WHEREAS, on April 12, 1912 the Director of Lands instituted in the Court of First Instance of Benguet Civil Reservation Case No. 1, GLRO Record No. 211, for the compulsory settlement and adjudication of claims to private lands within the Baguio Townsite Reservation, pursuant to Section 62 of Act 926, in relation to Sections 3, 4, 5 and 6 of Act 267; WHEREAS, on November 13, 1922, the Court of First Instance of Benguet rendered a decision in the aforesaid case, decreeing, except areas inside established reservations and the lands claimed by and adjudicated to private claimants named therein, all lands, buildings and real rights within the Baguio Townsite Reservation, as public properties and declaring all private claims not pursued in said proceedings as barred forever;
WHEREAS, Republic Act No. 931, as amended by Republic Act No. 2061, authorized the reopening of cadastral cases up to December 31, 1968 with respect to lands which have been previously declared public lands by the court;
WHEREAS, on petition of interested parties, the Court of First Instance of Baguio and Benguet, purporting to act pursuant to Republic Act No. 931, reopened Civil Reservation Case No. 1, GLRO Record No. 211, set aside its decision of November 13, 1922, and adjudicated in favor of the petitioners certain parcels of land situated within the Baguio Townsite Reservation;
WHEREAS, the parcels of land so adjudicated in favor of the petitioners were subsequently registered under Act No. 496 and thereafter subdivided and conveyed to third parties who have since secured transfer certificates of titles to the lands in question;
WHEREAS, on petition of the Government the Supreme Court in G. R. No. L- 32941, entitled "Republic of the Philippines vs. Honorable Pio R. Marcos, et al.", on July 31, 1973 held that the Court of First Instance of Baguio and Benguet had no jurisdiction to reopen Civil Reservation Case No. 1, GLRO Record No. 211, on the ground that said case did not partake of the nature of cadastral proceedings as contemplated in Republic Act 931, as amended, and that lands within Government reservations can not be registered in favor of private individuals;
WHEREAS, by virtue of the decision of the Supreme Court all titles issued as a result of the reopening of the proceedings in Civil Reservation Case No. 1, GLRO Record No. 211, are deemed null and void;
WHEREAS, at the time the decision of the Supreme Court was promulgated large portions of the public domain, aggregating 11,478,098 square meters, more or less, had illegally been decreed in favor of private individuals;
WHEREAS, there are holders of titles who, before the promulgation of the decision of the Supreme Court on July 31, 1973, had acted in good faith and relied, although mistakenly, on the indefeasibility of torrens certificates of titles and who had introduced substantial improvements on the lands covered by the certificates;
WHEREAS, taking into consideration the above circumstances and the unanimous recommendation of the Special Committee created by the President of the Philippines by Executive Order No. 470 "to look into certain certificates of titles of lands in Baguio City which have been voided by the (Supreme) Court";
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby decree and order as follows: