Agrarian Law and Jurisprudence

8/12/2019 Agrarian Law and Jurisprudence

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AGRARIAN REFORM LAW AND JURISPRUDENCE (A DAR-UNDP SARDIC

PUBLICATION

AGRARIAN LAW AND JURISPRUDENCE

PREFACE This book has inauspicious beginnings. The original intent of the UNDP-SARDCpro!ect" #hich e$entuall% bore this book" #as to &ap out special areas for polic%refor& in agrarian refor& la#. 'ut as the pro!ect tea& (el$e( (eeper into thesub!ect" the long una((resse( nee( for an organi)e( an( s%ste&atic presentation ofagrarian la# an( e*isting !urispru(ence #as again put to fore. n response to thatproble&" the pro!ect tea& an( the UNDP-SARDC pro!ect (eci(e( to #i(en the scopeof the pro!ect an(" thus" #hat ca&e of it #as not onl% a &ap of the (i+cult proble&areas in the la#,s i&ple&entation but also this book.

An% fora% into the co&plicate(" an( often contentious" arena that is agrarianrefor& la# necessitates a co&plete an( #ell-groun(e( grasp of the basics. fan%thing" our stu(% re$eale( that" e$en after (eca(es" agrarian refor& la# re&ains

$astl% &isun(erstoo( an( un(er-appreciate( not onl% b% stakehol(ers but b%agrarian refor& la# i&ple&entors the&sel$es. This is largel% (ue to the (earth of &aterials on the &atter. $er the %ears" la#san( their i&ple&enting rules ha$e been rene( an( pro&ulgate( to re/ect thelessons learne( an( the changing ti&es. Si&ultaneousl%" the Supre&e Court issue(rulings that eluci(ate an( interpret the la#" as #ell as repu(iate portions thereof.

The rights an( obligations of the (i0erent stakehol(ers ha$e been constantl%re(ene( an( rea(!uste(. Despite these e*citing (e$elop&ents" ho#e$er" there has been little (one to&esh all these pieces of kno#le(ge into an organi)e( #hole. This book is an e0ort to#ar(s that en(. n a nutshell" this book is a hu&ble atte&pt in su&&ing up %ears of agrarian

refor& la# i&ple&entation. This book inten(s to reach out to all sectors an(stakehol(ers to heighten their un(erstan(ing an( appreciation of the agrarianrefor& in the Philippines" an( hopefull% help rene the ter&s of the ongoing (ebatesa&ong the&. This book hopes to appeal to both fa&iliar an( unfa&iliar on thesub!ect. t atte&pts to present" in an aca(e&ic fashion" all rele$ant agrarian refor&la#s" DAR i&ple&enting rules" an( pertinent !u(icial (eclarations on the &atter.1opefull%" this #ill pro$i(e a holistic fra&e#ork for un(erstan(ing agrarian la#. E*tra e0ort #as also e*erte( to (e&onstrate agrarian refor& in action b% gi$ingconcrete illustrations an( (iscussion fro& an operational perspecti$e. ntersperse(#ith the theoretical (iscussions are the $arious operational 2 issues an( (i+cultiesthat DAR i&ple&entors face( or are still facing. The authors #oul( like to thank 2

3 the UNDP-SARDC pro!ect &anage&ent tea& for pro$i(ing the nancial an(logistic support to see this pro!ect through.3 the &e&bers of DAR,s &anage&ent co&&ittee #ho share( #ith the pro!ecttea& their in$aluable insights an( e*perience in agrarian refor& i&ple&entation.

Their contribution in &aking this book co&plete an( insightful is i&&easurable.3 the DAR-PP4A support sta0 for pro$i(ing a(&inistrati$e an( secretariatsupport5 an(3 Antonio Ra&os #ho ser$e( as au(itor for this pro!ect.


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This is but a rst step. 6e (eri$e inspiration fro& the #or(s of T.S. Eliot7

We shall not cease from exploration

And the end of all our exploring

Will be to arrive where we started

And know the place for the rst time8Fro& 9Little Gidding9:

C1APTER ;Coverage of the Comprehensive Agrarian Reform Programhe Comprehensive Agrarian Reform Program

The Co&prehensi$e Agrarian Refor& Progra& >?@?@took e0ect on ;? une ;BB.6hile e*pressl% repealing specic pro$isions of prior enact&ents on agrarianrefor&" RA >>?@pro$i(es that the pro$isions of RA BHH=" Presi(ential DecreeNo. G@>>?@has been uphel( inAssociation of !mallLandowners v" !ecretar# of Agrarian Reform" ;@? SCRA HG


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result of this ruling" Congress enacte( RA @BB;>?@" the operati$e la# on lan( (istribution #as PD G@?@(enes agricultural lan(s as follo#s7


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Agricultural lands reclassied b# local governments into (forest conservation $ones( Agricultural lan(s reclassie( b% local go$ern&ent units ?@ as to be e*e&pte( fro& CARP co$erage. t shoul( be note( that un(er the Constitution" lan(s of the public (o&ain areclassie( into agricultural" forest or ti&ber" &ineral lan(s an( national parks

?@as non-agricultural >?@ an( not classie( as &ineral or forest b% the Depart&ent of En$iron&entan( Natural Resources


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This is base( on Depart&ent of ustice pinion No. HH >?@to non-agricultural uses" the authorit% of the DAR to appro$e such con$ersion &a% bee*ercise( fro& the (ate of its e0ecti$it% or on ;? une ;BB. Thus" all lan(s alrea(%classie( as co&&ercial" in(ustrial or resi(ential before that (ate no longer nee(an% con$ersion clearancefro& the DAR.

f an agricultural lan( is reclassie( after ;? une ;BB" the pro$isions on lan(con$ersion un(er CAR4an( its i&ple&enting rules #ill appl% >?@8;BB:" sec. >?5 DAR A(&. . No. ; 8;:=.Conversion prior to +, -une +.// through presidential proclamation binding before&AR The reasoning in D pinion No. HH @ >?@M1el(7Sec. H of RA >>?@ states that the CAR4 co$ers 9regar(less of tenurial arrange&entan( co&&o(it% pro(uce(" all public an( pri$ate an( agricultural lan(s9 an( as perthe transcripts of the Constitutional Co&&ission" 9agricultural lan(s9 co$ere( b%agrarian refor& refers onl% to those #hich are 9arable an( suitable lan(s9 an( 9(onot inclu(e co&&ercial" in(ustrial an( resi(ential lan(s.9 The lan( sub!ect of thecontro$ers% has been set asi(e for the 4ungso( Silangan Reser$ation b%Procla&ation No. ;>@ prior to the e0ecti$it% of RA >>?@ an( in e0ect con$erte(these lan(s into resi(ential use. Since the Natalia lan(s #ere con$erte( prior to ;?

une ;BB" DAR is boun( b% such con$ersion" an( thus it #as an error to inclu(ethese #ithin the co$erage of CAR4.1xemptions and 1xclusions Sec. ; of RA >>?@" as a&en(e( b% RA @BB;


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&angro$es >?@8;BB:" sec. ; 8a:" as a&en(e( b% Rep. Act No.@BB;8;?:=.b= Pri$ate lan(s actuall%" (irectl% an( e*clusi$el% use( for pra#n far&s an(shpon(s7 Pro$i(e(" That sai( pra#n far&s an( shpon(s ha$e not been (istribute(an( Certicate of 4an( #nership A#ar( ?@ are unconstitutional in so far as the% inclu(e lan(s(e$ote( to raising li$estock" s#ine an( poultr% #ithin its co$erage. The use of lan(is inci(ental to but not the principal factor or consi(eration of pro(ucti$it% in thisin(ustr%. The Supre&e Court hel( that7

The transcripts of (eliberations of the Constitutional Co&&ission of ;B> on the&eaning of the #or( 9agricultural"9 clearl% sho# that it #as ne$er the intention ofthe fra&ers of the Constitution to inclu(e li$estock an( poultr% in(ustr% in theco$erage of the constitutionall%-&an(ate( agrarian refor& progra& of thego$ern&ent.

The Co&&ittee a(opte( the (enition of 9agricultural lan(9 as (ene( un(erSection ;>> of RA BHH" as lan( (e$ote( to an% gro#th" inclu(ing but not li&ite( tocrop lan(s" saltbe(s" shpon(s" i(le an( aban(one( lan(


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conte&plate( that agricultural lan(s are li&ite( to arable an( suitable agriculturallan(s an( therefore" (o not inclu(e co&&ercial" in(ustrial an( resi(ential lan(s" Ool. " p. =.Joreo$er" in his ans#er to Co&&issioner Regala(o,s interpellation" Co&&issioner

Ta(eo clarie( that the ter& 9farorker9 #as use( instea( of 9agricultural #orker9in or(er to e*clu(e therein pigger%" poultr% an( li$estock #orkers


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an( foun( to be necessar% for school sites an( ca&puses" inclu(ing e*peri&entalfar& stations operate( b% public or pri$ate schools for e(ucational purposespro$i(e( for un(er Sec. ; of RA >>?@" as a&en(e(.Central 2indanao )niversit# vs" &epartment of Agrarian Reform Ad4udication 3oard5+, !CRA /6 7+..58

Facts7n ;> anuar% ;?B" Presi(ent Carlos Karcia issue( Procla&ation No. H>@ reser$ingfor the Jin(anao Agricultural College" no# the CJU" a piece of lan( to be use( asits future ca&pus. n ;BH" CJU e&barke( on a pro!ect title( 9ilusang SarilingSikap9 #herein parcels of lan( #ere lease( to its facult% &e&bers an( e&plo%ees.Un(er the ter&s of the progra&" CJU #ill assist facult% &e&bers an( e&plo%eegroups through the e*tension of technical kno#-ho#" training an( other kin(s ofassistance. n turn" the% pai( the CJU a ser$ice fee for use of the lan(. Theagree&ent e*plicitl% pro$i(e( that there #ill be no tenanc% relationship bet#eenthe lessees an( the CJU.6hen the progra& #as ter&inate(" a case #as le( b% the participants of the9ilusang Sariling Sikap9 for (eclaration of status as tenants un(er the CARP. n its

resolution" DARA'" or(ere(" a&ong others" the segregation of H hectares of thelan( for (istribution un(er CARP. The lan( #as sub!ecte( to co$erage on the basis ofDAR,s (eter&ination that the lan(s (o not &eet the con(ition for e*e&ption" that is"it is not 9actuall%" (irectl%" an( e*clusi$el% use(9 for e(ucational purposes.ssue7s the CJU lan( co$ere( b% CARPM 6ho (eter&ines #hether lan(s reser$e( forpublic use b% presi(ential procla&ation is no longer actuall%" (irectl% an(e*clusi$el% use( an( necessar% for the purpose for #hich the% are reser$e(M1el(7

The lan( is e*e&pte( fro& CARP. CJU is in the best position to resol$e an( ans#erthe uestion of #hen an( #hat lan(s are foun( necessar% for its use. The Court alsochi(e( the DARA' for resol$ing this issue of e*e&ption on the basis of 9CJU,s

present nee(s.9 The Court state( that the DARA' (ecision stating that for the lan(to be e*e&pt it &ust be 9presentl%" acti$el% e*ploite( an( utili)e( b% the uni$ersit%in carr%ing out its present e(ucational progra& #ith its present stu(ent populationan( aca(e&ic facult%9 o$erlooke( the $er% signicant factor of gro#th of theuni$ersit% in the %ears to co&e. S1ECcT The C2) case is uniue as it in$ol$es lan( transferre( b% the state to CJUthrough PD H>@#hich pro$i(e( for its co&&it&ent to a specic use an( purpose.

