Professional Documents
Culture Documents
Case A.9 Chavez V Nha
Case A.9 Chavez V Nha
*
G.R. No. 164527. August 15, 2007.
_______________
* EN BANC.
236
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 2/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
237
Project was terminated even before the Chavez petition was filed;
(6) The PEAAMARI JVA was executed as a result of direct
negotiation between the parties and not in accordance with the
BOT Law. The NHARBI JVA and subsequent amendments
constitute a BOT contract governed by the BOT Law; and (7) In
PEA, the lands to be reclaimed or already reclaimed were
transferred to PEA, a government entity tasked to dispose of
public lands under Executive Order No. (EO) 525. In the NHA
case, the reclaimed lands were transferred to NHA, a government
entity NOT tasked to dispose of public land and therefore said
alienable lands were converted to patrimonial lands upon their
transfer to NHA. Thus the PEA Decision cannot be considered an
authority or precedent to the
238
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 4/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
239
other hand, implied powers are those that can be inferred or are
implicit in the wordings of the law or conferred by necessary or
fair implication in the enabling act. In Angara v. Electoral
Commission, 63 Phil. 139 (1936), the Court clarified and stressed
that when a general grant of power is conferred or duty enjoined,
every particular power necessary for the exercise of the one or the
performance of the other is also conferred by necessary
implication. It was also explicated that when the statute does not
specify the particular method to be followed or used by a
government agency in the exercise of the power vested in it by
law, said agency has the authority to adopt any reasonable
method to carry out its functions. The power to reclaim on the
part of the NHA is implicit from PD 757, RA 7279, MO 415, RA
6957, and PD 3A.
Same; Same; Smokey Mountain Development and
Reclamation Project (SMDRP); Even without an implied power to
reclaim lands under National Housing Authority (NHA’s) charter,
we rule that the
240
241
242
243
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 9/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
244
245
246
247
301 SCRA 450 (1999), laid down the jurisprudence that: It is true
that, once a patent is registered and the corresponding certificate
of title is issued, the land covered by them ceases to be part of the
public domain and becomes private property, and the Torrens
Title issued pursuant to the patent becomes indefeasible upon the
expiration of one year from the date of issuance of such patent.
Same; Same; Same; Same; Same; Same; Same; Judgments; It
is a settled precept that decisions of the Supreme Court can only be
applied prospectively as they may prejudice vested rights if applied
retroactively.—The ruling in PEA cannot even be applied
retroactively to the lots covered by Special Patents Nos. 3592 (40
hectare reclaimed land) and 3598 (39hectare reclaimed land).
The reclamation of the land under SMDRP was completed in
August 1996 while the PEA decision was rendered on July 9,
2002. In the meantime, subdivided lots forming parts of the
reclaimed land were already sold to private corporations for value
and separate titles issued to the buyers. The Project was
terminated through a Memorandum of Agreement signed on
August 27, 2003. The PEA decision became final through the
November 11, 2003 Resolution. It is a settled precept that
decisions of the Supreme Court can only be applied prospectively
as they may prejudice vested rights if applied retroactively.
Same; Same; Same; Same; Same; Same; Same; Even if it is
conceded that there was no explicit declaration that the lands are
no longer needed for public use or public service, there was
however an implicit executive declaration that the reclaimed areas
are not necessary anymore for public use or public service when
President Aquino through MO 415 conveyed the same to the
National Housing Authority (NHA) partly for housing project and
related commercial/
248
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 14/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
249
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 15/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
250
may lease land included under this title suitable for industrial or
residential purposes, but the lease granted shall only be valid
while such land is used for the purposes referred to. (Emphasis
supplied.) Reliance on said provision is incorrect as the same
applies only to “a province, municipality or branch or subdivision
of the Government.” The NHA is not a government unit but a
government corporation performing governmental and
proprietary functions.
