March 28, 1968
Ponente: Bengzon, J.
FACTS:
·
The municipality of Zamboanga used to be the
provincial capital of the then Zamboanga Province. But by virtue of C.A. 39, the
Municipality of Zamboanga was converted into a chartered city.
·
Sec. 50 of C.A. 39 stated that “all the
abandoned properties of the province upon the transfer of the capital to
another place will be acquired and paid for by the City of Zamboanga at a price
fixed by the Auditor General.” These properties consisted of 50 lots, excluding
buildings constructed thereon.
·
In 1947, the Appraisal Committee formed by the
Auditor General fixed the value of the properties and buildings in question at
P1,294,244.00.
·
In 1952, R.A. 711 was approved, which divided
the province of Zamboanga into Zamboanga del Norte and Zamboanga del Sur. Sec.
6 of R.A. 711 provided for the division of the assets and obligations of the
old province between the two new ones. In 1955, the Auditor General apportioned
the assets and obligations of the defunct Province of Zamboanga as follows:
54.39% for Zamboanga del Norte (P704,220.05) and 45.61% for Zamboanga del Sur,
both payable by Zamboanga City.
·
In 1959, the Executive Secretary issued a
ruling holding that Zamboanga del Norte had a vested right on the properties
mentioned in Sec. 50 of C.A. 39, and was therefore entitled to the price
thereof payable by Zamboanga City. This
ruling revoked the previous Cabinet Resolution of July 13, 1951 conveying all
50 lots to Zamboanga City for P1.00 effective 1945 when provincial capital was
transferred to Dipolog. Subsequently, the Secretary of Finance authorized the
CIR to deduct 25% of Zamboanga City’s regular internal revenue allotment for
three quarters. This totaled toP57,373.46 credited to Zamboanga del Norte in
partial payment of P704,220.05 due it.
·
In 1961, however, R.A. 3039 was passed,
effectively amending Sec. 50 of C.A. 39. As per the new law: “All buildings,
properties, and assets belonging to the former province of Zamboanga and
located within the City of Zamboanga are transferred free of charge in favor of
the latter.” This prompted the Secretary of Finance to order the CIR to stop
further payments to Zamboanga del Norte, and to return to Zamboanga City the
sum of P57,373.46 taken from it out of the internal revenue allotments.
·
In 1962, the province of Zamboanga del Norte
filed a complaint alleging that R.A.
3039 was unconstitutional for depriving the province of property without due
process and just compensation.
·
On August 12, 1963, R.A. 3039 was rendered
unconstitutional by the lower court for depriving Zamboanga del Norte of its
private properties. Hence, the instant appeal by the City of Zamboanga.
RULING:
Whether or
not R.A. 3039 is unconstitutional.—NO.
·
R.A. 3039 is valid insofar as it affects the
lots used as capitol site, school sites and its grounds, hospital and
leprosarium sites and the high school playground sites — a total of 24 lots —
since these were held by the former Zamboanga province in its governmental
capacity and therefore are subject to the absolute control of Congress.
·
The rest of the 26 remaining lots, however,
are patrimonial properties since they are not being utilized for distinctly
governmental purposes. Therefore, these 26 lots are to be paid for by Zamboanga
City to both Zamboanga del Norte and Zamboanga del Sur following the original
1955 scheme: 54.39% for Zamboanga del Norte and 45.61% for Zamboanga del Sur.
·
The validity of the law ultimately depends on
the nature of the 50 lots and buildings thereon in question. For, the matter
involved here is the extent of legislative control over the properties of a
municipal corporation, of which a province is one.