STANDARD COMMERCIAL CORPORATION, PETITIONER AND APPELLANT, VS. REGISTER OF DEEDS OF MANILA, RESPONDENT AND APPELLEE.

On October 24, 1957, the Standard Commercial Corporation executed a
real estate mortgage over two parcels of land covered by Transfer
Certificate of Title No. 11287 of the Register of Deeds of Manila in
favor of the Philippine Bank of Commerce, to guarantee the obligation
of Consolidated Philippines, Inc. (a sister corporation of the
mortgagor) to said bank in the sum of P1,500,000. The mortgage was duly
registered in the Office of the Register of Deeds of Manila.

On June 23, 1959, the same entity, Standard Commercial Corporation,
executed another instrument entitled “Amendment to Real Estate
Mortgage” in favor of the same mortgagee bank to secure—this time the
obligation of Standard Investment Corporation (another sister
corporation of the mortgagor) in the amount of P1,900,000. This
subsequent mortgage purports to be an amendment to the first executed
on October 24, 1957, but, according to its provisions, the obligation
of the Consolidated Philippines, Inc., secured by the original mortgage
was cancelled and the properties mortgaged therein—with one additional
parcel—were given as security for the obligation of another entity, the
Standard Investment Corporation, amounting to the bigger amount of
P1,900,000.00.

When the second or subsequent deed of mortgage was presented for
registration, the Register of Deeds of Manila required the mortgagor to
pay registration fees and documentary stamps based on the amount of
P1,900,000.00. Claiming that said fees and stamps should be computed on
the basis only of the amount of P400,000.00 —which is the difference
between the amount received by the original mortgage and the new
obligation—the mortgagor refused to pay them and brought the matter to
the Land Registration Commission en consulta. The latter,
however, sustained the ruling of the Register of Deeds in its
resolution of September 7,1959. After paying the required fees under
protest, the Standard Commercial Corporation interposed the present
appeal.

We find the appeal to be without merit.

The second deed of mortgage itself shows that, prior to its
execution, the prior mortgage of October 24, 1957 was deemed cancelled
because the obligation secured by it had been considered likewise
cancelled by the parties; that the new obligation secured by the
subsequent mortgage, while in favor of the same bank, was not only a
different and bigger amount but was the obligation of an entirely
different party, namely, the Standard Investment Corporation. Upon
these facts, the conclusion becomes inescapable that said mortgage must
be deemed to be an entirely new contract and, if to be registered, the
party concerned must be required to pay the corresponding registration
fees and to attach to the deed the appropriate documentary stamps.

Wherefore, the resolution appealed from is affirmed, with costs.

Padilla, Bautista Angelo, Labrador, Reyes, J. B. L. Barrera, Paredes, Regala, and Makalintal, JJ., concur.