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"SECTION 16.
(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 therefrom that the deposit must be made only in "cash" or in "LBP
bonds". Nowhere does it appear nor can it be inferred that the deposit can be made in any
other form. If it were the intention to include a "trust account" among the valid modes of
deposit, that should have been made express, or at least, qualifying words ought to have
appeared from which it can be fairly deduced that a "trust account" is allowed. In sum,
there is no ambiguity in Section 16(e) of RA 6657 to warrant an expanded construction of
the term "deposit".
The conclusive effect of administrative construction is not absolute. Action of an
administrative agency may be disturbed or set aside by the judicial department if there is
an error of law, a grave abuse of power or lack of jurisdiction or grave abuse of discretion
clearly conflicting with either the letter or the spirit of a legislative enactment.
In this regard, it must be stressed that the function of promulgating rules and
regulations may be legitimately exercised only for the purpose of carrying the provisions
of the law into effect. The power of administrative agencies is thus confined to
implementing the law or putting it into effect. Corollary to this is that administrative
regulations cannot extend the law and amend a legislative enactment, for settled is the
rule that administrative regulations must be in harmony with the provisions of the law.
And in case there is a discrepancy between the basic law and an implementing rule or
regulation, it is the former that prevails.
In the present suit, the DAR clearly overstepped the limits of its power to enact
rules and regulations when it issued Administrative Circular No. 9. There is no basis in
allowing the opening of a trust account in behalf of the landowner as compensation for
his property because, as heretofore discussed, Section 16(e) of RA 6657 is very specific
that the deposit must be made only in "cash" or in "LBP bonds". In the same vein,
petitioners cannot invoke LRA Circular Nos. 29, 29-A and 54 because these implementing
regulations cannot outweigh the clear provision of the law. Respondent court therefore
did not commit any error in striking down Administrative Circular No. 9 for being null
and void.
2. YES. The attempt to make a distinction between the deposit of compensation under
Section 16(e) of RA 6657 and determination of just compensation under Section 18 is
unacceptable. To withhold the right of the landowners to appropriate the amounts
already deposited in their behalf as compensation for their properties simply because
they rejected the DAR's valuation, and notwithstanding that they have already been
deprived of the possession and use of such properties, is an oppressive exercise of
eminent domain. The irresistible expropriation of private respondents' properties was
painful enough for them. But petitioner DAR rubbed it in all the more by withholding
that which rightfully belongs to private respondents in exchange for the taking, under
an authority (the "Association" case) that is, however, misplaced. This is misery twice
bestowed on private respondents, which the Court must rectify.
Hence, we find it unnecessary to distinguish between provisional compensation
under Section 16(e) and final compensation under Section 18 for purposes of
exercising the landowners' right to appropriate the same. The immediate effect in
both situations is the same, the landowner is deprived of the use and possession of his
property for which he should be fairly and immediately compensated.
Prepared by:
MARRY-JUNE SA. VILLARAZA