IDOLOR v CA (351 SCRA 402)

FACTS:

Teresita Idolor executed in favor of private respondent Gumersindo De Guzman a Deed of Real Estate Mortgage with right of extra-judicial foreclosure upon failure to redeem the mortgage.

Upon the failure of the petitioner to settle her mortgage, respondents went to the Barangay which resulted into a ―Kasunduang Pag-aayos‖ which noted that the petitioner shall pay within 90 days and her failure would warrant the foreclosure of the property with the right to repurchase within one year without interest.

Petitioner failed to comply with her undertaking; thus respondent Gumersindo De Guzman filed an extra judicial foreclosure of the real estate mortgage. The property was sold in a public auction to respondent Gumersindo and the Certificate of Sale was registered.

After more than a year, petitioner filed with the Regional Trial Court of Quezon City, Branch 220, a complaint for annulment of Sheriff’s Certificate of Sale with prayer for the issuance of a temporary restraining order (TRO) and a writ of preliminary injunction.Trial court subsequently issued the TRO and the writ.

CA anulled the writ

ISSUES:

1. Whether or not the Petitioner has proprietary rights to the writ of preliminary injunction
2. Whether or not the Kasunduan was a form of novation

HELD:

Injunction is a preservative remedy aimed at protecting substantive rights and interests. Before an injunction can be issued, it is essential that the following requisites be present:

1. there must be a right in esse or the existence of a right to be protected;

2. the act against which the injunction is to be directed is a violation of such right.

Petitioner had one year redemption period from the registration of the sheriff’s sale to redeem the property but she failed to exercise this right. Hence, the right no longer exists.

There was no novation that was brought by the Kasunduan, since it is essentially the same agreement as the first, only that the conditions were changed a little. Novation requires the extinguishment of the obligation, here the original obligation was not extinguished.