Rural Bank of Caloocan vs CA GR no.

L-32116 April 21, 1981

FACTS:
Maxima Castro, accompanied by Severino Valencia, went to Rural Bank of Caloocan to
apply for industrial loan. The loan was secured by a real estate mortgage on Castors
house, after that, the bank approved the loan of P3000. Valencia obtained from the
bank an equal amount of loan affixing Castros signature as co-maker without its
knowledge. The sheriff then sent a notice announcing the property would be sold at
public auction to satisfy the obligation. Upon request, the auction sale which was
scheduled for March 10, 1961was postponed for April 10, 1961. But April 10 was
subsequently declared a special holiday so the sheriff sold the property on public
auction on April 11, 1961 which was the next succeeding business day following the
special holiday. Castro prayed for the annulment of sale alleging that there was fraud on
the part of Valencias who induced her to sign as co-maker of a promissory note since
she is a 70-year old widow who cannot read and write and it was only when she receive
the notice of sheriff, she learned that the encumbrance on her property was P6000 and
not for P3000.
ISSUE:
Whether or not the public auction sale was null and void for transferring the date already
set by law.
RULING:
The sale is null and void for not having in accordance with Act 3135 which states that
that a notice shall be given by posting notices of sale for not less than 20 days in at
least 3public places and if the property is worth more than P400 such notice shall also
be published for in a newspaper of general circulation in the municipality or city once a
week for 3 consecutive weeks. The pretermission of a holiday applies only where the
day, or the last day for doing any act required or permitted by law falls on a holiday or
when the last day of a given period for doing an act falls on holiday. It does not apply
toa day fixed by an office or officer of the government for an act to be done. Since April
10, 1961 was not the day or the last day set by law for the extrajudicial foreclosure sale,
nor the last day of a given period but a date fixed by deputy sheriff, the sale cannot be
legally made on the next succeeding business day without the notice the sale in
accordance with Act no. 3135