CASE 2016-0068: SPOUSES CHARITO M. REYES AND ROBERTO REYES, AND SPOUSES VILMA M. MARAVILLO AND DOMINGO MARA VILLO, JR., PETITIONERS, -VERSUS HEIRS OF BENJAMIN * MALANCE, NAMELY: ROSALINA M. MALANCE, BERNABE M. MALANCE, BIENVENIDO M. MALANCE, AND DOMINGA** M. MALANCE, REPRESENTED BY BIENVENIDO M. MALAN CE, RESPONDENTS (G.R. NO. 219071, 24 AUGUST 2016, PERLAS-BERNABE, J.) (CONTRACT OF ANTICHRESIS) (BRIEF TITLE: SPOUSES REYES ET AL VS. HEIRS OF BENJAMIN MALANCE)
DISPOSITIVE:
“WHEREFORE, the Decision dated July 23, 2013 and the Resolution dated June 18, 2015 of the Court of Appeals in CA-G.R. CV No. 95984 are hereby MODIFIED: (a) declaring that the unpaid loan balance of Benjamin Malance’s (Benjamin) to petitioners Charito M. Reyes and Vilma M. Maravillo (the Magtalas sisters) is ?273,648.93 as herein computed; (b) dismissing the counterclaim of petitioners the Magtalas sisters and their respective husbands, Roberto Reyes and Domingo Maravillo, Jr., on the ground of prematurity, without prejudice; and (c) directing the Magtalas sisters, as antichretic creditors, to henceforth render an annual accounting to respondents Heirs of Benjamin Malance, namely: Rosalina M. Malance, Bernabe M. Malance, Bienvenido M. Malance, and Dominga M. Malance, as represented by Bienvenido Malance, of the annual net yield from the subject land, until such time that they have completely collected the outstanding loan balance of Benjamin’s debt.
SO ORDERED.”
SUBJECTS/DOCTRINES/DIGEST:
“The Court, however, concurs with the RTC’s finding, as affirmed by the CA, that the Kasulatan is a contract of antichresis. Article 2132 of the Civil Code provides:
Art. 2132. By the contract of antichresis the creditor acquires the right to receive the fruits of an immovable of his debtor, with the obligation to apply them to the payment of the interest, if owing, and thereafter to the principal of his credit.
Thus, antichresis involves an express agreement between parties whereby : (a) the creditor will have possession of the debtor’s real property given as security; (b) such creditor will apply the fruits of the said property to the interest owed by the debtor, if any, then to the principal amount;53 (c) the creditor retains enjoyment of such property until the debtor has totally paid what he owes;54 and (d) should the obligation be duly paid, then the contract is automatically extinguished proceeding from the accessory character of the agreement. 55
Bearing these elements in mind, the evidence on record shows that the parties intended to enter into a contract of antichresis. . . . .
As antichretic creditors, the Magtalas sisters are entitled to retain enjoyment of the subject land until the debt has been totally paid.
………
The debt not having been totally paid, petitioners are entitled to retain enjoyment of the subject land. Consequently, the Malance heirs’ complaint for recovery of possession, declaration of nullity of the Kasulatan, and damages against petitioners must be dismissed.
As a final matter for resolution, the Court likewise dismisses petitioners’ counterclaim for the payment of Benjamin’s principal debt, including interest, considering that the same was not yet due and demandable at the time the claim therefor was filed.”
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