G.R. No. 118712 Case Digest

G.R. No. 118712, October 6, 1995

Landbank of the Philippines

vs Court of Appeals, Pedro Yap, Heirs of Emiliano Santiago, Agricultural Management and Development Corp.

Ponente: Francisco

Facts:

Yap and Santiago are landowners whose landholdings were acquired by the DAR, subjecting it for transfer to qualified CARP beneficiaries. Aggrieved by the compensation valuation of DAR and LBP, respondents filed a petition for certiorari and mandamus with a preliminary mandatory injunction. The case was referred to CA for proper determination and disposition.

Respondents argued that DAR and LBP committed grave abuse of discretion and acted without jurisdiction when they opened trusts accounts in lieu of the depositing in cash or bonds, before the lands was taken and the titles are cancelled. Respondents claim that before the taking of the property, the compensation must be deposited in cash or bonds.

DAR, maintained that the certificate of deposit was a substantial compliance with the rule on taking and compensation. LBP confirms that the certificate of deposit expresses "reserved/deposited".

CA ruled in favor of Yap and Santiago. DAR filed a petition.  DAR, maintain that the word "deposit" referred merely to the act of depositing and in no way excluded the opening of a trust account as form of deposit.

Issue: Whether the opening of trust account tantamount to deposit.

Ruling:

Contention of DAR is untenable. Section 16 of RA 6657 provides: (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. . . . (emphasis supplied)

It is very explicit that the deposit must be made only in cash or LBP bonds, there is no ambiguity.