Thus" the sai( lan( #as alrea(% set asi(e for a specic purpose an(" in e0ect" #astaken outsi(e the co$erage of agrarian refor& b% la#. t is sub&itte( that a &oreaccurate basis for the e*e&ption shoul( ha$e been that the e*clusi$e use of thelan( 2 both present an( future 2 has been (eter&ine( b% la#" an( not because ofthe (eter&ination of the CJU of #hat it nee(s an( ho# it inten(s to use it. n ruling that the CJU is in the best position to (eter&ine the use of the lan( an(not DAR" the Supre&e Court see&s to ha$e o$erlooke( E H@


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instru&entalities" inclu(ing go$ern&ent-o#ne( or controlle( corporations suitablefor agriculture an( no longer actuall%" (irectl% an( e*clusi$el% use( or necessar% forthe purposes for #hich the% ha$e been reser$e(" as (eter&ine( b% the Depart&entof Agrarian Refor& in coor(ination #ith the go$ern&ent agenc% or instru&entalit%concerne( in #hose fa$or the reser$ation #as establishe(" shall be segregate( fro&the reser$ation an( transferre( to the Depart&ent of Agrarian Refor& for

(istribution to ualie( beneciaries un(er the Co&prehensi$e Agrarian Refor&Progra&. Thus" DAR in coor(ination #ith the agenc% or (epart&ent in$ol$e(" can(eter&ine #hether the purpose or use for #hich the lan(s reser$e( continues toe*ist an( therefore establish if the% continue to be e*e&pt fro& CARP co$erage. The Supre&e Court,s state&ent that lan(s of uni$ersities an( aca(e&icinstitutions nee( not be actuall%" (irectl% an( e*clusi$el% use( for e(ucational orresearch purposes at the ti&e of the e0ecti$it% of the RA >>?@to be e*e&pt fro&CARP also fails to consi(er Sec. ; of RA >>?@. Sec. ; is e*plicit that onl% thoselan(s that are 9actuall%" (irectl%" an( e*clusi$el%9 use( an( foun( necessar% for theuses enu&erate( therein are e*e&pt fro& CARP co$erage. A literal interpretation ofthe pro$ision i&plies that the e*e&ption applies onl% to those lan(s alrea(%

co&&itte( for the enu&erate( purposes at the (ate of the e0ecti$it% of la# on ;?une ;BB. Thus" agricultural lan( acuire( b% aca(e&ic institutions for aca(e&ic"e(ucational" or research purposes after ;? une ;BB" or those o#ne( b% the& butnot co&&itte( e*clusi$el%" actuall%" an( (irectl% to the abo$e&entione( usesbefore or on such (ate" are co$ere( b% CARP. For its e*clusion fro& acuisition an((istribution" an( for its co&&it&ent to sai( purposes" the institution &a% le beforeDAR for clearance to con$ert these lan(s into non-agricultural use. Lands with +/9 slope 4an(s #ith ;B slope or o$er are e*e&pt fro& CARP co$erage unless these arefoun( to be agriculturall% (e$elope( as of ;? une ;BB. This rule on e*e&ption is base( on PD @?


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1:ects of exemption Sec. ; of RA >>?@pro$i(es that e*e&pte( or e*clu(e( lan(s are re&o$e( fro&the co$erage of CARP. 1o#e$er" there are t#o >?@is a social#elfare legislation the rules of e*e&ptions an( e*clusions &ust be interprete(restricti$el% an( an% (oubts as to the applicabilit% of the la# shoul( be resol$e( infa$or of inclusion. n either case" the securit% of tenure of tenants en!o%e( prior to ;? une ;BBshall be respecte( e$en #hen the lan(s are e*e&pte(. As to farorkers" the

e*e&ption of the lan( shall not cause the loss of the benets to #hich the% areentitle( un(er other la#s. n a((ition" the% are grante( preference in the a#ar( ofother lan(s co$ere( b% CARP


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to (efeat the $er% purpose of the enact&ent of the Public 4an( Act or CA ;H;.n Patricio v" 3a#og" ;;G SCRA H?" it #as hel( that7

The 1o&estea( Act has been enacte( for the #elfare an( protection of the poor.The la# gi$es a nee(% citi)en a piece of lan( #here he &a% buil( a &o(est housefor hi&self an( fa&il% an( plant #hat is necessar% for subsistence an( for thesatisfaction of life,s other nee(s. The right of the citi)ens to their ho&es an( to the

things necessar% for their subsistence is as $ital as the right to life itself. The% ha$ea right to li$e #ith a certain (egree of co&fort as beco&e hu&an beings" an( theState #hich looks after the #elfare of the people,s happiness is un(er a (ut% tosafeguar( the satisfaction of this $ital right.n this regar(" Sec. > of Article I of the ;B@ Constitution pro$i(es7Section >. The State shall appl% the principles of agrarian refor& or ste#ar(ship"#hene$er applicable in accor(ance #ith la#" in the (isposition or utili)ation of othernatural resources" inclu(ing lan(s of public (o&ain un(er lease or concessionsuitable to agriculture" sub!ect to prior rights" ho&estea( rights of s&all settlers"an( the rights of in(igenous co&&unities to their ancestral lan(s.Joreo$er" Sec. > of RA >>?@ contains a pro$iso supporting the inapplicabilit% of PDG@ to lan(s co$ere( b% ho&estea( patents like those of the propert% in uestion"

rea(ing7Section >. Retention Limits. . . . Pro$i(e( further" That original ho&estea(grantees or their (irect co&pulsor% heirs #ho still o#n the original ho&estea( atthe ti&e of the appro$al of this Act shall retain the sa&e areas as long as the%continue to culti$ate sai( ho&estea(.*** *** *** 6hile ho&estea( lots are (eclare( e*e&pt un(er PD G@" the% are not e*pressl%(eclare( as such un(er RA >>?@. 1o#e$er" Sec. > of RA >>?@pro$i(es thatho&estea(ers are allo#e( to retain the total ho&estea( lot sub!ect to thecon(itions pro$i(e( in the sa&e section an( as setDAR JC H


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3 All alienable an( (isposable public agricultural ;G-;? lan(s5 3 all arable public agricultural lan(s un(er agro- forest" pasture an( agricultural leases alrea(% culti$ate( an( plante( to crops in accor(ance5 3 all public agricultural lan(s #hich are to be opene(

for ne# (e$elop&ent an( resettle&ent5 3 an( all pri$ate agricultural lan(s in e*cess of ft%


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the re(istribution an( a#ar( of shpon(s" pasturelan(s an( other lan(s of public(o&ain suitable for agriculture sub!ect of cancelle( or a&en(e( lease agree&ent tothe agrarian refor& beneciaries. E HHB>?@allo#e( the (efer&ent of the co$erage of co&&ercial far&s.Deferre( co&&ercial far&s shall be sub!ect to i&&e(iate co&pulsor% acuisitionan( (istribution after ten >?@on ;? une ;BB.For ne# far&s" the ten


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For &arriages co$ere( b% the Fa&il% Co(e" #hich took e0ect on August ;BB" ahusban( o#ning capital propert% an(Lor a #ife o#ning paraphernal propert% &a%retain not &ore than $e


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registration of the lan(hol(ings" shall be allo#e( to en!o% the se$en


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6here Certicates of 4an( Transfer


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>?@" public an( pri$ate agricultural lan(s an( lan(s of thepublic (o&ain suitable for agriculture are co$ere( b% CARP. t pro$i(es" a&ongothers" that all alienable an( (isposable lan(s of the public (o&ain (e$ote( orsuitable or (e$ote( to agriculture

!uris(iction of the DENR unless place( b% la# an(Lor b% e*ecuti$e issuances un(erthe !uris(iction of other go$ern&ent (epart&ents or entities. Un(er the sai(circular" the (isposition of non-registrable lan(s of the public (o&ain is thee*clusi$e responsibilit% of the DENR un(er its $arious progra&s . Untitle( public alienable an( (isposable lan(s are still #ithin the e*clusi$e

!uris(iction of DENR pursuant to CA ;H;. 1o#e$er" in accor(ance #ith D pinionNo. ;@> April ;5b= The lan( &ust ha$e been classie( as alienable an( (isposable for at leastthirt% April ;5c= ne &ust ha$e pai( the real estate ta* thereon5 an((= There are no a($erse clai&s on the lan(.
http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/5527http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/2750http://www.lis.dar.gov.ph/documents/1970http://www.lis.dar.gov.ph/documents/1970http://www.lis.dar.gov.ph/documents/3402http://www.lis.dar.gov.ph/documents/3344http://www.lis.dar.gov.ph/documents/3347http://www.lis.dar.gov.ph/documents/2750http://www.lis.dar.gov.ph/documents/5527http://www.lis.dar.gov.ph/documents/5527http://www.lis.dar.gov.ph/documents/1901http://www.lis.dar.gov.ph/documents/2968http://www.lis.dar.gov.ph/documents/2968http://www.lis.dar.gov.ph/documents/2968http://www.lis.dar.gov.ph/documents/2968http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/5527http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/2750http://www.lis.dar.gov.ph/documents/1970http://www.lis.dar.gov.ph/documents/1970http://www.lis.dar.gov.ph/documents/3402http://www.lis.dar.gov.ph/documents/3344http://www.lis.dar.gov.ph/documents/3347http://www.lis.dar.gov.ph/documents/2750http://www.lis.dar.gov.ph/documents/5527http://www.lis.dar.gov.ph/documents/5527http://www.lis.dar.gov.ph/documents/1901http://www.lis.dar.gov.ph/documents/2968http://www.lis.dar.gov.ph/documents/2968http://www.lis.dar.gov.ph/documents/2968http://www.lis.dar.gov.ph/documents/2968


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For these pri$atel% clai&e( public alienable an( (isposable lan(s" the DENR rstissues a Free Patent to ualie( applicants for the retaine( area of not &ore than$e


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b% go$ern&ent an( pri$ate in(i$i(ualsLcorporations" inclu(ing" but not li&ite( to"resi(ential lots" rice terraces or pa((ies" pri$ate forests" s#i((en far&s an( treelots5 Polic# for ancestral lands under CARP CARP ensures the protection of the right of CCsLPs to their ancestral lan(s toensure their econo&ic" social an( cultural #ell being. S%ste&s of lan( o#nership"lan( use" an( &o(es of settling lan( (isputes of the CCsLPs shall be recogni)e(

an( respecte( in line #ith principles of self-(eter&ination an( autono&%. The Presi(ential Agrarian Refor& Co&&ittee


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&enition and nature of agricultural tenanc#

Agricultural tenanc% is (ene( as 9the ph%sical possession b% a person of lan((e$ote( to agriculture" belonging to or legall% possesse( b% another for the purposeof pro(uction through the labor of the for&er an( of the &e&bers of his i&&e(iate

far& househol( in consi(eration of #hich the for&er agrees to share the har$est#ith the latter or to pa% a price certain or ascertainable" #hether in pro(uce or in&one%" or both.9 B


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#ritten agree&ents" pro$i(e( these are co&plie( #ith an( are not contrar% to la#"are e$en &ore i&portant.9Classes of agricultural tenanc#

Agricultural tenanc% is classie( into share tenanc% an( leasehol( tenanc% B?@or PD G@#ho opts to choose to re&ain therein instea( of beco&ing abeneciar% in the sa&e or another agricultural lan( #ith si&ilar or co&parablefeatures. The tenant &ust e*ercise his option #ithin one ?@8;BB:"sec. >=. 4easehol( relation also e*ists in all tenante( agricultural lan(s that are not%et co$ere( un(er CARP ?@8;BB:" sec. >=.
http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3259http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3235http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3795http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/392http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3259http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3235http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/3221http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3795http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/392http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226


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Leasehold tenanc# distinguished from civil law lease

n Gabriel vs" Pangilinan" ?B SCRA ?


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9Contract of 4ease9 #ith Jacaraeg in ;>;" the latter (i( not an%&ore rene# hiscontract.1el(7

The Contract of 4ease bet#een the parties contains the essential ele&ents of aleasehol( tenanc% agree&ent. The lan(hol(ing in (ispute is un&istakabl% anagricultural lan( (e$ote( to agricultural pro(uction. Jore specicall%" the parties

stipulate( that 9the propert% lease( shall be use( or utili)e( for agriculturalenterprise onl%.9 Further&ore" the parties also agree( that the far&lan( &ust beuse( for rice pro(uction as coul( be inferre( fro& the stipulation that 9the rental ofnine


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A tenant is 9a person #ho b% hi&self" or #ith the ai( a$ailable fro& #ithin hisi&&e(iate househol(" culti$ates the lan( belonging to or possesse( b% another"#ith the latter,s consent for purposes of pro(uction" sharing the pro(uce #ith thelan(hol(er or for a price certain or ascertainable in pro(uce or in &one% or both"un(er the leasehol( tenanc% s%ste&.9


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Alberto gnacio le( a co&plaint for in!unction against Castillo alleging that he is theagricultural tenant of the latter. 1e clai&s that Castillo allo#e( hi& to construct arest house in the propert% an( that" thereafter" Castillo starte( cutting fruit-bearingtrees on the lan( an( lle( #ith a(obe stones the area inten(e( for $egetables. nthe other han(" Castillo (enie( that gnacio #as his tenant but that the latter #asonl% a 9&agsisiga9 of the lan(hol(ing an( that he (i( not ask per&ission fro&

gnacio #hen he constructe( his rest house. The trial court foun( no tenanc%relationship bet#een the parties but this #as re$erse( b% the Court of Appeals.1el(7

The ele&ent of personal culti$ation is absent in this case. The allege( tenant 9is abusiness&an b% occupation an( this is his principal source of inco&e. 1e&anufactures hollo# blocks. 1e also has a pigger% an( poultr% far& as #ell as ahar(#are store on the lan( a(!oining the sub!ect lan(. To a(( to that" therespon(ent far&s the ricelan( of one Dr. 4uis Santos. t is thus e$i(ent that the#orking hours of the respon(ent as a business&an an( his other acti$ities (o notper&it hi& to un(ertake the #ork an( obligations of a real tenant. This is furthersupporte( b% the un(ispute( fact that the respon(ent cannot e$en personall%perfor& the #ork of a s&u(ger because on GG ctober ;B>" the respon(ent hire(

so&e G people #ho are not &e&bers of his fa&il% to cut an( burn the grass in thepre&ises of the sub!ect lan(.9 =. An o#ner tilling his o#n agricultural lan( is not a tenant #ithin the conte&plationof the la#


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entitle( to securit% of tenure. Nati$i(a( le( an action for reco$er% of possession.The trial court rule( in fa$or of 'ernas but this #as subseuentl% re$erse( b% theCA.ssue7s consent b% a legal possessor" e$en if #ithout the consent of lan(o#ner" su+cientto create tenanc% relationshipM

1el(7Qes. As legal possessor of the propert%" 'enigno ha( the authorit% an( capacit% toenter into an agricultural leasehol( relation #ith 'ernas. 9The la# e*pressl% grantshi&" as legal possessor" authorit% an( capacit% to institute an agricultural leasehol(lessee on the propert% he legall% possesse(.9 = !ub4ect is agricultural land For agricultural tenanc% to e*ist" the sub!ect of the agree&ent &ust be anagricultural lan(. RA >>?@(enes the ter& 9agricultural lan(9 as 9lan( (e$ote( to agriculturalacti$it% as (ene( in this Act an( not classie( as &ineral" forest" resi(ential"co&&ercial or in(ustrial lan(.9


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Successors-in-interest of the true an( la#ful lan(hol(erLo#ner #ho ga$e theconsent are boun( to recogni)e the tenanc% establishe( before the% acuire( theagricultural lan(.

1nda#a vs" Court of Appeals5+, !CRA +=. 7+..58

Facts7Spouses San Diego o#ne( a G.G-ha rice an( corn lan(. The propert% has beenculti$ate( b% Pe(ro Fi(eli as a tenant of the couple un(er a ?-? sharingagree&ent. n ;@H" a lease contract #as e*ecute( bet#een spouses San Diego an(a certain Regino Cassano$a for a perio( of four


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propert% because the% #oul( be buil(ing a poultr% near Aba!on,s house. 4ater" theCaballes aske( Aba!on to lea$e because the% nee(e( the propert%. Aba!on refuse(.During the trial the for&er lan(o#ner testie( that Aba!on (utifull% ga$e her ?share of the pro(uce of the lan( un(er his culti$ation.1el(7

The fact of sharing alone is not su+cient to establish a tenanc% relationship. The

circu&stances of this case in(icate that the pri$ate respon(ent,s status is &ore of acaretaker #ho #as allo#e( b% the o#ner out of bene$olence or co&passion to li$ein the pre&ises an( to ha$e a gar(en of so&e sort at its south#estern si(e ratherthan a tenant of the sai( portion. Agricultural pro(uction as the pri&ar% purposebeing absent in the arrange&ent" it is clear that the pri$ate respon(ent #as ne$er atenant of the for&er o#ner" An(rea Jillenes. Conseuentl%" Sec. ; of RA BHH" asa&en(e(" (oes not appl%. Si&pl% state(" the pri$ate respon(ent is not a tenant ofthe herein petitioner. Personal cultivation Cultivation Un(er DAR A ?


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the lan( as long as he #ishe(5 he ha( no sharing arrange&ent bet#een hi& an((efen(ant5 an( he #as not obligate( to pa% an% price certain to nor share thepro(uce" #ith the latter. CaS1Ac!ecurit# of enure Un(er Sec. @ of RA ;;" 9the agricultural leasehol( relation once establishe(shall confer upon the agricultural lessee the right to continue #orking on the

lan(hol(ing until such leasehol( relation is e*tinguishe(. The agricultural lesseeshall be entitle( to securit% of tenure on his lan(hol(ing an( cannot be e!ecte(therefro& unless authori)e( b% the Court for causes herein pro$i(e(.9 The Supre&e Court has consistentl% rule( that once a leasehol( relation hasbeen establishe(" the agricultural lessee is entitle( to securit% of tenure. The tenanthas a right to continue #orking on the lan( e*cept #hen he is e!ecte( therefro& forcause as pro$i(e( b% la#


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Constitutionalit# of the provision on securit# of tenure The constitutionalit% of the pro$ision on securit% of tenure has long been settle(b% the Supre&e Court in the case of Primero vs" Court of Agrarian Relations" ;;Phil. >@?


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Rights and Responsibilities of the Parties Rights and responsibilities of lessee The lessee shall ha$e the follo#ing rights7a= To ha$e possession an( peaceful en!o%&ent of the lan(5b= To &anage an( #ork on the lan( in a &anner an( &etho( of culti$ation an(har$est #hich confor& to the pro$en far& practices5

c= To &echani)e all or an% phase of his far& #ork5(= To (eal #ith &illers an( processors an( atten( to the issuance of ue(ansan( #arehouse receipts of the pro(uce (ue hi&Lher5e= To continue in the e*clusi$e possession an( en!o%&ent of an% ho&elot thelessee &a% ha$e occupie( upon the e0ecti$it% of RA BHH5f= To be in(e&nie( for the costs an( e*penses incurre( in the culti$ation an(for other e*penses inci(ental to the i&pro$e&ent of the crop in case the lesseesurren(ers" aban(ons or is e!ecte( fro& the lan(hol(ing5g= To ha$e the right of pre-e&ption an( re(e&ption5 an(h= To be pai( (isturbance co&pensation in case the con$ersion of thefar&hol(ing has been appro$e( :" sec. G" GH" G?" ;;" ;G">=

n the other han(" the lessee shall ha$e the follo#ing responsibilities un(er Sec.G> of RA BHH7a= Culti$ate an( take care of the far&" gro#ing crops" an( other i&pro$e&entson the lan( an( perfor& all the #ork therein in accor(ance #ith pro$en far&practices5b= nfor& the lessor #ithin a reasonable ti&e of an% trespass co&&itte( b%thir( persons on the far&" #ithout pre!u(ice to hisLher (irect action against thetrespasser5c= Take reasonable care of the #ork ani&als an( far& i&ple&ents (eli$ere( tohi&Lher b% the lessor an( see to it that the% are not use( for purposes other thanthose inten(e(" or use( b% another #ithout the kno#le(ge an( consent of thelessor5

(= eep the far& an( gro#ing crops atten(e( to (uring the #ork season5 an(e= To pa% the lease rental to the lessor #hen it falls (ue.ne of the rights of a lessee is to be entitle( to a ho&elot. 'ut onl% the tenant-lessee has this right an( that &e&bers of the i&&e(iate fa&il% of the tenants arenot entitle( to a ho&elot.Cecilleville Realt# and !ervice Corporation vs" Court of Appeals5


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Thus" if the Court #ere to follo# pri$ate respon(ent,s argu&ent an( allo# all the&e&bers of the tenant,s i&&e(iate far& househol( to construct an( &aintain theirhouses an( to be entitle( to not &ore than one thousan(


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(= To (eal #ith &illers or processors #ithout #ritten authori)ation of the lesseein cases #here the crop has to be sol( in processe( for& before pa%&ent of thelease rental5e= To (iscourage" (irectl% or in(irectl%" the for&ation" &aintenance or gro#th ofunions or organi)ations of lessees in hisLher lan(hol(ing5 an(f= For coconut lan(s" in(iscri&inate cutting of coconut trees #ill be

(ee&e(prima faciee$i(ence to (ispossess the tenant of hisLher lan(hol(ing unlessthere is #ritten consent of the lessee an( there is PCA certication" cop% of then(ings an( reco&&en(ations of #hich shall be furnishe( to a0ecte( tenants orlessees" or a resolution fro& the Junicipal 'oar( allo#ing the cutting for $ali(reasons of DAR A ;


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countere( that spouses Nisnisan ha$e no cause of action because the% $oluntaril%surren(ere( their lan(hol(ing.ssue7s the tenant (ee&e( to ha$e $oluntaril% surren(ere( sub!ect lan(hol(ingM1el(7ther than their bare allegations" pri$ate respon(ents faile( to present an%

e$i(ence to sho# that petitioners-spouses surren(ere( their lan(hol(ing $oluntaril%after the pri$ate respon(ents purchase( the sub!ect propert%. Joreo$er" the ling ofthe co&plaint for reinstate&ent of leasehol( tenanc% b% petitioners-spouses againstpri$ate respon(ents before the CAR &ilitates against the pri$ate respon(ents, clai&that petitioners-spouses $oluntaril% surren(ere( their lan(hol(ing to the&. Un(erSec. B of RA BHH" $oluntar% surren(er" as a &o(e of e*tinguishing agriculturalleasehol( tenanc% relations" &ust be con$incingl% an( su+cientl% pro$e( b%co&petent e$i(ence. The tenant,s intention to surren(er the lan(hol(ing cannot bepresu&e(" &uch less (eter&ine( b% &ere i&plication.1:ect of death or permanent incapacit# of tenant>lessee on leasehold relation Un(er Sec. of RA BHH" in case of (eath or per&anent incapacit%" the leasehol(relation continues bet#een the lessor an( the person #ho can culti$ate the lan(

personall%" chosen b% the lessor #ithin one &onth fro& such (eath or incapacit%"fro& a&ong the follo#ing7a= The sur$i$ing spouse5b= The el(est (irect (escen(ant b% consanguinit%5c= The ne*t el(est (escen(ant or (escen(ants in the or(er of age. The age reuire&ent is applie( un(er the presu&ption that all heirsLsuccessorsare ualie(. The leasehol( relation is not ter&inate( b% (eath or per&anent incapacit% of thelan(hol(er-lessor. t bin(s his legal heirs :" sec. =. Also" Sec. ; of RA BHHpro$i(es that the &ere e*piration of the ter& or perio(in a leasehol( contract nor b% sale" alienation or transfer of the legal possession ofthe lan(hol(ing (oes not e*tinguishe( leasehol(. n these cases" the transferee is

subrogate( to the rights an( substitute( to the obligations of the lessor.&ispossession of enants Un(er Sec. > of RA BHH" (ispossession of tenants &a% be authori)e( b% theCourt in a !u(g&ent that is nal an( e*ecutor% if after (ue hearing it is sho#n that7a= The lessee faile( to substantiall% co&pl% #ith the ter&s an( con(itions ofthe contract or #ith pertinent la#s unless the failure is cause( b% a fortuitous e$entor force &a!eure5b= The lessee plante( crops or use( the lan( for a purpose other than #hat hasbeen pre$iousl% agree( upon5


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f= The lessee e&plo%e( a sub-lessee5 org= The lan(hol(ing is (eclare( b% the DAR to be suite( for resi(ential"co&&ercial" in(ustrial or so&e other urban purposes sub!ect to pa%&ent of(isturbance co&pensation to the lessee. 8;: of RA BHH" as a&en(e( b% RA >B" (isturbanceco&pensation is eui$alent to $e 8?: ti&es the a$erage of the gross har$est on his

lan(hol(ing (uring the last $e 8?: prece(ing calen(ar %ears.= n the case of Garchitorena vs" Panganiban* > SCRA B G=" it #as hel( that#hen non-pa%&ent of lease rentals occurs for se$eral %ears" sai( o&ission has thee0ect of (epri$ing the lan(o#ner of the en!o%&ent of the possession an( use of thelan(. Un(er Sec. >


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f the lan( has been culti$ate( for a perio( of less than three agricultural %earsprior to ;? une ;BB" the initial rental shall be base( on the a$erage nor&alhar$est (uring the prece(ing agricultural %ears #hen the lan( #as actuall%culti$ate(. After the lapse of the rst three .Registration of Potential 3eneciaries The la# reuires the DAR to register all potential beneciaries an( co&pile a(ata bank containing pertinent infor&ation on the&. The registration of beneciaries is go$erne( b% DAR A ;


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'eneciaries of PD G@#ho ha$e culpabl% sol(" (ispose( of" or aban(one( theirlan(s" an( lan(o#ners of PD G@beneciaries #ho alrea(% o#n or ha$e alrea(%recei$e( at least three >?@. 4an( (istribution an( acuisitionco$ers three phases. 1o#e$er" this (oes not &ean that in the i&ple&entation of theprogra&" a particular categor% shoul( be nishe( rst before going to the ne*tcategor%. n other #or(s" the three ctober ;B@=.The gui(ing principle in the i&ple&entation of the progra& is the rea(iness of the(i0erent far&er groups to #ork full% #ithout restraints on the lan( an( &ake thelan( pro(ucti$e


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beneciaries of the agrarian refor& progra& ?@" sec 8e:=. Private agricultural lands Pri$ate agricultural lan(s #ithin the conte*t of RA >>?@refer to those lan(s(e$ote( to agricultural acti$it% an( not classie( as resi(ential" co&&ercial orin(ustrial o#ne( b% persons" #hether natural or !uri(ical" other than thego$ern&ent or its instru&entalities. Aban(one( pri$ate agricultural lan(s"co&&ercial far&s an( agricultural lan(s sub!ect of &ortgage or foreclosure b%natural or !uri(ical persons" pri$ate banking or nancial institutions are specialclasses of pri$ate agricultural lan(s sub!ect of acuisition or (istribution to far&er-beneciaries.

Agricultural lands under mortgage or foreclosure Jortgage is an accessor% contract #hereb% the (ebtor


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Corporate far&s are those o#ne( or operate( b% corporations or other businessassociations >?@8;BB:" sec. G=. Corporate far&s &a% be acuire(through $oluntar% lan( transfer" OS" CA an( $oluntar% stock (istribution plan < Rep.Act No. >>?@8;BB:" sec. ;=. t &ust be note( that corporate far& o#ners cannota$ail of the ten-%ear (efer&ent perio( un(erDAR A ?@8;BB:" sec. ;;5 DAR A(&. . No.

8;B:=. Lands owned b# the !tate in proprietar# capacit# Un(er Sec. ; of E H@


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of tenante( rice an( corn lan(s is transferre( to tenant-beneciaries. t &ust bestresse( that for lan(s to co&e un(er 4T pursuant to PD G@" there &ust be rstsho#ing that the% are tenante( lan(s. 2agana vs" 1strella* G; SCRA?> 8;;:" the 1igh Tribunal" citingPagtalunan vs" ama#o#hich pre(ate( the4ocsin case" rule( that the &ere issuance of a certicate of lan( transfer (oes not$est o#nership in the far&erLgrantee. There see&s to be an inconsistenc% regar(ingthe treat&ent of the legal e0ect of the placing of the propert% un(er the peration4an( Transfer. This is because the issuance of a Certicate of 4an( Transfer


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o$er a lan(hol(ing presupposes that the propert% has alrea(% been co$ere( un(erthe 4T. Therefore" if in(ee(" as the 4ocsin (octrine enunciate(" o#nership of thelan( is transferre( to the far&er at the ti&e the propert% is place( un(er 4T" then"it necessaril% follo#s the C4T" being an instru&ent issue( subseuent to theco$erage of the lan( un(er 4T" is e$i(ence of o#nership. 1o#e$er" the latter caseof Iin$ons>2agana(isputes this conclusion.

n the case of Locsin vs" Ialen$uela" ;H SCRA ;?


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entitle( to the procee(s of the e*propriation. The Supre&e Court" in re!ectingpetitioner,s contention" rule( that the petitioner" being &erel% a C4T hol(er is notthe o#ner of the sub!ect propert% an( thus" not entitle( to !ust co&pensation. ne*plaining the nature of the C4T" the Court state( that7. . . 1o#e$er" a careful stu(% of the pro$isions of Pres. Decree No. G@" an( thecerticate of lan( transfer issue( to ualie( far&ers" #ill re$eal that the transfer of

o#nership o$er these lan(s is sub!ect to particular ter&s an( con(itions theco&pliance #ith #hich is necessar% in or(er that the grantees can clai& the right ofabsolute o#nership o$er the&.Un(er Pres. Decree No. G>> #hich species the proce(ure for the registration of titleto lan(s acuire( un(er Pres. Decree No. G@" full co&pliance b% the grantee #ith theabo$e&entione( un(ertakings is reuire( for a grant of title un(er the TenantE&ancipation Decree an( the subseuent issuance of an e&ancipation patent infa$or of the far&erLgrantee 8Section G" Pres. Decree No. GG>:. t is the e&ancipationpatent #hich constitutes conclusi$e authorit% for the issuance of an riginalCerticate of Transfer" or a Transfer Certicate of Title" in the na&e of the grantee.

The &ere issuance of the certicate of lan( transfer (oes not $est in thefar&erLgrantee o#nership of the lan( (escribe( therein. The certicate si&pl%

e$i(ences the go$ern&ent,s recognition of the grantee as the part% ualie( toa$ail of the statutor% &echanis&s for the acuisition of o#nership of the lan( tille(b% hi& as pro$i(e( un(er Pres. Decree No. G@. Neither is this recognition per&anentnor irre$ocable. Failure on the part of the far&erLgrantee to co&pl% #ith hisobligation to pa% his lease rentals or a&orti)ation pa%&ents #hen the% fall (ue for aperio( of t#o 2agana vs"1strella" G; SCRA ?>


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(eclaring the e0ect of 4T as $esting o#nership in the tenant is the fact that EGGB" #hich categoricall% clarie( the legal e0ect of PD No. G@" #as factore( in the(iscussion of the case. 6h% then #as E No. GGBnot consi(ere( in the subseuentcase of Iin$ons>2agana#hen it #as alrea(% in e0ect thenM The ponenteinstea(referre( to the pre-4ocsin case of Pagtalunan vs" ama#o. n so (oing" it ignore(altogether the legal i&plications of the Locsin(octrine.

Ioluntar# :er to !ell Ooluntar% 0er to Sell


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%ear fro& the e0ecti$it% of R.A. >>?@. t is sub&itte( that O4TLDPS &a% be entere(into e$en be%on( ;? une ;B" or one %ear after the e0ecti$it% of R.A. No. >>?@. tis argue( that that the e*act &o&ent #hen the one-%ear perio( un(er Section G"par >?@#ithin #hich notices of O4TLDPS &a% be le( co&&encesfro& the (ate #hen the lan( sub!ect of the O4TLDPS is sche(ule( for acuisition an((istribution accor(ing to the $arious phases of i&ple&entation (escribe( un(er

Section @ an( ;; an( the lan(o#ner is ser$e( a notice of acuisition of hislan(hol(ing. f the la# inten(e( that the one %ear perio( be reckone( fro& the appro$al ore0ecti$it% of RA >>?@" it #oul( ha$e e*pressl% sai( so" as it (i( in the pro$isions onpriorities .: Section G >?@pro$i(es that the ter&s an( con(itions of thetransfer un(er this &o(e shall not be less fa$orable to the transferee than those ofthe go$ern&ent,s stan(ing o0er to purchase fro& the lan(o#ner an( to resell to the

beneciaries" if such o0ers ha$e been &a(e an( are full% kno#n to both parties..: The ter&s an( con(itions of O4TLDPS shoul( inclu(e the i&&e(iate transfer ofpossession an( o#nership of the lan( in fa$or of the i(entie( beneciaries.Certicates of 4an( #nership A#ar( >?@


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There is no (ispute that co&&ercial far&s #hose (efer&ents ha$e e*pire( as of;? une ;B are sub!ect to i&&e(iate co&pulsor% acuisition an( (istribution aspro$i(e( in Section ;; of R.A. No. >>?@. t shoul( be stresse(" ho#e$er" that allacuisitions un(er R.A. No. >>?@are co&pulsor% in nature" in the sense that thelan(o#ners #hose agricultural lan(s are co$ere( b% CARP ha$e reall% no choicee*cept to sub&it to the progra&.

The proce(ures for acuisition of pri$ate lan(s are pro$i(e( for un(er Chapter O"Section ;> " the preli&inar% steps for theiracuisition ha$e to be continue( or pursue(" to #it7 i(entication of beneciaries"

inspection or technical sur$e% an( $aluation. During this perio(" the lan(o#ners an(the ualie( beneciaries &a%" b% reason of the options a$ailable un(er Section Gan( G;" &anifest their intent to $oluntaril% arrange for (irect transfer an( pa%&entof the propert%. n short" the phrase 9i&&e(iate co&pulsor% acuisition9 un(erSection ;; of R.A. No. >>?@" #hen taken in the conte*t of the proce(ures foracuiring lan(s un(er CARP" still inclu(es O4TLDPS as an option for $aluation an(pa%&ent of co&&ercial far&s sub!ect of acuisition. 8Je&oran(u& of Asst. Sec.Pea/or for the Secretar%" August G" ;" pp. G-?: DPS in$ol$ing co&&ercial far&s &a% be a$aile( of an% ti&e (uring theacuisition process" after the preparation of the &aster list but prior to thetrans&ittal of the clai& fol(er to the 4'P. f the notice of acuisition is ser$e( b% theparties upon to the DAR prior to the preparation of the &aster list" the notice shall

be $ali(ate( b% the JAR #ith i(entie( AR's inclu(e( in the &aster list" in areferen(u& to be hel( for this purpose. Acuisition un(er DPS of lan(s #ith liensan( encu&brances &a% be allo#e( pro$i(e( that the a&ount correspon(ing to the&ortgage o$er the sub!ect lan(hol(ing shall be (e(ucte( fro& the total $alue of thelan( to be pai( b% the AR's. Pro$i(e( further that sai( agree&ent shall be upon&utual consent of both the AR's an( the lan(o#ner" (ul% concurre( #ith b% the&ortgagee or lienhol(er. n case of (elinuent real estate ta*es" the AR's &a% beallo#e( to assu&e such liabilit% to be (e(ucte( fro& the total $alue of the lan(.Upon &utual consent of the AR's an( the lan(o#ner" (ul% concurre( #ith b% the&ortgagor or the lienhol(er" the AR's &a% assu&e the &ortgage" pro$i(e( thatsuch obligation shall not e*cee( the annual a&orti)ation other#ise (ue to the lan(pursuant to Section G> of RA >>?@" if the sub!ect lan(hol(ing #as acuire( un(erOS or CA 8DAR A. . No.


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suspen(e(. n these cases" if negotiations fail" CA is resu&e(. 4ike#ise" all i(le oraban(one( agricultural lan(s regar(less of si)e are sub!ect to co&pulsor%acuisition. 4an(s sub!ecte( to Co&pulsor% Acuisition &a% be allo#e( to shift toOoluntar% 4an( TransferLDirect Pa%&ent Sche&e or Ooluntar% 0er to Sell pro$i(e(that the clai& fol(er ha( not %et been for#ar(e( to the 4'P for the co&putation oflan( $alue. 8DAR A. . >" >?@states that 9if #ithin t#o hectaresplante( to sugarcane locate( in Tarlac. n Ja% ;BB" it applie( to a$ail of the stock(istribution plan un(er CARP. The application #as appro$e( in No$e&ber ;BB. Thefar& has a total of ??"?;"H>G shares of stocks #ith a par $alue of P;. per share.ne-thir( of these shares is sub!ect for (istribution to the farorker-beneciaries


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a= After ha$ing i(entie( the lan(" the lan(o#ners an( the beneciaries" theDAR shall sen( its notice to acuire the lan( to the o#ners thereof" b% personal(eli$er% or registere( &ail" an( post the sa&e in a conspicuous place in the&unicipal buil(ing an( baranga% hall of the place #here the propert% is locate(.Sai( notice shall contain the o0er of the DAR to pa% a correspon(ing $alue inaccor(ance #ith the $aluation set forth in Sections ;@ an( ;B" an( other pertinent

pro$isions hereof. DAR i(enties the lan( to be co$ere( b% CARP as #ell as the lan(o#ners an(beneciaries thereof on the basis of a &aster list or in$entor% of lan(hol(ingsprepare( b% the el( o+ces pursuant to the 4an( Acuisition an( Distribution

Tracing S%ste&


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Court ha( occasion to (iscuss an( stress the i&portance of these notices in the caseof Roxas Co" vs" CA" K.R. No. ;G@B@>" Dece&ber ;@" ;. n this case" petitionerRo*as an( Co." a (o&estic corporation o#ns three hacien(as. Notices of acuisitioninfor&ing the lan(o#ner that t#o of the hacien(as #ere being co&pulsoril%acuire( #ere sent b% the DAR an( ser$e( on the a(&inistrator in his a((ress in thehacien(a. The a(&inistrator participate( in the acuisition procee(ings as

representati$e of the o#ner. Sub!ect lan(hol(ings #ere acuire( b% the DAR an(subseuentl% (istribute( to the beneciaries. The petitioner assaile( the $ali(it% ofthe acuisition procee(ings on the groun(" a&ong others" that it #as (enie( (ueprocess as no notice of acuisition #as e$er ser$e( on it. The Supre&e Court hel(that7. . . the proce(ure in sen(ing notices is i&portant to co&pl% #ith the reuisites of(ue process especiall% #hen the o#ner is a !uri(ical entit%.. . . The Notice of Acuisition in Section ;> of the CAR4 is reuire( to be sent to thelan(o#ner b% personal (eli$er% or registere( &ail. 6hether the lan(o#ner be anatural or !uri(ical person to #hose a((ress the Notice &a% be sent b% personal(eli$er% or registere( &ail" the la# (oes not (istinguish. The DAR a(&inistrati$eor(ers also (o not (istinguish. n the procee(ings before the DAR the (istinction

bet#een natural an( !uri(ical persons in the sen(ing of notices &a% be foun( in theRe$ise( Rules of Proce(ure of the DARA'. Ser$ice of plea(ings before the DARA' isgo$erne( b% Section >" Rule O of the DARA' Re$ise( Rules of Proce(ure. Notices an(Plea(ings are ser$e( on pri$ate (o&estic corporations or partnerships in thefollo#ing &anner79Section >. !ervice )pon Private &omestic or Partnership. 2 f (efen(ant is acorporation organi)e( un(er the la#s of the Philippines or a partnership (ul%registere( ser$ice &a% be &a(e on the presi(ent" &anager" secretar%" cashier"agent or an% of its (irectors or partners9Si&ilarl%" the Re$ise( Rules of Court of the Philippines" in Section ;" Rule ;Hpro$i(es79Section ;. !ervice upon private domestic corporation or partnership. 2 f the

(efen(ant is a corporation organi)e( un(er the la#s of the Philippines or apartnership (ul% registere(" ser$ice &a% be &a(e on the presi(ent" &anager"secretar%" cashier" agent or an% of its (irectors.9Su&&onses" plea(ings an( notices in cases against pri$ate (o&estic corporationbefore the DARA' an( the regular courts are ser$e( on the presi(ent" &anager"secretar%" cashier" agent or an% of its (irectors. These persons are those through#ho& the pri$ate (o&estic corporation or partnership is capable of action.

ai&e Pi&entel


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Sai( ruling #as reiterate( in the case of Iin$ons>2agana vs" 1strella" G; SCRA?B >?@are not e*clusi$e. The DAR an( 4'P arenot conne( in their (eter&ination of !ust co&pensation to the factorsLcriteria setforth in sai( pro$ision. Notabl%" Section ;@ (oes not pro$i(e har( an( fast rules

#hich &ust be strictl% a(here( to b% DAR an( 4'P in the (eter&ination of !ustco&pensation. 6hile sai( section pro$i(es that the factorsLcriteria &entione(therein9 shall be consi(ere(9 it (oes not e*pressl% state that onl% thesefactorsLcriteria an( no other shall be consi(ere(. The factorsLcriteria set forth inSections ;@" ;B an( other pertinent pro$isions for that &atter shoul( be (ee&e( as&ere stan(ar(s to gui(e the proper o+cials in the (eter&ining !ust co&pensation"but in no case shall control or li&it such (eter&ination" the ulti&ate consi(erationbeing that the co&pensation be the full an( fair eui$alent of the propert% takenfro& its o#ner b% the e*propriator. 8D pinion No. ;