Same; Same; Same; Same; Same; Same; Same; The transfer of
the reclaimed lands by the National Government to the National
Housing Authority (NHA) for housing, commercial, and industrial
purposes transformed them into patrimonial lands which are of
course owned by the State in its private or proprietary capacity—
perforce, the National Housing Authority (NHA) can sell the
reclaimed lands to any Filipino citizen or qualified corporation.
—PD 757 is clear that the NHA is empowered by law to transfer
properties acquired by it under the law to other parties, thus:
Section 6. Powers and functions of the Authority. The Authority
shall have the following powers and functions to be exercised by
the Boards in accordance with the established national human
settlements plan prepared by the Human Settlements
Commission: x x x x (k) Enter into contracts whenever necessary
under such terms and conditions as it may deem proper and
reasonable; (l) Acquire property rights and interests, and
encumber or otherwise dispose the same as it may deem
appropriate (Emphasis supplied.) Letter (l) is emphatic that the
NHA can acquire property rights and interests and encumber or
otherwise dispose of them as it may deem appropriate. The
transfer of the reclaimed lands by the National Government to
the NHA for housing, commercial, and industrial purposes
transformed them into patrimonial lands which are of course
owned by the State in its private or proprietary capacity. Perforce,
the NHA can sell the reclaimed lands to any Filipino citizen or
qualified corporation.
Same; Same; Same; Same; Same; Same; Same; Bids and
Bidding; The lands reclaimed by and conveyed to the National
Housing Authority (NHA) are no longer lands of public domain—
these lands became proprietary lands or patrimonial properties of
the State upon
251
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 17/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
transfer of the titles over the reclaimed lands to the NHA and
hence outside the ambit of CA 141; The National Housing
Authority (NHA) can legally transfer patrimonial land to any
interested qualified buyer without any bidding conducted by the
Director of Lands because the National Housing Authority (NHA),
unlike Public Estates Authority (PEA), is a government agency not
tasked to sell lands of public domain.—Sections 63 and 67 of CA
141, as amended, are in point as they refer to government sale by
the Director of Lands of alienable and disposable lands of
public domain. This is not present in the case at bar. The lands
reclaimed by and conveyed to the NHA are no longer lands of
public domain. These lands became proprietary lands or
patrimonial properties of the State upon transfer of the titles over
the reclaimed lands to the NHA and hence outside the ambit of
CA 141. The NHA can therefore legally transfer patrimonial land
to RBI or to any other interested qualified buyer without any
bidding conducted by the Director of Lands because the NHA,
unlike PEA, is a government agency not tasked to sell lands of
public domain. Hence, it can only hold patrimonial lands and can
dispose of such lands by sale without need of public bidding.
Same; Same; Same; Same; Same; Same; Same; Same;
Statutory Construction; Reclaimed lands cannot be considered
unserviceable properties; Sec. 79 of PD 1445 cannot be applied to
patrimonial properties like reclaimed lands transferred to a
government agency like the National Housing Authority (NHA)
which has entered into a BuildOperateandTransfer (BOT)
contract with a private firm—if the patrimonial property will be
subject to public bidding as the only way of disposing of said
property, then Sec. 6 of RA 6957 on the repayment scheme is
almost impossible or extremely difficult to implement considering
the uncertainty of a winning bid during public auction; The law
does not intend anything impossible (lex non intendit aliquid
impossibile).—Reclaimed lands cannot be considered
unserviceable properties. The reclaimed lands in question are
very much needed by the NHA for the Smokey Mountain Project
because without it, then the projects will not be successfully
implemented. Since the reclaimed lands are not unserviceable
properties and are very much needed by NHA, then Sec. 79 of PD
1445 does not apply. More importantly, Sec. 79 of PD 1445 cannot
be applied to patrimonial properties like reclaimed lands
transferred to a government agency like the NHA which has
entered into a BOT contract with a private firm. The reason is
obvious. If the patrimonial property will
252
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 18/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
253
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 19/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
254
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 20/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
255
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 22/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
256
257
“to declare NULL AND VOID the Joint Venture Agreement (JVA)
dated March 9, 1993 between the National Housing Authority and
RII Builders, Inc. and the Smokey Mountain Development and
Reclamation Project embodied therein; the subsequent
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 24/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
amendments
258
to the said JVA; and all other agreements signed and executed in
relation thereto—including, but not limited to the Smokey
Mountain Asset Pool Agreement dated 26 September 1994 and
the separate agreements for Phase I and Phase II of the Project––
as well as all other transactions which emanated therefrom, for
being UNCONSTITUTIONAL and INVALID;
to enjoin respondents—particularly respondent NHA—from
further implementing and/or enforcing the said project and other
agreements related thereto, and from further deriving and/or
enjoying any rights, privileges and interest therefrom x x x; and
to compel respondents to disclose all documents and
information relating to the project––including, but not limited to,
any subsequent agreements with respect to the different phases of
the project, the revisions over the original plan, the additional
works incurred thereon, the current financial condition of
respondent RII Builders,
1
Inc., and the transactions made
respecting the project.”
