7.) DAR v. Sta. Romana, G. R.

183290

FACTS:
Respondents are the owners of an agricultural land situated in San Jose City, Nueva
Ecija covered by certificates of title. DAR compulsory acquired their properties
pursuant to Operation Land Transfer Program under PD 27, also known as the
Tenants Emancipation Decree.
Land Bank of the Philippines fixed the value of the subject land using the formula
under EO 228 and DAR AO No. 13, series of 1994, i.e., LV = (2.5 x AGP x P35.00) x
(1.06)n. Under this formula, the government support price (GSP) for one (1) cavan
of palay was pegged at P35.00, which is the GSP price set on the date of PD 27s
effectivity on October 21, 1972.
Respondents were dissatisfied with the Land Bank of the Philippines valuation.
ISSUE:
Did LBP err in using EO 228 and AO No. 13 as the basis of computing just
compensation for the subject properties?
LAW:
Section 17 of Republic Act No. 6657, as ammended applies.
SECTION 17. Determination of Just Compensation. In determining just
compensation, the cost of acquisition of the land, the current value of the
like properties, its nature, actual use and income, the sworn valuation by the owner,
the tax declarations, and the assessment made by government assessors shall
be considered. The social and economic benefits contributed by the farmers and
the farmworkers and by the Government to the property as well as the nonpayment of taxes or loans secured from any government financing institution on the
said land shall be considered as additional factors to determine its valuation.
CASE HISTORY:
RTC ruled in favor of the respondents explaining that while respondents land was
acquired pursuant to PD 27, the same is covered by Republic Act No. (RA) 6657,
otherwise known as the "Comprehensive Agrarian Reform Law of 1988," as
amended, which provides that in determining just compensation, the factors under
Section 17 of RA 6657, as amended, should be considered.
Court of Appeals upheld the RTC decision and denied motions for reconsideration
filed by DAR and LBP.

RULING OF THE SUPREME COURT:

Settled is the rule that when the agrarian reform process is still incomplete, as in
this case where the just compensation for the subject land acquired under PD 27
has yet to be paid, just compensation should be determined and the process
concluded under RA 6657, with PD 27 and EO 228 having mere suppletory effects.
This means that PD 27 and EO 228 only apply when there are gaps in RA 6657;
where RA 6657 is sufficient, PD 27 and EO 228 are superseded.

OPINION OF THE STUDENT: