A re-auction is required in the event that the highest bidder in the public auction held for non-payment of delinquent taxes did not settle the winning bid price.Section 181 of the Local Government Code provides that In case there is no bidder, or if the highest bid is for an amount insufficient to pay the taxes xxx, the local treasurer conducting the sale shall purchase the property in behalf of the local government unit concerned to satisfy the claim.Book Five, Section 187-F, par. A of the Local Treasury Operations Manual adopted the above provision in toto.Section III Rule 2 of the Rules and Regulations in the Conduct of Auction Sale of Delinquent Real Properties in the City of Antipolo fills the gap in the aforementioned provision of the Local Government Code by expressly providing that Awards granted xxx shall be settled and paid xxx, otherwise the same shall be cancelled and the property will be included in the next scheduled bidding.The Supreme Court in Sps. Plaza vs. Lustiva[footnoteRef:2] categorically held that the law authorizes the local government unit to purchase the auctioned property only in instances where "there is no bidder" or "the highest bid is xxx insufficient." [2: G.R. No. 172909, March 5, 2014]

While section 215 of the National Internal Revenue Code provides that In case there is no bidder xxx or if the highest bid is for an amount insufficient to pay the taxes, penalties and costs, the Internal Revenue Officer conducting the sale shall declare the property forfeited to the Government in satisfaction of the claim in question xxx, this provision cannot be applied suppletorily since a special law (The Local Government Code) governs over the general law (The National internal Revenue Code).Hence, it is submitted that the local government may not purchase the auctioned property unless there is no bidder, or the highest bid is insufficient to pay the taxes, fees, or charges, et al.