GR 169453; (December, 2006) (Digest)
G.R. No. 169453 , December 6, 2006
Capitol Steel Corporation vs. Phividec Industrial Authority
FACTS
Phividec Industrial Authority (PHIVIDEC), a government-owned corporation, sought to expropriate properties owned by Capitol Steel Corporation for the Mindanao International Container Terminal Project. After the Supreme Court annulled prior proceedings, PHIVIDEC re-filed the expropriation case and deposited P116,563,500 with government banks, representing 100% of the zonal value based on BIR Department Order (D.O.) No. 40-97. Capitol Steel opposed, claiming the valid zonal valuation was P700 per square meter per a later Technical Committee on Real Property Valuation (TCRPV) Resolution, not the P300/P500 values in D.O. 40-97. The trial court denied PHIVIDEC’s motion for a writ of possession, finding the deposit “inadequate” and prioritizing a judicial determination of the correct valuation through a full trial.
ISSUE
Whether the trial court correctly denied the issuance of a writ of possession to PHIVIDEC on the ground that the required deposit under Republic Act No. 8974 was insufficient due to a dispute over the applicable zonal valuation.
RULING
No. The Supreme Court reversed the trial court and ordered the issuance of the writ of possession. Under R.A. 8974, which governs the expropriation of private property for national government infrastructure projects, the issuance of a writ of possession is ministerial upon the filing of the expropriation complaint and the deposit of an amount equivalent to 100% of the property’s value based on the relevant BIR zonal valuation. The law does not require a prior judicial determination of the final just compensation or a resolution of conflicting valuations before the deposit is made and the writ issues. The “value” for the purpose of the initial deposit is specifically the BIR zonal valuation at the time of the taking. Here, D.O. 40-97 was the operative and official BIR issuance. The subsequent TCRPV Resolution, issued upon Capitol Steel’s request, was a mere recommendation for reappraisal and did not amend or replace the official schedule in D.O. 40-97. Therefore, PHIVIDEC correctly computed and deposited the amount based on the controlling BIR valuation. Any dispute regarding a higher final just compensation must be resolved in the subsequent trial on the merits, but it cannot delay the immediate issuance of the writ of possession once the statutory deposit is made.