NATIONAL POWER CORPORATION, PETITIONER, VS. THE INTERMEDIATE APPELLATE COURT, ALI DIMAL MARRIED TO MACABANDO DIMAL, RESPONDENTS.

Because one^[1] of its
projects caused the inundation of some 18,552 square meters of land (part of
registered 46,431 square meter parcel located at Guimba, Marawi City, Lanao del Sur, owned by private
respondent (with a Torrens Title granted by virtue of a PATENT from the
Government) rendering said inundated portion virtually useless for the purposes
of said respondents, the herein petitioner, the National Power Corporation (NPC,
for short) was asked for damages by the owners of the land.  To
simplify matters, the NPC decided to file expropriation proceedings before the
Regional Trial Court, which after hearing the report of the Commissioners
appointed to ascertain the “just compensation” of the land fixed the same at the
rate recommended by the Commissioners namely twelve (P12.00) pesos a square
meter.  On appeal to the Intermediate Appellate Court (IAC) the
tribunal affirmed the judgment of the trial court, hence this Petition for
Review before Us, assailing the decision of the IAC (now the Court of Appeals)
on the ground that the twelve (P12.00) pesos rate was excessive and that the
rate of three (P3.00) pesos per square meter, fixed by the City Assessor of
Marawi City as the fair market value of the property
should be the “just compensation” contemplated by the law, more specifically
P.D. 76 as amended.  We gave due course to the Petition. 
The respective memoranda of the parties having been filed, We now proceed
to decide the case, and Our decision is in favor of the herein private
respondents.

We rule that to pay only three (P3.00) pesos per square meter is
unjust and inequitable, considering the true market value of the
land.  Be it noted that even the City Assessor himself as member of
the Board of Commission who were tasked with the duty of fixing the “just
compensation” agreed on this Twelve (P12.00) pesos rate.  This in
effect amended his previous assessment of Three (P3.00) pesos per square
meter.

WHEREFORE, the assailed decision is hereby AFFIRMED. 
No costs.

SO ORDERED.

Feria, (Chairman), Fernan, Alampay, and Gutierrez, Jr., JJ., concur.