Province of Zamboanga del Norte vs.

City of Zamboanga
No. L-24440
Bengzon, J.P., J.

March 28, 1968

Facts:
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Prior to its incorporation as a chartered city, the Municipality of Zamboanga used to be the
provincial capital of then Zamboanga Province.
o Oct. 12, 1936 Commonwealth Act 39 (CA 39) converted the said municipality into
Zamboanga City. Sec. 50 of the Act also provided that:
Buildings and properties which the province shall abandon upon the transfer of the
capital to another place will be acquired and paid for by the City of Zamboanga at a
price to be fixed by the Auditor General.
o All in all, 50 properties were included in this Act.
1948 Capital of Zamboanga transferred to Municipality of Molave.
May 26, 1949 Pursuant to CA 39, Auditor General fixed the value of the properties in question
at P1,294,244.00.
June 6, 1954 RA 711 divided Zamboanga Province into two; Zamboanga del Norte and
Zamboanga del Sur.
o Zamboanga del Norte became entitled to 54.39% (or P704,220.05) of the payment for the
properties under CA 39 while Zamboanga del Sur became entitled to 45.61%.
Secretary of Finance then authorized the CIR to deduct 25% of the regular internal revenue
allotment for Zamboanga City for several fiscal quarters in order to accredit the same to the
province of Zamboanga del Norte as payment thereof (pursuant to the CA 39 arrangement.) All
deductions aggregate to P57,373.46.
June 17, 1961 RA 3039 amended CA 39 by providing that all the properties indicated therein
are to be transferred free of charge in favor of the Zamboanga City.
o Secretary of Finance then ordered CIR to stop further payments to Zamboanga del Norte
province and to return to Zamboanga City the sum of P57,373.46 taken from its IRA that
was given to the Province.
The Province of Zamboanga del Norte then filed a complaint praying that RA 3039 be declared
unconstitutional for depriving the Province of its property without due process and just
compensation. It also prayed that the sum of P57,373.46 be returned to the Province and that the
City be mandated to continue its payments.
o Lower Court: declared RA 3039 as unconstitutional.
Hence, the current petition brought by the City.

Issues/Held:
Premise: IF the property is owned by the municipality in its public and governmental capacity, the
property is public and congress has absolute control over it. BUT IF the property is owned in its private or
proprietary capacity, then its patrimonial and congress has no absolute control over it.
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SC: the former motion wins; RA 3039 is valid insofar as it affects the lots used or devoted for
public service (which is only 24 out of the 50 lots). The rest of the lots are patrimonial, hence, not
included under RA 3039 (meaning not free of charge; City should effectuate just compensation).

Where the municipality has occupied lands distinctly for public purposes (such as for
the municipal court house, the public school, the public market, or other necessary
municipal building, we will, in the absence of proof to the contrary, presume a grant from
the States in favor of the municipality.
o The 24 lots consist of a Capitol Site, school site, hospital sites, Leprosarium, etc.
o The 26 other slots are to be considered as patrimonial properties of the Province as they
are not being utilized for distinctly governmental purposes (they were mostly vacant
lots).
The Court is not inclined to hold that municipal property held and devoted for public use is in the
same category as ordinary private property. The consequences are dire.
o As ordinary private properties, they can be levied, attached, and acquired through adverse
possession.
For purposes of Article 424 of the NCC, the principles obtaining under the Municipal Law are
considered to be Special Laws. Hence, the classification of municipal property devoted for
distinctly governmental purposes as public should prevail over the Civil Code classification in
this particular case.
Zamboanga City is hereby ordered to return to the Province the sum that was returned to it plus to
continue paying the Provinces 54.39% in its 26 patrimonial properties.
o

Decision set aside.