FACTS
In March 1952, Ortigas – plaintiff and vendor entered into an agreements of sale over two parcels of land, known as Lots Nos. 5 and 6, Block 31, of the Highway Hills Subdivision, situated at Mandaluyong, Rizal with Augusto Padilla y Angeles and Natividad Angeles, as vendees. The vendees transferred their rights to Emma Chavez and upon completion of payment, executed a deed of sale and agreement which contained stipulations and restrictions as follows : (1) Land shall be used by the Buyer exclusively for residential purposes (2) All buildings and other improvements must be of strong materials and properly painted, modern sanitary installations, and be at a distance of less than 2 meters from the boundary line.
Feati Bank, defendant – appellee acquired Lots Nos. 5 and 6 which included the building restrictions annotated therein. Restrictions were imposed as part of its general building scheme designed for the beautification and development of the Highway Hills Subdivision. However, area along the western part of Epifanio de los Santos Avenue (EDSA) from Shaw Boulevard to Pasig River, has been declared a commercial and industrial zone, per Resolution No. 27, dated February 4, 1960 of the Municipal Council of Mandaluyong, Rizal.