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Napocor vs. Angas

The National Power Corporation filed two complaints for eminent domain against private landowners to acquire their properties for public use. The court awarded just compensation plus 6% annual interest to the landowners. Later, the landowners requested the interest be raised to 12% based on a central bank circular. The court granted this request. However, the Supreme Court ultimately ruled that the 6% interest rate based on the Civil Code, not the 12% rate from the central bank circular, should apply because the case involved eminent domain compensation rather than an ordinary money claim.

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454 views2 pages

Napocor vs. Angas

The National Power Corporation filed two complaints for eminent domain against private landowners to acquire their properties for public use. The court awarded just compensation plus 6% annual interest to the landowners. Later, the landowners requested the interest be raised to 12% based on a central bank circular. The court granted this request. However, the Supreme Court ultimately ruled that the 6% interest rate based on the Civil Code, not the 12% rate from the central bank circular, should apply because the case involved eminent domain compensation rather than an ordinary money claim.

Uploaded by

Jf Maneja
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOC, PDF, TXT or read online on Scribd
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National Power Corporation vs. Zain B. Angas GR. Nos. 60225-26 May 8, 1992 Ponente: Paras J.

Facts: On April 13, 1974 and December 3, 1974, petitioner National Power Corporation, a government-owned and controlled corporation and the agency through which the government undertakes the on-going infrastructure and development projects throughout the country, filed two complaints for eminent domain against private respondents with the Court of First Instance. Both cases were jointly tried upon agreement of the parties. On June 15, 1979, a consolidated decision in Civil Cases Nos. 2248 and 2277 was rendered by the lower court, declaring and confirming that the lots mentioned and described in the complaints have entirely been lawfully condemned and expropriated by the petitioner, and ordering the latter to pay the private respondents certain sums of money as just compensation for their lands expropriated "with legal interest thereon until fully paid." Two consecutive motions for reconsideration of the said consolidated decision were filed by the petitioner. The same were denied by the respondent court. Petitioner did not appeal the aforesaid consolidated decision, which became final and executory.Thus, on May 16, 1980, one of the private respondents [Sittie Sohra Batara] filed an ex-parte motion for the execution of the June 15, 1979 decision, praying that petitioner be directed to pay her the unpaid balance of P14,300.00 for the lands expropriated from her, including legal interest which she computed at 6% per annum. The said motion was granted by the lower court. Thereafter, the lower court directed the petitioner to deposit with its Clerk of Court the sums of money as adjudged in the joint decision dated June 15, 1979. Petitioner complied with said order and deposited the sums of money with interest computed at 6% per annum. On February 10, 1981, one of the private respondents [Pangonatan Cosna Tagol], through counsel, filed with the trial court anex-parte motion in Civil Case No. 2248 praying, for the first time, that the legal interest on the just compensation awarded to her by the court be computed at 12% per annum as allegedly "authorized under and by virtue of Circular No. 416 of the Central Bank issued pursuant to Presidential Decree No. 116 and in a decision of the Supreme Court that legal interest allowed in the judgment of the courts, in the absence of express contract, shall be computed at 12% per annum." On February 11, 1981, the lower court granted the said motion allowing 12% interest per annum. [Annex L, Petition].

Subsequently, the other private respondents filed motions also praying that the legal interest on the just compensation awarded to them be computed at 12% per annum, on the basis of which the lower court issued on March 10, 1981 and August 28, 1981 orders bearing similar import. Petitioner moved for a reconsideration of the lower court's last order dated August 28, 1981, alleging that the main decision had already become final and executory with its compliance of depositing the sums of money as just compensation for the lands condemned, with legal interest at 6% per annum; that the said main decision can no longer be modified or changed by the lower court; and that Presidential Decree No. 116 is not applicable to this case because it is Art. 2209 of the Civil Code which applies. On January 25, 1982, the lower court denied petitioner's, motion for reconsideration, stating that the rate of interest at the time of the promulgation of the June 15, 1981 decision is that prescribed by Central Bank Circular No. 416 issued pursuant to Presidential Decree No. 116, which is 12% per annum, and that it did not modify or change but merely amplified its order of August 28, 1981 in the determination of the legal interest.

Issue: WON in the computation of the legal rate of interest on just compensation for expropriated lands, the law applicable is Article 2209 of the Civil Code which prescribes a 6% legal interest rate or Central Bank Circular No. 416 which fixed the legal interest rate at 12% per annum. Ruling: WHEREFORE, the petition is granted. The Orders promulgated on February 11, 1981, March 10, 1981, August 28, 1981 and January 25, 1982 [as to the recomputation of interest at 12% per annum] are annulled and set aside. It is hereby declared that the computation of legal interest at 6% per annum is the correct and valid legal interest allowed in payments of just compensation for lands expropriated for public use to herein private respondents by the Government through the National Power Corporation. The injunction heretofore granted is hereby made permanent. No costs.

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