Edu vs Gomez

G.R. No. L-33397 June 22, 1984

RELOVA, J.
Civil Law; Mortgages; Property; Purchaser in good faith of a chattel or movable property,
entitled to be respected in his possession as if he were a true owner, and cannot be required to
surrender possession thereof until a competent court rules otherwise.There is no merit in the
petition considering that the acquirer or the purchaser in good faith of a chattel or movable
property is entitled to be respected and protected in his possession as if he were the true owner
thereof until a competent court rules otherwise. In the meantime, as the true owner, the possessor
in good faith cannot be compelled to surrender possession nor to be required to institute an action
for the recovery of the chattel, whether or not an indemnity bond is issued in his favor. The filing
of an information charging that the chattel was illegally obtained through estafa from its true
owner by the transferor of the bona fide possessor does not warrant disturbing the possession of
the chattel against the will of the possessor.

FACTS:
The 1968 model Volkswagen, bantam car, allegedly owned by Lt. Walter A. Bala under whose
name it was originally registered, was reported to the Office of the Commission on Land
Transportation as stolen on June 29, 1970 from the residence of Lt. Bala. Upon receipt of such
information the agents of Anti-Carnapping Unit (ANCAR) of the Philippine Constabulary, on
detail with the Land Transportation Commission recognized subject car on 2 February 1971 in the
possession of LUCILA ABELLO and immediately seized and impounded the car as stolen
property.

Romeo F. Edu, then Commissioner of Land Transportation, seized the car pursuant to Section 60
of Republic Act 4136 which empowers him to seize the motor vehicle for delinquent registration
aside from his implicit power deducible from Sec. 4(5), Sec. 5 and 31 of said Code, "to seize motor
vehicles fraudulently or otherwise not properly registered.

Lucia Abello filed a complaint for replevin with damages in the Court of First Instance of Manila.
CFI ruled in facor of ABELLO. CFI found that the car was acquired by ABELLO by purchase
from its registered owner Marcelino Guansing for P9,000 and that she has been in possession
thereof since then until when the car was seized from her by ANCAR who acted in belief that the
car was stolen from Lt. Bala.

ISSUE:
Whether or not the seizure of the car by the officials are valid.

RULING:
NO.
There is no merit in the petition considering that the acquirer or the purchaser in good faith of a
chattel of movable property is entitled to be respected and protected in his possession as if he were
the true owner thereof until a competent court rules otherwise. In the meantime, as the true owner,
the possessor in good faith cannot be compelled to surrender possession nor to be required to
institute an action for the recovery of the chattel, whether or not an indemnity bond is issued in his
favor. The filing of an information charging that the chattel was illegally obtained through estafa
from its true owner by the transferor of the bona fide possessor does not warrant disturbing the
possession of the chattel against the will of the possessor.

Finally, the claim of petitioners that the Commission has the right to seize and impound the car
under Section 60 of Republic Act 4136 which reads:

Sec. 60. The lien upon motor vehicles. Any balance of fees for registration, re-
registration or delinquent registration of a motor vehicle, remaining unpaid and all
fines imposed upon any vehicle owner, shall constitute a first lien upon the motor
vehicle concerned.

is untenable. it is clear from the provision of said Section 60 of Republic Act 4136 that the
Commissioner's right to seize and impound subject property is only good for the proper
enforcement of lien upon motor vehicles. The Land Transportation Commission may issue a
warrant of constructive or actual distraint against motor vehicle for collection of unpaid fees for
registration, re-registration or delinquent registration of vehicles.