THE Regional Trial Court (RTC) in Manila City issued a temporary restraining order (TRO) on Monday, enjoining the state housing firm Home Guaranty Corp. (HGC) from bidding out the 121,905-square- meter Smokey Mountain dump in Barangay Vitas, Tondo, Manila.
In an eight-page resolution, Judge Jansen Rodriguez, presiding judge of Branch 6 RTC in Manila , granted the plea of petitioner-beneficiaries of the Smokey Mountain Dumpsite Reclamation Project (SMDRP) to stop the public auction of the property which was scheduled on Monday at 2 p.m.
The TRO will remain in effect for 20 days based on the resolution.
“It was the intent of the government to constitute the petitioners, and others similarly situated, as the beneficiaries of the SMDRP. Consequently, it is beyond question that the petitioners have a clear and unmistakable right or interest over the subject property,” the resolution stated.
Furthermore, the trial court held that HGC committed “material and substantial” violation of the petitioners’ right or interest over the dump when it filed complaint for ejectment against them and when it has offered the subject property for public auction without consulting them.
The trial court noted that, while HGC insisted that it is now the owner of the property by virtue of a deed of assignment and conveyance executed by Planters Development Bank (PDB) in its favor, it failed to produce the copy of the same to support its claim.
“It appears, therefore, that the acts of respondent HGC will affect the petitioners before this court can decide on whether to issue a writ of preliminary injunction and further considering the urgency of the matter that immediate action should be taken, the court deems it property to grant the application for a temporary restraining order,” the resolution stated.
The in Manila RTC in Manila has set the case for hearing on the prayer for the issuance of a writ of preliminary injunction on July 31.
The lower Court has also directed the HGC and co-defendants National Housing Authority Inc. to show cause why injunction should not be granted.
The case stemmed from a case filed by beneficiaries of the reclamation project questioning the move of the HGC to auction off the common areas in their permanent housing units, as well as the Smokey Mountain dump.
The beneficiaries also claimed that the HGC is also attempting to sell some other properties that are said to be part of the asset pool of the SMDRP which cannot be disposed by HGC as it is still part of several legal disputes with a property developer.
The deadline for the submission of bids for the other properties has been set on October 6.
They added that, while their housing units have been constructed and turned over to them, they have yet to receive the livelihood project promised to them under the SMDRP.
The petitioner-beneficiaries said they were surprised to learn that the said area is now up for sale through a public auction by HGC and, HGC filed a complaint for ejectment against them.
The beneficiaries also said because of still-to-be-resolved disputes on the asset pool, the titles over their properties have not been released to them by the HGC.
Siding with the beneficiaries, the court said it is issuing the TRO “to prevent threatened or continuous irremediable injury to some of the parties before their claims can be thoroughly studied and adjudicated.
“[The] sole aim is to preserve the status quo until the merits of the case can be heard fully,” it added.