Bank of the Philippine Islands v. Teofilo P. Icot

Summary

BPI sought a writ of possession over property it acquired through foreclosure of a mortgage from the Velasco spouses. However, the Icot family claimed adverse possession of the same property since 1964 through inheritance from their father. The Supreme Court denied BPI's petition, holding that a writ of possession under extrajudicial foreclosure laws cannot be issued against third parties who hold property adversely to the judgment obligor. The Court emphasized that the Icots were not parties to the original mortgage contract and their possession enjoys legal presumption of just title under Article 433 of the Civil Code. The decision protects third-party possessors' due process rights against summary ejectment through ex parte proceedings, requiring instead that ownership disputes be resolved through proper judicial action.