The Facts
_______________
2 Id., at p. 513.
3 Id., at pp. 513514.
259
_______________
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 26/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
4 Id., at p. 515.
5 Id., at p. 513.
260
_______________
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 27/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
261
8
On February 10, 1992, Joint Resolution No. 03 was passed
by both houses of Congress. Sec. 1 of this resolution
provided, among other things, that:
_______________
262
_______________
10 Id., at p. 296.
11 Id., at p. 295.
12 Id., at p. 436.
13 Id., at p. 476.
263
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 29/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
14 Id., at p. 477.
15 Id., at pp. 297298.
264
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 30/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
16 Id., at p. 479.
17 Id., at pp. 6979.
18 “Creating the National Housing Authority and Dissolving the
Existing Housing Agencies, Defining Its Powers and Functions, Providing
Funds Therefor, and for Other Purposes” (1975).
265
“2.02 The [RBI] shall develop the PROJECT based on the Final
Report and Detailed Engineering as approved by the Office of the
President. All costs and expenses for hiring technical personnel,
date gathering, permits, licenses, appraisals, clearances, testing
and similar undertaking shall be for the account of the [RBI].
_______________
19 Rollo, p. 70.
266
267
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 33/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
For RBI:
4.01 Immediately commence on the preparation of the FINAL
REPORT with emphasis to the expedient acquisition, with the
assistance of the [NHA] of Environmental Compliance Certificate
(ECC) from the Environmental Management Bureau (EMB) of the
[DENR]. Construction shall only commence after the acquisition
of the ECC. The Environment Compliance Certificate (ECC) shall
form part of the FINAL REPORT.
The FINAL REPORT shall provide the necessary subdivision
and housing plans, detailed engineering and architectural
drawings, technical specifications and other related and required
documents relative to the Smokey Mountain area.
With respect to the 40hectare reclamation area, the [RBI]
shall have the discretion to develop the same in a manner that it
deems necessary to recover the [RBI’s] investment, subject to
environmental and zoning rules.
4.02 Finance the total project cost for land development,
housing construction and reclamation of the PROJECT.
4.03 Warrant that all developments shall be in compliance with
the requirements of the FINAL REPORT.
_______________
20 Id., at p. 73.
268
269
4.12 All advances outside of project costs made by the [RBI] to the
[NHA] shall be deducted from the proceeds due to the [NHA].
4.13 The [NHA] shall be responsible for the acquisition of the
Mother Title for the Smokey Mountain and Reclamation Area
within 90 days upon submission of Survey returns to the Land
Management Sector. The land titles to the 40hectare reclaimed
land, the 1.3 hectare commercial area at the Smokey Mountain
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 35/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
21 Id., at p. 479.
22 Id., at pp. 8094.
23 Id., at p. 83.
24 Id.
25 Id.
26 Id.
271
ORIGINAL CHANGES/REVISIONS
1. TEMPORARY HOUSING
Wood/Plywood, Concrete/Steel Frame Structure
ga. 31 G.I. Sheet gauge 26 G.I. roofing
usable life of 3 sheets use as permanent structures
years, future 12 for factory and warehouses mixed 17
SM floor area. sm & 12 sm floor area.
