Republic of the Philippines

SUPREME COURT
Manila
EN BANC
G.R. No. L-15829 December 4, 1967
ROMAN R. SANTOS, petitioner-appellee,
vs.
HON. FLORENCIO MORENO, as Secretary of Public Works and Communications and JULIAN C.
CARGULLO, respondents-appellants.
Gil R. Carlos and Associates for petitioner-appellee.
Office of the Solicitor General for respondents-appellants.
BENGZON, J.P., J.:
THE APPEAL
The Honorable Secretary of Public Works & Communications appeals from the decision of the
Court of First Instance of Manila declaring of private ownership certain creeks situated in barrio
San Esteban, Macabebe, Pampanga.
THE BACKGROUND
The Zobel family of Spain formerly owned vast track of marshland in the municipality of
Macabebe, Pampanga province. Called Hacienda San Esteban, it was administered and
managed by the Ayala y Cia. From the year 1860 to about the year 1924 Ayala y Cia., devoted
the hacienda to the planting and cultivation of nipa palms from which it gathered nipa sap or
"tuba." It operated a distillery plant in barrio San Esteban to turn nipa tuba into potable alcohol
which was in turn manufactured into liquor.
Accessibility through the nipa palms deep into the hacienda posed as a problem. Ayala y Cia.,
therefore dug canals leading towards the hacienda's interior where most of them interlinked
with each other. The canals facilitated the gathering of tuba and the guarding and patrolling of
the hacienda by security guards called "arundines." By the gradual process of erosion these
canals acquired the characteristics and dimensions of rivers.
In 1924 Ayala y Cia shifted from the business of alcohol production to bangus culture. It
converted Hacienda San Esteban from a forest of nipa groves to a web of fishponds. To do so, it
cut down the nipa palm, constructed dikes and closed the canals criss-crossing the hacienda.

Sometime in 1925 or 1926 Ayala y Cia., sold a portion of Hacienda San Esteban to Roman
Santos who also transformed the swamp land into a fishpond. In so doing, he closed and built
dikes across Sapang Malauling Maragul, Quiorang Silab, Pepangebunan, Bulacus, Nigui and
Nasi.
The closing of the man-made canals in Hacienda San Esteban drew complaints from residents of
the surrounding communities. Claiming that the closing of the canals caused floods during the
rainy season, and that it deprived them of their means of transportation and fishing grounds,
said residents demanded re-opening of those canals. Subsequently, Mayor Lazaro Yambao of
Macabebe, accompanied by policemen and some residents went to Hacienda San Esteban and
opened the closure dikes at Sapang Malauling Maragul Nigui and Quiorang Silab. Whereupon,
Roman Santos filed Civil Case No. 4488 in the Court of First Instance of Pampanga which
preliminarily enjoined Mayor Yambao and others from demolishing the dikes across the canals.
The municipal officials of Macabebe countered by filing a complaint (docketed as Civil Case No.
4527) in the same court. The Pampanga Court of First Instance rendered judgment in both
cases against Roman Santos who immediately elevated the case to the Supreme Court.
In the meantime, the Secretary of Commerce and Communications1 conducted his own
investigation and found that the aforementioned six streams closed by Roman Santos were
natural, floatable and navigable and were utilized by the public for transportation since time
immemorial. He consequently ordered Roman Santos on November 3, 1930 to demolish the
dikes across said six streams. However, on May 8, 1931 the said official revoked his decision of
November 3, 1930 and declared the streams in question privately owned because they were
artificially constructed. Subsequently, upon authority granted under Act 3982 the Secretary of
Commerce and Communications entered into a contract with Roman Santos whereby the
former recognized the private ownership of Sapang Malauling Maragul, Quiorang Silab,
Pepangebunan, Bulacus, Nigui and Nasi and the latter turned over for public use two artificial
canals and bound himself to maintain them in navigable state. The Provincial Board of
Pampanga and the municipal councils of Macabebe and Masantol objected to the contract.
However, the Secretary of Justice, in his opinion dated March 6, 1934, upheld its legality.
Roman Santos withdraw his appeals in the Supreme Court.
With respect to the portion of Hacienda San Esteban still owned by the Zobel family, the
municipal authorities of Macabebe filed in 1930 an administrative complaint, in the Bureau of
Public Works praying for the opening of the dikes and dams across certain streams in Hacienda
San Esteban. Whereupon, the district engineer of Pampanga and a representative of the Bureau
of Public Works conducted investigations. In the meantime, the Attorney General, upon a query
from the Secretary of Commerce and Communications, rendered an opinion dated October 11,
1930 sustaining the latter's power to declare streams as publicly owned under Sec. 4 of Act
2152, as amended by Act 3208.
On September 29, 1930 the investigator of the Bureau of Public Works, Eliseo Panopio,
submitted his report recommending the removal of the dikes and dams in question. And on the
basis of said report, the Secretary of Commerce and Communications rendered his decision on

