Title
Land Bank of the Philippines vs. Pagayatan
Case
G.R. No. 182572
Decision Date
Jun 18, 2012
Dispute over land valuation under agrarian reform; RTC ordered deposits held by Clerk of Court; SC upheld, citing custodia legis and jurisdiction over just compensation.

Case Summary (G.R. No. 175551)

Background of the Agrarian Reform

The case revolves around parcels of agricultural land situated in Occidental Mindoro, with specific certificates of title involved (TCT No. T-31 and TCT No. T-128). The subject lands were placed under agrarian reform efforts due to Presidential Decree No. 27 from 1972 and Executive Order No. 228 in 1987. After these properties were distributed to farmer-beneficiaries, the Department of Agrarian Reform (DAR) and the Land Bank of the Philippines (LBP) determined the initial just compensation.

Procedural History

Following the initial determination of just compensation, which was contested by the petitioners and led to motions filed with the Regional Trial Court of San Jose, two separate agrarian cases were docketed. The trial court concluded that LBP should deposit the preliminary compensation as determined by the Provincial Agrarian Reform Adjudicator (PARAD).

Court of Appeals Decision

On appeal, the Court of Appeals affirmed the trial court's directive to LBP to deposit the determined amounts for just compensation, interpreting no legal barrier to this deposit amid ongoing proceedings. It emphasized that the DAR had already taken possession of the lands since 1972, thus legitimate entitlement for compensation existed pending final valuation.

Judicial Analysis and Reasoning

Subsequent to appeals and further motions regarding the physical custody of the deposited amounts, Branch 46 of the RTC issued orders for LBP to physically turn over the deposits to the Clerk of Court, emphasizing the legal principle of custodia legis, where the court assumes responsibility over disputed assets. The petitioner's contestations included claims regarding jurisdictional overreach and the legitimacy of competing orders involving differing branches of the RTC.

Findings on Abuse of Discretion

The Court of Appeals found no grave abuse of discretion exerted by the presiding judge in directing the deposits for custodia legis. There was a consistent acknowledgment that assets held pending dispute resolution must be under judicial control to prevent misallocation or wrongful release. The appellate court underscored the necessity of these measures to uphold legitimate agrarian reform efforts and the rightful claims of landowners.

Conclusion of Proceedings

Ultimately, the Supreme Court's affirmation of the lower courts' rulings reiterated that claims of arbitrary judicial action lacked factual substantiation. The decision emphasized compliance with established case law while reinforcing the principle that just compensation and rightful entitlement demand

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