- Petitioner
- Felipe G. Uy
- Respondent
- The Land Bank of the Philippines
- Citation
- G.R. No. 136100
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Kapunan, J.
- Decided
- July 24, 2000
Summary
This case involves a property possession dispute between Felipe Uy and Land Bank of the Philippines. Uy had a lease arrangement with original owner Tia Yu where he occupied a house as payment for unpaid construction materials. The property was later mortgaged to Land Bank through a third party, Gold Motors, which defaulted leading to foreclosure. Land Bank acquired the property and sought to eject Uy through unlawful detainer proceedings. The key legal issue was whether Land Bank, as purchaser at foreclosure, could terminate the unregistered lease. The Supreme Court applied Article 1676 of the Civil Code, ruling that since Land Bank knew of the lease's existence through its inspection procedures, it could not terminate the lease and must respect Uy's continuing right of possession.