November 3, 1930 ordering Ayala y Cia., to demolish the dikes and dams across the streams
named therein situated in Hacienda San Esteban. Ayala y Cia., moved for reconsideration,
questioning the power of the Secretary of Commerce and Communications to order the
demolition of said dikes.
Days before the Secretary of Commerce and Communications rendered his aforementioned
decision, Ayala y Cia., thru counsel, made representations with the Director of Public Works for
a compromise agreement. In its letter dated October 11, 1930, Ayala y Cia., offered to admit
public ownership of the following creeks:
Antipolo, Batasan Teracan, Biuas or Batasan, Capiz, Carbon, Cutut, Dalayap, Enrique, Iba,
Inaun, Margarita, Malauli or Budbud, Matalaba Palapat, Palipit Maisao, Panlovenas,
Panquitan, Quinapati, Quiorang, Bubong or Malauli Malati, Salop, Sinubli and Vitas.
provided the rest of the streams were declared private. Acting on said offer, the Director of
Public Works instructed the surveyor in his office, Eliseo Panopio, to proceed to Pampanga and
conduct another investigation.
On January 23, 1931 Panopio submitted his report to the Director of Public Works
recommending that some streams enumerated therein be declared public and some private on
the ground that they were originally dug by the hacienda owners. The private streams were:
Agape, Atlong, Cruz, Balanga, Batasan, Batasan Matlaue, Balibago, Baliti, Bato, Buengco
Malati, Bungalin, Bungo Malati, Bungo Maragui, Buta-buta, Camastiles, Catlu, Cauayan
or Biabas, Cela, Dampalit, Danlimpu, Dilinquente, Fabian, Laguzan, Lalap Maburac,
Mabutol, Macabacle, Maragul or Macanduli, Macabacle or Mababo, Maisac, Malande,
Malati, Magasawa, Maniup, Manulit, Mapanlao, Maisac, Maragul Mariablus Malate,
Masamaral, Mitulid, Nasi, Nigui or Bulacus, Palipit, Maragul, Pangebonan, Paumbong,
Pasco or Culali, Pilapil, Pinac Malati, Pinac, Maragul or Macabacle, Quiorang Silab or
Malauli Maragul, Raymundo, Salamin, Salop Maisac, Salop Maragul, Sermon and Sinca
or Mabulog.
He therefore recommended revocation of the decision already mentioned above, dated
November 3, 1930 of the Secretary of Commerce and Communications ordering the demolition
of the dikes closing Malauling Maragul, Quiorang, Silab, Pepangebonan, Nigui, Bulacus, Nasi,
and Pinac. On February 13, 1931 the Director of Public Works concurred in Panopio's report and
forwarded the same the Secretary of Commerce and Communications.
On February 25, 1935 the municipality of Macabebe and the Zobel family executed an
agreement whereby they recognized the nature of the streams mentioned in Panopio's report
as public or private, depending on the findings in said report. This agreement was approved by
the Secretary of Public Works and Communications on February 27, 1935 and confirmed the
next day by the municipal council of Macabebe under Resolution No. 36.

A few months later, that is, on June 12, 1935, the then Secretary of Justice issued an opinion
holding that the contract executed by the Zobel family and the municipality of Macabebe has
no validity for two reasons, namely, (1) the streams although originally dug by Ayala y Cia., lost
their private nature by prescription inasmuch as the public was allowed to use them for
navigation and fishing, citing Mercado vs. Municipality of Macabebe, 59 Phil. 592; and (2) at the
time the Secretary of Commerce and Communications approved the said contract, he had no
more power so to do, because such power under Sec. 2 of Act 2152 was revoked by the
amending Act 4175 which took effect on December 7, 1934.
Despite the above ruling of the Secretary of Justice, the streams in question remained closed.
In 1939 administrative investigations were again conducted by various agencies of the
Executive branch of our government culminating in an order of President Manuel Quezon
immediately before the national elections in 1941 requiring the opening of Sapang
Macanduling, Maragul Macabacle, Balbaro and Cansusu. Said streams were again closed in
1942 allegedly upon order of President Quezon.
THE CASE
Roman Santos acquired in 1940 from the Zobel family a larger portion of Hacienda San Esteban
wherein are located 25 streams which were closed by Ayala y Cia., and are now the subject
matter in the instant controversy.
Eighteen years later, that is in 1958, Congress enacted Republic Act No. 2056 2 following a
congressional inquiry which was kindled by a speech delivered by Senator Rogelio de la Rosa in
the Senate. On August 15, 1958 Senator de la Rosa requested in writing the Secretary of Public
Works and communications to proceed in pursuance of Republic Act No. 2056 against fishpond
owners in the province of Pampanga who have closed rivers and appropriated them as
fishponds without color of title. On the same day, Benigno Musni and other residents in the
vicinity of Hacienda San Esteban petitioned the Secretary of Public Works and Communications
to open the following streams:
Balbaro, Batasan Matua, Bunga, Cansusu, Macabacle, Macanduling, Maragul, Mariablus,
Malate, Matalabang, Maisac, Nigui, Quiorang Silab, Sapang Maragul and Sepung Bato.
Thereupon, the Secretary of Public Works and Communications instructed Julian C. Cargullo to
conduct an investigation on the above named streams.
On October 20, 1958 Musni and his co-petitioners amended their petition to include other
streams. The amended petition therefore covered the following streams:
Balbaro, Balili, Banawa, Batasan Matua Bato, Bengco, Bunga, Buta-buta, Camastiles,
Cansusu, Cela, Don Timpo, Mabalanga, Mabutol, Macabacle, Macabacle qng. Iba,
Macanduling, Maragul, Malauli, Magasawa, Mariablus Malate Masamaral, Matalabang

Maisa, Mariablus,3 Nigui, Pita, Quiorang, Silab, Sapang Maragul, Sepung Bato, Sinag
and Tumbong.
On March 2, 4, 10, 30 and 31, and April 1, 1959, the Secretary of Public Works and
Communications rendered his decisions ordering the opening and restoration of the channel of
all the streams in controversy except Sapang Malauling, Maragul, Quiorang, Silab, Nigui
Pepangebonan, Nasi and Bulacus, within 30 days on the ground that said streams belong to the
public domain.
On April 29, 1959, that is, after receipt of the Secretary's decision dated March 4, 1959, Roman
Santos filed a motion with the Court of First Instance of Man for junction against the Secretary
of Public Works and Communications and Julian C. Cargullo. As prayed for preliminary
injunction was granted on May 8, 1959. The Secretary of Public Work and Communications
answered and alleged as defense that venue was improperly laid; that Roman Santos failed to
exhaust administrative remedies; that the contract between Ayala y Cia., and the Municipality
of Macabebe is null and void; and, that Section 39 of Act 496 excludes public streams from the
operation of the Torrens System.
On April 29 and June 12, 1969, Roman Santos received the decision of the Secretary of Public
Works and Communications dated March 10 and March 30, March 31, and April 1, 1959.
Consequently, on June 24, 1959 he asked the court to cite in contempt Secretary Florendo
Moreno, Undersecretary M.D. Bautista and Julian Cargullo for issuing and serving upon him the
said decisions despite the existence of the preliminary injunction. The Solicitor General
opposed the motion alleging that the decisions in question had long been issued when the
petition for injunction was filed, that they were received after preliminary injunction issued
because they were transmitted through the District Engineer of Pampanga to Roman Santos;
that their issuance was for Roman Santos' information and guidance; and, that the motion did
not allege that respondents took steps to enforce the decision. Acting upon said motion, on July
17, 1959, the trial court considered unsatisfactory the explanation of the Solicitor General but
ruled that Secretary Florencio Moreno, Undersecretary M.D. Bautista and Julian Cargullo acted
in good faith. Hence, they were merely "admonished to desist from any and further action in
this case, observe the preliminary injunction issued by this Court, with the stern warning,
however, that a repetition of the acts complained of shall be dealt with severely."
On July 18, 1959 the trial court declared all the streams under litigation private, and rendered
the following judgment:
The Writ of preliminary injunction restraining the respondent Secretary of Public Works
& Communications from enforcing the decisions of March 2 And 4, 1959 and all other
similar decisions is hereby made permanent.
The Secretary of Public Works and Communication and Julian Cargullo appealed to this Court
from the order of July 17, 1959 issued in connection with Roman Santos' motion for contempt
and from the decision of the lower court on the merits of the case.