2. MEDIUM RISE MASS
HOUSING
Box type precast Conventional and precast concrete
Shelter structures, 32
component 20
square
_______________
27 Id., at p. 84.
272
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 38/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
28 Id., at p. 93.
273
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 39/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
2.05 The DEVELOPER shall reclaim seventy nine (79) hectares of the
Manila Bay area directly across Radial Road 10 (R10) to serve as
payment to the DEVELOPER as its asset share for Phase I and to
develop such land into commercial area with port facilities; provided, that
the port plan shall be integrated with the Philippine Port Authority’s
North Harbor plan for the Manila Bay area and provided further, that
the final reclamation and port plan for said reclaimed area shall be
submitted for approval by the Public Estates Authority and the
Philippine Ports Authority, respectively: provided finally, that subject to
par. 2.02 above, actual reclamation work may commence upon approval
of the final reclamation plan by the Public Estates Authority.
_______________
274
xxxx
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 40/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
275
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 41/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
On
35
June 23, 1994, the Legislature passed the Clean Air
Act. The Act made the establishment of an incinerator
illegal and effectively barred the implementation of the
planned incinerator project under Phase II. Thus, the off
site disposal of the
36
garbage at the Smokey Mountain
became necessary. 37
The land reclamation was completed in August 1996.
Sometime later in 1996, pursuant likewise to
Proclamation No. 39, the DENR issued Special Patent No.
3598 conveying in favor of NHA an additional 390,000
square meter area.
During the actual construction and implementation of
Phase I of the SMDRP, the InterAgency Technical
Committee found and recommended to the EXECOM on
December 17, 1997 that additional works were necessary
for the completion and viability of the Project. The
EXECOM approved the recommendation and so, NHA
instructed RBI 38 to implement the change orders or
necessary works.
_______________
276
_______________
39 Id., at p. 858.
40 Id., at p. 860.
41 Id., at p. 859.
278
The
42
EXECOM passed Resolution Nos. 991601 and 9916
02 which approved the modification of the Supplemental
Agreement, to wit:
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 44/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
42 Id.
43 Id., at p. 860.
279
_______________
44 Id.
45 Id., at p. 861.
46 Id.
280
“1. TERMINATION
xxxx
5. SETTLEMENT OF CLAIMS
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 46/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
281
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 47/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
The Issues
283
II
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 49/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
III
284
IV
experienced or is in
_______________
285
demands upon the Court’s time and attention which are better
devoted to those matters within its exclusive juris
_______________
286
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 52/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
51 G.R. No. 67787, April 18, 1989, 172 SCRA 415, 424.
52 G.R. Nos. 9928990, January 27, 1993, 217 SCRA 633, 652.
287
_______________
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 53/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
288
_______________
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 54/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
54 Rollo, p. 871.
55 Petition, Comments, Reply, and Memoranda.
289
290
_______________
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 56/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
291
_______________
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 57/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
292
a. by PEA
b. by any person or entity pursuant to a contract it
executed with PEA
c. by the National Government agency or entity
authorized under its charter to reclaim lands
subject to consultation with PEA
_______________
293
295
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 60/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
296
64
sary or fair implication in the enabling act. In Angara v.
Electoral Commission, the Court clarified and stressed that
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 61/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
297
300
RA 7279.
PD 757 identifies NHA’s mandate to “[d]evelop and
undertake housing development and/or resettlement
projects through joint ventures or other arrangements with
public and private entities.”
