If both of them are in bad faith (Landowner and BPS), Article 448 applies pursuant to Article 453, which states that if both the landowner and the BPS are in bad faith, Article 448 applies.
Now, Article 448 provides that the landowner has two options: whether (1)to appropriate the improvements provided he must pay for the necessary and useful expenses OR (2) compel the builder or planter to pay for the price of the land or the sower the proper rent.
If the landowner doesn't want to reimburse the BPS, then he can sell the property under the 2nd option. If, however, he wants to appropriate for himself the improvements, he must respect the BPS' right to retain the properties until the latter is reimbursed for the expenses.
I think the principle of in pari delicto is not applicable here because the instant case does not involve a contract (note that Article 1412 speaks of void contracts while in this case, there is no mention of any contract). Moreover, assuming arguendo that this principle is indeed applicable, by virtue of statutory construction, the rule embodied in a specific provision applies over the general principle. In this case, the specific provision here is Article 453 of the civil code while the general principle is the in pari delicto rule.