D E C I S
I O N
VELASCO, JR., J.:
I.
THE FACTS
In 1958, the Spanish owners of
Compañia General de Tabacos de Filipinas (Tabacalera) sold Hacienda Luisita and
the Central Azucarera de Tarlac, the sugar mill of the hacienda, to the Tarlac
Development Corporation (Tadeco), then owned and controlled by the Jose
Cojuangco Sr. Group. The Central Bank of the Philippines assisted Tadeco in
obtaining a dollar loan from a US bank. Also, the GSIS extended a
PhP5.911 million loan in favor of Tadeco to pay the peso price component of the
sale, with the condition that “the lots comprising the Hacienda Luisita be subdivided by the
applicant-corporation and sold at cost to the tenants, should there be any, and
whenever conditions should exist warranting such action under the provisions of
the Land Tenure Act.” Tadeco however did not comply with this condition.
