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It is well-settled that judgments or orders become final and executory by operation of law 

and not by judicial declaration. Thus, finality of judgment becomes an established fact

upon the lapse of the reglementary period of appeal, if no appeal is perfected or motion for

reconsideration or new trial is filed. The trial court need not even pronounce the finality of 

the order as the same becomes final by operation of law.[1 Thus, once a decision becomes

final, even the court that rendered it can no longer alter or modify it, except to correct

clerical errors or mista!es.[" #i!ewise, any amendment or alteration made which

substantially affects the final and executory judgment is null and void for lac! of 

 jurisdiction, including the entire proceedings held for that purpose.[$ 

SPOUSES JUANITO MAHUSAY and

FRANCISCA MAHUSAY,

  Petitioners, 

- versus - 

B.E. SAN DIEGO, INC.,

  Respondent.

G.R. No. 179675 

Present: 

CARPIO, J.,  Chairperson,

 NACHURA,PERALTA,ABAD, and

ENDO!A, JJ . 

Pro"u#$ated: 

%une &, '()) 

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It is a sett#ed ru#e is t*at a +ud$"ent *i* *as auired /ina#it0 1eo"es i""uta1#eand una#tera1#e2 *ene, it "a0 no #on$er 1e "odi/ied in an0 respet e3ept on#0 to

orret #eria# errors or "ista4es.5)67  C#ari/iation a/ter /ina# +ud$"ent is, *oever,

a##oed *en *at is invo#ved is a #eria# error, or not a orretion o/ an erroneous

 +ud$"ent, or dispositive portion o/ t*e Deision.[15]  8*ere t*ere is an a"1i$uit0

aused 10 an o"ission or "ista4e in t*e dispositive portion, t*e ourt "a0 #ari/0

su* a"1i$uit0, "ista4e, or o"ission 10 an a"end"ent2 and in so doin$, it "a0

resort to t*e p#eadin$s /i#ed 10 t*e parties, t*e ourt9s /indin$s o/ /ats and

on#usions o/ #a as e3pressed in t*e 1od0 o/ t*e deision.5)7

 

In t*e ase at 1ar, t*ere is no dispute t*at, in );<= and );<>, petitioners entered into

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to Contrats to ?e## it* respondent, respetive#0 /or t*e pur*ase o/ severa# #ots in

Aurora ?u1division, a#a1on, etro ani#a. Petitioners9 o1#i$ation to pa0 t*e

 pur*ase prie /or t*e #ots as never denied. Aordin$#0, t*e ontratua# stipu#ation

t*at petitioners s*a## pa0 t*e "ont*#0 a"orti@ations is 1indin$ and en/orea1#e. It is

t*e #a 1eteen t*e parties.

Petitioners stopped pa0in$ t*e a"orti@ations in Oto1er );<&, #eavin$ a tota# unpaid

 1a#ane o/ P=>',;;'.(( as o/ %anuar0 =(, );<;.5)<7  ?ine resission o/ t*e ontrats

as not an option /or petitioners, t*e #atter ne$otiated it* respondent /or a /ina#

*ane to pa0 o// t*eir o1#i$ations. T*us, a sett#e"ent as arrived at and a

Co"pro"ise A$ree"ent as e3euted, *i*, un/ortunate#0, as si$ned 10

ranisa a*usa0 a#one. T*e ter"s o/ t*e Co"pro"ise A$ree"ent ere a$ain

 1rea*ed 10 petitioners, pro"ptin$ respondent to /i#e an ation /or ?pei/i

Per/or"ane. As it turned out, t*e CA nu##i/ied t*e Co"pro"ise A$ree"ent, 1ut *e#d

 petitioners #ia1#e /or t*e pa0"ent o/ a## t*e unpaid a"orti@ations, in#udin$

a"orti@ations 0et to 1e paid, unti# t*e e3piration o/ t*e ontrat. Apparent#0, t*e CA

as si#ent on t*e pa0"ent o/ t*e interestpena#t0 /or t*e de#a0 in pa0"ents, *i* #ed

to t*e otion /or C#ari/iation /i#ed 10 respondent.

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Based on t*e /ore$oin$ /ats and iru"stanes, t*e Court /inds no reversi1#e error in

t*e CA Reso#ution dated ?epte"1er )), '((<, den0in$ t*e otion to 8it*dra t*e

Reso#ution. Li4eise, t*e CA o""itted no reversi1#e error in its Reso#ution dated

Oto1er )), '((6, #ari/0in$ t*e ori$ina# Deision. Respondent9s otion /or

C#ari/iation did not rea##0 parta4e o/ t*e nature o/ a "otion /or reonsideration, as to

a"end t*e Dee"1er '(, '(() Deision. T*ere as not*in$ su1stantia# to var0,

onsiderin$ t*at t*e issues 1eteen t*e parties ere dee"ed reso#ved and #aid to rest.

