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Monday, June 20, 2016

National Housing Authority V. Hon. Pastor P. Reyes, 123 Scra 245 (1983)

Facts:
The undisputed fact that in this certiorari proceeding against respondent Judge for failure to comply with the provision of the Presidential Decrees as to the amount to be paid by petitioner to entitle it to a writ of possession in an expropriation proceeding, no question was raised as to their validity, calls for the grant of the remedy sought. The controversy started with the filing of a complaint with the then Court of Agrarian Relations, Seventh Regional District, Branch II, Cavite City, against private respondents, for the expropriation, pursuant to Presidential Decree No. 757, of a parcel of land, with an area of 25,000 square meters, owned and registered in the name of respondent Quirino Austria, and needed for the expansion of the DasmariƱas Resettlement Project. Then came from petitioner about a year later, a motion for the issuance of a writ of possession. Petitioner was able to secure an order placing it in possession. Thereafter, private respondent Quirino Austria filed a Motion to Withdraw Deposit in the amount of P6,600.00, a sum which was equivalent to the value of the property assessed for taxation purposes and which was deposited by petitioner pursuant to Presidential Decree No. 42 . There was an Opposition to the Motion to Withdraw Deposit by petitioner, citing Section 92 of Presidential Decree No. 464.  Petitioner's submission is that the owner's declaration at P1,400.00 which is lower than the assessor's assessment, is the just compensation for the respondents' property, respondents thus being precluded from withdrawing any amount more than P1,400.00.  Respondent Judge, however, issued an order dated July 13, 1978 which, according to petitioner, is clearly contrary to the letter and spirit of the aforecited laws.  There was a Motion for Reconsideration dated July 21, 1978.  Its basis is the provision in Presidential Decree No. 1224: "In the determination of just compensation for such private lands and improvement to be expropriated, the government shall choose between the value of the real property and improvements thereon as declared by the owner or administrator thereof or the market value determined by the City or provincial assessor, whichever is lower, at the time of the filing of the expropriation complaint."  It was then submitted that under the aforequoted statutory provision, the owner's declared market value at P1,400.00 which is lower than that fixed by the assessor is the just compensation of respondent Quirino Austria's property sought to be expropriated. The motion for reconsideration was denied for lack of merit.

Issue: Whether or not there was just compensation.

Ruling: 

The issue in this petition for certiorari and mandamus involves the application of a rule introduced by P.D.  No. 76 and reiterated in subsequent decrees that not only promotes social justice but also ends the one-sided practice supported by the conniving consent of government officials and employees, of under declaring properties for the purpose of taxation but ballooning the price thereof when the same properties are to be acquired by the government for public purposes. Put to test is the power of the government to introduce rationality in the laws and to discourage a deceitful practice that is not only damaging to the government officers but also undermines its effort at awakening a democratic responsiveness of the citizenry toward good government and its economic and social programs. The courts should recognize that the rule introduced by P.D. 76 and reiterated in subsequent decrees does not upset the established concepts of justice or the constitutional provision on just compensation for, precisely, the owner is allowed to make his own valuation of his property. The writ of certiorari is granted and the order of respondent judge of July 13, 1978 is hereby nullified and set aside.

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