Case Digest (G.R. No. 118712)
Facts:
In G.R. Nos. 118712 and 118745, decided on October 6, 1995 under the 1987 Philippine Constitution, the Land Bank of the Philippines (LBP) and the Department of Agrarian Reform (DAR), represented by its Secretary, sought review of the Court of Appeals ruling of October 20, 1994 in CA-G.R. SP No. 33465, which granted the petition for certiorari and mandamus filed by private respondents Pedro L. Yap, the Heirs of Emiliano F. Santiago, and Agricultural Management & Development Corporation (AMADCOR). The private respondents were landowners whose properties had been acquired under the Comprehensive Agrarian Reform Law (RA 6657). They alleged that DAR Administrative Order No. 9, Series of 1990, improperly allowed the opening of trust accounts in lieu of depositing compensation in cash or LBP bonds as required by Section 16(e) of RA 6657 and that both DAR and LBP merely “earmarked,” “reserved,” or “deposited in trust” compensation without allowing withdrawal despite cancellation of titlCase Digest (G.R. No. 118712)
Facts:
- Parties and Procedural Background
- Land Bank of the Philippines (Landbank) and the Department of Agrarian Reform (DAR) filed separate petitions for review (G.R. Nos. 118712 and 118745) after the Court of Appeals (CA) granted certiorari and mandamus in CA-G.R. SP No. 33465.
- Private respondents (Pedro L. Yap, Heirs of Emiliano F. Santiago, Agricultural Management & Development Corp. or AMADCOR) are landowners whose properties were acquired under Republic Act No. 6657 (Comprehensive Agrarian Reform Law or CARL).
- Private Respondents’ Allegations
- Pedro L. Yap
- On September 4, 1992, his Transfer Certificates of Title (TCTs Nos. 6282 and 6283) were cancelled and reissued in beneficiaries’ names without notice and without deposit of compensation in cash or LBP bonds.
- Landbank “earmarked” P735,337.77 and P719,869.54 in trust accounts but did not allow withdrawal.
- Heirs of Emiliano F. Santiago
- In late 1990, beneficiaries executed Actual Tillers Deeds of Undertaking (ATDUs) and ceased rental payments to the heirs.
- On October 24, 1991, DAR directed Landbank to pay or create a trust for P135,482.12; trust account was established on February 24, 1992, but funds remained inaccessible.
- AMADCOR
- San Francisco, Quezon property: DARAB fixed compensation at P2,768,326.34 on November 24, 1992, and Landbank added P1,986,489.73 to an existing trust account.
- Tabaco, Albay property: emancipation patents covering 701.8999 ha were issued in 1988; no DAR valuation until April 21, 1993, when a trust account of P12,247,217.83 was created after AMADCOR rejected acquisition notices.
- Applicable Rules and Proceedings
- DAR Administrative Order (A.O.) No. 6, Series of 1992: valuation formulas under CARL.
- DAR A.O. No. 9, Series of 1990: authorized opening of LBP trust accounts in lieu of depositing compensation in cash or bonds.
- Section 16(e), RA 6657: mandates deposit “in cash or in LBP bonds” with an accessible bank before taking possession and issuing TCT in the Republic’s name.
- Section 49, RA 6657: grants DAR rule-making power to implement the law.
- Court of Appeals Decision
- Declared DAR A.O. No. 9 null and void for permitting trust accounts instead of cash or bonds.
- Ordered Landbank to deposit specified amounts in cash or government instruments in accessible DAR-designated bank accounts under petitioners’ names and permit withdrawal pending final determination of just compensation.
- Directed DAR to conduct summary administrative proceedings within prescribed periods and decide just compensation within 30 days of submission.
Issues:
- Whether DAR A.O. No. 9, Series of 1990 is valid under Section 16(e) of RA 6657, which requires deposit of compensation “in cash or in LBP bonds.”
- Whether private respondents are entitled to immediate withdrawal of amounts deposited in trust accounts pending final valuation or payment of just compensation.
Ruling:
- (Subscriber-Only)
Ratio:
- (Subscriber-Only)
Doctrine:
- (Subscriber-Only)