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FRANCIS JAMES C.

PAGDANGANAN

JD1A

Republic v. Holy Trinity Realty Development Corporation (HTRDC)

GR No. 172410.

Facts: Petitioner, represented by Toll Regulatory Board (TRB), filed before the RTC of Malolos,
Bulacan a Consolidated Complaint for Expropriation against landowners HTRDC.

TRB filed a motion for the issuance of a Writ of Possession, manifesting that it deposited a
sufficient amount to cover the payment of 100% of the zonal value of the affected properties, in
the total amount of PhP 28,406,700.00, with Land Bank South Harbor Branch. The RTC issued,
the Writ of Possession. On March 3, 2003, HTRDC filed with the RTC a Motion to Withdraw
Deposit, praying that the respondent be allowed to withdraw the amount of PhP 22,968,000.00,
out of the TRB’s advance deposit of PhP 28,406,700.00, including the interest which accrued
thereon.

The RTC issued an Order, on April 21, 2003, directing Land bank South Harbor Branch to
release in favor of HTRDC the amount of PhP22, 968,000.00. However, the issue on the interest
earned by the amount deposited in the bank, if there any, should still be threshed out. On March
11, 2004, the RTC ordered that the interest earnings from the deposit of P22,968,000.00
respecting 100% of the zonal value of the affected properties in this expropriation proceedings
under the principle of accession are considered as fruits and should pertain to HTRDC.

TRB argued the HTRDC is entitled only to an amount equivalent to the zonal value of the
expropriated property, nothing more and nothing less as provided under Sec. 4 of RA 8974

“…shall immediately pay the owner of the property the amount equivalent to the sum of (1) one
hundred (100%) percent of the value of the property based on the current relevant zonal
valuation of the Bureau of Internal Revenue..”

On appeal to the Court of Appeals by HTRDC, the CA ruled that the interest which accrued on
the amount deposited in the expropriation accounts belongs the HTRDC by virtue of accession

ISSUE:

W/N the interest earned by the deposited amount in the expropriation account would accrue to
HRTDC by virtue of accession?

HELD:

The interest that accrued from the said payment belongs to its owners, in this case, the HTRDC.
The payment was given by constructive delivery when TRB applied for a writ of execution and
delivered the payment to the LBP.

Article 118722 of the Civil Code provides that the "effects of a conditional obligation to give,
once the condition has been fulfilled, shall retroact to the day of the constitution of the
obligation." Hence, when HTRDC complied with the given conditions, as determined by the
RTC in its Order 23 dated 21 April 2003, the effects of the constructive delivery retroacted to the
actual date of the deposit of the amount in the expropriation account of DPWH.