588 Phil. 233
YNARES-SATIAGO, J.:
On September 28, 2000, respondents filed a complaint for determination and payment of just compensation against the Department of Agrarian Reform (DAR) and Land Bank of the Philippines (LBP), which was amended on October 3, 2000, alleging that they were the owners of Lot No. 6183, an irrigated riceland with an area of 29.9557 hectares located at Bibincahan, Sorsogon, Sorsogon; that 26.2585 hectares of said lot were brought by DAR under the coverage of P.D. No. 27 (The Comprehensive Agrarian Reform Law) and set the total value thereof at P105,572.48, excluding increments, in contravention of their right to a just compensation; and that the determination of what constitutes just compensation is inherently a judicial function which cannot and should not be left to administrative officials.DAR and LBP filed separate motions for reconsideration[5] but were denied; thus, both filed petitions for review[6] before the Court of Appeals. However, DAR's petition was dismissed by the Court of Appeals in a Resolution dated August 26, 2005. An Entry of Judgment[7] was issued on September 23, 2005. Only LBP's Petition for Review[8] was considered by the appellate court.
An amended answer was filed by DAR alleging that the determination of just compensation by the court is not necessary because respondents and the farmer-beneficiaries had already executed a Landowner-Tenant Production Agreement and Farmers Undertaking (LTPA-FU) To Pay to the LBP, whereby the parties agreed on the valuation of the riceland; and that in compliance with said agreement, the farmer-beneficiaries have already paid their land amortizations with LBP, as evidenced by a Certification dated July 18, 1980 issued by Mr. Ely Pongpong, Bank Executive Officer I.
A motion to dismiss was filed by LBP alleging that the case did not pass the Department of Agrarian Reform and Adjudication Board (DARAB), which has primary and exclusive original and appellate jurisdiction over the valuation of land, as well as the preliminary determination and payment of just compensation and disputes concerning the functions of LBP; that for failure to exhaust administrative remedies, the case is premature; and that respondents have no cause of action against it.
In an Order dated March 26, 2001, the court a quo found LBP's argument on non-exhaustion of administrative remedies to be meritorious and referred the case to the DARAB/PARAD for it to conduct a summary hearing for initial valuation process. However, the Provincial Adjudicator of Sorsogon informed the court a quo that the Preliminary Valuation and other pertinent papers have not yet been forwarded to the Board.
LBP then filed an answer alleging that the complaint states no cause of action because respondents already received the payment for their property in the form of cash and bonds and they executed documents evidencing payment of the property to their full satisfaction, such as the Assignment of Rights, Landowner's Affidavit of Warranty and Undertaking, Extrajudicial Settlement of Estate and Waiver of Rights, Payment Release Forms, Special Power of Attorney and Delegation of Special Power of Attorney, copies of which, together with photocopies of the Case Registry Book and Bond Registry Book, were attached thereto as Annexes "A" to "G."
In their position paper, respondents admitted that they have already received the amount of P64,690.19 from the valuation of P105,572.48. However, they claimed that the valuation of P4,398.00 per hectare is unreasonable and shocking to the conscience and since they have not yet been fully paid for their property, they are still the owners thereof and can ask for an increase of the purchase price.
A position paper was filed by DAR alleging that respondents accepted the valuation of P15,572.48 and executed a Deed of Assignment of Rights and Landowner's Affidavit of Warranty and Undertaking, so that they are already estopped from asking for an increase in the purchase price.
LBP filed a position paper alleging that respondents are estopped from claiming an increase in the valuation on the grounds of payment and prescription, as more than twenty (20) years have lapsed from the time said valuation was made.
On October 1, 2004, the court a quo rendered judgment, the dispositive portion of which reads:"WHEREFORE, premises considered, judgment is hereby rendered:
1) Fixing the amount of FOUR MILLION EIGHT HUNDRED FIFTY-FIVE THOUSAND PESOS (PHP4,855,000.00) for the area of 26.0012 hectares, covered by TCT No. T-28473 in the name of the Heirs of Roque Tabuena of that Riceland situated at Baribag, Bibincahan, Sorsogon City which property was taken by the government pursuant to P.D. No. 27. 2) Ordering the defendant Land Bank of the Philippines to pay the Plaintiffs the total amount of Four Million Eight Hundred Fifty-Five Thousand Pesos (P4,855,000.00) Philippine currency in the manner provided by law by way of the full payment of the said just compensation after deducting whatever amount previously received by the plaintiffs if any from the defendant Land Bank of the Philippines as part of the just compensation. 3) Ordering the plaintiffs to pay whatever deficiency in the docket fees to the Clerk of Court based on the valuation fixed by the Court. 4) Without pronouncement as to costs.
SO ORDERED."[4]
SEC. 7. Action or defense based on document. - Whenever an action or defense is based upon a written instrument or document, the substance of such instrument or document shall be set forth in the pleading, and the original or a copy thereof shall be attached to the pleading as an exhibit, which shall be deemed to be a part of the pleading, or said copy may with like effect be set forth in the pleading.There is likewise no merit in petitioners' allegation that LBP lacks locus standi since DAR's petition for review was dismissed by the Court of Appeals and said dismissal has become final and executory; that being a necessary party and not an indispensable party, LBP has no right to appeal unless the DAR appeals.