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bank (esignate( b% the DAR of the co&pensation in cash or in 4'P bon(s inaccor(ance #ith this Act" the DAR shall take i&&e(iate possession of the lan( an(shall reuest the proper Register of Dee(s to issue a Transfer Certicate of Title>?@. n the case of L3P vs" CA 8GHB SCRA ;H


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Co&pulsor% Acuisition >?@9 as a&en(e( b% DAR A. . No.G-B53 DAR A. . No. " Series of ;Bentitle( 9Rules an( Regulations on theAcuisition" Oaluation" Co&pensation an( Distribution of Deferre( Co&&ercialFar&s953 DAR A. . No. B" Series of ;@entitle( 9Re$ise( Rules on the Acuisition

an( Distribution of Co&pensable Agricultural 4an(s Un(er O4TLDPS953 DAR A. . No. ;G" Series of ;entitle( 9Polic% Kui(elines an( peratingProce(ures in the (entication an( Acuisition of (le an( Aban(one( 4an(s9.Reconstitution of Lost or &amaged itle A pressing operational proble& besetting agrarian refor& i&ple&entors is the(ela% in the acuisition an( (istribution of agricultural lan(s #ith lost or (estro%e(titles. To a((ress this concern" DAR Je&oran(u& Circular No. ?" Series of;H#as issue( outlining the proce(ures on the reconstitution of lost or (estro%e(titles. Reconstitution of a certicate of title (enotes restoration of the instru&ent #hichis suppose( to ha$e been lost or (estro%e( in its original for& an( con(ition. Thepurpose of the reconstitution of title or an% (ocu&ent is to ha$e the sa&e

repro(uce(" after proper procee(ings" in the sa&e for& the% #ere #hen the loss or(estruction occurre(. G8;BB:=. u(icial reconstitution is go$erne( b%Republic Act No. G>in relation toSection ;; of P. D. No. ;?G. A(&inistrati$e reconstitution of title is like#isego$erne( b% Republic Act No. G>" as a&en(e( b% Republic Act No. >@G. Un(erDARJe&oran(u& Circular No. ?


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capabilities shoul( be consi(ere(.


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Notabl%" #hile Section ;@ pro$i(es that the factorsLcriteria &entione( therein 9shallbe consi(ere(9 in (eter&ining !ust co&pensation" it (oes not e*pressl% state thatonl% these factorsLcriteria" an( no others" shall be consi(ere(.. . . The factorsLcriteria set forth in Section ;@" an( in Section ;B an( other pertinentpro$isions for that &atter" shoul( be (ee&e( as &ere stan(ar(s to gui(e the propero+cials in (eter&ining !ust co&pensation" but shoul( in no case control or li&it

such (eter&ination" the ulti&ate consi(eration being that the co&pensation be the9full an( fair eui$alent of the propert% taken fro& its o#ner b% the e*propriator9.. . . n e$er% case" #hat shoul( control is the 9!ust-ness9 of the proposal taking intoaccount the 9re$olutionar%9 nature of the e*propriation un(er the CAR4. 7&-pinion 'o" +=. 7+..+88.9Ialuation or Computation General formula The basic for&ula for the $aluation of lan(s co$ere( b% Ooluntar% 0er to Sellan( Co&pulsor% Acuisition is74O = V


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There are ti&es #hen the lan( being $alue( is plante( to per&anent crops #hichare not %et pro(ucti$e or not %et fruit-bearing at the ti&e of the Fiel( n$estigation


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to be co&plete #ith all the reuire( (ocu&ents an( $aluation inputs (ul% $erie(an( $ali(ate(" an( rea(% for nal co&putationLprocessing. %actors of Land Ialue Computation of Capitali$ed 'et 0ncome Capitali)e( Net nco&e refers to the (i0erence bet#een the pro(uct of the grosssales an( selling prices LhectareComparable !ales Co&parable sales refers to an% one or the a$erage of all the applicable sub-factors" na&el% sales transactions


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source( fro& the baranga%" &unicipalit% an( pro$ince shoul( not e*cee( threetransactions.b= The lan( sub!ect of acuisition as #ell as those sub!ect of co&parable salestransactions shoul( be si&ilar in topograph%" lan( use" i.e." plante( to the sa&ecrop. Further&ore" in case of per&anent crops" the sub!ect properties shoul( be&ore or less co&parable in ter&s of their stages of pro(ucti$it% an( plant (ensit%.

c= The co&parable sales transactions shoul( ha$e been e*ecute( #ithin theperio( ; anuar% ;B? to ;? une BB" an( registere( #ithin the perio( ; anuar%;B? to ; Septe&ber ;BB.(= STs are grosse( up fro& the (ate of registration up to the (ate of receipt ofCF b% 4'P fro& DAR for processing. AC or Acuisition Cost is (ee&e( rele$ant #hen the propert% sub!ect ofacuisition #as acuire( through purchase or e*change #ith another propert%#ithin the perio( ; anuar% ;B? to ;? une ;BB an( registere( #ithin the perio( ;

anuar% ;B? to ; Septe&ber ;BB" an( the con(ition of sai( propert% is stillsubstantiall% si&ilar fro& the (ate of purchase or e*change to the (ate of F. AC is grosse( up fro& the (ate of registration of the (ee( of saleLe*change up tothe (ate of receipt of CF b% 4'P fro& DAR for processing.

JOJ or Jarket Oalue 'ase( on Jortgage. For JOJ to be rele$ant or applicable"the propert% sub!ect of acuisition shoul( ha$e been &ortgage( as of ;? une ;BBan( the con(ition of the propert% is still substantiall% si&ilar up to the (ate of F.JOJ refers to the latest a$ailable appraise( $alue of the propert%


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Agricultural lan(s o#ne( b% corporate far&s are $alue( b% consi(ering thefollo#ing factors7a= factors for the (eter&ination of !ust co&pensation5 an(b= factors nee(e( to sti&ulate the gro#th of cooperati$es an( participation of#orker-beneciaries >?@8;BB:" sec. ;@ in relation to DAR A(&. .No. ? 8;B:=

Ialuation of lands planted to sugarcane There is a (i0erent co&putation for $aluation of lan(s plante( to sugarcanebecause of the so-calle( 9ratooning9. n the $aluation of lan(s plante( to sugar" thee0ects of ratooning are consi(ere(. Ratooning is the cutting of the stra# close tothe groun( at har$esting ti&e after all the stan(ing #ater has been (raine( out toallo# the %oung tillers to sprout out of the rootstocks an( (e$elop into &aturenor&al bearing plants in three or four &onths #ith the ai( of fertili)er" &anure orco&post


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Un(er the Categor% " are those areas not %et a0ecte( but ha$e the possibilit% ofbeing actuall% a0ecte(. Un(er the Categor% " are those areas actuall% co$ere( or a0ecte( b% ashfallbut #hich re&ain pro(ucti$e. The general rule is" lan(s un(er Categor% shall be acuire( an( lan(o#nersshall be co&pensate(. 6hile co&pensation of lan(s un(er Categories an( shall

be e0ecte( un(er the follo#ing con(itions7a= Clai&s ha$e been appro$e( b% the 4'P an(73 4an(o#ner has e*ecute( a Dee( of Assign&ent" 6arrant% an( Un(ertakingon or before the issuance of theoint DAR-4'P A(&inistrati$e r(er No. " Series of;H5 or3 Transfer Certicate of Title #as alrea(% registere( in the na&e of RP on orbefore the issuance of the sa&e a(&inistrati$e or(er5 or3 Partial pa%&ent #as alrea(% e0ecte(.b= E&ancipation PatentsLCerticates of 4an( #nership A#ar( ha$e beenregistere( on or before ;G une ;; regar(less of #hether or not the clai&fol(er is#ith the 4'P.!ummar# Administrative Proceedings

Land 3ank of the Philippines The 4an( 'ank of the Philippines is pri&aril% responsible for the (eter&ination ofthe lan( $aluation an( co&pensation for all pri$ate lan(s suitable for agricultureun(er either the $oluntar% o0er to sell or co&pulsor% acuisition arrange&ent asgo$erne( b% RA >>?@. The DAR &akes use of the (eter&ination of the lan($aluation an( co&pensation b% the 4'P" in the perfor&ance of its functions


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(eter&ine the initial $aluation of lan(s in$ol$ing agrarian refor& pursuant to Sec ; @" ;B anuar% G"petitioner 'ank argue( that the DAR A(!u(icators ha$e no !uris(iction to (eter&ine

!ust co&pensation for the taking of lan(s un(er CARP because such !uris(iction is$este( in Regional Trial Courts (esignate( as Special Agrarian Courts. 1ence"Petitioner coul( le its petition #ith the RTC be%on( the ;?-(a% perio( of appealfro& the (ecision of the DAR A(!u(icator. The RTC (is&isse( the petition ofPetitioner for being le( be%on( the ;?-(a% perio( for appeal. The Supre&e Courtreiterate( its ruling in Republic vs" Court of Appeals* supra*an( sai(7. . . this rule is an ackno#le(g&ent b% the DARA' that the po#er to (eci(e !ustco&pensation cases for the taking of lan(s un(er R.A. No. >>?@ is $este( in thecourts. t is error to think that" because of Rule I" S ;;" the original an( e*clusi$e

!uris(iction gi$en to the courts to (eci(e petitions for (eter&ination of !ustco&pensation has alrea(% been transfor&e( into an appellate !uris(iction. t onl%&eans that" in accor(ance #ith settle( principles of a(&inistrati$e la#" pri&ar%

!uris(iction is $este( in the DAR as an a(&inistrati$e agenc% to (eter&ine in apreli&inar% &anner the reasonable co&pensation to be pai( for the lan(s takenun(er the Co&prehensi$e Agrarian Refor& Progra&" but such (eter&ination issub!ect to challenge in the courts.

