Philippine Charity Sweepstakes Office (Pcso) v. New Dagupan Metro Gas Corporation

Summary

This case involves a property dispute between PCSO and New Dagupan Metro Gas Corporation. PCSO held a mortgage over property owned by Purita Peralta to secure Patricia Galang's P450,000 debt for sweepstakes tickets. Peralta later sold the property to New Dagupan under a conditional sale. The Supreme Court ruled in favor of New Dagupan, finding that: (1) the mortgage was automatically discharged when Galang paid the original P450,000 debt, (2) the mortgage was not a continuing guaranty covering future debts, (3) New Dagupan was a good faith purchaser whose adverse claim was registered before PCSO's mortgage registration, and (4) PCSO's belated registration and foreclosure of an already-discharged mortgage could not defeat New Dagupan's superior rights. The decision emphasizes principles of property registration, good faith purchase, and mortgage law interpretation under the Civil Code and Torrens system.