SECOND DIVISION

[G.R. No. 142304. June 20, 2001]

CITY OF MANILA, petitioner, vs. OSCAR, FELICITAS, JOSE, BENJAMIN,

ESTELITA, LEONORA, and ADELAIDA, all surnamed
SERRANO, respondents.

DECISION
MENDOZA, J.:

This is a petition for review on certiorari of the decision, dated November 16, 1999, and
resolution, dated February 23, 2000, of the Court of Appeals reversing the order, dated December
15, 1998, of the Regional Trial Court, Branch 16, Manila and perpetually enjoining it from
proceeding with petitioners complaint for eminent domain in Civil Case No. 94-72282.
The facts are as follows:
On December 21, 1993, the City Council of Manila enacted Ordinance No. 7833,
authorizing the expropriation of certain properties in Manilas First District in Tondo, covered by
TCT Nos. 70869, 105201, 105202, and 138273 of the Register of Deeds of Manila, which are to
be sold and distributed to qualified occupants pursuant to the Land Use Development Program of
the City of Manila.
One of the properties sought to be expropriated, denominated as Lot 1-C, consists of 343.10
square meters. It is covered by TCT No. 138272 which was derived from TCT No. 70869 issued
in the name of Feliza De Guia.[1] After her death, the estate of Feliza De Guia was settled among
her heirs by virtue of a compromise agreement, which was duly approved by the Regional Trial
Court, Branch 53, Manila in its decision, dated May 8, 1986.[2] In 1989, Alberto De Guia, one of
the heirs of Feliza De Guia, died, as a result of which his estate, consisting of his share in the
properties left by his mother, was partitioned among his heirs. Lot 1-C was assigned to Edgardo
De Guia, one of the heirs of Alberto De Guia. [3] On April 15, 1994, Edgardo De Guia was issued
TCT No. 215593, covering Lot 1-C.[4] On July 29, 1994, the said property was transferred to Lee
Kuan Hui, in whose name TCT No. 217018 was issued.[5]
The property was subsequently sold on January 24, 1996 to Demetria De Guia to whom
TCT No. 226048 was issued.[6]
On September 26, 1997, petitioner City of Manila filed an amended complaint for
expropriation, docketed as Civil Case No. 94-72282, with the Regional Trial Court, Branch 16,
Manila, against the supposed owners of the lots covered by TCT Nos. 70869 (including Lot 1-C),
105201, 105202, and 138273, which included herein respondents Oscar, Felicitas, Jose,
Benjamin, Estelita, Leonora, Adelaida, all surnamed Serrano.[7] On November 12, 1997,
respondents filed a consolidated answer, in which they alleged that their mother, the late
Demetria De Guia, had acquired Lot 1-C from Lee Kian Hui; that they had been the bona fide
occupants of the said parcel of land for more than 40 years; that the expropriation of Lot 1-C
would result in their dislocation, it being the only residential land left to them by their deceased
mother; and that the said lot was exempt from expropriation because dividing the said parcel of
land among them would entitle each of them to only about 50 square meters of
land. Respondents, therefore, prayed that judgment be rendered declaring Lot 1-C exempt from
expropriation and ordering the cancellation of the notice annotated on the back of TCT No.
226048,[8] regarding the pendency of Civil Case No. 94-72282 for eminent domain filed by
petitioner.[9]
Upon motion by petitioner, the trial court issued an order, dated October 9, 1998, directing
petitioner to deposit the amount of P1,825,241.00 equivalent to the assessed value of the
properties.[10] After petitioner had made the deposit, the trial court issued another order, dated
December 15, 1998, directing the issuance of a writ of possession in favor of petitioner.[11]
Respondents filed a petition for certiorari with the Court of Appeals, alleging that the
expropriation of Lot 1-C would render respondents, who are actual occupants thereof, landless;
that Lot 1-C is exempt from expropriation because R.A. No. 7279 provides that properties
consisting of residential lands not exceeding 300 square meters in highly urbanized cities are
exempt from expropriation; that respondents would only receive around 49 square meters each
after the partition of Lot 1-C which consists of only 343.10 square meters; and that R.A. No.
7279 was not meant to deprive an owner of the entire residential land but only that in excess of
300 square meters.[12]
On November 16, 1999, the Court of Appeals rendered a decision holding that Lot 1-C is not
exempt from expropriation because it undeniably exceeds 300 square meters which is no longer
considered a small property within the framework of R.A. No. 7279. However, it held that in
accordance with the ruling in Filstream International Inc. v. Court of Appeals,[13] the other modes
of acquisition of lands enumerated in 9-10 of the law must first be tried by the city government
before it can resort to expropriation. As petitioner failed to show that it had done so, the Court of
Appeals gave judgment for respondents and enjoined petitioner from expropriating Lot 1-C. The
dispositive portion of its decision reads:

WHEREFORE, in view of all the foregoing, the instant petition is hereby GIVEN
DUE COURSE and accordingly GRANTED. The Order, dated December 15, 1998,
denying petitioners motion for reconsideration issued by respondent Regional Trial
Court of Manila, Branch 16, in Civil Case No. 94-72282 is hereby REVERSED and
SET ASIDE. Let a writ of injunction issue perpetually enjoining the same respondent
court from proceeding with the complaint for eminent domain in Civil Case No. 94-
72282.[14]

In its resolution, dated February 23, 2000, the Court of Appeals likewise denied two motions
for reconsideration filed by petitioner. [15] Hence this petition. Petitioner contends that the Court of
Appeals erred in
1) Giving due course to the Petition of the Serranos under Rule 65 notwithstanding its
own declaration of the impropriety of the resort to the writ and filing thereof with the
wrong appellate court;

2) Concluding that the Order of October 9, 1998 which authorizes the immediate entry
of the City as the expropriating agency into the property sought to be expropriated
upon the deposit of the provisionally fixed fair market value thereof as tantamount to
condemnation of the property without prior showing of compliance with the
acquisition of other lands enumerated in Sec. 9 of R.A. 7279 ergo a violation of due
process to the Serranos by the doctrinaire application of FILSTREAM ruling and
corrollarily,

3) In prohibiting permanently, by writ of injunction, the trial court from proceeding

with a complaint for expropriation of the City in Civil Case No. 94-72282. [16]

We will deal with these contentions in the order they are presented.
First. Petitioner contends that respondents remedy against the order of the trial court
granting a writ of possession was not to file a petition for certiorari under Rule 65 but a petition
for review under Rule 45 which should have been filed in the Supreme Court.[17]
This contention has no merit. A petition for review under Rule 45 is a mode of
appeal. Accordingly, it could not have been resorted to by respondents inasmuch as the order of
the trial court granting a writ of possession was merely interlocutory from which no appeal could
be taken. Rule 45, 1 of the 1997 Rules of Civil Procedure applies only to final judgments or
orders of the Court of Appeals, the Sandiganbayan, and the Regional Trial Court. On the other
hand, a petition for certiorari is the suitable remedy in view of Rule 65, 1 which provides:

When any tribunal, board or officer exercising judicial or quasi-judicial functions has
acted without or in excess of its or his jurisdiction, or with grave abuse of discretion
amounting to lack or excess of jurisdiction, and there is no appeal, nor any plain,
speedy, and adequate remedy in the ordinary course of law, a person aggrieved
thereby may file a verified petition in the proper court, alleging the facts with
certainty and praying that judgment be rendered annulling or modifying the
proceedings of such tribunal, board or officer, and granting such incidental reliefs as
law and justice may require.

