Private respondent is the registered owner of a parcel of agricultural land situated in Sampao, Kapalong, Davao del Norte with an approximate area of 37.1010 hectares covered by Transfer Certificate of Title No. T-49200, 14.999 hectares of which was covered by RA No. 6657 through the Voluntary Offer to Sell (VOS) scheme of the Comprehensive Agrarian Reform Program (CARP).
Private respondent offered to the Department of Agrarian Reform (DAR) the price of P2,000,000.00 per hectare for said portion of the land covered by CARP.
Petitioner Land Bank of the Philippines (LBP) valued and offered as just compensation for said 14.999 hectares the amount of P1,145,806.06 or P76,387.57 per hectare. The offer was rejected by private respondent.
In accordance with Section 16 of RA No. 6657, petitioner LBP deposited for the account of private respondent P1,145,806.06 in cash and in bonds as provisional compensation for the acquisition of the property.
Thereafter, the DAR Adjudication Board (DARAB), through the Regional Adjudicator (RARAD) for Region XI conducted summary administrative proceedings under DARAB Case No. LV-XI-0330-DN-2002 to fix the just compensation.
On June 26, 2002, the DARAB rendered a decision fixing the compensation of the property at P10,294,721.00 or P686,319.36 per hectare.
Petitioner LBP filed a motion for reconsideration of the above decision but the same was denied on September 4, 2002.
Petitioner LBP filed a petition against private respondent for judicial determination of just compensation before the Special Agrarian Court, Regional Trial Court, Branch 2, Tagum City, docketed as DAR Case No. 78-2002, which is the subject of this petition.
Private respondent, on the other hand, filed a similar petition against DAR before the same Special Agrarian Court docketed as DAR Case No. 79-2002, to which petitioner LBP filed its answer and moved for the dismissal of the petition for being filed out of time.
Private respondent filed a Motion for Delivery of the Initial Valuation praying that petitioner LBP be ordered to deposit the DARAB determined amount of P10,294,721.00 in accordance with the Supreme Court ruling in "Land Bank of the Philippines vs. Court of Appeals, Pedro L. Yap, Et Al., G.R. No. 118712, October 6, 1995".
Petitioner LBP filed a Manifestation praying that the amount of the deposit should only be the initial valuation of the DAR/LBP in the amount of P1,145,806.06 and not P10,294,721.00 as determined by the DARAB.
On December 12, 2002, public respondent rendered the assailed resolution ordering petitioner LBP to deposit for release to the private respondent the DARAB determined just compensation of P10,294,721.00.
On December 13, 2002, petitioner LBP filed a motion for reconsideration of the said order to deposit.
On December 17, 2002, private respondent filed a motion to cite Romeo Fernando Y. Cabanal and Atty. Isagani Cembrano, manager of petitioner LBP's Agrarian Operations Office in Region XI and its handling lawyer, respectively, for contempt for failure to comply with the order to deposit.
After the filing of private respondent's comment to the motion for reconsideration and petitioner LBP's explanation and memorandum to the motion for reconsideration, public respondent rendered the assailed resolution dated February 17, 2003, denying petitioner LBP's motion for reconsideration.
Petitioner LBP filed a motion to admit a second motion for reconsideration which still remains unacted upon by public respondent.
Hence, this petition based on the following grounds:
"I. THE SAC ORDER TO DEPOSIT HAD NO LEGAL BASIS, CONSIDERING THAT THE REQUIREMENT FOR THE PROMPT PAYMENT OF JUST COMPENSATION TO THE PRIVATE RESPONDENT WAS SATISFIED BY THE DEPOSIT OF THE PROVISIONAL COMPENSATION OF P1,145,806.06 REQUIRED UNDER SECTION 16 (E) OF RA 6657 AND THE RULING IN THE CASE OF 'LAND BANK OF THE PHILIPPINES V. COURT OF APPEALS, PEDRO L. YAP, ET AL.', G.R. NO. 118712, OCTOBER 6, 1995 AND JULY 5, 1996.
