On: Presumption of Capacity CORAZON CATALAN, et.al. , Petitioners, v. JOSE BASA, et. Al., Respondents. G.R. No. 159567 July 31, 2007, Puno, C.J. FACTS: On October 20, 1948, FELICIANO CATALAN (Feliciano) was discharged from active military service, he was unfit to render military service due to his "schizophrenic reaction, catatonic type, which incapacitates him because of flattening of mood and affect, preoccupation with worries, withdrawal, and sparce (sic) and pointless speech”On September 28, 1949, Feliciano married Corazon Cerezo. On June 16, 1951, a document was executed, titled "Absolute Deed of Donation,"3wherein Feliciano allegedly donated to his sister MERCEDES CATALAN (Mercedes) one-half of the real property located at Barangay Basing, Binmaley, Pangasinan.The donation was registered with the Register of Deeds. On December 11, 1953, People’s Bank and Trust Company filed Special Proceedings No. 4563before the Court of First Instance of Pangasinan to declare Feliciano incompetent. On December 22, 1953, the trial court issued its Order for Adjudication of Incompetency for Appointing Guardian for the Estate and Fixing Allowance of Feliciano. The following day, the trial court appointed People’s Bank and Trust Company as Feliciano’s guardian.People’s Bank and Trust Company has been subsequently renamed, and is presently known as the Bank of the Philippine Islands (BPI). On March 26, 1979, Mercedes sold the property in issue in favor of her children Delia and Jesus Basa. The Deed of Absolute Sale was registered with the Register of Deeds of Pangasinan on February 20, 1992, and Tax Declaration No. 12911 was issued in the name of respondents.