The power of the NHA to undertake reclamation of land
can be inferred from Secs. 12 and 29 of RA 7279, which
provide:
301
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 66/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
Metro Manila;
WHEREAS, the National Housing Authority has presented a
viable Conceptual Plan to convert the Smokey Mountain dumpsite
into a habitable housing project inclusive of the reclamation
area across R10 as enabling component of the Project;
WHEREAS, the said Plan requires the coordinated and
synchronized efforts of the City of Manila and other government
agencies and instrumentalities to ensure effective and
efficient implementation;
WHEREAS, the government encourages private sector
initiative in the implementation of its projects.” (Emphasis
supplied.)
_______________
303
_______________
304
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 69/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
Petitioner Chavez puts forth the view that even if the NHA
and RBI were granted the authority to reclaim, they were
not authorized to do so by the DENR.
Again, reliance is made on our ruling in PEA where it
was held that the DENR’s authority is necessary in order
for the government to validly reclaim foreshore and
submerged lands. In PEA, we expounded in this manner:
305
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 70/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
306
307
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 72/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
72 G.R. No. 157036, June 9, 2004, 431 SCRA 534, 555; citing EO 292,
Book IV, Chapter 7.
308
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 74/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
310
The query is, when did the declaration take effect? It did so
only after the special patents covering the reclaimed areas
were issued. It is only on such date that the reclaimed
lands became alienable and disposable lands of the public
domain. This is in line with the ruling in PEA where said
issue was clarified and stressed:
_______________
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 76/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
312
_______________
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 77/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
75 Id., at p. 235.
313
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 78/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
315
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 79/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
78 G.R. No. 119682, January 21, 1999, 301 SCRA 450, 454455.
79 G.R. No. 146030, December 3, 2002, 393 SCRA 361, 373.
80 G.R. No. 131667, July 28, 2005, 464 SCRA 280, 291.
81 G.R. No. 163118, April 27, 2007, 522 SCRA 599, 604.
316
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 80/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
82 G.R. No. 97973, January 27, 1992, 205 SCRA 515, 527.
317
318
_______________
320
“Section 60. Any tract of land comprised under this title may be
leased or sold, as the case may be, to any person, corporation or
association authorized to purchase or lease public lands for
agricultural purposes. The area of the land so leased or sold shall
be such as shall, in the judgment of the Secretary of Agriculture
and Natural Resources, be reasonably necessary for the purposes
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 84/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
321
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 85/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
322
Section 67. The lease or sale shall be made through oral bidding;
and adjudication shall be made to the highest bidder. However,
where an applicant has made improvements on the land by virtue
of a permit issued to him by competent authority, the sale or lease
shall be made by sealed bidding as prescribed in section twenty
six of this Act, the provisions of which shall be applied whenever
applicable. If all or part of the lots remain unleased or unsold, the
Director of Lands shall from time to time announce in the Official
Gazette or in any other newspapers of general circulation, the
lease of sale of those lots, if necessary.”
324
_______________
325
326
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 90/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
327
_______________
328
ARTICLE II
xxxx
SEC. 28. Subject to reasonable conditions prescribed by law,
the State adopts and implements a policy of full public disclosure
of all its transactions involving public interest.
ARTICLE III
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 92/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
329
this open dialogue can be effective only to the extent that the
citizenry is informed and thus able to formulate its will
intelligently. Only when the participants in the discussion are
aware of the issues and have 87
access to information relating
thereto can such bear fruit.”
Sec. 28, Art. II compels the State and its agencies to fully
disclose “all of its transactions involving public interest.”
Thus, the government agencies, without need of demand
from anyone, must bring into public view all the steps and
negotiations leading to the consummation of the89
transaction and the contents of the perfected contract.
Such information must pertain to “definite propositions of
the government,” meaning official recommendations or
final positions reached on the different matters subject of
negotiation. The government
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 93/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
87 G.R. No. 74930, February 13, 1989, 170 SCRA 256, 265.
88 Supra note 50, at p. 184.
89 Id., at p. 185; citing V RECORD OF THE CONSTITUTIONAL
COMMISSION 2425 (1986).
