Tagaytay-Taal tourist development corporation(TTDC) is the registered owner of two parcels of land. TTDC has real estate tax liabilities of the said properties of years 1976 to 1983. TTDC has failed to settle its real estate tax obligations, thus the City Government of Tagaytay offered the properties for sale at a public auction. Because the government was the only bidder, a certificate of sale was executed in favor for it and was inscribed as its own titles and properties. The City of Tagaytay filed apetition for entry of new certificates of title to the Regional Trial Court(RTC) of Cavite. RTC granted the petition and the properties were later purchased by Amuerfina Melencio-Herrera and Emiliana Melencio-Fernando (Melencios)in the amount equivalent to the taxes and penalties due to the same. Meanwhile TTDC filed a petition for the nullification of the auction because the City Government of Tagaytay doesnt own the properties within its jurisdiction, thus beyond its taxing authority. On the other hand, the City Government of Tagaytay avert that based on its charter and the said properties are within its territorial jurisdiction. The RTC denied its motion.