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Go It Bun vs Dizon
214 scra 41
Petitioners insures their buildings and furniture and among others to private respondents Cathay Insurance Co. Inc. and Equitable Insurance Corporation. When said insured properties were burned in a fire, private respondents refused to pay their obligation. Petitioner filed a civil case against them for sum of money and damages. Private respondents filed an answer. From the evidence presented by the parties, it appears Coi Ping Tai lost in a Civil Case and was ordered to pay Tan Hua. To satisfy the judgment the property was given to Tan Hua as being the highest bidder in the auction sale on February 24, 1982. On the same date, Certificate of Sale was registered in the Registry of Deeds. Choi Ping Tai, unfortunately, could not redeem said property on March 18, 1982. Petitioner claims that the redemption period must be counted from February 24, 1982 when the foreclosure sale of the mortgaged property was registered, bearing in mind the protection accorded by the law to this March 27, 1979 mortgage which was ahead of the execution sale in March 18, 1981.
ISSUE: Whether or not the redemption period must be counted from February 24, 1982 when the foreclosure sale of the mortgaged property was registered.
HELD: The court ruled that petitioner’s claim is not well-taken. By operation of law, Sec. 25, Rule 39, rules of Court. Tan Hua became the successor interest of Choi Ping Tai when he could not redeem his property bought by Tan Hua. Equitable Banking Corporation’s interest in the mortgage are fully protected since Tan Hua took Choi Ping Tai’s property subject to Equitable Bank’s prior lien which Tan Hua has to satisfy. Choi Ping Tai, therefore, had no insurable interest in the property as the date of fire-March 19, 1982-since his last day to redeem the property pursuant to Section 30, Rule 39 of the rules of Court Expired on March 18, 1982.
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