II. THE SPECIAL AGRARIAN COURT IS NOT AN APPELLATE COURT FOR DARAB DECISIONS ON COMPENSATION AND HAS NO JURISDICTION TO REVIEW, ADOPT, OR ORDER THE EXECUTION OF DARAB DECISIONS ON COMPENSATION PENDING FINAL DETERMINATION OF JUST COMPENSATION OR TO PREJUDGE THE CASE IN VIOLATION OF PETITIONER'S RIGHT TO DUE PROCESS OF LAW."2
Section 16 (a) refers to an "offer" of the DAR to pay a corresponding value of the land. Facts of the case show that P1,145,806.06 was the offered price which was rejected by the private respondent.
In cases of rejection of the offer, Section 16(d) states that there shall be a summary administrative proceedings to determine the compensation for the land. Hence, the proceedings before the DARAB, through the RARAD for Region XI as in this case.
Note that in Sections 16(a) to (d), or, during the offer until its rejection, there was no reference to a deposit of the compensation.
The reference to a deposit of the compensation appears only in Section 16(e) or after the DAR, in a summary administrative proceedings, had determined or decided the case relative to the compensation of the land.
If it had been the intention of the law to require the deposit of the compensation based on the offer or in the amount of P1,145,806.06, the law should have stated such.
The reference to the "deposit" right after [the] decision of the DARAB shall have been rendered, obviously means that the amount of the deposit should be based on the DARAB decision. Otherwise, there would be no need to institute an administrative proceeding before the DARAB, before a deposit shall be required.
In the case of Association of Small Landowners in the Philippines, Inc. vs. Secretary of Agrarian Reform, the Supreme Court held that the determination made by the DAR is only preliminary unless accepted by all parties concerned.
Apropos, it was held in the case of Land Bank of the Philippines vs. Court of Appeals and Jose Pascual that it is the DARAB which has the authority to determine the initial valuation of lands involving agrarian reform although such valuation may only be considered preliminary as the final determination of just compensation is vested in the courts.
Therefore, the deposit of the initial valuation referred to in Section 16 of RA No. 6657 is the DAR-determined amount or in this case, the amount of P10,294,721.00.
The assailed orders of the SAC are correct and within the parameters of RA No. 6657.3 [italics supplied.]
THE COURT OF APPEALS GRAVELY ERRED ON A QUESTION OF LAW IN DENYING AND/OR DISMISSING THE PETITION FOR CERTIORARI FILED BY LBP, THEREBY AFFIRMING THE ORDER OF THE SAC A QUO THAT THE DEPOSIT OF THE INITIAL VALUATION REFERRED TO IN SECTION 16 OF RA 6657 IS THE NON-FINAL DAR ADJUDICATION BOARD (DARAB)-DETERMINED AMOUNT OR IN THIS CASE, THE AMOUNT OF P10,294,721.00.5
SEC. 16. Procedure for Acquisition of Private Lands. -- For purposes of acquisition of private lands, the following procedures shall be followed:
(a) After having identified the land, the landowners and the beneficiaries, the DAR shall send its notice to acquire the land to the owners thereof, by personal delivery or registered mail, and post the same in a conspicuous place in the municipal building and barangay hall of the place where the property is located. Said notice shall contain the offer of the DAR to pay a corresponding value in accordance with the valuation set forth in Sections 17, 18, and other pertinent provisions hereof.
(b) Within thirty (30) days from the date of receipt of written notice by personal delivery or registered mail, the landowners, his administrator or representative shall inform the DAR of his acceptance or rejection of the offer.
(c) If the landowner accepts the offer of the DAR, the LBP shall pay the landowner the purchase price of the land within thirty (30) days after he executes and delivers a deed of transfer in favor of the Government and surrenders the Certificate of Title and other muniments of title.
