CA lifts TRO on sale of prime property in Bacolod

Bacolod City—The Court of Appeals (CA) has lifted a 60-day temporary restraining order (TRO) that may pave the way for the provincial government to proceed with the sale and lease of its 7.7-hectare of prime property here to Ayala Land Inc. (ALI).

In a decision dated Sept. 6, the CA’s 20th Division denied the petition of SM Prime Holdings Inc. (SMPHI) for a preliminary injunction and instead cut short the 60-day TRO it issued on July 27. The order was supposed to expire on Oct. 4.

The court ordered SMPHI and the provincial government officials to submit their memorandums within 15 days after which the case would be deemed submitted for decision.

SMPHI lawyer Vincent Patrick Bayhon could not be reached for comment as of press time.

SMPHI filed a petition for certiorari against the provincial government, insisting that it won the July 7 public bidding for the property. It posted a P50-million bond.

It had insisted that it “clearly submitted a bid superior to Ayala’s” and was surprised when the bidding was declared a failure.

SMPHI had proposed to purchase a portion of the province-owned property for P18,885 per square meter and to lease the remaining portion for P65 per sq. m., well within the price set by the awards committee.

Ayala, on the other hand, submitted a bid of P17,000 per sq. m. for the purchase and P50 per sq. m. for the lease.

The provincial government declared the bidding a failure after both parties’ bids came in below the floor price set by the Commission on Audit.

A negotiated bidding was held on July 15, but SMPHI representatives did not show up. The property was then awarded to ALI.

SMPHI filed petition before the regional trial court in a bid to stop the negotiated sale and lease.

Judge Estefanio S. Libutan Jr. of Bacolod RTC Branch 50 did not issue a TRO but instead asked the Capitol officials and ALI to comment on SMPHI’s petition.

But SMPHI decided to elevate its petition to the CA, which then issued a 60-day TRO on July 27. On Sept. 6, the CA ruled to lift the TRO and asked the respondents to file their memorandums.

Gov. Alfredo Marañon Jr. was happy with the court’s decision, saying the sale and lease of the province-owned property to ALI could now proceed.

“It is a vindication of our position,” he said. “We followed all legal procedures in the conduct of the bidding and SMPHI self proclaimed itself the winner.”