Respondents petition before the Court of Appeals alleged that the trial court had acted
without or in excess of its jurisdiction or with grave abuse of discretion amounting to lack of
jurisdiction in issuing the order, dated December 15, 1998, resolving that Lot 1-C is not exempt
from expropriation and ordering the issuance of the writ of possession in favor of petitioner.[18]
Second. Petitioner faults the Court of Appeals for deciding issues not raised in the trial court,
specifically the question of whether or not there was compliance with 9 and 10 of R.A. No.
7279. It argues that the sole defense set up by respondents in their petition before the Court of
Appeals was that their property was exempted from expropriation because it comes within the
purview of a small property as defined by R.A. No. 7279. Accordingly, the Court of Appeals
should not have applied the doctrine laid down by this Court in the Filstream[19] case as such
issue was not raised by respondents in their petition before the Court of Appeals.
This contention likewise has no merit. In their petition before the Court of Appeals,
respondents raised the following issues:
1. Whether or not the subject Lot 1-C with an area of 343.10 square meters covered by T.C.T.
No. 226048 in the name of petitioners mother, the late Demetria [De Guia] Serrano, may be
lawfully expropriated for the public purpose of providing landless occupants thereof
homelots of their own under the land-for-the-landless program of respondent City of Manila.
2. Whether or not the expropriation of the said Lot 1-C by respondent City of Manila violates
the equal protection clause of the Constitution, since petitioners, with the exception of
petitioner Oscar G. Serrano, who are likewise landless are actual occupants hereof.
3. Whether or not Lot 1-C is or may be exempted from expropriation pursuant to R.A. 7279,
otherwise known as the Urban Development and Housing Act of 1992. [20]
It is clear that respondents raised in issue the propriety of the expropriation of their property
in connection with R.A. No. 7279. Although what was discussed at length in their petition before
the Court of Appeals was whether or not the said property could be considered a small property
within the purview of the exemption under the said law, the other provisions of the said law
concerning expropriation proceedings need also be looked into to address the first issue raised by
respondents and to determine whether or not expropriation of Lot 1-C was proper under the
circumstances. The Court of Appeals properly considered relevant provisions of R.A. No. 7279
to determine the issues raised by respondents. Whether or not it correctly applied the doctrine
laid down in Filstream in resolving the issues raised by respondents, however, is a different
matter altogether, and this brings us to the next point.
Third. Petitioner contends that the Court of Appeals erroneously presumed that Lot 1-C has
been ordered condemned in its favor when the fact is that the order of the trial court, dated
December 15, 1998, merely authorized the issuance of a writ of possession and petitioners entry
into the property pursuant to Rule 67, 2. At that stage, it was premature to determine whether the
requirements of R.A. No. 7279, 9-10 have been complied with since no evidentiary hearing had
yet been conducted by the trial court.[21]
This contention is well taken. Rule 67, 2 provides:

Upon the filing of the complaint or at any time thereafter and after due notice to the
defendant, the plaintiff shall have the right to take or enter upon the possession of the
real property involved if he deposits with the authorized government depositary an
amount equivalent to the assessed value of the property for purposes of taxation to be
held by such bank subject to the orders of the court. Such deposit shall be in money,
unless in lieu thereof the court authorizes the deposit of a certificate of deposit of a
government bank of the Republic of the Philippines payable on demand to the
authorized government depositary.
If personal property is involved, its value shall be provisionally ascertained and the
amount to be deposited shall be fixed by the court.

After such deposit is made the court shall order the sheriff or other proper officer to
forthwith place the plaintiff in possession of the property involved and promptly
submit a report thereof to the court with service of copies to the parties.

Thus, a writ of execution may be issued by a court upon the filing by the government of a
complaint for expropriation sufficient in form and substance and upon deposit made by the
government of the amount equivalent to the assessed value of the property subject to
expropriation. Upon compliance with these requirements, the issuance of the writ of possession
becomes ministerial.[22] In this case, these requirements were satisfied and, therefore, it became
the ministerial duty of the trial court to issue the writ of possession.
The Court of Appeals, however, ruled that petitioner failed to comply with the requirements
laid down in 9-10 of R.A. No. 7279 and reiterated in the Filstream ruling. This is error. The
ruling in Filstream was necessitated because an order of condemnation had already been issued
by the trial court in that case. Thus, the judgment in that case had already become final. In this
case, the trial court has not gone beyond the issuance of a writ of possession. Hearing is still to
be held to determine whether or not petitioner indeed complied with the requirements provided
in R.A. No. 7279. It is, therefore, premature at this stage of the proceedings to find that petitioner
resorted to expropriation without first trying the other modes of acquisition enumerated in 10 of
the law.
R.A. No. 7279 in pertinent parts provide:

SEC. 9. Priorities in the Acquisition of Land.--- Lands for socialized housing shall be
acquired in the following order:

(a) Those owned by the Government or any of its subdivisions, instrumentalities, or

agencies, including government-owned and controlled corporations and their
subsidiaries;

(b) Alienable lands of the public domain;

(c) Unregistered or abandoned and idle lands;

(d) Those within the declared Areas or Priority Development, Zonal Improvement
Program sites, and Slum Improvement and Resettlement Program sites which have not
yet been acquired;

(e) Bagong Lipunan Improvement of Sites and Services or BLISS sites which have
not yet been acquired; and

(f) Privately-owned lands.

