FIRST DIVISION
[G.R. No. 224323. March 11, 2019.]
SOCIAL SECURITY SYSTEM (SSS), petitioner, vs.LAND BANK OF THE PHILIPPINES (LBP), AND THE DEPARTMENT OF AGRARIAN REFORM [DAR], respondents.
NOTICE
Sirs/Mesdames :
Please take notice that the Court, First Division, issued a Resolution dated March 11, 2019 which reads as follows:
"G.R. No. 224323 (Social Security System (SSS) vs. Land Bank of the Philippines (LBP), and The Department of Agrarian Reform [DAR])
After a judicious study of the case, this Court resolves to DENY the instant petition for failure of petitioner Social Security System (SSS) to sufficiently show any reversible error in the assailed Decision 1 dated December 3, 2015 and Resolution 2 dated April 22, 2016 of the Court of Appeals (CA) in CA-G.R. SP No. 136288 fixing the just compensation of the subject property at P4,975,126.49.
However, there is a need to modify the decision by imposing interest on the balance of the final just compensation, i.e., the final just compensation (P4,975,126.49) less the amount of the initial valuation (P4,219,177.60) or P755,948.89.
The just compensation due to the landowners amounts to an effective forbearance on the part of the state — a proper subject of interest computed from the time the property was taken until the full amount of just compensation is paid — in order to eradicate the issue of the constant variability of the value of the currency over time. 3
In line with the recent circular of the Monetary Board of the Bangko Sentral ng Pilipinas No. 799, Series of 2013, effective July 1, 2013, the prevailing rate of interest for loans or forbearance of money is six percent (6%) per annum, in the absence of an express contract as to such rate of interest. Accordingly, the interest rate of twelve percent (12%) per annum should be imposed on the balance due from the date of the taking, or on August 21, 1989 until June 30, 2013, and the interest rate of six percent (6%) per annum from July 1, 2013 until fully paid. 4
WHEREFORE, the petition is DENIED. The Court of Appeals Decision dated December 3, 2015 and Resolution dated April 22, 2016 in CA-G.R. SP No. 136288 are AFFIRMED with MODIFICATION that respondent Land Bank of the Philippines (LBP) is ordered to pay to petitioner Social Security System (SSS) interest on the balance of the final just compensation, i.e., P755,948.89, at the rate of twelve percent (12%) per annum from August 21, 1989 until June 30, 2013, and at the rate of six percent (6%) per annum from July 1, 2013 until fully paid.
SO ORDERED."
Very truly yours,
(SGD.) LIBRADA C. BUENADivision Clerk of Court
Footnotes
1. Penned by Associate Justice Normandie B. Pizarro with Associate Justices Samuel H. Gaerlan and Ma. Luisa C. Quijano-Padilla, concurring; rollo, pp. 21-39.
2.Id. at 40-41.
3.Land Bank of the Philippines v. Omengan, G.R. No. 196412, July 19, 2017, 831 SCRA 294.
4.Id. See also Land Bank ofthe Philippines v. Heirs of Alsua, 753 Phil. 323 (2015).