ISSUES
The issues are: (1) Did Roman Santos exhaust administrative remedies? (2) Was venue properly
laid? (3) Did the lower court err in conducting a trial de novo of the case and in admitting
evidence not presented during the administrative proceeding? (4) Do the streams involved in
this case belong to the public domain or to the owner of Hacienda San Esteban according to law
and the evidence submitted to the Department of Public Works and Communications?
DISCUSSION OF THE ISSUES
1. Respondents maintain that Roman Santos resorted to the courts without first exhausting
administrative remedies available to him, namely, (a) motion for reconsideration of the
decisions of the Secretary of Public Works and Communications; and, (b) appeal to the
President of the Philippines.
Whether a litigant, in exhausting available administrative remedies, need move for the
reconsideration of an administrative decision before he can turn to the courts for relief, would
largely depend upon the pertinent law,4 the rules of procedure and the usual practice followed
in a particular office.5
Republic Act No. 2056 does not require the filing of a motion for reconsideration as a condition
precedent to judicial relief. From the context of the law, the intention of the legislators to
forego a motion for reconsideration manifests itself clearly.1awphil.net Republic Act No. 2056
underscores the urgency and summary nature of the proceedings authorized thereunder. Thus
in Section 2 thereof the Secretary of Public Works and Communications under pain of criminal
liability is duty bound to terminate the proceedings and render his decision within a period not
exceeding 90 days from the filing of the complaint. Under the same section, the party
respondent concerned is given not than 30 days within which to comply with the decision of
the Secretary of Public Works and Communications, otherwise the removal of the dams would
be done by the Government at the expense of said party. Congress has precisely provided for a
speedy and a most expeditious proceeding for the removal of illegal obstructions to rivers and
on the basis of such a provision it would be preposterous to conclude that it had in mind to
require a party to file a motion for reconsideration an additional proceeding which would
certainly lengthen the time towards the final settlement of existing controversies. The logical
conclusion is that Congress intended the decision of the Secretary of Public Works and
Communications to be final and executory subject to a timely review by the courts without
going through formal and time consuming preliminaries.
Moreover, the issues raised during the administrative proceedings of this case are the same
ones submitted to court for resolution. No new matter was introduced during the proceeding in
the court below which the Secretary of Public Works and Communications had no opportunity
to correct under his authority.

Furthermore, Roman Santos assailed the constitutionality of Republic Act No. 2056 and the
jurisdiction of the Secretary of Public Works and Communications to order the demolition of
dams across rivers or streams. Those questions are not within the competence of said Secretary
to decide upon a motion for reconsideration.itc-alf They are purely legal questions, not
administrative in nature, and should properly be aired before a competent court as was rightly
done by petitioner Roman Santos .
At any rate, there is no showing in the records of this case that the Secretary of Public Works
and Communications adopted rule of procedure in investigations authorized under Republic Act
No. 2056 which require a party litigant to file a motion for the reconsideration of the
Secretary's decision before he can appeal to the courts. Roman Santos however stated in his
brief that the practice is not to entertain motions for reconsideration for the reason that
Republic Act No. 2056 does not expressly or impliedly allow the Secretary to grant the same.
Roman Santos' statement is supported by Opinion No. 61, Series of 1959, dated April 14, 1959
of the Secretary of Justice.
As to the failure of Roman Santos to appeal from the decision of the Secretary of Public Works
and Communications to the President of the Philippines, suffice it to state that such appeal
could be dispensed with because said Secretary is the alter ego of the President.itc-alf The
actions of the former are presumed to have the implied sanction of the latter. 6
2. It is contended that if this case were considered as an ordinary civil action, venue was
improperly laid when the same was instituted in the Court of First Instance of Manila for the
reason that the case affects the title of a real property. In fine, the proposition is that since the
controversy dwells on the ownership of or title to the streams located in Hacienda San Esteban,
the case is real action which, pursuant to Sec. 3 of Rule 5 of the Rules of Court should have
been filed in the Court of First Instance of Pampanga.
The mere fact that the resolution of the controversy in this case would wholly rest on the
ownership of the streams involved herein would not necessarily classify it as a real action. The
purpose of this suit is to review the decision of the Secretary of Public Works and
Communications to enjoin him from enforcing them and to prevent him from making and
issuing similar decisions concerning the stream in Hacienda San Esteban. The acts of the
Secretary of Public Works and Communications are the object of the litigation, that is,
petitioner Roman Santos seeks to control them, hence, the suit ought to be filed in the Court of
First Instance whose territorial jurisdiction encompasses the place where the respondent
Secretary is found or is holding office. For the rule is that outside its territorial limits, the court
has no power to enforce its order.7
Section 3 of Rule 5 of the Rules of Court does not apply to determine venue of this action.
Applicable is Sec. 1 the same rule, which states:

