DISPOSITIVE:

WHEREFORE, premises considered, the petition is hereby GRANTED. The Decision dated 01 June 2018 rendered by the Court of Appeals, Division of Five, and Resolution dated 26 February 2019 rendered by the Court of Appeals, Special Division of Five, Special Former Third Division, in CA-G.R. SP No. 150941 are REVERSED and SET ASIDE. Accordingly, the Decision dated 21 October 2016 of Branch 95, Regional Trial Court of Quezon City, as well as all issuances rendered pursuant thereto, are declared NULL and VOID.

The case is hereby REMANDED to Branch 95, Regional Trial Court of Quezon City for further proceedings. The presiding judge of the said court is mandated to issue anew the required summons to petitioner corporation and proceed with the trial of the case with dispatch.

So Ordered.

SUBJECTS/DOCTRINES/DIGEST:

WHAT IS GRAVE ABUSE OF DISCRETION?

Grave abuse of discretion means such capnc10us or whimsical exercise of judgment which is equivalent to lack of jurisdiction. The abuse of discretion must be grave, as when the power is exercised in an arbitrary or despotic manner by reason of passion or personal hostility, and the abuse must be so patent and gross as to amount to an evasion of a positive duty or to a virtual refusal to perform the duty enjoined, or to act at all, in contemplation of law, as to be equivalent to having acted without jurisdiction. 105

WHY WAS THERE GRAVE ABUSE OF DISCRETION IN THIS CASE?

THE CASE WAS ONLY FOR SPECIFIC PERFORMANCE FOR PAYMENT OF CGT AND DST AND TURN OVER OF POSSESSION OF SUBJECT PROPERTY. YET THE WRIT OF EXECUTION DIRECTED THE CANCELLATION OF DERIVATIVE TITLES EMANATING FROM TCT NO 185260 AND ISSUANCE OF NEW TITLE IN NAME OF RESPONDENT. ALSO SUMMONS WAS ALLOWED BY PUBLICATION LEADING TO DEFAULT OF PETITIONER.

If only to emphasize the gravity of the abuse of discretion committed, petitioner corporation was stripped of, not only the possession of the subject property, but likewise, title thereto. To reiterate, the writ of execution included the cancellation of its derivative titles emanating from TCT No. 185260 and the issuance of a new title in the name of respondent. This, despite the fact that the case is simply one for specific performance for the payment of CGT and DST and the turn over of possession of the subject property.

……………………….

The manifest abuse of discretion exhibited by Judge Bellosillo in allowing the service of summons through publication,. which led to the issuance of judgment of default against petitioner corporation and in expanding the dispositive portion of the Decision dated 16 October 2016 by issuing a writ of execution containing terms neither appearing in said decision nor in the complaint for specific performance, must not be countenanced. Moreso, the wanton disregard of basic procedural requirements led to the deprivation of due process of law on the part of petitioner corporation.

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