THE PROVINCE OF ZAMBOANGA DEL NORTE,

plaintiff-appellee,
vs.
CITY OF ZAMBOANGA,
SECRETARY OF FI-NANCE and COMMISSIONER OF
INTERNAL REVENUE, defendants-appellants.
28 March 1968 | J. Bengzon
Digest Author: Jude Fanila
Topic: Classifications of Property – Based on ownership
Case Summary: CA 39 converted the Municipality of Zamboanga into ZG city. This led to the new
Zamboanga City being separated from the province of Zamboanga (ZG city was originally the provincial
Capital). Same act provided that properties to be abandoned by the Province of Zamboanga were to be
acquired and paid for by Zamboanga City at a price fixed by the Auditor General.
50 properties were abandoned by the province. Price was fixed by Auditor at P1,294,244. Payment
commenced, but subsequent law (RA 3039) amended CA 39, provided that properties were to be
transferred free of charge.
Province of Zamboanga assails RA 3039, claiming that 50 properties were patrimonial property, therefore
could not be taken without just compensation.
SC held that 24 lots were public property, therefore under full control of Congress and thus could be
transferred without just compensation.
26 lots were considered patrimonial property, thus the province of Zamboanga entitled to payment for
them.
Petitioners: Province of Zamboanga Del Norte
Respondents: City of Zamboanga, Secretary of Finance, Commissioner of Internal Revenue
Doctrine: If the property is owned by the municipality in its public and governmental capacity, the
property is PUBLIC and Congress has absolute control over it. But if it is owned in its private or
proprietary capacity, then it is PARTIMONIAL and Congress has no absolute control.

Facts
1. 1936 - Commonwealth Act 39 – converted Municipality of Zamboanga into Zamboanga City.
Prior to this, it was the provincial capital of the then Zamboanga province.
a. Under CA 39 – Buildings and properties of the province that will be abandoned shall be
acquired and paid for by the City of Zamboanga pursuant to the price fixed by the
Auditor General.
i. Properties covered 50 lots and some buildings on them
2. June 16 1948 - RA 286 approved, creating municipality of Molave which then made it the capital
of Zamboanga province.
3. May 26 1949 – Auditor General fixed value of properties at P1,294-244.00
 4. June 6 1952 – RA 711 – divided Zamboanga into Zamboanga del Norte and Zamboanga del sur
a. Sec. 6 of same act provided that properties of former province to be divided equitably by
the President.
5. Jan 11 1955 – assets and obligations were apportioned by the president via the Executive
Secretary.
a. 54.39% for Zamboanga del Norte and 45.61% for Zamboanga del Sur.
b. Zamboanga del Norte therefore became entitled to 54.39% of P1,294,244.00, the total
value of the lots and buildings in question, or P704,220.05 payable by Zamboanga City
6. March 17 1959 – Exec Sec. issued a ruling that Zamboanga del Norte had a vested right as owner
(therefore, coowner proindiviso) of properties aforementioned thus they were entitled to their
price, payable by ZG city.
a. This revoked previous cabinet resolution which conveyed all 50 lots and buildings to
Zamboanga City for P1.00
b. Sec. of Finance via Commissioner. Of internal revenue authorized the deduction of 25%
of internal revenue for City of Zamboanga  aggregate amount of P57, 737.46 in partial
payment of the P704,220.05 due to Zamboanga del Norte.
7. June 17 1961 – RA 3039 amended CA 39 Sec. 50 – which provided that the transfer of properties
were to be free of charge.
a. Led to return of P43,030.11/P57, 373.46 already paid.
8. March 5 1962 – ZG del Norte filed for declaratory relief + WPI via CFI of ZG De Norte
a. Wanted RA 3039 – Unconstitutional for deprivation of property without just
compensation and due process
b. Plaintiffs rights and obligations under the law be declared
c. Sec. of Finance and Commissioner of Internal Revenue be enjoined from reimbursing
P57,373
d. That ZG city be ordered to continue the quarterly payment of the P704,220 balance
9. Aug. 12 1963 – CFI declared RA 3039 unconstitutional
a. Deprived ZG del Norte of private properties – Ordered payment in full – transfer of deed
upon full payment only.
i. Plaintiff via motion to reconsider obtained a ruling that ZG city pay the amount
due in lump sum with 6% /annum interest.
10. Led to current appeal.

Issues
1. W/N the RA 3039 is constitutional? | W/N 50 lots and buildings are under the public domain? –
NO, but qualified
a. If properties are owned and used for public and governmental purposes, Congress has
absolute control. If patrimonial property, there can be no taking without just
compensation as private properties.
b. Following the ruling in Hinunangan v. Director of lands, Viuda De Tantoco v. Municipal
City Council of Iloilo and Municipality of Batangas v. Cantos properties which are
devoted for public service, even if not for public use fall under the control of Congress. It
is enough that property be held and devoted for governmental purposes like local
administration, public education, public health, etc.
 i. Under this classification 24 lots + buildings are considered as public property.
The buildings, being accessories to the land follow the nature of the principal i.e.
they become public too.
1. The buildings, though located in ZG city being for public use can also be
availed of by the ZG province residents thus not deprived of benefits.
2. This classification follows the Law of Municipal Corporations rather
than the Civil Code. Art. 424 of CC provides that the classification of
patrimonial properties of municipalities s those for public use was
without prejudice to special laws, therefore principles of Municipal Law
applies.
a. Under the NCC classification, properties not devoted for public
use (e.g. those limited strictly to public service) are considered
patrimonial properties.
ii. The other 26 lots and buildings are considered patrimonial property for they are
not used for governmental purposes. Also, they are registered under ZG Del
Norte. Although registration not enough to convert public property to private.
c. No estoppel by laches – Cause of action under CA 39 Sec. 50 arose 1949 after fixing of
value of properties, 1951 reconsideration of transfer of properties without charge. 1952 –
old province dissolved, Successor-in-interest ZG del Norte obtained reconsideration in
1959, obtained partial payments til 1961. Suit in 1962, thus no laches.
i. No lump sum payment as relief sought was quarterly payments also, no complete
delivery of lots yet thus no lump sum under Art. 1169.

Ruling
WHEREFORE, the decision appealed from is hereby set aside and another judgment is hereby entered as
follows:
(1) Defendant Zamboanga City is hereby ordered to return to plaintiff Zamboanga del Norte in lump sum
the amount of P43,030.11 which the former took back from the latter out of the sum of P57,373.46
previously paid to the latter; and
(2) Defendants are hereby ordered to effect payments in favor of plaintiff of whatever balance remains of
plaintiff's 54.39% share in the 26 patrimonial properties, after deducting therefrom the sum of
P57,373.46, on the basis of Resolution No. 7 dated March 26, 1949 of the Appraisal Committee formed
by the Auditor General, by way of quarterly payments from the allotments of defendant City, in the
manner originally adopted by the Secretary of Finance and the Commissioner of Internal Revenue. No
costs. So ordered.