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Tay Chun Suy Vs. Court Of Appeals, Et Al.

TAY CHUN SUY, petitioner, vs. COURT OF APPEALS AND DEVELOPMENT BANK OF THE PHILIPPINES, respondents.

G.R. No. 93640 | 1994-01-07

D E C I S I O N


BELLOSILLO, J.:

As between the buyer of a vessel at a prior extrajudicial foreclosure and the buyer at a subsequent auction sale, both buyers failing to register their transactions, who has a better right of dominion over the vessel?

On 9 May 1978, Sta. Clara Lumber Co., Inc. (SCLC), obtained a loan of P18,514,357.56 from private respondent Development Bank of the Philippines (DBP). As security for the loan, SCLC mortgaged some of its properties, among which was a vessel, MV Sta. Clara I. Upon SCLC's failure to pay the loan, the mortgage was foreclosed. On 18 August 1982, the Clerk of Court and Provincial Sheriff...