(d) In case of rejection or failure to reply, the DAR shall conduct summary administrative proceedings to determine the compensation for the land by requiring the landowner, the LBP and other interested parties to submit evidence as to the just compensation for the land, within fifteen (15) days from the receipt of the notice. After the expiration of the above period, the matter is deemed submitted for decision. The DAR shall decide the case within thirty (30) days after it is submitted for decision.
(e) Upon receipt by the landowner of the corresponding payment or in case of rejection or no response from the landowner, upon the deposit with an accessible bank designated by the DAR of the compensation in cash or in LBP bonds in accordance with this Act, the DAR shall take immediate possession of the land and shall request the proper Register of Deeds to issue a Transfer Certificate of Title (TCT) in the name of the Republic of the Philippines. The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries.
(f) Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for final determination of just compensation. [emphasis supplied.]
SECTION 18. Valuation and Mode of Compensation. -- The LBP shall compensate the landowner in such amount as may be agreed upon by the landowner and the DAR and the LBP, in accordance with the criteria provided for in Sections 16 and 17, and other pertinent provisions hereof, or as may be finally determined by the court, as the just compensation for the land.
x x x x
The procedure for the determination of compensation cases under Republic Act No. 6657, as devised by this Court, commences with the valuation by the LBP of the lands taken by the State from private owners under the land reform program. Based on the valuation of the land by the LBP, the DAR makes an offer to the landowner through a written notice. In case the landowner rejects the offer, a summary administrative proceeding is held and, afterwards, depending on the value of the land, the Provincial Agrarian Reform Adjudicator (PARAD), the Regional Agrarian Reform Adjudicator (RARAD), or the DARAB, fixes the price to be paid for the said land. If the landowner still does not agree with the price so fixed, he may bring the matter to the RTC, acting as Special Agrarian Court.15 [emphasis supplied.]
Steps Responsible Agency/Unit Activity Forms/Documents (Requirements) D. Land Valuation and Compensation 13 LBP-LVLCO Receives and evaluates the CF for completeness, consistency and document sufficiency. Gathers additional valuation documents. 14 LBP-LVLCO Determine land valuation based on valuation inputs Note: CFs where the land valuation amounts to more than P3 million shall be forwarded to LBP-HO. Claims Valuation and Processing Form (CVPF) 15 LBP-LVLCO Prepares and sends Memo of Valuation, Claim Folder Profile and Valuation Summary (MOV-CFPVS) to PARO CARP Form No. 9 (Memorandum of Valuation and Claim Folder Profile and Valuation Summary) 16 DARPO Receives LBP's MOV-CFPVS and ascertains the completeness of the data and information therein. 17 DARPO Sends Notice of Land Valuation and Acquisition to LO by personal delivery with proof of service or by registered mail with return card, attaching copy of MOV-CFPVS and inviting LO's attention to the submission of documents required for payment of claim. CARP Form No. 10 (Notice of Land Valuation and Acquisition)
18 DARPO Posts a copy of the Notice of Land Valuation (NLVA) for at least seven (7) working days on the bulletin board of the provincial capitol, municipal and barangay halls where the property is located and issues a Certification of Posting Compliance. CARP Form No. 11 (Certification of Posting Compliance) 19 LO Replies to Notice of Land Valuation and Acquisition and submits documents required for payment of compensation claim. If LO accepts, proceed to D.1. If LO rejects or fails to reply, proceed to D.2.x x x x
D.2. Where LO rejects the Land Valuation
20 DARPO If the LO rejects the offered price or fails to reply within thirty (30) days from receipt of the Notice of Land Valuation and Acquisition, forwards to LBP the Request to Deposit the compensation proceeds in cash and in bonds in the name of the LO CARP Form No. 10.a (LO's Reply to NLVA) CARP Form No. 15 (Request for Deposit) 21 DARPO Requests the DARAB/RARAD/ PARAD to conduct administrative proceedings pursuant to DARAB guidelines, as the case maybe, furnishing therein a copy each of the LO's Letter of Rejection, Notice of Land Valuation and Acquisition and LBP's Memorandum of Valuation. CARP Form No. 14 Advice to DARAB/ RARAD/PARAD 22 LBP-LVO LBP-HO Deposits the compensation proceeds in the name of the LO and issues Certification of Deposit to DAR through the PARO, copy furnished the LO. The entire deposit may be withdrawn by the LO; however, actual release of same shall be subject to LO's submission of all requirements for payment and execution of Confirmation of Coverage and Transfer. CARP Form No. 17 (Certification of Deposit) CARP Form No. 17.a (Confirmation of Coverage and Transfer For Claims of Individual LOs - Still Pending with DARAB) CARP Form No. 17.b (Confirmation of Coverage and Transfer For Claims of Corporate LOs - Still Pending with DARAB) 23 DARPO Upon receipt of the Certification of Deposit from LBP, transmits the same to the Register of Deeds concerned, including the approved segregation/subdivision plan of subject property, if partially covered and simultaneously requests the ROD to issue TCT in the name of RP. CARP Form No. 18 (Request to Issue TCT in the name of RP) 24 ROD Issues new TCT in the name of RP and forwards owner's duplicate certificate of title in the name of RP to LBP-LVO which furnishes the PARO a certified xerox copy of the same. New TCT in the name of RP and owner's duplicate copy of title in the name of RP. 25 DARAB/ RARAD/ PARAD Simultaneously with Activity Nos. 22-24 above, the DARAB/ RARAD/PARAD conducts summary administrative proceedings, renders decision and informs parties concerned of the same. 26 DARPO Upon receipt of the Certificate of Finality of the DARAB Order, requests LBP to pay the LO in accordance with the DARAB decision; requests LBP to prepare Confirmation of Coverage and Transfer for LO to accomplish. Thereafter, LBP follows Activity Nos. 25-26 under D.1. In case the LO still rejects DARAB decision, he may go to the Special Agrarian Reform Court (SAC) for the final determination of just compensation. CARP Form No. 17.c (Confirmation of Coverage and Transfer For Claims of Individual LOs - Already decided by DARAB) CARP Form No. 17.d (Confirmation of Coverage and Transfer) For Claims of Corporate LOs - Already decided by DARAB)
WHEREAS, the Land Bank of the Philippines employs commercial banking personnel whose professional expertise includes appraisal of agricultural properties for purposes of granting loans;
WHEREAS, the implementation of the Comprehensive Agrarian Reform Program, particularly on the matter of acquisition and distribution of private agricultural lands, may be accelerated by streamlining certain administrative procedures in land valuation and compensation;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, by virtue of the powers vested in me by law, do hereby order:
SECTION 1. The Land Bank of the Philippines shall be primarily responsible for the determination of the land valuation and compensation for all private lands suitable for agriculture under either the Voluntary Offer to Sell (VOS) or Compulsory Acquisition (CA) arrangements as governed by Republic Act No. 6657. The Department of Agrarian Reform shall make use of the determination of the land valuation and compensation by the Land Bank of the Philippines, in the performance of [its] functions.
SECTION 1. Transitory Provisions. These rules shall govern all cases filed on or after its effectivity. All cases pending with the Board and the Adjudicators, prior to the date of effectivity of these Rules, shall be governed by the DARAB Rules prevailing at the time of their filing.
Endnotes:
* Designated additional member per Special Order No. 843 dated May 17, 2010.
1 Rollo, pp. 52-61. Penned by Associate Justice Remedios A. Salazar-Fernando and concurred in by Associate Justices Godardo A. Jacinto and Edgardo F. Sundiam.
2 Id. at 53-56.
3 Id. at 59-60.
4 Id. at 64.
5 Id. at 32.
6 Id. at 33-36.
7 Id. at 37-38.
8 Id. at 41-43.
9 Id. at 43-45.
10 Id. at 94-98.
11 See Association of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform, G.R. Nos. 78742, 79310, 79744 & 79777, July 14, 1989, 175 SCRA 343, 391.
