Heirs of Pablo Feliciano Jr.

vs Land Bank of the Philippines

G.R. No. 215290

Jan. 11, 2017

Facts:

The Feliciano heirs are co-owners of a 300 ha parcel of land in Camarines Sur. The other 135 ha
portion of the land was classified as un-irrigated rice land. It was subjected to P.D 27 and a
certificate of land transfer was given to 84 tenant beneficiaries in 1973 and were issued
emancipation patents in 1989 the Land Bank received the covering the 135 ha land from DAR.
DAR valued the land with 1.3 m which the Feliciano heirs rejected. Proceedings from the Office
of the Provincial Agrarian Reform up to the RTC were held for the valuation of the 135 ha land.
The RTC valued the land with 7.7 m and that Land Bank must pay the Feliciano heirs. The CA
amended the RTC ruling stating that Land must only pay the Feliciano heirs 1.8 m since it has
already paid the heirs before.

Issue:

Whether or not the 135 ha land must be valued as such.

Ruling:

No, The SC stated that the Rtc and the Ca should have computed the just compensation of the
subject land in accordance to RA. 6657 the Comprehensive Agrarian Reform Law. It states that
the land must have a just compensation that is valued according to its character from the time
of the taking or the time when the landowner was deprived of its benefit. Further the Land
Bank received the claim folder for the land during 1997 prior to July 1 2009 in accordance to
DAR AO 2 the SC stated that RA 6657 should be applied. The SC directed the RTC and the CA to
compute the just compensation must be valued at the time of the taking, the just
compensation must arrive in accordance with RA 6657, the interest may be computed as
warranted by the circumstances of the case in accordance with prevailing jurisprudence.