costs of suit

Costs shall be allowed to the prevailing party as a matter of course. No costs, however, shall be allowed against the Republic of the Philippines, unless otherwise provided by law.

The Land Bank of the Philippines is an agency created primarily to provide financial support in all phases of agrarian reform pursuant to RA 3844 and RA 6657. It is vested with the primary responsibility and authority in the valuation and compensation of covered landholdings to carry out the full implementation of the Agrarian Reform Program. It may agree with the DAR and the landowner as to the amount of just compensation to be paid to the latter and may also disagree with them and bring the matter to court for judicial determination. The role of Land Bank in the CARP is more than just the ministerial duty of keeping and disbursing the Agrarian Reform Funds. Land Bank has the discretion to approve or reject the land valuation and just compensation by a party, the DAR, or even the courts; the Land Bank not only has the right, but the duty, to challenge the same, by appeal to the Court of Appeals or the Supreme Court, if appropriate.

Since Land Bank is performing a governmental function in agrarian proceeding, it is exempt from the payment of costs of suit as provided under Rule 142, section 1 of the Rules of Court.