DE LEON v. SALVADOR GR No. L-30871, December 28, 1970

FACTS:

Eusebio Bernabe’s (judgment debtor) properties were garnished and sold in an auction sale to satisfy ajudgment in favor of EnriqueDe Leon. The highest bidder for the total sum of P30,194.00 was Aurora de Leon, sister of judgmentcreditor. Bernabe was given a redemption period of 1 year commencing from thetime of the auction sale. However, instead of redeeming his properties, he filed a case to annul theauction sale on the ground of gross inadequacy of price and ordered a new auction sale. Heclaimed that his properties can cost around P400,000.00. The court of Judge Serafin Salvador issued a writ of injunction against respondents andsummarily granted the motions of Bernabe.

ISSUE:

WON the auction sale be annulled on the ground of inadequacy of price.

HELD:

No.In ordinary sales, by reasons of equity, a transaction may be invalidated on the ground ofinadequacy of price. In forced sales, as when a sale is made at a public auction, the owner has theright to redeem. When there is a right to redeem, inadequacy of price is immaterial because judgmentdebtor can better acquire the property or also sell his right to redeem and thus recover the loss heclaims to have suffered by reason of the price obtained from the auction sale.

Digest Credit: Rose May Erazo