NATIONAL POWER CORPORATION vs.

HEIRS OF MACABANGKIT SANGKAY

G.R. No. 165828 August 24, 2011
FACTS:
The Heirs of Macabangkit Sangkay, as the owners of land situated in Ditucalan, Iligan

City, sued NPC in the RTC for the recovery of damages and of the property, with the alternative

prayer for the payment of just compensation for an underground tunnel that traversed

their property. They alleged that they had belatedly discovered that one of the underground

tunnels of NPC that diverted the water flow of the Agus River for the operation of the

Hydroelectric Project in Agus V, Agus VI and Agus VII traversed their land; the presence of the

tunnel deprived them of the agricultural, commercial, industrial and residential value of their

land; and that their land had also become an unsafe place for habitation.

ISSUE:
Whether or not respondents are entitled to just compensation are entitled to just

compensation despite that there was no complete and actual dispossession from the property.

RULING:
Respondents are entitled to the payment of just compensation. Notwithstanding the fact

that petitioner only occupies the sub-terrain portion, it is liable to pay not merely an easement fee

but rather the full compensation for land. This is because in this case, the nature of the easement

practically deprives the owners of its normal beneficial use. Respondents, as the owner of the

property thus expropriated, are entitled to a just compensation which should be neither more nor

less, whenever it is possible to make the assessment, than the money equivalent of said property.

There was a full taking on the part of NPC, notwithstanding that the owners were not

completely and actually dispossessed. It is settled that the taking of private property for public

use, to be compensable, need not be an actual physical taking or appropriation. Indeed, the

expropriators action may be short of acquisition of title, physical possession, or occupancy but

may still amount to a taking. Compensable taking includes destruction, restriction, diminution, or

interruption of the rights of ownership or of the common and necessary use and enjoyment of the

property in a lawful manner, lessening or destroying its value. It is neither necessary that the

owner be wholly deprived of the use of his property, nor material whether the property is

removed from the possession of the owner, or in any respect changes hands.