- Petitioner
- Spouses Francis N. Celones
- Respondent
- Metropolitan Bank
- Citation
- G.R. No. 215691
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Tijam, J.
- Decided
- November 21, 2018
Summary
The Spouses Celones defaulted on P64 Million in loans from Metrobank, leading to property foreclosure. They offered to redeem for P55 Million, which Metrobank approved through a Conditional Notice of Approval for Redemption. Using funds from Atty. Dionido, the parties executed a Memorandum of Agreement that Metrobank and Atty. Dionido claimed transferred all rights to Atty. Dionido. The Supreme Court ruled that no novation occurred between the conditional notice and the MOA, finding they could coexist. The Spouses had validly redeemed the properties as evidenced by payment slips in their names and dismissal of writ cases. However, under Civil Code Article 1236, the Spouses must repay the P55 Million to Atty. Dionido who paid for another. The case establishes important precedent on property redemption rights, assignment of credit principles, and payment by third persons in foreclosure contexts.