This action bears a close relation to R. G. No. 11905 of “La Germinal” vs.
Vicente Torres.^[1] The facts out of which
the present action arose may be stated as follows: (1) That sometime prior to
the 10th day of October, 1914, “La Germinal” obtained a judgment in the Court of
First Instance of the city of Manila against Vicente Torres for a sum of money.
(2) That upon said judgment an execution was issued in favor of the plaintiff
and against the defendant and the property in question was sold at public
auction to the plaintiff for the sum of P2,000 on the 10th day of October, 1914;
and a sheriff’s deed was issued to the plaintiff expressly stipulating that the
defendant, Vicente Torres, had the right of redemption in said property within a
period of 12 months. “La Germinal” took immediate possession of the property.
(3) That on the 28th day of September, 1915, the said Vicente Torres sold and
transferred to Magdaleno Gomez all of his right, title, and interest in his
equity of redemption of said property; that on the 29th day of September, 1915,
Magdaleno Gomez gave due and formal notice to “La Germinal” of the fact that he
had purchased Vicente Torres’ equity of redemption and offered to pay “La
Germinal” the said P2,000, together with interest and costs, etc., less the
amount of rents which the latter had received during its occupation of the
property, which offer was refused by “La Germinal.” (4) Upon the refusal of “La
Germinal” to accept said amount, and upon its refusal to convey the property in
question to the plaintiff herein, the present action was commenced and the sum
due was deposited in court.

That Vicente Torres had a right to redeem the property in question within a
year from the 10th day of October, 1914, is not denied. That he had a right to
sell his equity of redemption is supported by the law. (Sec. 464, Act No. 190.)
The defendants, however, insist that the sale of the equity of redemption by
Vicente Torres to Magdaleno Gomez was a feigned sale, that it was made for the
purpose of defrauding creditors. An examination of the evidence, however, fails
to support that contention. The lower court found that the sale was a valid
sale; that Magdaleno Gomez paid a valid consideration for the said equity of
redemption and was, therefore, the owner of the same. Magdaleno Gomez being the
successor in interest of Vicente Torres, he had a perfect right to exercise the
equity of redemption which belonged to his vendor. That right Magdaleno Gomez
attempted to exercise before the expiration of the 12 months from the 10th day
of October, 1914, by offering to pay to “La Germinal” the amount it paid for the
property (P12,000), together with legal interest and costs, less the sum of
P496, the amount of rent which “La Germinal” had received from the use and
occupation of the property after said sheriff’s sale (10th day of October,
1914).

The person exercising the right of equity of redemption must pay the full
amount of the sale at public auction, plus the interest and costs, etc. (Art.
465, Act. No. 190.) Said amount may be reduced by whatever amount the purchaser
received from rents during his occupation of the property. (Art. 469, Act No.
190; De la Rosa vs. Revita Santos, 10 Phil. Rep., 148; Aldecoa &
Co. vs. Navarro, 23 Phil. Rep., 203.)

In the present case the defendant purchased the property in question at
P2,000. The interest, taxes, etc., paid by the defendant amounted to P260.55.
The amount, therefore, which the owner of the equity of redemption must pay in
order to redeem would be P2,260.55. It appears, however, that the defendant,
after its purchase of the property in question, received P496.07 as rent. The
said sum of P2,260.55 must be reduced, therefore, by said sum of P496.07,
leaving a balance due the defendant in the sum of P1,764.48. The record shows
that that amount, at the commencement of the present action, was deposited in
court by the plaintiff for the benefit of the defendant. When the plaintiff paid
or tendered to the defendant that sum or deposited the same in court he was
entitled to have the property reconveyed to him.

Upon the foregoing facts and considerations, we are of the opinion that the
judgment of the lower court should be and is hereby affirmed, with costs. So
ordered.

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

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^[1] Decided February 18, 1918, not
published.