It is un"ista4a1#0 #ear t*at petitioners do not den0 t*e e3eution o/ t*e Contrats to

?e## and, in /at, ad"it t*eir #ia1i#it0 /or t*e unpaid a"orti@ations o/ t*e #ots

 pur*ased. T*e persistent vio#ations o/ t*e ontrats and t*e ontinuous de#a0 in

 petitioners9 pa0"ents annot si"p#0 1e over#oo4ed. T*ere as a o"pe##in$ reason

/or t*e CA to #ari/0 its ori$ina# Deision to in#ude t*e pa0"ent o/ a## pena#ties and

interest due on t*e unpaid a"orti@ations, as provided in t*e ontrats. Considerin$

t*at t*e va#idit0 o/ t*e ontrats as never put in uestion, and t*ere is not*in$ on

reord to su$$est t*at t*e sa"e "a0 1e ontrar0 to #a, "ora#s, pu1#i order, or pu1#i

 po#i0, t*ere is not*in$ un#a/u# in t*e stipu#ation reuirin$ t*e pa0"ent o/

interestpena#t0 at t*e rate a$reed upon in t*e ontrat o/ t*e parties.5)&7 

T*e Court /urt*er notes t*at petitioners are in atua#p*0sia# possession o/ t*e

 properties and en+o0in$ t*e 1ene/iia# use t*ereo/, despite t*e pa0"ent o/

on#0 P)==,&<'.<, as o/ %anuar0 =(, );<;.5);7  It ou#d 1e $ross#0 un/air /or

respondent to 1e deprived o/ t*e a"ount it ou#d *ave reeived /ro" t*e sa#e o/ t*eir

 properties, *i#e petitioners 1ene/ited /ro" t*e use and ontinued possession o/ t*e

 properties even i/ no pa0"ents ere "ade 10 t*e" sine Oto1er );<&. It is a 1asi

ru#e in #a t*at no one s*a## un+ust#0 enri* onese#/ at t*e e3pense o/ anot*er. Indeed,

to a##o petitioners to 4eep t*e properties it*out pa0in$ /or t*e" in /u## a"ounts toun+ust enri*"ent on t*eir part.5'(7  T*e /air "ar4et va#ue o/ t*e #and *as

tre"endous#0 inreased over t*e past 0ears. It is, t*ere/ore, +ust, /air, and euita1#e

t*at petitioners 1e "ade to pa0 interestpena#t0 /or t*e de#a0 in t*eir pa0"ents.

 

ina##0, t*e Court notes t*at t*is ase *as dra$$ed on /or "an0 0ears sine );<&. In

order to rit /inis to t*is protrated #iti$ation 1eteen t*e parties, e reso#ve t*e ase

in aordane it* +urisprudene on t*e "atter. Undenia1#0, t*e instant ase is a sa#eo/ rea# propert0 *ere t*e pur*ase prie is not paid in /u##. T*e unpaid se##er9s

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re"ed0 is eit*er an ation to o##et t*e 1a#ane or to resind t*e ontrat it*in t*e

ti"e a##oed 10 #a. ?ine resission is no #on$er an option onsiderin$ t*at

 petitioners *ave 1een in possession o/ t*e properties /or a onsidera1#e period o/

ti"e, su1stantia# +ustie ditates t*at respondent 1e entit#ed to reeive t*e unpaid

 1a#ane o/ t*e pur*ase prie, p#us #e$a# interest t*ereon.5')7  In #ine it* our

ru#in$ in Eastern Shipping Lines, Inc. v. Court of Appeals,5''7 t*e #e$a# interest to 1e

 paid on t*e a"ount s*a## 1e )' per annu", *i* s*a## o""ene /ro" Apri# )&,

);;(, *en respondent /i#ed t*e Co"p#aint /or ?pei/i Per/or"ane it* t*e RTC,

Bran* <=, a#a1on, in Civi# Case No. )6==-N, *i* s*a## 1e onsidered as

 +udiia# de"and, unti# t*e /ina#it0 o/ t*is Deision. Anot*er )' interest per annu"

s*a## 1e paid on t*e a"ount due and oin$ as o/ and /ro" t*e date o/ /ina#it0 o/ t*e

Deision unti# /u## pa0"ent.