The Supreme Court (SC) has upheld a Court of Appeals (CA) decision ordering the National Power Corp. (NPC) to pay some P36 million as just compensation to the owners of a huge parcel of land in Marawi City where the power firm constructed underground tunnels for its various projects since 1978.

The SC ruling paves the way for the execution of judgment by the Lanao del Sur Regional Trial Court (RTC) in the civil case filed by the Ibrahim and Maruhom families in 1994.

The Ibrahims and Maruhoms jointly own a 70,000-square meter lot in Saduc, Marawi City. Sometime in 1978, the NPC, without the knowledge and consent of the owners, took possession of the subterranean area of the land and constructed therein underground tunnels.

The tunnels were used by the NPC in siphoning the water of Lake Lanao and in the operation of its Agus II, III, IV, V, VI and VII projects located in Saguiran, Lanao del Sur, Nagnca and Balo-I in Lanao del Norte and Ditucalan and Fuentes in Iligan City.

The landowners only discovered the existence of the tunnels in July, 1992. Thus, on October 7, 1992, they demanded that NPC pay damages and vacate the subterranean portion of the land.

Their demand was not heeded, prompting them to initiate an action for recovery of possession of land and damages against NPC with the RTC on November 23, 1994.

After trial, the RTC did not order the dismantling of the underground tunnels beneath the land of the Ibrahims and Maruhoms but directed the NPC to pay them P48.005 million for the remaining unpaid portion of 48,005 sq. m. with six percent interest per annum from the filing of the case.

The lower court likewise ordered the NPC to pay the landowners a reasonable monthly rental of P0.68 per sq. m. for the 48,005 sq. m. effective from its occupancy of the area in 1978 or a total of P7,050,974.40. The NPC was also ordered to pay the sum of P200,000 as moral damages and another P200,000 as attorney’s fees.