Can the Land Bank of the Philippines (LBP) file a petition with the Regional Trial Court, sitting as a Special Agrarian Court (SAC), questioning the findings of the DAR Regional/Provincial Adjudicator on the determination of just compensation of lands covered under Agrarian Reform?
Davao Fruits Corporation (DFC) contends that in filing the determination of just compensation, LBP acted as the expropriator and dispenser of police power which are the sovereign powers of the State. DFC argues that LBP has no authority to file said action as it would invalidate the findings of the Adjudicators who are tasked to determine the initial valuation of lands placed under land reform.
The Land Bank of the Philippines is an agency created primarily to provide financial support in all phases of agrarian reform. Once an expropriation proceeding for the acquisition of private agricultural lands is commenced by the DAR, the indespensible role of LBP begins. Land Bank is not merely a nominal party in the determination of just compensation, as such LBP possessed the legal personality to institute a petition for the determination of just compensation in the SAC (Davao Fruits Corporation v. LBP, G.R. No. 181566. March 9, 2011).
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