STATUTORY CONSTRUCTION

CASTILLO, E.G.

GR NO. 109404

PETITIONER: FLORENCIO EUGENIO

RESPONDENT: EXECUTIVE SECRETARY FRANKLIN DRILON HOUSING AND LAND USE REGULATORY BOARD
PROPSERO PALMIANO

PANGANIBAN, J.:

I. FACTS
Prospero Palmiano (Palmiano) purchased on installment 2 lots in E&S Delta Village in QC from Florencio Eugenio
(Eugenio) and his co-owner, Fermin Salazar.

Due to non-development of the subdivision, Delta Village Homeowners Association filed a case with the National
Housing Authority, which rendered a resolution ordering Eugenio to stop selling more lots on the village and any other
projects owned by him.

In view of the above resolution and nondevelopment of the village, Palmiano suspended payments for the said lots, to
which Eugenio sold one of it to Spouses Relevo, I whose favor the said property was regsistered. Palmiano prayed with
the Human Settlements Regulatory Commission (HSRC) for the annulment of sale to Spouses Relevo and reconveyance of
the property to him. HSRC ruled in favor Eugenio and dismissed Palmiano’s complaint

On appeal, Commission Proper of HSRC revered the previous decision, and applied PD 957 ordering Eugenio to complete
the development of the village and reinstate the purchase contract over one lot and for the other lot, to immediately
refund to Palmiano all payments made there on plus legal interest from date of receipt hereof until fully paid. On appel,
the Executive Secretary affirmed the decision and denied subsequent MR of Eugenio for lack of merit and having filed
past deadline.

Eugenio filed a motion for review before the SC, avering that the Executive Secretary erred in applying PD 957, as the
purchase agreement was entered in 1972 before the effectivity of PD 957 in 1976, and justifying Palmiano’s non-
payment for non-development of the village.
II. ISSUE
 Whether or not PD 957 should have retroactive effect.

III. RULING - WHEREFORE, there being no showing of grave abuse of discretion, the petition is DENIED due course and is
hereby DISMISSED. No costs.
 Yes. Even if PD 957 did not expressly provide for its retroactivity, the same can be inferred from the intent of the law as
shown in its preamble.

"WHEREAS, it is the policy of the State to afford its inhabitants the requirements of decent human settlement
and to provide them with ample opportunities for improving their quality of life;

"WHEREAS, numerous reports reveal that many real estate subdivision owners, developers, operators, and/or
sellers have reneged on their representations and obligations to provide and maintain properly subdivision
roads, drainage, sewerage, water systems, lighting systems, and other similar basic requirements, thus
endangering the health and safety of home and lot buyers;

"WHEREAS, reports of alarming magnitude also show cases of swindling and fraudulent manipulations
perpetrated by unscrupulous subdivision and condominium sellers and operators, such as failure to deliver
titles to the buyers or titles free from liens and encumbrances, and to pay real estate taxes, and fraudulent
sales

“The intent of a statute is the law x x x. The intent is the vital part, the essence of the law, and the
primary rule of construction is to ascertain and give effect to the intent. The intention of the legislature in
enacting a law is the law itself and must be enforced when ascertained, although it may not be consistent
with the strict letter of the statute. Courts will not follow the letter of a statute when it leads away from the
true intent and purpose of the legislature and to conclusions inconsistent with the general purpose of the act
x x x. In construing statutes the proper course is to start out and follow the true intent of the legislature and
to adopt that sense which harmonizes best with the context and promotes in the fullest manner the apparent
policy and objects of the legislature.”

Eugenio v. Executive Secretary

Statutes (Preamble)