330
331
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 95/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
turbed or simply
90
ignored, citing Rieta v. People of the
Philippines.
The argument of the Solicitor General is meritorious.
The “operative fact” doctrine is embodied in De Agbayani v.
Court of Appeals, wherein it is stated that a legislative or
executive act, prior to its being declared as
unconstitutional by the courts, is valid and must be
complied with, thus:
“As the new Civil Code puts it: “When the courts declare a law to
be inconsistent with the Constitution, the former shall be void
and the latter shall govern. Administrative or executive acts,
orders and regulations shall be valid only when they are not
contrary to the laws of the Constitution.” It is understandable
why it should be so, the Constitution being supreme and
paramount. Any legislative or executive act contrary to its terms
cannot survive.
Such a view has support in logic and possesses the merit of
simplicity. It may not however be sufficiently realistic. It does
not admit of doubt that prior to the declaration of nullity
such challenged legislative or executive act must have
been in force and had to be complied with. This is so as until
after the judiciary, in an appropriate case, declares its invalidity,
it is entitled to obedience and respect. Parties may have acted
under it and may have changed their positions. What could be
more fitting than that in a subsequent litigation regard be had to
what has been done while such legislative or executive act was in
operation and presumed to be valid in all respects. It is now
accepted as a doctrine that prior to its being nullified, its
existence as a fact must be reckoned with. This is merely to reflect
awareness that precisely because the judiciary is the
governmental organ which has the final say on whether or not a
legislative or executive measure is valid, a period of time may
have elapsed before it can exercise the power of judicial review
that may lead to a declaration of nullity. It would be to deprive
the law of its quality of fairness and justice then, if there be no
recognition of what had transpired prior to such adjudication.
_______________
90 G.R. No. 147817, August 12, 2004, 436 SCRA 273, 291292.
333
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 96/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
“In similar situations in the past this Court had taken the
pragmatic and realistic course set forth in Chicot County
Drainage District vs. Baxter Bank to wit:
_______________
334
The courts below have proceeded on the theory that the Act of Congress,
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 97/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
335
_______________
336
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 99/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
337
March 19, 1993 JVA between NHA and RBI and the
SMDRP embodied in the JVA, the subsequent amendments
to the JVA and all other agreements signed and executed
in relation to it, including, but not limited to, the
September 26, 1994 Smokey Mountain Asset Pool
Agreement and the agreement on Phase I of the Project as
well as all other transactions which emanated from the
Project, have been shown to be valid, legal, and
constitutional. Phase II has been struck down by the Clean
Air Act.
With regard to the prayer for prohibition, enjoining
respondents particularly respondent NHA from further
implementing and/or enforcing the said Project and other
agreements related to it, and from further deriving and/or
enjoying any rights, privileges and interest from the
Project, we find the same prayer meritless.
Sec. 2 of Rule 65 of the 1997 Rules of Civil Procedure
provides:
338
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 101/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
_______________
339
gateway.
WHEREFORE, the petition is PARTIALLY GRANTED.
The prayer for a writ of prohibition is DENIED for lack
of merit.
The prayer for a writ of mandamus is GRANTED.
Respondent NHA is ordered to allow access to petitioner to
all public documents and official records relative to the
SMDRP—including, but not limited to, the March 19,
1993 JVA between the NHA and RBI and subsequent
agreements related to the JVA, the revisions over the
original plan, and the additional works incurred on and the
transactions made with respect to the Project.
No costs.
SO ORDERED.
340
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 103/104
8/4/2016 SUPREME COURT REPORTS ANNOTATED VOLUME 530
——o0o——
341
© Copyright 2016 Central Book Supply, Inc. All rights reserved.
http://central.com.ph/sfsreader/session/000001565571c13a65a60129003600fb002c009e/t/?o=False 104/104