G.R. No. 219623 - LAND BANK OF THE PHILIPPINES, VS. HEIRS OF FERNANDO ALSUA, REPRESENTED BY RAMON ALSUA, ET AL..D E C I S I O N - Supreme Court E-Library

Ruling

accordingly, remanded the case to the RTC for the proper determination of just compensation. The Facts Respondents Heirs of Fernando Alsua, represented by Ramon Alsua, et al. (respondents), are the owners of coconut lands denominated as Lot Nos. 5114 and 5362, covered by Transfer Certificate of Title (TCT) Nos. T-10520 and T-10529 in the name of Fernando Alsua (Fernando), with respective areas of 6.9922 and 9.7719 hectares, or an aggregate area of 16.7641 hectares, located in Lomacao, Guinobatan, Albay (subject lands). The subject lands were placed under the Comprehensive Agrarian Reform Program (CARP) through the voluntary offer to sell (VOS) scheme. [5] After a field investigation conducted by petitioner Land Bank of the Philippines (LBP), together with the representatives from the Department of Agrarian Reform (DAR), the Municipal Agrarian Reform Officer (MARO), and the Barangay Agrarian Reform Council (BARC), it was found that only 6.6435 hectares out of the 6.9922 hectares of Lot No. 5114 were fit for acquisition, while the entirety of the 9.7719 hectares of Lot No. 5362 was fit for acquisition. [6] In October 1995, the LBP received the claim folders. [7] Thereafter, Fernando's certificates of title were cancelled and new titles were issued by the Register of Deeds of Albay in the name of the Republic of the Philippines (Republic), represented by the DAR, [8] i.e. , TCT No. T-98239 [9] for the 9.7719 hectares acquired area of Lot No. 5362, and TCT No. T-125590 [10] for the 6.6435 hectares acquired area of Lot No. 5114, on June 28, 1996 and February 13, 2001, respectively. The LBP valued the acquired portions for Lot Nos. 5114 and 5362 at P170,164.48 and P455,386.27, respectively, using the two-factor formula [11] under DAR Administrative Order (A.O.) No. 6, series of 1992, [12] as amended by A.O. No. 11, series of 1994. [13] The DAR offered the said compensation to respondents who, however, rejected the same. [14] Hence, on June 27, 1996, the amounts were deposited in respondents' name as provisional compensation for the subject lands in accordance with Section 16 (e) of RA 6657, and subsequently released to respondents on December 9, 2004. [15] After the summary administrative proceedings for the determination of just compensation, the Office of the Provincial Adjudicator fixed the just compensation for Lot Nos. 5114 and 5362 at P388,102.37 [16] and P1,036,276.89, [17] respectively. LBP moved for reconsideration but the same was denied by the DARAB. [18] Dissatisfied, the LBP filed a petition for determination of just compensation with the RTC, acting as a SAC, praying that the RTC uphold its valuation of the subject lands. [19] In an Order [20] dated January 31, 2011, the RTC designated the LBP's Agrarian Operations Center, in conjunction with the MARO and the BARC, to conduct a re-investigation on the annual gross production (AGP) and selling price (SP) data of the properties within the twelve-month period preceding June 30, 2009. The LBP