The !uris(iction of the Regional Trial Courts is not an% less 9original an( e*clusi$e9because the uestion is rst passe( upon b% the DAR" as the !u(icial procee(ings
http://www.lis.dar.gov.ph/documents/7057http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/4054http://www.lis.dar.gov.ph/documents/4054http://www.lis.dar.gov.ph/documents/7057http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/4054


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are not a continuation of the a(&inistrati$e (eter&ination. For the &atter" the la#&a% pro$i(e that the (ecision of the DAR is nal an( unappealable. Ne$ertheless"resort to courts cannot be foreclose( on the theor% that courts are the guarantors ofthe legalit% of a(&inistrati$e action.Ialuation of P& 5 %earl%

interest co&poun(e( annuall% on lan(s co$ere( b% PD G@an( E GGBis grante(.The for&ula is7 co&poun(e(

annuall% shall onl% be applie( to the unpai( balance. Accor(ing to the abo$e&entione( a(&inistrati$e issuance" the sai( grant of incre&ent is reckone( fro&the e0ecti$it% (ate of PD G@or (ate #hen the lan( #as actuall% tenante( up to thee0ecti$it% (ate of DAR A ;


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2ode of Compensation 4an(o#ners &a% be pai( in cash or in kin(. Pa%&ent in kin( is !ustie( in thecase ofAssociation of !mall Landowners of the Philippines* 0nc" vs" !ecretar# of

Agrarian Reform" ;@? SCRA H >?@" the proportion of pa%&ent in cash" (epen(ent on theareaLhectarage of the lan( $alue( is sub!ect to the follo#ing7a= abo$e ? hectares" insofar as the e*cess hectarage is concerne( G?cashb= abo$e GH hectares an( up to ? hectares cashc= GH hectares an( belo# ? cash For $oluntar% o0er to sell" the cash portion is increase( b% ?. Pa#ment in kind 4an(o#ners &a% be pai( #ith7a= Shares of stock in go$ern&ent o#ne( or controlle( corporation" 4'Ppreferre( shares" ph%sical assets or other ualie( in$est&ents.b= Ta* cre(its5 orc= 4'P bon(s
http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/3556http://www.lis.dar.gov.ph/documents/226


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%eatures of L3P bonds The ne# ten


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obligation an( cannot be per&itte(. Thus" the $alue of these bon(s cannot be(i&inishe( b% an% (irect or in(irect act" particularl%" since sai( bon(s are full%guarantee( b% the Ko$ern&ent of the Republic of the Philippines. The% are issue(not in the open &arket nor for the capti$e &arket of lan(o#ners an( to facilitate thespee(% transfer of lan(s to the tenant-far&ers in support of the lan( refor&progra& of the Ko$ern&ent. The% are not or(inar% co&&ercial paper in that sense

sub!ect to (iscounting


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The reuire&ents enu&erate( in Section GG are the &ini&u& or basicualications for a far&er to beco&e a beneciar% of lan( un(er the agrarianrefor& progra&. Eualications of landownerKs children as preferred beneciaries As pro$i(e( in Section >" three >?@pro$i(es that a lan(less person is one #ho o#ns less thanthree


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>?@" P.D. No. G@" an( other agrarian refor&la#s5>?@" P.D. No. G@" an( otheragrarian refor& la#s5

Technologist" #ith the participation of the 'ARC" screens the beneciaries. A far&er #ho clai&s priorit% o$er those #ho ha$e been i(entie( b% the JARas beneciaries shoul( le a #ritten protest #ith the JAR or the PAR #ho isprocessing the clai& fol(er. nce the protest is le(" the JARLPAR shall co&&enton the protest an( sub&it the sa&e to the Regional Director #ho shall rule on theprotest. f the parties (isagree #ith the RD,s (ecision" the% can le a #ritten &otionfor reconsi(eration. f the &otion is (enie(" the far&ers can appeal to the Secretar%. Landowner not entitled to select beneciaries t is not the lan(o#ner #ho (istributes his lan(" so he (oes not ha$e the right toselect #ho the transferees. 4an( acuisition an( lan( (istribution are t#o (i0erenttransactions. t is the go$ern&ent #hich bu%s the lan( fro& the lan(o#ner an( then
http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3795http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3795http://www.lis.dar.gov.ph/documents/3686http://www.lis.dar.gov.ph/documents/3686http://www.lis.dar.gov.ph/documents/3686http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3795http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3795http://www.lis.dar.gov.ph/documents/3686http://www.lis.dar.gov.ph/documents/3686


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sells it to the beneciaries. t is not a (irect transaction bet#een the lan(o#ner an(the beneciaries. This rule also applies to $oluntar% lan( transferL(irect pa%&ent sche&e. E$enun(er this sche&e" it is not the lan(o#ner #ho (eter&ines #ho #ill be thebeneciaries. The beneciaries &ust ualif% un(er the la#" an( it is still the JARan( the 'ARC #ho (o the screening.

%armworker dened A farorker is (ene( b% Section >?@" Section Hof A(&inistrati$e r(er No. " Series of ;B" pro$i(es for special ualications forfarorkers in co&&ercial far&s" #hich are as follo#s7


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e&plo%ee" ter&ination for authori)e( causes is (ue to circu&stances be%on( thecontrol of the e&plo%ee. t is e$i(ent fro& the histor% of the pro$ision of the a(&inistrati$e issuances onualie( farorkers that the intention is to (istinguish bet#een !ust an(authori)e( causes. For one" the list of ualications in Section H" A(&inistrati$er(er No. " Series of ;Bpro$i(es that the potential beneciar% 9&ust ha$e been

e&plo%e( in the co&&ercial far& bet#een une ;?" ;BB an( une ;?" ;B or upone*piration or ter&ination of the (efer&ent9. This ne# pro$ision &akes theualications enco&pass e$en those #hose ser$ices ha$e been ter&inate( b% theco&&ercial far& as of the ti&e the (efer&ent perio( e*pires. Secon(l%" the original rules go$erning the acuisition of co&&ercialfar&s" A(&inistrati$e r(er No. >" Series of ;B" in ite& >?@. The% shall be ranke( accor(ing to the length of theircontinuous ser$ice in the co&&ercial far& reckone( fro& une ;?" ;BB up to thee*piration of the (efer&ent perio(5 resi(enc%" i.e. #hether resi(ing in the sa&ebaranga% or &unicipalit%5 #hether the% ha$e been $ali(l% retrenche(" i.e. #ithappro$al of the Dept. of 4abor an( E&plo%&ent5 the nature of their #ork" i.e.#hether (irectl% relate( to far& acti$ities" an( such other factors as the Co&&ittee

&a% (ee& appropriate.


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(o#n an( e*ecute &anage&ent policies5


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rank an( not the !ob (escription. The other $ie# is that the% are ualie( so long asthe% are (irectl% #orking on the lan(" an( possess all the ualications an( none ofthe (isualications for beco&ing an agrarian refor& beneciar%. t is our opinion that these so calle( 9super$isor% or &anagerial9 e&plo%ees canualif% as beneciaries. The (enition of super$isor% or &anagerial farorkersin A.. No. " Series of ;B" pro$i(es that to be consi(ere( a super$isor or a

&anager" the farorker &ust be $este( #ith the po#er to for&ulate an(i&ple&ent &anage&ent policies5 to hire" re" assign" an( (iscipline e&plo%ees5an(Lor to e0ecti$el% reco&&en( such &anagerial actions. urispru(ence supports the $ie# that this po#er is essential before an e&plo%ee&a% be consi(ere( as super$isor% or &anagerial. n %ranklin 3aker Compan# vs"ra4ano" K.R. No. @?" anuar% GB" ;BB"it #as hel(7

To &ake one a super$isor" the po#er to reco&&en( &ust not be &erel% routinar% orclerical in nature but reuires the use of in(epen(ent !u(g&ent. n other #or(s" thereco&&en(ation is >?@" follo#ing the or(er of priorit% set forth in the la#. There is a $ie# that seasonal farorkers are entitle( 9onl% to a !ust share of thefruits of the lan(9" but not to o#n lan(. This $ie# n(s support in %ortich vs"Corona* K.R. No. ;;H?@" August ;" ;* #herein the Supre&e Court sai(7

Again" as e*presse( in the opinion of Jr. Jartin" inter$enors" #ho are a(&itte(l% notregular but seasonal farorkers" ha$e no legal or actual an( substanti$e interesto$er the sub!ect lan( inas&uch as the% ha$e no right to o#n lan(. Rather" theirright is li&ite( onl% to a !ust share of the fruits of the lan(. The Court base( its obser$ation on Article I" Section H of the Constitution"#hich pro$i(es7

The State shall" b% la#" un(ertake an agrarian refor& progra& foun(e( on therights of far&ers an( regular farorkers" #ho are lan(less" to o#n (irectl% orcollecti$el% the lan(s the% till or" in the case of other farorkers" to recei$e a !ustshare of the fruits thereof. t is our $ie#" ho#e$er" that the fact that seasonal farorkers &a% not ha$ebeen gi$en a constitutional right (oes not &ean that the% (o not ha$e a statutor%right. Congress" in interpreting an( i&ple&enting Article I" Section H ofthe Constitutionenacte( Section GG of RA >>?@#hich e*plicitl% inclu(es seasonalfarorkers a&ong the ualie( beneciaries. Joreo$er" the obser$ation &a(e b%the Supre&e Court is onl% an obiter dictum an( cannot be &a(e the basis for theloss or acuisition of legal rights. Joreo$er" e$en a collecti$e or cooperati$e of"a&ong others" 9seasonal farorkers9 an( 9other farorkers9 &a% be a#ar(e(lan(s un(er the agrarian refor& progra&.Collectives or Cooperatives as Eualied 3eneciaries
http://www.lis.dar.gov.ph/documents/7041http://www.lis.dar.gov.ph/documents/9276http://www.lis.dar.gov.ph/documents/9276http://www.lis.dar.gov.ph/documents/9276http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/8966http://www.lis.dar.gov.ph/documents/8966http://www.lis.dar.gov.ph/documents/8966http://www.lis.dar.gov.ph/documents/8966http://www.lis.dar.gov.ph/documents/195http://www.lis.dar.gov.ph/documents/195http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/7041http://www.lis.dar.gov.ph/documents/9276http://www.lis.dar.gov.ph/documents/9276http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/8966http://www.lis.dar.gov.ph/documents/8966http://www.lis.dar.gov.ph/documents/195http://www.lis.dar.gov.ph/documents/195http://www.lis.dar.gov.ph/documents/226


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A collecti$e or cooperati$e co&pose( of the beneciaries liste( in Sec. GG ?@" to #it7 agricultural lessees an( share tenants" regular farorkers"seasonal farorkers" other farorkers" an( actual tillers or occupants of publiclan(s" can" b% itself" be an a#ar(ee of lan( un(er CARP. Sec. G? of R.A. >>?@" in fact"pro$i(es that 9?@=

0nclusion of names of members of collective or cooperative not mandator# Je&oran(u& Circular No. GH" Series of ;>" Je&oran(u& Circular No. ;H"Series of ;H" an( A(&inistrati$e r(er No. " Series of ;" go$erning theissuance of collecti$e C4As" e*pressl% reuire the listing of the na&es of all&e&bers in the C4A issue( to a collecti$e or cooperati$e. The purpose of thisreuire&ent is to 9protect a far&er-&e&ber fro& possible su&&ar% an( un!ustseparation b% the cooperati$e or association9