Sec. 1. General rule. Civil actions in Courts of First Instance may be commenced and
tried where the defendant any of the defendants residents or may be found or where
the plaintiff or any of the plaintiffs resides, at the election of the plaintiff.
Accordingly, the Petition for injunction who correctly filed in the Court of First Instance of
Manila. Respondents Secretary of Public Works and Communications and Julian Cargullo are
found and hold office in the City of Manila.
3. The lower court tried this case de novo. Against this procedure respondents objected and
maintained that the action, although captioned as an injunction is really a petition for certiorari
to review the decision of the Secretary of Public Works and Communications. Therefore they
now contend that the court should have confined itself to reviewing the decisions of the
respondent Secretary of Public Works and Communications only on the basis of the evidence
presented in the administrative proceedings. On the other hand, Roman Santos now, submits
that the action is a proceeding independent and distinct from the administrative investigation;
that, accordingly, the lower court correctly acted in trying the case anew and rendering
judgment upon evidence adduced during the trial.
Whether the action instituted in the Court of First Instance be for mandamus, injunction or
certiorari is not very material. In reviewing the decision of the Secretary of Public Works and
Communications, the Court of First Instance shall confine its inquiry to the evidence presented
during, the administrative proceedings. Evidence not presented therein shall not be admitted,
and considered by the trial court. As aptly by this Court speaking through Mr. Justice J.B.L.
Reyes, in a similar case:
The findings of the Secretary can not be enervated by new evidence not laid before him,
for that would be tantamount to holding a new investigation, and to substitute for the
discretion and judgment of the Secretary the discretion and judgment of the court, to
whom the statute had not entrusted the case. It is immaterial that the present action
should be one for prohibition or injunction and not one for certiorari; in either event the
case must be resolved upon the evidence submitted to the Secretary, since a judicial
review of executive decisions does not import a trial de novo, but only an ascertainment
of whether the "executive findings are not in violation of the Constitution or of the laws,
and are free from fraud or imposition, and whether they find reasonable support in the
evidence. . . .8
The case at bar, no matter what the parties call it, is in reality a review of several administrative
decisions of the Secretary of Public Works and Communications. Being so, it was error for the
lower court to conduct a trial de novo. Accordingly, for purposes of this review, only the
evidence presented and admitted in the administrative investigation will be considered in our
determination of whether on the basis thereof the decisions of the Secretary of Public Works
and Communications were correct.

4. We come to the question whether the streams involved in this case belong to the public
domain or to the owner of Hacienda San Esteban. If said streams are public, then Republic Act
2056 applies, if private, then the Secretary of Public Works and Communications cannot order
demolition of the dikes and dams across them pursuant to his authority granted by said law.
First, we come to the question of the constitutionality of Republic Act No. 2056. The lower
court held Republic Act No. 2056 constitutional but ruled that it was applied by respondents
unconstitutionally. That is, it held that Roman Santos was being deprived of his property
without due process of law, for the dikes of his fishponds were ordered demolished through an
administrative, instead of a judicial, proceeding. This conclusion and rationalization of the lower
court amount in effect to declaring the law unconstitutional, stated inversely. Note that the law
provides for an expeditious administrative process to determine whether or not a dam or dike
should be declare a public nuisance and ordered demolished. And to say that such an
administrative process, when put to operation, is unconstitutional is tantamount to saying that
the law itself violates the Constitution. In Lovina vs. Moreno, supra, We held said law
constitutional. We see no reason here to hold otherwise.
Discussing now the applicability of Republic Act 2056, the same applies to two types of bodies
of water, namely (1) public navigable rivers, streams, coastal waters, or waterways and (b)
areas declared as communal fishing grounds, as provided for in Section 1 thereof:
Sec. 1. . . . the construction or building of dams, dikes or any other works which
encroaches into any public navigable river, stream, coastal waters and any other
navigable public waters or waterways as well as the construction or building of dams,
dikes or any other works in areas declared as communal fishing grounds, shall be
ordered removed as public nuisances or as prohibited constructions as herein provided:
...
We are not concerned with communal fishing grounds because the streams here involved have
not been so declared, but with public navigable streams. The question therefore is: Are the
streams in Hacienda San Esteban which are mentioned in the petition of Benigno Musni and
others, public and navigable?
Respondents contend that said streams are public on the following grounds:
(1) Hacienda San Esteban was formerly a marshland and being so, it is not susceptible to
appropriation. It therefore belongs to the State. Respondents rely on Montano vs. Insular
Government, 12 Phil. 572.
(2) The streams in question are natural streams. They are tributaries of public streams. Cited
are the cases of Samson vs. Dionisio, et al., 11 Phil. 538 and Bautista vs. Alarcon, 23 Phil. 636.
(3) The streams have for their source public rivers, therefore they cannot be classified as canals.

