SC stops NGCP from taking over SSS lot in Pasay City

The Supreme Court (SC) has stopped a court order that would have allowed the National Grid Corporation of the Philippines (NGCP) to take possession of a Pasay City lot owned by the Social Security System (SSS).

The high court's Third Division issued a status quo ante order on June 21 against the writ of possession in favor of NGCP, which was contained in orders handed down by Pasay City Regional Trial Court Branch 108 Judge Gina Bibat-Palamos on March 2 and April 24.

The SQAO, which restores a situation to its original state, is effective until lifted by the SC.

The Court also ordered respondents Judge Palamos and the NGCP to comment on SSS' petition within 10 days from receipt of notice.

The Office of the Government Corporate Counsel (OGCC), which represents the SSS in the case, welcomed the SC's move.

"While this is not a final victory for SSS yet as the case will still have to be heard and decided upon by the [Supreme Court], the order only goes to show the transcendental importance of the public interest involved," Government Corporate Counsel Rudolf Philip Jurado said in a statement.

In its petition, the SSS assailed the writ of possession issued by Judge Palamos on March 2 in relation to the expropriation of an SSS lot at the Financial Center Area for the construction of a substation.

NGCP holds a 25-year concession to manage, maintain and operate the country's power transmission system.

The company told the lower court that it needed to immediately build a substation that will accommodate the increasing power demand of Greater Manila Area. The project is to be called the Pasay 230kV Substation.

The 60,872-sqm lot is priced at P24,000 per sqm for a total valuation of P1,460,928,000.

In ruling on the expropriation, the judge said the NGCP had complied with the requisites of Section 6 of Republic Act 10572 (Right-of-Way Act), which include filing a complaint, service of notice to the other party and a deposit of the provisional amount based on the relevant zonal value of the land to be expropriated.

The SSS appealed the decision but it was rejected on April 24.

According to the pension fund, the judge acted with grave abuse of discretion when she ruled in favor of the expropriation without legal basis.

The SSS said the NGCP had no authority to file an expropriation case and be entitled to a writ of possession since the latter was a private corporation "seeking to acquire by compulsion a government property already devoted to public purpose."

The pension fund noted the trial court should have acted first on the issue of NGCP’s authority to expropriate government property.

"If we were to follow the line of reasoning that compliance by NGCP with the requisites under Section 6 of RA 10752, alone, serves to entitle it to a writ of possession, then any entity who files an expropriation complaint, gives notice to the landowner and deposits 100 percent of the relevant BIR zonal valuation should, as a matter of course, be issued a writ of possession," the petition said.

"This has a far-reaching implication, especially in this case because as a consequence a private entity, like the NGCP ends up having possession of a government property divesting in the process the government’s possession and use of the property for the purpose it was devoted to, and later become the owner of government property," it added.

The SSS noted Section 6 of RA 10752 was intended to facilitate government infrastructure projects on the premise that it is the national government acquiring the real property.

"The intent is to provide a shortcut in favor of government to curtail the long and tedious procedural requirement that it should observe in implementing national infrastructure projects owing to public accountability," the petition said.

"Thus, the law provided government with the advantage of possession without having to initially show the validity of its authority on considerations of diminishing causes of delay and efficiency in the delivery of public services," it added.

The SSS also said the expropriation of the property "will definitely deprive SSS’ possible investment opportunities, affect its actuarial life, to the detriment of SSS and its members." —NB/KVD, GMA News