Landbank vs CA,

GR No. 118712, July 5,1996

Doctrine:

When the law speaks in clear and categorical language, there is no reason for
interpretation or construction, but only for application. Thus, recourse to any rule which allows
the opening of trust accounts as a mode of deposit under Section 16(e) of RA 6657 goes
beyond the scope of the said provision and is therefore impermissible.

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 land was taken and the titles were 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,
maintained that the word "deposit" referred merely to the act of depositing and in no way
excluded the opening of a trust account as a form of deposit.

Issue:
Whether or not the opening of a trust account tantamount to deposit.

Ruling:

No. Opening of trust account does not tantamount to deposit.

Section 16 of RA 6657 provides: (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.
 It is very explicit that the deposit must be made only in cash or LBP bonds, there is no
ambiguity. DAR’s contention that the word deposit referred merely to the act of depositing and in
no way excluded the opening of a trust account as a form of deposit is untenable.

Hence, opening of trust account does not tantamount to deposit.