(4) Assuming the streams were artificially made by Ayala y Cia., said titleholder lost ownership
over them by prescription when it allowed the public to use them for navigation for a long time.
Respondents cite Mercado vs. Municipal President of Macabebe, 59 Phil. 592.
(5) Assuming the streams in question are not mentioned as public in the certificates of title held
by Ayala y Cia., over Hacienda San Esteban, still they cannot be considered as privately owned
for Section 39 of Act 496 expressly excepts public streams from private ownership.
(6) The Panopio Report, which found the streams in question of private ownership was nullified
by the Secretary of Justice in his opinion dated June 12, 1935.1awphil.net And, the contract
between Ayala y Cia., and the Secretary of Commerce and Communications agreeing on the
ownership of the streams in question is ultra vires.
The doctrine in Montano vs. Insular Government, supra, that a marshland which is inundated by
the rise of the tides belongs to the State and is not susceptible to appropriation by occupation
has no application here inasmuch as in said case the land subject matter of the litigation was
not yet titled and precisely Isabelo Montano sought title thereon on the strength of ten years'
occupation pursuant to paragraph 6, section 54 of Act 926 of the Philippine Commission.
Whereas, the subject matter in this case Hacienda San Esteban is titled land and private
ownership thereof by Ayala y Cia., has been recognized by the King of Spain and later by the
Philippine Government when the same was registered under Act 496.
Respondents further cite Bautista vs. Alarcon, 23 Phil. 631, where the plaintiff sought injunction
against the defendants who allegedly constructed a dam across a public canal which conveyed
water from the Obando River to fishponds belonging to several persons. The canal was situated
within a public land. In sustaining the injunction granted by the Court of First Instance, this
Court said:
No private persons has right to usurp possession of a watercourse, branch of a river, or
lake of the public domain and use, unless it shall have been proved that he constructed
the same within in property of his exclusive ownership, and such usurpation constitutes
a violation of the legal provisions which explicity exclude such waterways from the
exclusive use or possession of a private party. (Emphasis supplied)
As indicated in the above-cited case, a private person may take possession of a watercourse if
he constructed the same within his property.itc-alf This puts Us into inquiry whether the
streams in question are natural or artificial. In so doing, We shall examine only the evidence
presented before the Department of Public Works and Communications and disregard that
which was presented for the first time before the lower court, following our ruling in Lovina vs.
Moreno, supra.
(1) Sapang Macanduling Maragul or Macanduli is presently enclosed in Fishpond No. 12 of
Roman Santos. Its banks cannot anymore be seen but some traces of them could be noted by a
row of isolated nipa palms. Its water is subject to the rise and fall of the tides coming from

Guagua and Antipolo Rivers and it is navigable by light watercrafts. Its inlet is Antipolo River;
another dike at its outlet along the Palapat River.9 It is closed by four dikes: One dike at its inlet
along the Antipolo River; another dike at its cutlet along the Palatpat River; and, two dikes in
between. Then exist channel at the Palapat River where the fishpond gate lies has been filled
up with dredge spoils from the Pampanga River Control Project.
(2) Sapang Macabacle is found in Fishpond No. 13. Its banks are still evident. This stream is
about 30 meters wide, two meters deep and one and one-half to two kilometers long. Its
source is Rio Cansusu. Like Macanduli, its channel is obstructed by four dikes. One of them was
constructed by the engineers of the Pampanga River Control Project.
(3) Sapang Balbaro which is found in Fishpond No. 13, runs from Canal Enrique near Rio
Cansusu to Sapang Macabacle, a distance of about one-half kilometer. It is passable by banca.
The closures of this stream consist of two dikes located at each ends on Canal Enrique and
Sapang Macabacle.
(4) Sapang Cansusu is a continuation of the Cansusu River. The Cansusu River opens at the
Guagua River and allegedly ends at the Palanas River in front of Barrio San Esteban. At a point
near the mouth of Sapang Balbaro, the owners of Hacienda San Esteban built a canal leading
straight to one end of Barrio San Esteban. They called this canal "Canal Enrique." And at the
point where Canal Enrique joins Cansusu they built a dike across Cansusu, thus closing this very
portion of the river which extends up to Palanas River where they built another closure dike.
This closed portion, called "Sapang Cansusu," is now part of Fishpond No. 1.
Sapang Cansusu is half a kilometer long and navigable by banca.
Appellant's witnesses, Beligno Musni, 41, Macario Quiambao, 96, Roman Manansala, 55 and
Castor Quiambao, 76, all residents of Barrio San Esteban, testified that prior to their closure,
Sapang Macaduli, Macabacle, Balbaro and Cansusu were used as passageway and as fishing
grounds; that people transported through them tuba,10 wood and sasa,11 and that the tuba was
brought to the distillery in Barrio San Esteban. Macario Quiambao testified also that said four
streams "were created by God for the town people"; and that if any digging was done it was
only to deepen the shallow parts to make passage easier. According to witness Anastacio
Quiambao said streams were navigable, even Yangco's ship "Cababayan" could pass through.
Simplicio Quiambao, 36, and Marcelino Ocampo, 55, stated on direct examination that before
closure of the above named four streams, people from the surrounding towns of Guagua,
Bacolor, Macabebe, Masantol and Sexmoan fished and navigated in them.
Against the aforementioned, testimonial evidence Roman Santos presented the testimony of
Nicanor Donarber, 80, Mariano Guinto, 71, and his own. Donarber, who started working as an
arundin12 testified that Ayala y Cia., dug Sapang Macanduli, Balbaro and Macabacle; that he
worked also in the construction together with other workers; and, that as an overseer he
inspected their work. Mariano Guinto testified that he worked for Ayala y Cia., as a tuba
gatherer; that in order to reach remote nipa groves by banca, they made canals; and, that he

