- Petitioner
- National Housing Authority
- Respondent
- Manila Seedling Bank Foundation
- Citation
- G.R. No. 183543
- Court
- Supreme Court
- Division
- First Division
- Ponente
- Sereno, C.J.
- Decided
- June 20, 2016
Summary
The Supreme Court resolved a property dispute between the National Housing Authority and Manila Seedling Bank Foundation over excess land occupation. MSBF was granted usufructuary rights over seven hectares under Proclamation No. 1670 but occupied 16 hectares, leasing the excess to tenants. The Court ruled that MSBF was a possessor in bad faith regarding the nine-hectare excess, having knowingly exceeded its grant. Under Civil Code provisions, MSBF must account for fruits received from leasing but is entitled to reimbursement of necessary expenses for property development and protection. The case was remanded to determine the specific amounts due to each party, representing a significant ruling on usufructuary rights and possessor obligations in Philippine property law.