Where on-site development is found more practicable and advantageous to the
beneficiaries, the priorities mentioned in this section shall not apply. the local
government units shall give budgetary priority to on-site development of government
lands.

SEC. 10. Modes for Land Acquisition.--- The modes of acquiring lands for purposes
of this Act shall include, amount others, community mortgage, land swapping, land
assembly or consolidation, land banking, donation to the Government, joint-venture
agreement, negotiated purchase, and expropriation: Provided, however, That
expropriation shall be resorted to only when other modes of acquisition have been
exhausted: Provided, further, That where expropriation is resorted to, parcels of land
owned by small property owners shall be exempted for purposes of this
Act: Provided, finally, That abandoned property, as herein defined, shall be reverted
and escheated to the State in a proceeding analogous to the procedure laid down in
Rule 91 of the Rules of Court.

For the purpose of socialized housing, government-owned and foreclosed properties

shall be acquired by the local government units, or by the National Housing Authority
primarily through negotiated purchase: Provided, That qualified beneficiaries who are
actual occupants of the land shall be given the right of first refusal.

Whether petitioner has complied with these provisions requires the presentation of evidence,
although in its amended complaint petitioner did allege that it had complied with the
requirements.[23] The determination of this question must await the hearing on the complaint for
expropriation, particularly the hearing for the condemnation of the properties sought to be
expropriated. Expropriation proceedings consists of two stages: first, condemnation of the
property after it is determined that its acquisition will be for a public purpose or public use and,
second, the determination of just compensation to be paid for the taking of private property to be
made by the court with the assistance of not more than three commissioners.[24]
WHEREFORE, the decision, dated November 16, 1999, and resolution, dated February 23,
2000, of the Court of Appeals are REVERSED and the order of the trial court, dated December
15, 1998, is REINSTATED. This case is REMANDED to the trial court for further proceedings.
SO ORDERED.
Bellosillo, (Chairman), Quisumbing, Buena, and De Leon, Jr., JJ., concur.

[1]
CA Decision, p. 3; CA Rollo, p. 329.
[2]
CA Rollo, pp. 44-47.
[3]
Id., p. 60.
[4]
Id., p. 54.
[5]
Id., p. 57.
[6]
Id., p. 58.
[7]
Id., pp. 28-34.
[8]
Id., pp. 36-39.
[9]
Id., p. 58.
[10]
Id., p. 70.
[11]
Id., pp. 24-26.
[12]
Id., pp. 16-18.
[13]
284 SCRA 716 (1998).
[14]
CA Decision, p. 8; CA Rollo, p. 334.
[15]
CA Rollo, p. 393.
[16]
Petition, p. 5; Rollo, p. 14.
[17]
Id., p. 6; Id., p. 15.
[18]
CA Rollo, p. 7.
[19]
Supra.
[20]
CA Rollo, p. 12.
[21]
Petition, pp. 8-10; Rollo, pp. 17-20.
[22]
Biglang-awa v. Bacalla, G.R. Nos. 139927 and 139936, Nov. 22, 2000.
[23]
In its amended complaint, petitioner alleged:
4. Prior to the institution of this action, plaintiff tried to purchase the subject property by negotiated sale
with a valid and definite offer of P4,324,000.00 as fair market value thereof contained in a letter dated March 17,
1994 of the then City Legal Officer Mario C.R. Domingo addressed to defendants administrator, Ms. Linda De
Guia . . .
4.1. Defendants LEE KIAN HUI, EDGARDO DE GUIA, FELISSA DE GUIA, RODOLFO DE GUIA, BRUHILDA
DE GUIA, OSCAR, FELICITAS, JOSE, BENJAMIN, ESTRELLITA, LEONORA, ADELAIDA, all surnamed
SERRANO, ERLINDA DE GUIA, ELENA DE GUIA, RAMIRO DE GUIA, who received the offer-letter, rejected
the offer.
[24]
Barangay San Roque, Talisay, Cebu v. Heirs of Francisco Pastor, G.R. No. 138896, June 20, 2000.