G.R. No. 214901 - LAND BANK OF THE PHILIPPINES, VS. APOLONIO KHO, REPRESENTED BY HIS HEIRS, NAMELY: PERLA LUZ, KRYPTON, KOSELL, KYRIN, AND KELVIN, ALL SURNAMED KHO.D E C I S I O N - Supreme Court E-Library

Ruling

Accordingly, while the parties did not raise as issue the improper application of DAR AO 1, series of 2010, the Court finds a need to remand the case to the RTC for the determination of just compensation to ensure compliance with the law, and to give everyone - the landowner, the farmers, and the State - their due . [87] To this end, the RTC is hereby directed to observe the following guidelines in the remand of the case: 1. Just compensation must be valued at the time of taking, or the time when the owner was deprived of the use and benefit of his property, [88] in this case, when emancipation patents were issued in the names of the farmer-beneficiaries on May 27, 2002. [89] Hence, the evidence to be presented by the parties before the trial court for the valuation of the subject land must be based on the values prevalent on such time of taking for like agricultural lands . [90] 2. Just compensation must be arrived at pursuant to the guidelines set forth in Section 17 of RA 6657, as amended, prior to its amendment by RA 9700. However, the RTC is reminded that while it should take into account the different formula created by the DAR in arriving at the just compensation for the subject land, it is not strictly bound thereto if the situations before it do not warrant their application. [91] In any event, should the RTC find the said guidelines to be inapplicable, it must clearly explain the reasons for deviating therefrom, and for using other factors or formula in arriving at the reasonable just compensation for the acquired property. [92] 3. Interest may be awarded as may be warranted by the circumstances of the case and based on prevailing jurisprudence. In previous cases, the Court has allowed the grant of legal interest in expropriation cases where there is delay in the payment since the just compensation due to the landowners was deemed to be an effective forbearance on the part of the State. [93] Legal interest on the unpaid balance shall be pegged at the rate of 12% p.a. from the time of taking on May 27, 2002 until June 30, 2013 only. Thereafter, or beginning July 1, 2013, until fully paid, the just compensation due the landowners shall earn interest at the new legal rate of 6% p.a. [94] in line with the amendment introduced by BSP-MB Circular No. 799, [95] series of 2013. WHEREFORE , the petition is PARTLY GRANTED . The Decision dated August 29, 2014 of the Court of Appeals of Cebu City in CA-G.R. SP No. 06365 is hereby REVERSED and SET ASIDE . Civil Case No. 2007-14511 is REMANDED to the Regional Trial Court of Negros Oriental, Dumaguete City, Branch 32 for reception of evidence on the issue of just compensation in accordance with the guidelines set in this Decision. The trial court is directed to conduct the proceedings in said case with reasonable dispatch, and to submit to the Court a report on its findings and recommended conclusions within sixty (60) days from notice of this Decision. SO ORDERED.