Arthur Pajunar v. Hon. Court of Appeals

Summary

This case involved a dispute over ownership of a carabao between the original owners (Pajunars) who claimed it was lost in 1974, and the current possessors (Elunas) who acquired it through barter in 1969 and claimed ownership by prescription. The lower courts ruled in favor of the Elunas based on acquisitive prescription under Article 1132 of the Civil Code. However, the Supreme Court reversed, finding that the Elunas were not possessors in good faith because they failed to register the transfer as required by the Revised Administrative Code. Since bad faith possession cannot lead to acquisitive prescription, and under Article 559 of the Civil Code the original owner can recover lost movable property, the Court declared the Pajunars as the rightful owners. The case establishes the principle that compliance with registration requirements is essential for good faith possession of large cattle.