was one of the who worked in the construction of those canals. Roman Santos also testified
that Sapang Macanduli, Macabacle, Balbaro and Cansusu are artificial canals excavated as far
back as 1850 and due to erosion coupled with the spongy nature of the land, they acquired the
proportion of rivers; that he joined Sapang Balbaro to Sapang Macabacle because the former
was a dying canal; and that Cansusu River is different from Sapang Cansusu Witness Domingo
Yumang likewise testified that Sapang Balbaro man-made.
We observe that witnesses positively stated that Sapang Macanduli, Macabacle and Balbaro
were made by the owners of Hacienda San Esteban. With respect to Sapang Cansusu none,
except Roman Santos himself, testified that Sapang Cansusu is an artificial canal. It is not one of
the streams found and recommended to be declared private in the Panopio Report. Sapang
Cansusu follows a winding course different and, distinct from that of a canal such as that of
Canal Enrique which is straight. Moreover, Sapang Cansusu is a part of Cansusu River,
admittedly a public stream.
(5) Sapang Maragul, Mabalanga and Don Timpo are all part of Fishpond No. 1. Maragul is 600
meters long and 30 to 35 meters wide. Mabalanga is 250 meters in length and 50 meters in
width. Don Timpo is 220 meters long and 20 meters wide. All of them are navigable by banca.
Maragul and Mabalanga open at Guagua River and join each other inside the hacienda to form
one single stream, Sapang Don Timpo, which leads to the Matalaba River. Maragul, Mabalanga
and Don Timpo, formerly ended inside the hacienda but later Mabalanga was connected to Don
Timpo. Maragul was connected to Mabalanga and Sapang Cela was extended to join Maragul.
Witnesses Nicanor Donarber, Mariano Ocampo and Mariano Guinto testified that Maragul,
Mabalanga and Don Timpo are artificial canals dug by Ayala y Cia., and that they (Donarber and
Mariano Guinto) worked in said excavations.13 Witness Mariano Guinto clarified that Don
Timpo was originally dug but Mabalanga and Maragul were formerly small non-navigable
streams which were deepened into artificial navigable canals by Ayala y Cia.14
Exhibit F, which is a map showing the streams and rivers in Hacienda San Esteban, shows that
Maragul, Mabalanga and Don Timpo are more or less straight. From the big rivers (Guagua and
Matalaba Rivers) they lead deep into the interior of the hacienda, thus confirming the
testimony that they were built precisely as a means of reaching the interior of the estate by
banca. The weight of evidence, therefore, indicate that said streams are manmade.
(6) Sapang Bunga, now part of Bunga fishpond, gets its water from Sapanga Iba and empties at
Sta. Cruz River. It is about 300-400 meters long, 5-6 meters wide and 1-1.60 meters deep.
(7) Sapang Batu is found in Capiz Fishpond. About 300-400 meters long, 4-5 meters wide and
1.50-2.20 meters deep, it starts at Capiz River and ends at Malauling Maragul. From Capiz River
until it intersects Sapang Nigui the stream is called Sapang Batu Commencing from Sapang Nigui
and up to its end at Sapang Malauling Maragul, the stream is called Sapang Batu. Commencing
from Sapang Nigui and up to its end at Sapang Malauling Maragul, the stream is called Sepong
Batu. Sepong Batu is not among those streams declared in the Panopio Report as private.

(8) Sapang Banawa has one end at Palanas River and the other at Sapang Macabacle. It is about
300 meters long, 3-4 meters wide and 1.30-1.40 meters deep. Its whole length is within
Fishpond No. 13 of Roman Santos.
(9) Sapang Mabutol is a dead-end stream, that is, it ends inside the hacienda. It opens along
Guagua river. Since its closure, it has become part of Fishpond No. 1.
(10) Sapang Buta-buta, like Mabutol, dies inside the hacienda. It connects with Cansusu River
and is about 100 meters long, 3-4 meters wide and 1.2-1.5 meters deep. It is now a part of
Fishpond No. 13.
(11) Sapang Masamaral, another stream which opens at Cansusu River And ends inside the
hacienda., is 100-200 meters long, 3-4 meters wide and 1.50-2 meters deep. It now forms part
of Fishpond No. 13.
The uncontradicted testimony of Marcos Guinto is that Sapang Bunga, Batu, Sepong Batu,
Banawa, Mabutol, Buta-Buta and Masamaral were constructed by Ayala y Cia., to gain access to
the nipa the, interior of the hacienda. This testimony tallies with the findings in the Panopio
Report which will be discussed herein later. The evidence adduced in the administrative
proceeding conducted before a representative of the Secretary of Public Works and
Communications supports the contention that said streams are merely canals built by Ayala y
Cia., for easy passage into the hinterland of its hacienda.
(12) Sapang Magasawa consists of two streams running parallel to each other commencing
from Matalaba River and terminating at Mariablus Rivers. About 600-700 meters long, 4-5
meters wide and 1.5-2 meters deep, these two streams are navigable by banca. They are
enclosed within Fishpond No. 1.
(13) Sapang Mariablus Malate, about 3-4 meters wide and 250 meters long, is another stream
that ends inside the hacienda and gets its water from Guagua River. It is no part of Fishpond
No. 1.
(14) Sapang Matalabang Malate or Maisac opens at Guagua River and ends at Sapang Cela and
Matalabang Maragul. This stream, which is about 800 meters long and 18 meters wide, forms
part of Fishpond No. 1 of Roman Santos.
(15) Sapang Batasan Matua about 600 meters long, three meters wide and .80 meters deep at
low tide and 1.90 meters deep at high tide crosses the hacienda from Mariablus River to
Cansusu River. It is at present a part of Fishpond No. 1-A.
(16) Sapang Camastiles, a dead end stream of about 200 to 300 meters in length, gets its water
from Biuas River. It is within Fishpond No. 1.

(17) Sapang Cela is within Fishpond No. 1. Its whole length situated inside the hacienda, it
opens at Sapang Matalabang Malate or Maisac and ends at Sapang Malungkot. Latter Cela was
extended to connect with Sapang Maragul. It is about 200 meters long and four meters wide.
Mariano Guinto, 71, testified without contradiction that Sapang Mariablus Malate and
Matalabang Malate were formerly small and non-navigable streams which were dug by Ayala y
Cia.,15 while Batasan Matua Camastiles, Magasawa and Cela are original canals made by Ayala y
Cia.,16 that he was one of those who worked in the construction of said canals; and that it took
years to construct them. All these streams were recommended in the Panopio Report for
declaration as private streams.
(18) Sapang Sinag, 200 meters long, four to five meters wide, one meter and one and one-half
meters deep at low and high tides, respectively, gets its water from Cutod River and leads
inside the hacienda to connect with Sapang Atlong Cruz, a stream declared private in the
Panopio Report. It is now inside Fishpond No. 14.
(19) Sapang Balili, also found inside Fishpond No. 14, is about 200 meters long, three to four
meters wide and one meter deep at low tide. From its mouth at Cutod River it drifts into the
interior of the hacienda and joins Sapang Bengco.17
(20) Sapang Pita is within Fishpond Capiz. It takes water from Capiz River but dies 250 meters
inside the hacienda. It is about four to five meters wide, and one meter deep at low tide and
1.50 meters deep at high tide.
(21) Sapang Tumbong, situated inside Capiz Fishpond, derives its water from Sapang Quiorang
Silab, a stream declared private by the Secretary of Public Works and Communications, and
ends inside the hacienda.18
(22) Sapang Bengco is found within Fishpond No. 14.1awphil.net Two hundred meters long, five
meters wide, and one meter deep at low tide and 1.50 meters deep at high tide it gets water
from Sapang Biabas and connects with Baliling Maisac.19
According to Marcos Guinto, a witness for Roman Santos, Sapang Sinag, Balili, Pita Tumbong
and Bengco were excavated a long time ago by Ayala y Cia.; and that they have a winding
course because when they were made the workers followed the location of the nipa palms. 20
On the other hand, Marcelo Quiambao, testified that Sapang Tumbong is a natural stream and
that the reason he said so is because the stream was already there as far back as 1910 when he
reached the age of ten. No other oral evidence was presented to contradict the testimony of
Marcos Guinto that the said five streams were artificially made by Ayala y Cia.
To show that the streams involved in this case were used exclusively by the hacienda personnel
and occasionally by members of their families, Roman Santos introduced the testimony of
Eliseo Panopio, Nicanor Donarber, Blas Gaddi, Mariano Ocampo, Mariano Guinto, Alejandro
Manansala and himself. The witnesses categorically testified that the public was prohibited