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the Court" 9his right to the lan(" as o#ner" ripene( into a $este( right. t #as nolonger e*pectant as (epen(ing on so&e e$ents or the perfor&ance of so&econ(itions.9 ther rights as beneciaries ha$e been grante( to #o&en through other DARa(&inistrati$e issuances. Un(er Je&oran(u& Circular No. ;" Series of ;B>"support ser$ices in ter&s of loan assistance in an a&ount not to e*cee( three

thousan( pesos " #o&en #ho are spouses ofagrarian refor& beneciaries are reuire( to also culti$ate the lan(" asi(e fro& theculti$ation un(ertaken b% her husban(. 6e are of the opinion that separateculti$ation &ust be reuire( of #o&en onl% #here the% are recipients of lan( in

their o#n right" an( shoul( no longer be reuire( of #o&en #hose spouses recei$elan( un(er the progra&. To reuire separate culti$ation b% spouses of &ale agrarian refor& beneciaries#oul( #ork against" rather than protect" the interests of #o&en. This reuire&entfails to recogni)e the role of #o&en in the rural househol(" particularl% in agrarianareas. 6o&en are usuall% gi$en repro(ucti$e tasks" such as upbringing of chil(ren"househol( chores" an( other #ork ha$ing to (o #ith the &aintenance of the ho&e.An a((itional bur(en of culti$ating the lan( #oul( be harshl% onerous upon #o&en#ho are spouses of beneciaries. The Ci$il Co(ean( the Fa&il% Co(erecogni)e that the role of #o&en intra(itional fa&ilies is the &aintenance of the househol(. n both Co(es"&aintenance of the ho&e is recogni)e( as the #ife,s contribution to the con!ugal

partnership of gains or to the absolute co&&unit% of propert% as to entitle her toone-half share of the &arital partnership propert%. As long as the #ife #orks in theho&e" all properties recei$e( or acuire( (uring the subsistence of the &arriage isconsi(ere( part of the con!ugal partnership of gains or of the absolute co&&unit% ofpropert%. There is no reason for R.A. >>?@to be gi$en a (i0erent interpretation asregar(s the rights of #o&en to lan( a#ar(e( to their spouses un(er theCo&prehensi$e Agrarian Refor& Progra&.2odes of &istributionM 0ndividual vs" Collective wnership t is the polic% of the CARP to establish o#ner-culti$atorship of econo&ic-si)e(far&s as basis of Philippine agriculture. n line #ith this is the a#ar( of threehectares to the in(i$i(ual beneciaries as the (istribution li&it. 6ith a $ie# ofeuitable lan( (istribution an( o#nership" DAR is &an(ate( to (istributeagricultural lan(s to as &an% tenants an( farorkers as possible. Further&ore" the(istribution of lan( shall be &a(e (irectl% to in(i$i(ual beneciaries. n general" lan(s shall be (istribute( (irectl% to the in(i$i(ual #orkerbeneciaries. n case it is not econo&icall% feasible an( soun( to (i$i(e the lan(then it shall be collecti$el% o#ne( b% the #orker 2 beneciaries #ho shall for& intoa #orker cooperati$e or association #hich #ill (eal #ith the corporation or businessassociation. 8Rep. Act No. >>?@


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The beneciaries &a% opt for collecti$e o#nership such as co-o#nership orfar&er,s cooperati$e or so&e other for& of collecti$e organi)ation. The total areathat &a% be a#ar(e( un(er a collecti$e C4A shall not e*cee( the total nu&ber ofco-o#ners or &e&bers of the cooperati$e or collecti$e organi)ation &ultiplie( b%the a#ar( li&it of three hectares e*cept in &eritorious cases as (eter&ine( b% thePARC" pursuant to Section G? of R.A. No. >>?@. Collecti$e co-o#nership C4As &a%

be issue( to co$er an% CARPable lan(s #hether pri$ate lan(s or public lan(s #ithinproclai&e( DAR settle&ent pro!ects or public lan(s turne( o$er to the DAR b% othergo$ern&ent agencies an( institutions pursuant to E.. No. H@as a&en(e(. 8Rep.Act No. >>?@ or 9actual possession9 un(er Section GH. Actual
http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3402http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/387http://www.lis.dar.gov.ph/documents/387http://www.lis.dar.gov.ph/documents/447http://www.lis.dar.gov.ph/documents/447http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3402http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/387http://www.lis.dar.gov.ph/documents/387http://www.lis.dar.gov.ph/documents/447http://www.lis.dar.gov.ph/documents/447http://www.lis.dar.gov.ph/documents/226


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possession of the lan( consists in the &anifestation of acts of (o&inion o$er it ofsuch a nature as a part% #oul( naturall% e*ercise o$er his o#n propert%. < Ra&os $s.Dir. of 4an(s 8 Phil ;@? 8;;B:=. n issuing the C4A" the Republic of thePhilippines" #hich beca&e the registere( o#ner of sub!ect propert%" acting throughDAR" e*ercise( an act of (o&inion o$er the lan(hol(ing as re(istribution in$ol$es(isposition or alienation. 1a$ing &anifeste( its (o&inion o$er the lan(" the Republic

of the Philippines through DAR" is (ee&e( to be" for all legal intents an( purposes"in actual possession thereof. Re(istribution is not li&ite( to the installation offar&ers in the lan(hol(ing. The generation an( (istribution of C4As is e&brace(#ithin the concept of re(istribution.&istribution of ;omelots A ho&elot refers to a parcel of agricultural lan( use( b% the AR' as the site ofhis per&anent (#elling inclu(ing the area utili)e( for raising $egetables" poultr%"pigs an( other ani&als an( engaging in &inor in(ustries. The area of the ho&elot&a% not e*cee( ;" suare &eters. t is an integral part of the far& an( anin(ispensable factor in far& operations. The proce(ure for the acuisition an((istribution of far&lots like#ise appl% to ho&elots. f the ho&elot of a tenant-beneciar% falls #ithin the retaine( area of the lan(o#ner" the beneciar% &a% be

&a(e to transfer his (#elling to his far&lot or other area to be (esignate( for hisho&elot #hich shall be &utuall% agree( upon b% the parties. Pro$i(e( that thelan(o#ner shoul(ers the cost of the transfer of his (#elling an( the agree( cost ofother i&pro$e&ents intro(uce( b% the tenant-beneciar% on sai( ho&elot. 8DARA.. No. ;G 8;;:" 8C:=&istribution of Commercial %arms and %acilities Co&&ercial far&s &a% be (istribute( collecti$el% or in(i$i(uall%. Xualie(beneciaries shall be a#ar(e( a &a*i&u& of three


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C4As shall be registere( i&&e(iatel% upon generation. ?@8;BB:" sec. G=.Corporate farms owning or operating under lease or management contract Pen(ing nal lan( transfer" corporate far&s that o#n or operate un(er lease or&anage&ent contract an( reali)e gross sales in e*cess of P? &illion are &an(ate(to e*ecute a pro(uction an( prot sharing 2agana vs" 1strella 8;;:= that it is onl% co&pliance #iththe prescribe( con(itions #hich entitles the far&erLgrantee to an e&ancipationpatent b% #hich he acuires the $este( right of absolute o#nership in thelan(hol(ing 2 a right #hich has beco&e *e( an( establishe( an( is no longeropen to (oubt an( contro$ers%.
http://www.lis.dar.gov.ph/documents/361http://www.lis.dar.gov.ph/documents/361http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3493http://www.lis.dar.gov.ph/documents/3493http://www.lis.dar.gov.ph/documents/361http://www.lis.dar.gov.ph/documents/361http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/302http://www.lis.dar.gov.ph/documents/226http://www.lis.dar.gov.ph/documents/3493


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The pronounce&ent of the court respecting the i&pregnable character of anE&ancipation Patent shoul( be ualie(. The &ere issuance of an E&ancipationPatent (oes not put the o#nership of the AR' be%on( attack an( scrutin%. t &ust benote( that P.D. No. H>$ests the Court of Agrarian Relations 2aganaruling&ust be appreciate( in this conte*t.Rights and bligations of 3eneciaries nce a Certicate of 4an( #nership A#ar( has been issue( to a beneciar% an(registere( in his na&e" it ser$es as an e$i(ence of title to the lan(" entitling thebeneciar% to occup% the lan(" culti$ate it" an( &aintain possession of thesa&e. cSAD1 An agrarian refor& beneciar% is oblige( to e*ercise the (iligence of a goo(father of a fa&il% in the use" culti$ation" an( preser$ation of the lan( an( the

i&pro$e&ents thereon. 1is rights to the lan(" as #ell as to support ser$ices to#hich he &a% be entitle( as a beneciar% shall be forfeite( in the e$ent that heneglects" aban(ons" &isuses" or sells the lan(. The beneciar% is also oblige( to keep the lan( a#ar(e( to hi& intact" an( he&a% not sub(i$i(e the lan( in fa$or of his chil(ren or heirs. The three hectares ha$ebeen i(entie( as an econo&ic-si)e( fa&il% far& #hich &ust be preser$e( as asingle operating unit to pro&ote the far&,s econo&ic $iabilit%. E$en if thebeneciar% (ies" his heirs are not allo#e( to (i$i(e the lan( into s&aller units. 1o#e$er" such heirs are entitle( to recei$e the lan( b% #a% of here(itar%succession. This &eans that the lan( &a% be transferre( either to the spouse of thebeneciar%" or in his or her absence or incapacit%" to the el(est chil( #ho &eets theualications to be a CARP beneciar%" particularl% the reuire&ent of #illingness"

aptitu(e" an( abilit% to culti$ate the lan( an( &ake it pro(ucti$e. The heir #hosuccee(s to the lan( is un(er obligation to pa% the other heirs their legal shares inthe propert% of the (ecease( beneciar%. n the absence of ualie( heirs orchil(ren" he lan( shall re$ert to the DAR" #hich shall i(entif% a ne# beneciar% thelan(. A beneciar% is like#ise oblige( to co&pl% #ith the pro$isions of R.A.>>?@. Je&oran(u& Circular No. ;" Series of ;>" supra"" pro$i(es for the groun(sfor perpetual (isualication of agrarian refor& beneciaries. The groun(senu&erate( in this Je&oran(u& Circular are $iolations of $arious pro$isions of R.A.>>?@an( a(&inistrati$e rules an( regulations issue( pursuant to this la#.Protection of Rights of 2ember>3eneciaries The protection of rights of &e&ber-beneciaries &a% be ensure( in the articlesof incorporation an( in the b%-la#s of the organi)ation" #hich the &e&ber-beneciaries the&sel$es enact an( appro$e. Restrictions in the transfer of shares or&e&bership rights" b% pro$i(ing that such transfer shall be $ali( onl% if &a(e infa$or of

Agrarian Law and Jurisprudence

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