Domingo Vs Garlitos
Domingo Vs Garlitos
Garlitos to order the sale of personal estate or the sale or mortgage of real
G.R. No. L-18994 | June 29, 1963 property of the deceased and all debts or expenses of administrator
Labrador, J. and with the written notice to all the heirs legatees and devisees
residing in the Philippines, according to Rule 89, section 3, and
Topic: Compensation/set-off of taxes; exception Rule 90, section 2. And when sale or mortgage of real estate is to
be made, the regulations contained in Rule 90, section 7, should be
Facts: complied with.
Melecio R. Domingo vs. Hon. Judge S. C. Moscoso: SC declared as final and Execution may issue only where the devisees, legatees or heirs
executory the order for the payment by the estate of the estate and inheritance have entered into possession of their respective portions in the
taxes, charges and penalties, amounting to P40,058.55, issued by CFI Leyte in estate prior to settlement and payment of the debts and expenses of
special proceedings No. 14 entitled "In the matter of the Intestate Estate of the administration and it is later ascertained that there are such debts
Late Walter Scott Price" and expenses to be paid, in which case ‘the court having
o To enforce the claims against the estate, the fiscal presented a petition jurisdiction of the estate may, by order for that purpose, after
with CFI for the execution of the judgment hearing, settle the amount of their several liabilities, and order how
CFI: denied the petition; execution is not justifiable as the Government is much and in what manner each person shall contribute, and
indebted to the estate under administration in the amount of P262,200 may issue execution if circumstances require’ (Rule 89, section
o Atty. Benedicto submitted: 6; see also Rule 74, Section 4.) And this is not the instant case.”
(1) a copy of the contract between Mrs. Simeona K. Price Legal basis for such a procedure: in the testate or intestate proceedings to
(administratrix of the estate of her late husband Walter Scott Price) settle the estate of a deceased person, the properties belonging to the
and Director Zoilo Castrillo (Dir of the Bureau of Lands), estate are under the jurisdiction of the court and such jurisdiction
acknowledged before notary public continues until said properties have been distributed among the heirs
(2) the note of Pres. Carlos P. Garcia directing Dir. Castrillo to pay to entitled thereto. During the pendency of the proceedings all the estate is
Mrs. Price P368,140 in custodia legis and the proper procedure is not to allow the sheriff, in
(3) an extract of page 765 of RA 2700, appropriating P262,200 for the case of the court judgment, to seize the properties but to ask the court for
payment to the Leyte Cadastral Survey, Inc., represented by the an order to require the administrator to pay the amount due from the
administratrix Simeona K. Price estate and required to be paid
o CFI then orders that the payment of inheritance taxes (P40,058.55) due Further, the court having jurisdiction of the estate had found that the
the CIR as ordered paid in accordance with the SC order must be claim of the estate against the Government has been recognized and an
deducted from the P262,200 due and payable to the Administratrix amount of P262,200 has already been appropriated for the purpose by
Simeona K. Price a corresponding law (RA 2700)
Thus, both the claim of the Government for inheritance taxes and the
Issue: claim of the intestate for services rendered have already become
W/N compensation of the amounts is allowed – YES overdue and demandable as well as fully liquidated
o Compensation then takes place by operation of law, in
Judgment: accordance with the provisions of Arts. 1279 and 1290, CC and
The petition is, therefore, dismissed, without costs. both debts are extinguished to the concurrent amount: “Art.
1290. When all the requisites mentioned in article 1279 are
Ratio: present, compensation takes effect by operation of law, and
Ordinary procedure to settle claims of indebtedness against the estate of a extinguished both debts to the concurrent amount, even though the
deceased person as an inheritance tax: claimant must present a claim creditors and debtors are not aware of the compensation.”
before the probate court so that said court may order the administrator Therefore, petitioner has no clear right to execute the judgment for taxes
to pay the amount against the estate of the deceased Walter Scott Price
o Court in Aldamiz vs. Judge of the Court of First Instance of
Mindoro: “. . . a writ of execution is not the proper procedure
allowed by the Rules of Court for the payment of debts and
expenses of administration. The proper procedure is for the court