from using the streams as a means of navigation and that the prohibition was enforced by
guards called arundines.
One and all, the evidence, oral and documentary, presented by Roman Santos in the
administrative proceedings supports the conclusion of the lower court that the streams
involved in this case were originally man-made canals constructed by the former owners of
Hacienda San Esteban and that said streams were not held open for public use. This same
conclusion was reached 27 years earlier by an investigator of the Bureau of Public Works whose
report and recommendations were approved by the Director of Public Works and submitted to
the Secretary of Commerce and Communications.
As stated, pursuant to Act 2152, as amended by Act 3208, the Bureau of Public Works and the
Department of Commerce and Communications locked into and settled the question of
whether or not the streams situated within Hacienda San Esteban are publicly or privately
owned. We refer to the so-called Panopio Report which contains the findings and
recommendations of Eliseo Panopio, a surveyor in the Bureau of Public Works, who was
designated to conduct formal hearings and investigation. Said report found the following
streams, among others, of private ownership:
Camastiles, Cela Balanga, Bato, Batasan, Bengco, Buta-buta, Don Timpo, Mabutol,
Macabacle, Macanduli, Malande Malate (Bunga), Magasawa, Masamaral, Maragul,
Mariablus Malate, Matalaba Malate, Nasi, Nigui, Pangebonan and Quiorang Silab
on the ground that
The preponderance of the probatory facts, . . ., shows that the rivers, creeks, esteros
and canals listed in (1) have originally been constructed, deepened, widened, and
lengthened by the owners of the Hacienda San Esteban. That they have been used as
means of communication from one place to another and to the inner most of the
nipales, exclusively for the employees, colonos and laborers of the said Hacienda San
Esteban. That they have never been used by the public for navigation without the
express consent of the owners of the said Hacienda.21
Bases for the above-quoted conclusion were "the reliable informations gathered from old
residents of the locality, from outsiders, the sworn statements obtained from different persons
not interested in this case and the comparison of the three plans prepared in 1880, 1906 and
1930.22 The persons referred to are Martin Isip, Hilarion Lobo, Emigdio Ignacio, Castor
Quiambao, Matias Sunga facio Cruz, Inocencio Dayrit, Gabriel Manansala, Lope Quiambao,
Marcelino Bustos and Juan Lara .
On February 13, 1931 the Director of Public Works transmitted the Panopio Report to the
Secretary of Commerce and Communications recommending approval thereof. Later, on
February 27, 1935, Secretary of Public Works and Communications De las Alas approved the

agreement of Ayala y Cia., and the Municipality of Macabebe, concerning the ownership of the
streams in Hacienda San Esteban, for being in conformity with said Panopio Report.
This agreement of Ayala y Cia and the Municipality of Macabebe which was approved by the
Secretary of Public Works and Communications only on February 27, 1935, could not however
bind the Government because the power of the Secretary of Public Works and Communication
to enter thereto had been suppressed by the Philppine Legislature when it enacted Act 4175
which effect on December 7, 1934.
Nullity of the aforesaid contract would not of course affect the findings of fact contained in the
Panopio Report.
In weighing the evidence presented before the administrative investigation which culminated in
this appeal, respondent Secretary seemed to have ignored the Panopio Report and other
documentary evidence as well as the testimony of witnesses presented by petitioner but
instead gave credence only to the witnesses of Benigno Musni, et al. Upon review, however,
the lower court, taking into account all the evidence adduced in the administrative hearing,
including the Panopio Report, as well as those presented for the first time before it, sustained
petitioner's averment that the streams in question were artificially made, hence of private
ownership. As stated, this conclusion of the lower court which is in accord with the findings of
Panopio as contained in his report, finds ample support from the evidence presented and
admitted in the administrative investigation. Accordingly, we see no merit in disturbing the
lower court's findings fact.
We next consider the issue of whether under pertinent laws, the streams in question are public
or private.
We quote Articles 339, 407 and 408 of the Spanish Civil Code of 1889:
Art. 339. Property of public ownerships is
1. That devoted to public use, such as roads, canals, rivers, torrents, ports and bridges
constructed by the State, river banks, shores, roadsteads, and that of a similar
character;
Art. 407. The following are of public ownership:
1. Rivers and their natural channels;
2. Continuous or intermittent waters from springs or brooks running in their natural
channels and the channels themselves.
3. Waters rising continuously or intermittently on lands of public ownership;

