G.R. No.

118712 Case Digest

G.R. No. 118712, October 6, 1995
Landbank of the Philippines
vs Court of Appeals, Pedro Yap, Heirs of Emiliano Santiago,
Agricultural Management and Development Corp.
Ponente: Francisco

Facts:
Yap and Santiago are landowners whose landholdings were acquired by
the DAR, subjecting it for transfer to qualified CARP
beneficiaries. Aggrieved by the compensation valuation of DAR and
LBP, respondents filed a petition for certiorari and mandamus with
a preliminary mandatory injunction. The case was referred to CA for
proper determination and disposition.

Respondents argued that DAR and LBP committed grave abuse of

discretion and acted without jurisdiction when they opened trusts
accounts in lieu of the depositing in cash or bonds, before the
lands was taken and the titles are cancelled. Respondents claim
that before the taking of the property, the compensation must be
deposited in cash or bonds.

DAR, maintained that the certificate of deposit was a substantial

compliance with the rule on taking and compensation. LBP confirms
that the certificate of deposit expresses "reserved/deposited".

CA ruled in favor of Yap and Santiago. DAR filed a petition.  DAR,

maintain that the word "deposit" referred merely to the act of
depositing and in no way excluded the opening of a trust account as
form of deposit.

Issue: Whether the opening of trust account tantamount to deposit.

Ruling:
Contention of DAR is untenable. Section 16 of RA 6657 provides:
(e)        Upon receipt by the landowner of the corresponding
payment or, in case of rejecti