Sunday, April 14, 2019

Fortunado v CA

G.R. No. 78556. April 25, 1991
Art. 1249 – Payment of debts in money shall be made in currency.

Facts:
·          RTC Quezon City awarded the petitioner Fortunado damages in Civil Case against Angel Bautista.
·          Pursuant to the said judgment, Bautista levied upon two parcels of land registered in her name.
·          But the second lot had already been purchased by National Steel Corporation although not yet registered in its name.
·          After due notice, these lots were sold at public auction to the petitioners, and registered in his name.
·          NSC filed with the trial court an urgent motion to redeem both lots, which was opposed by the petitioner.
·          As the motion remained unresolved and the period of redemption would expire, NSC issued to the sheriff PNB Check as the redemption price for the lot.
·          The sheriff acknowledged receipt of the check as redemption money for the two parcels of land and issued a certificate of redemption in favor of NSC and Bautista.
·          The petitioner rejected the redemption by check because it was not legal tender and was not intended for payment but merely for deposit.

Issue:
WoN Article 1249 of the New Civil Code does not apply to the payment of the redemption price of property sold at public auction.

Held:
            Yes, the Court holds that Art. 1249 is inapplicable as it "deals with a mode of extinction of debts" while the "right to redeem is not an obligation, nor is it intended to discharge a pre-existing debt."
            In Javellana v. Mirasol, the Court declares that "a redemption of property sold under execution is not rendered invalid by reason of the fact that the payment to the sheriff for the purpose of redemption is effected by means of a check for the amount due."
            Such ruling is applicable to the present controversy, stressing the liberality of the courts in redemption cases. When a right of redemption is exercised, it is the policy of the law to aid rather than to defeat the right of redemption. Hence, a payment by check which is not legal tender is effective when the officer accepted such payment.
            Thus, the petition is denied.

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