12 Republic v. Court of Appeals, G.R. No. 122256, October 30, 1996, 263 SCRA 758, 764.
13 Gabatin v. Land Bank of the Philippines, G.R. No. 148223, November 25, 2004, 444 SCRA 176, 187, citing Landbank of the Philippines v. Banal, G.R. No. 143276, July 20, 2004, 434 SCRA 543, 548-549; Land Bank of the Philippines v. Wycoco, G.R. Nos. 140160 and 146733, January 13, 2004, 419 SCRA 67, 76; and Republic v. Court of Appeals, supra at 764.
14 See Landbank of the Philippines v. Banal, supra at 548.
15 Land Bank of the Philippines v. Kumassie Plantation Company, Incorporated, G.R. Nos. 177404 & 178097, June 25, 2009, 591 SCRA 1, 9.
16 SECTION 10. Execution of Judgments for Just Compensation which have become Final and Executory. The Sheriff shall enforce a writ of execution of a final judgment for compensation by demanding for the payment of the amount stated in the writ of execution in cash and bonds against the Agrarian Reform Fund in the custody of the LBP in accordance with RA 6657, and the LBP shall pay the same in accordance with the final judgment and the writ of execution within five (5) days from the time the landowner accordingly executes and submits to the LBP the corresponding deed/s or transfer in favor of the government and surrenders the muniments of title to the property in accordance with Section 16 (c) of R.A. 6657.
17 See "The Garchitorena Land Scam" by GMA NewsTV at <http://www.gmanews.tv/story/182211/the-garchitorena-land-scam>. See also "Philippines: Over-valuation of Land Awarded Under Agrarian Reform Program" posted by Emergency Network at <http://www.fian.org/cases/letter-campaigns/ philippines-over-valuation-of-land-awarded-under-agrarian-reform-program?set_language=en>; Not "the biggest distribution in history" by Albert M. Lagliva, published in the July 2002 issue of the Intersect, article posted at <http://www.jesuits.ph/ignaciana/Ministries/FINAL%20ICSI%20WEB/agri-cont.htm>; and "Land Reform for the Elite: Voluntary Offers to Sell" by David Wurfel, University of Windsor, posted at <http://davidwurfel.ca/philippines/land-reform-for-the-elite-voluntary-offers-to-sell-under-carp>.
18 See Land Bank of the Philippines v. Luciano, G.R. No. 165428, November 25, 2009, 605 SCRA 426, 439.
19 Apo Fruits Corporation v. Court of Appeals, G.R. No. 164195, February 6, 2007, 514 SCRA 537, 560, citing Land Bank of the Phils. v. Wycoco, 464 Phil. 83, 94 (2004); Export Processing Zone Authority v. Dulay, No. L-59603, April 29, 1987, 149 SCRA 305, 316; Belen v. Court of Appeals, No. L-45390, April 15, 1988, 160 SCRA 291, 295; Land Bank of the Philippines v. Natividad, G.R. No. 127198, May 16, 2005, 458 SCRA 441, 451; Phil. Veterans Bank v. Court of Appeals, 379 Phil. 141, 147 (2000) and Association of Small Landowners in the Philippines, Inc. v. Secretary of Agrarian Reform, G.R. Nos. 78742, 79310, 79744 & 79777, July 14, 1989, 175 SCRA 343, 376.
20 See Land Bank of the Philippines v. Court of Appeals, G.R. Nos. 118712 & 118745, October 6, 1995, 249 SCRA 149, 160.
21 Sec. 2, Rule XX, 2003 DARAB Rules of Procedure.
22 Land Bank of the Philippines v. AMS Farming Corporation, G.R. No. 174971, October 15, 2008, 569 SCRA 154, 177.