Doña Ana Maria de Araujo own three parcels of land in Manila. In 1677, she allowed the Roman Catholic Church to use her lands for church purposes. Araujo died intestate and without heirs and the Church continued occupying her properties. In 1911, the Church filed a petition to have the properties be consolidated and be registered in the name of the Roman Catholic Church. In the same year, the application was granted and a certificate of land title was issued in favor of the Church.
In 1935, the local government of Parañaque filed a petition to have the subject property be registered in its name. It likewise prayed for the court to have the property declared as escheated in favor of Parañaque on the ground that Araujo never donated the properties to the Church.
ISSUE: Whether or not the petition for registration will prosper.
HELD: No. Firstly, the remedy is wrong. Secondly, the right to escheat is already waived because when the Church, in 1911, initiated its registration proceedings, the municipality never invoked its claim. Hence, the right to escheat is deemed completely waived. Thirdly, under the Torrens System, claims and liens of whatever character existing against the land prior to the issuance of the certificate of title, are cut off by such certificate and the certificate so issued binds the whole world including the Government.
NOTE: In the old Rules of Court, a city or municipality may commence escheat proceedings.