SEC. 8. How to contest such documents. - When an action or defense is founded upon a written instrument, copied in or attached to the corresponding pleading as provided in the preceding section, the genuineness and due execution of the instrument shall be deemed admitted unless the adverse party, under oath, specifically denies them, and sets forth what he claims to be the facts; but the requirement of an oath does not apply when the adverse party does not appear be a party to the instrument or when compliance with an order for an inspection of the original instrument is refused.
SECTION 16. Procedure for Acquisition of Private Lands. - For purposes of acquisition of private lands, the following procedures shall be followed:In Apo Fruits Corporation v. Court of Appeals,[24] this Court ruled that:
(a) After having identified the land, the land-owners and the beneficiaries, the DAR shall send its notice to acquire the land to the owners thereof, by personal delivery or registered mail, and post the same in a conspicuous place in the municipal building and barangay hall of the place where the property is located. Said notice shall contain the offer of the DAR to pay a corresponding value in accordance with the valuation set forth in Section 17, 18, and other pertinent provisions hereof.
(b) Within thirty (30) days from the date of receipt of written notice by personal delivery of registered mail, the landowner, his administrator or representative shall inform the DAR of his acceptance or rejection of the offer.
(c) If the landowner accepts the offer of the DAR, the LBP shall pay the landowner the purchase price of the land within thirty (30) days after he executes and delivers a deed of transfer in favor of the Government and surrenders the Certificate of Title and other muniments of title.
(d) In case of rejection of failure to reply, the DAR shall conduct summary administrative proceedings to determine the compensation for the land by requiring the landowner, the LBP and other interested parties to submit evidence as to the just compensation for the land, within fifteen (15) days from the receipt of the notice. After the expiration of the above period, the matter is deemed submitted for decision. The DAR shall decide the case within thirty (30) days after it is submitted for decision.
(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. The DAR shall thereafter proceed with the redistribution of the land to the qualified beneficiaries.
(f) Any party who disagrees with the decision may bring the matter to the court of proper jurisdiction for final determination of just compensation. (Underscoring ours)
AFC and HPI now blame LBP for allegedly incurring delay in the determination and payment of just compensation. However, the same is without basis as AFC and HPI's proper recourse after rejecting the initial valuations of respondent LBP was to bring the matter to the RTC acting as a SAC, and not to file two complaints for determination of just compensation with the DAR, which was just circuitous as it had already determined the just compensation of the subject properties taken with the aid of LBP. (Underscoring ours)Besides, Rule XIII, Section 11 of the New Rules of Procedure of the DARAB provides thus:
Section 11. Land Valuation and Preliminary Determination and Payment of Just Compensation. The decision of the Adjudicator on land valuation and preliminary determination and payment of just compensation shall not be appealable to the Board but shall be brought directly to the Regional Trial Courts designated as Special Agrarian Courts within fifteen (15) days from receipt of the notice thereof. Any party shall be entitled to only one motion for reconsideration. (Underlining for emphasis)[25]Finally, there is no basis to petitioners' allegation that they were not yet fully paid of the valuation. The Deed of Assignment of Rights[26] executed by petitioners and respondent clearly provided that:
WHEREAS, the Land Bank has by these presents satisfactorily paid and settled in my/our favor the net cost or value of the above-described landholdings in the mode provided under Presidential Decree No. 251 as follows:WHEREFORE, the petition is DENIED. The Decision of the Court of Appeals in CA-G.R. SP No. 88469 dated July 11, 2007 reversing and setting aside the October 1, 2004 Decision of the Regional Trial Court of Sorsogon, Branch 52 in Agrarian Case No. 2000-6767 and dismissing petitioners' complaint for determination and payment of just compensation, as well as the October 15, 2007 Resolution denying the Motion for Reconsideration, are AFFIRMED.
CASH: TWELVE THOUSAND SEVENTEEN PESOS & 53/100 (P12,017.53)
BONDS: NINETY SEVEN THOUSAND PESOS ONLY (P97,000.00)
which settlement/payment is in full compensation of the cost of said landholding (s) and which I/we hereby acknowledge to have received from the Land Bank to my/our full satisfaction.
WHEREAS, pursuant to the said Presidential Decree No. 251, whenever the Land Bank pays the whole or a portion of the total cost of farm lots, the Bank shall be subrogated by reason thereof to the rights of the landowner to collect and receive the yearly amortization/s on the farm lot/s or the amount paid including the interest thereon, from the above-named tenant-farmer beneficiary/ies in whose favor said farm lot/s has/have been transferred pursuant to Presidential Decree No. 27;
NOW, THEREFORE, for and in consideration of the foregoing premises, covenants and stipulations, I/We hereby ASSIGN, TRANSFER and CONVEY, absolutely and irrevocably to the LAND BANK OF THE PHILIPPINES, x x x all claims, rights, interests and participations of whatever nature or kind pertaining to the area/s covered by the Certificate/s of Land Transfer mentioned herein and transferred to the tenant-farmer/s x x x all existing improvements thereon x x x. (Underscoring ours)