4. Lakes and ponds formed by nature, on public lands, and their beds;
5. Rain waters running through ravines or sand beds, the channels of which are of public
ownership;
6. Subterranean waters on public lands;
7. Waters found within the zone of operation of public works, even though constructed
under contract;
8. Waters which flow continuously or intermittently from lands belonging to private
persons, to the State, to provinces, or to towns, from the moment they leave such
lands;
9. The waste waters of fountains, sewers, and public institutions.
Art. 408. The following are of private ownership:
1. Waters, either continuous or intermittent rising on private etates, while they run
through them;
2. Lakes and ponds and their beds when formed by nature on such estates;
3. Subterranean waters found therein;
4. Rain water falling thereon as long as their bounderies.
5. The channels of flowing streams, continuous or intermittent, formed by rain water,
and those of brooks crossing estates which are not of public ownership.
The water, bed, banks, and floodgates of a ditch or aqueduct are deemed to be an
integral part of the estate or building for which the waters are intended. The owners of
estates through or along the boundaries of which the aqueduct passes can assert no
ownership over it, nor any right to make use. of it beds or banks, unless they base their
claims on title deed which specify the right or the ownership claimed.
Articles 71 and 72 of the Spanish Law of Waters of August 3, 1866 state:
Art. 71. The water-beds of all creeks belong to the owners of the estates or lands over
which they flow.
Art. 72. The water-beds on public land, of creeks through which spring waters run, are a
part of the public domain.

The natural water-beds or channels of rivers are also part of the public domain.
Pursuant to Article 71 of the Spanish Law of Waters of August 3, 1866, and Article 408(5) of the
Spanish Civil Code, channels of creeks and brooks belong to the owners of estates over which
they flow. The channels, therefore, of the streams in question which may be classified creeks,
belong to the owners of Hacienda San Esteban.
The said streams, considered as canals, of which they originally were, are of private ownership
in contemplation of Article 339(l) of the Spanish Civil Code. Under Article 339, canals
constructed by the State and devoted to public use are of public ownership. Conversely, canals
constructed by private persons within private lands and devoted exclusively for private use
must be of private ownership.
Our attention has been called to the case of Mercado v. Municipal President of Macabebe, 59
Phil. 592. There the creek (Batasan-Limasan) involved was originally dug by the estate's owner
who, subsequently allowed said creek to be used by the public for navigation and fishing
purposes for a period of 22 years. Said this Court through Mr. Justice Diaz:
And even granting that the Batasan-Limasan creek acquired the proportions which it
had, before it was closed, as a result of excavations made by laborers of the appellant's
predecesor in interest, it being a fact that, since the time it was opened as a water route
between the Nasi River and Limasan creek, the owners thereof as well as strangers, that
is, both the residents of the hacienda and those of other nearby barrios and
municipalities, had been using it not only for their bancas to pass through but also for
fishing purposes, and it being also a fact that such was the condition of the creek at least
since 1906 until it was closed in 1928, if the appellant and her predecessors in interest
had acquired any right to the creek in question by virtue of excavations which they had
made thereon, they had such right through prescription, inasmuch as they failed to
obtain, and in fact they have not obtained, the necessary authorization to devote it to
their own use to the exclusion of all others. The use and enjoyment of a creek, as any
other property simceptible of appropriation, may be acquired or lost through
prescription, and the appellant and her predecessors in interest certainly lost such right
through the said cause, and they cannot now claim it exclusively for themselves after
the general public had been openly using the same from 1906 to 1928. . . .
In the cited case, the creek could have been of private ownership had not its builder lost it by
prescription. Applying the principle therein enunciated to the case at bar, the conclusion would
be inevitably in favor of private ownership, considering that the owners of Hacienda San
Esteban held them for their exclusive use and prohibited the public from using them.
It may be noted that in the opinion, mentioned earlier, issued on June 12, 1935, the Secretary
of Justice answered in the negative the query of the Secretary of Public Works and
Communications whether the latter can declare of private ownership those streams which
"were dug up artificially", because it was assumed that the streams were used "by the public as

fishing ground and in transporting their commerce in bancas or in small crafts without the
objection of the parties who dug" them. Precisely, Mercado v. Municipality of Macabebe was
given application therein. However, the facts, as then found by the Bureau of Public Works, do
not support the factual premise that the streams in question were used by the public "without
the objection of the parties who dug" them. We cannot therefore take as controlling in
determining the merits of this the factual premises and the legal conclusion contained in said
opinion.
The case at bar should be differentiated from those cases where We held illegal the closing
and/or appropriation of rivers or streams by owners of estates through which they flow for
purposes of converting them into fishponds or other works.23 In those cases, the watercourses
which were dammed were natural navigable streams and used habitually by the public for a
long time as a means of navigation. Consequently, they belong to the public domain either as
rivers pursuant to Article 407 (1) of the Spanish Civil Code of 1889 or as property devoted to
public use under Article 339 of the same code. Whereas, the streams involved in this case were
artificially made and devoted to the exclusive use of the hacienda owner.
Finally, Sapang Cansusu, being a natural stream and a continuation of the Cansusu River,
admittedly a public stream, belongs to the public domain. Its closure therefore by the
predecessors of Roman Santos was illegal.
The petition for the opening of Sapang Malauling Maragul, Quiorang Silab, Nigui,
Pepangebunan, Nasi and Bulacus was dismissed by the Secretary of Public Works and
Communications and the case considered closed. The said administrative decision has not been
questioned in this appeal by either party. Hence, they are deemed excluded herein.
All the other streams, being artificial and devoted exclusively for the use of the hacienda owner
and his personnel, are declared of private ownership. Hence, the dams across them should not
he ordered demolished as public nuisances.
With respect to the issue of contempt of court on the part of the Secretary of Public Works and
Communications and Julian Cargullo for the alleged issuance of a administrative decisions
ordering demolition of dikes involved in this case after the writ of injunction was granted and
served, suffice it to state that the lower court made no finding of contempt of court.
Necessarily, there is no conviction for contempt reviewable by this Court and any discussion on
the matter would be academic.
WHEREFORE, the decision appealed from is affirmed, except as to Sapang Cansusu which is
hereby declared public and as to which the judgment of the lower court is reversed. No costs.
So ordered.
Concepcion, C.J., Reyes, J.B.L., Dizon, Makalintal. Zaldivar, Sanchez, Castro, Angeles and
Fernando, JJ., concur.