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* SECOND DIVISION.
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trample on the rights of property owners, who under our Constitution and
laws are also entitled to protection.
FRANCISCO, J.:
It has been declared that the duty of the court to protect the weak
and the underprivileged should not be carried out to such an extent
as deny justice to1 the landowner whenever truth and justice happen
to be on his side. As eloquently stated by Justice Isagani Cruz:
“x x x social justice—or any justice for that matter—is for the deserving,
whether he be a millionaire in his mansion or a pauper in his hovel. It is true
that, in case of reasonable doubt, we are called upon to tilt the balance in
favor of the poor, to whom the Constitution fittingly extends its sympathy
and compassion. But never is it justified to prefer the poor simply because
they are poor, or to reject the rich simply because they are rich, for justice
must always
2
be served, for poor and rich alike, according to the mandate of
the law.”
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1 Gelos v. Court of Appeals, 208 SCRA 608, 615 (1992), quoting Justice Alicia
Sempio-Diy.
2 Ibid, p. 616.
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3 Rollo, p. 7.
4 Rollo, pp. 122-123.
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Likewise, petitioners
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seek the reversal of the Resolution dated
January 18, 1995, denying their motion for reconsideration.
Private respondents are landowners whose landholdings were
acquired by the DAR and subjected to transfer schemes to qualified
beneficiaries under the Comprehensive Agrarian Reform Law
(CARL, Republic Act No. 6657).
Aggrieved by the alleged lapses of the DAR and the Landbank
with respect to the valuation and payment of compensation for their
land pursuant to the provisions of RA 6657, private respondents
filed with this Court a Petition for Certiorari and Mandamus with
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“Petitioner Pedro Yap alleges that ‘(o)n 4 September 1992 the transfer
certificates of title (TCTs) of petitioner Yap were totally cancelled by the
Registrar of Deeds of Leyte and were transferred in the names of farmer
beneficiaries collectively, based on the request of the DAR together with a
certification of the Landbank that the sum of P735,337.77 and P719,869.54
have been earmarked for Landowner Pedro L. Yap for the parcels of lands
covered by TCT Nos. 6282 and 6283, respectively, and issued in lieu thereof
TC-563 and TC-562, respectively, in the names of listed beneficiaries
(ANNEXES ‘C’ & ‘D’)
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5 Rollo, p. 149.
6 Which provides formulas for the valuation of land expropriated under RA 6657.
7 Which provides for the opening of trust accounts in the Land Bank instead of depositing in
an accessible bank, in cash and bonds, the compensation for land expropriated by the DAR.
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order directing the Landbank to pay the landowner directly or through the
establishment of a trust fund in the amount of P135,482.12; that on 24
February 1992, the Landbank reserved in trust P135,482.12 in the name of
Emiliano F. Santiago. (ANNEX ‘E’; Rollo, p. 7); that the beneficiaries
stopped paying rentals to the landowners after they signed the Actual
Tiller’s Deed of Undertaking committing themselves to pay rentals to the
LandBank (Rollo, p. 133).
“The above allegations are not disputed by the respondents except that
respondent Landbank claims 1) that it was respondent DAR, not Landbank
which required the execution of Actual Tillers Deed of Undertaking (ATDU,
for brevity); and 2) that respondent Landbank, although armed with the
ATDU, did not collect any amount as rental from the substituting
beneficiaries (Rollo, p. 99).
“Petitioner Agricultural Management and Development Corporation
(AMADCOR, for brevity) alleges—with respect to its properties located in
San Francisco, Quezon—that the properties of AMADCOR in San
Francisco, Quezon consist of a parcel of land covered by TCT No. 34314
with an area of 209.9215 hectares and another parcel covered by TCT No.
10832 with an area of 163.6189 hectares; that a summary administrative
proceeding to determine compensation of the property covered by TCT No.
34314 was conducted by the DARAB in Quezon City without notice to the
landowner; that a decision was rendered on 24 November 1992 (ANNEX
‘F’) fixing the compensation for the parcel of land covered by TCT No.
34314 with an area of 209.9215 hectares at P2,768,326.34 and ordering the
Landbank to pay or establish a trust account for said amount in the name of
AMADCOR; and that the trust account in the amount of P2,768,326.34
fixed in the decision was established by adding P1,986,489.73 to the first
trust account established on 19 December 1991 (ANNEX ‘G’). With respect
to petitioner
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10 Rollo, p. 111.
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11 Sec. 49. Rules and Regulations.—The PARC and the DAR shall have the power
to issue rules and regulations, whether substantive or procedural, to carry out the
objects and purposes of this Act. Said rules shall take effect ten (10) days after the
publication in two (2) national newspapers of general circulation.
12 Rollo, pp. 111-112.
13 Rollo, p. 112.
14 Rollo, p. 107.
15 Rollo, p. 149.
16 Rollo, p. 63.
17 Rollo, p. 67.
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ing the final resolution of the cases it has filed for just
compensation.
Anent the first assignment of error, petitioners maintain that the
word “deposit” as used in Section 16(e) of RA 6657 referred merely
to the act of depositing and in no way excluded the opening of a
trust account as a form of deposit. Thus, in opting for the opening of
a trust account as the acceptable form of deposit through
Administrative Circular No. 9, petitioner DAR did not commit any
grave abuse of discretion since it merely exercised its power to
promulgate rules and regulations in implementing the declared
policies of RA 6657.
The contention is untenable. Section 16(e) of RA 6657 provides
as follows:
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18 Peralta vs. Civil Service Commission, 212 SCRA 425, 432 (1992).
19 Toledo vs. Civil Service Commission, 202 SCRA 507, 54 (1991) citing Teoxon
v. Members of the Board of Administrators, Philippine Veterans Administration, 33
SCRA 585, 589 (1970), citing Santos vs. Estenzo, 109 Phil. 419 (1960); Animos vs.
Phil. Veterans Affairs Office, 174 SCRA 214, 223-224 (1989).
20 Shell Philippines, Inc. vs. Central Bank of the Philippines, 162 SCRA 628
(1988).
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“The last major challenge to CARP is that the landowner is divested of his
property even before actual payment to him in full of just compensation, in
contravention of a well-accepted principle of eminent domain.
xxx xxx xxx
“The CARP Law, for its part conditions the transfer of possession and
ownership of the land to the government on receipt by the landowner of the
corresponding payment or the deposit by the DAR of the compensation in
cash or LBP bonds with an accessible bank. Until then, title also remains
with the landowner. No outright change of ownership is contemplated either.
xxx xxx xxx
“Hence the argument that the assailed measures violate due process by
arbitrarily transferring title before the land is fully paid for must also be
rejected.”
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21 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 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.
22 175 SCRA 343.
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of Agrarian Reform (175 SCRA 343), to conclude that ‘payments of the just
compensation is not always required to be made fully in money’—even as
the Supreme Court admits in the same case ‘that the traditional medium for
the payment of just compensation is money and no other’—the Supreme
Court in said case did not abandon the ‘recognized rule . . . that title to the
property expropriated shall pass from the owner
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to the expropriator only
upon full payment of the just compensation.” (Italics supplied)
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24 Municipality of Makati vs. Court of Appeals, 190 SCRA 207, 213 (1990) citing
Cosculluela vs. The Hon. Court of Appeals, 164 SCRA 393,400 (1988); Provincial
Government of Sorsogon vs. Vda. De Villaroya, 153 SCRA 291, 302 (1987).
25 175 SCRA 343, 392.
26 Mata vs. Court of Appeals, 207 SCRA 748, 753 (1992).
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