April 1, 1997
DAR OPINION NO. 33-97
Atty. Alberto L. Pangcog
VP — General Counsel
National Power Corporation
Corner Quezon Avenue
Diliman, Quezon City
Dear Mr. Pangcog:
This refers to your letter regarding the property situated at Brgy. Mayabobo, Candelaria, Quezon of Ellice Agro Industrial Corporation which was compulsorily acquired and distributed to qualified agrarian beneficiaries. When the NPC constructed its transmission towers and lines it traversed the subject landholdings. In this connection, you posed the query of "who are, entitled to the value of improvements and coconut trees damaged in the construction of the transmission lines".
Atty. Rolando R. Roldan, Attorney V, of the Provincial Agrarian Reform Office of Quezon rendered an opinion to the effect that "in case of acquisition of right of way for public use, it is indispensable that indemnity or compensation thereof should be paid to the owner of the property at the time of the taking". The aforesaid opinion further declared that the agrarian reform beneficiaries are the rightful recipients of the indemnity by reason of said construction since the "ownership of the beneficiaries over the property in issue is reckoned from the time the DAR makes an award of the land to them" which according to you the award shall be computed (sic) within one hundred eighty (180) days from the time the DAR takes actual possession of the land. You are of the belief that the 180 day period shall be counted from the time the DAR takes actual possession of the subject property which shall take place as enunciated under paragraph (e), Section 16 of R.A. No. 6657. Said provision of law provides: "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."
It is in this instance that you doubt the opinion considering that you were informed by the original owner, Ellice Agro Industrial Corporation, that it did not as yet receive any payment and therefore no award of the subject land to the beneficiaries has taken place following the mandate of Sections 24 and par. (e), Section 16 of R.A. No. 6657. Furthermore, relying on Section 28 of R.A. No. 6657, you imply that it is thus incumbent that the landowner shall retain ownership over the standing crops at the time of acquisition.
You now ask whether the Opinion rendered binds the Department of Agrarian Reform.
We wish to inform you that as per records, a Certification of Payment dated 23 September 1994 was issued by the LBP which paid the landowner, Ellice Agro Industrial Corporation, in cash and LBP bonds pursuant to paragraph (e), Section 16 of R.A. No. 6657. This signifies that the subject property was lawfully taken by the DAR for distribution to the qualified beneficiaries. It is of no doubt then that when said construction of the power lines over the subject property transpired, the same was already owned by the beneficiaries as evidenced by the CLOAs issued to them and registered in their names by the Registry of Deeds thus they should be the persons to be paid the damages as owners thereof. Consequently, this Office concurs with the action taken by our field lawyer.
Please be guided accordingly.
Very truly yours,
(SGD.) ARTEMIO A. ADASA, JR.
Undersecretary for Legal Affairs, and Policy and Planning
Copy furnished:
PARO Danilo M. Orbase
DAR, Pagbilao, Quezon
Dir. Eugenio B. Bernardo
DARRO Pasig City