AGRARIAN reform Capanas.doc

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AGRARIAN REFORM

I. History and Legal Basis

PRE-SPANISH PERIOD

• Before the Spaniards came the Filipinos lived in villages or aranga!s

r"led ! chiefs or dat"s#

• Ever!one had access to the fr"its of the soil#

SPANISH PERIOD

• $hen the Spaniards came the concept of encomienda %Ro!al &and

'rants( )as introd"ced#

- *haciendas+ %)ealth! chinese families(

,st PHI&IPPINE REPB&I.

• First Philippine Rep"lic )as estalished in ,/001 'en# Emilio Ag"inaldo

declared in the 2alolos .onstit"tion his intention to confiscate large

estates#

• Ag"inaldo3s plan )as never implemented#

A2ERI.AN PERIOD

• Philippine Bill of ,045 6 Set the ceilings7 ,8 has for private individ"als

and ,1459 has for corporations#

• &and Registration Act of ,045 %Act No# 908( 6registration of land titles

"nder the :orrens s!stem#

• P"lic &and Act of ,04; 6 introd"ced the homestead s!stem#

• :enanc! Act of ,0;; %Act No# 94<9 and 9,,;( 6 reg"lated relationships

et)een lando)ners and tenants of rice %<4-<4 sharing( and s"gar cane

lands#

.O22ON$EA&:H PERIOD

President 2an"el &# ="e>on espo"sed the *Social ?"stice+ program#

• ,0;< .onstit"tion- *:he promotion of social @"stice to ens"re the )ell-

eing and economic sec"rit! of all people sho"ld e the concern of the

State+

• .ommon)ealth Act No# ,/ %An Amendment to Rice :enanc!

ActNo#949<( -.ertain controls in the landlord-tenant relationships

• .ommon)ealth Act# No#98,1 ,0; 6 Specified reasons for the dismissal

of tenants and onl! )ith the approval of the :enanc! Division of the

Department of ?"stice#

• R"ral Program Administration1 created 2arch 51,0;0- p"rchase and

lease of haciendas and their sale and lease to the tenants#

?APANESE O..PA:ION

• peasants and )orers organi>ations gre) strength#

• peasants too "p arms

• Anti- ?apanese gro"p1 the HCBA&AHAP %H"o ng Ba!an &aan sa

Hapon(

PHI&IPPINE REPB&I.

After Philippine Independence in ,089 1 prolems of land ten"re

remained #

President 2an"el Roas %,098-,09/(7

• Rep"lic Act No# ;9 -- 4-;4 sharing arrangements and reg"lating

share-tenanc! contracts#

• Rep"lic Act No#<< 6 more effective safeg"ard against aritrar!

e@ectment of tenants#

PHI&IPPINE REPB&I.

President Elpidio ="irino %,09/-,0<;(

•

Eec"tive Order No# ;<< iss"ed on Octoer 5;1,0<4 -- Replaced theNational &and Settlement Administration )ith &and Settlement Development

.orporation %&ASEDE.O(

President Ramon 2agsa!sa!%,0<;-,0<(

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• Rep"lic Act No# ,,84 of ,0<9 -- Aolished the &ASEDE.O and

estalished the National Resettlement and Rehailitation Administration

%NARRA(

• Rep"lic Act No# ,,00 %Agric"lt"ral :enanc! Act of ,0<9(6

-relationship et)een lando)ners and tenant farmers ! organi>ing share-

tenanc! and leasehold s!stem#

-tenant has option to elect either share tenanc! or leasehold

-it also created the .o"rt of Agrarian Relations#

.ont# President Ramon 2agsa!sa!%,0<;-,0<(#

• Rep"lic Act No# ,944 %&and Reform Act of ,0<<( 6 .reated the &and

:en"re Administration%&:A(

• President .arlos P# 'arcia %,0<-,08,(

• .ontin"ed the program of President Ramon 2agsa!sa!#

• President Diosdado 2acapagal%,08,-,08<(7

• Rep"lic Act No# ;/99 of A"g"st /1,08;6 Aolished shared

tenanc!1

instit"tionali>ed leasehold#

• President Ferdinand 2arcos%,08<-,0/8(7

• Rep"lic Act No#8;/01 %.ode of Agrarian Reform( and RA No# 8;04 of ,0,

6 .reated the Department of Agrarian Reform and the Agrarian Reform

Special Acco"nt F"nd#

- Provides a"tomatic conversion of share tenanc! to leasehold#

.ont# President 2arcos %,08<-,0/8(7##

• Presidential Decree No# 51 Septemer 581,05 6 Declared the co"ntr!

"nder land reform program#

• Presidential Decree No#51Octoer 5,1,056 Restricted land reform

scope to tenanted rice and corn lands and set the retention limit at

hectares#

President .ora>on .# A"ino %,0/8-,005(

Section 5, "nder Article II 6 *:he State shall promote comprehensive

r"ral development and agrarian reform#+

signed into la) Rep"lic Act No# 88<

ecame effective on ?"ne ,<1,0//

President Fidel G# Ramos %,005-,00/(7

His administration committed to the vision *Fairer1 faster and more

meaningf"l implementation of the Agrarian Reform Program#

• Rep"lic Act No#//,1,00< 6 Amended certain provisions of RA 88<

and eempted fishponds and pra)ns from the coverage of .ARP#

• Rep"lic Act /<;51,00/ %Agrarian Reform F"nd Bill( 6 additionalPhp<4

illion for .ARP and etended its implementation for another ,4 !ears#

President ?oseph E# Estrada%,00/-5444(*ERAP PARA SA 2AHIRAP+

la"nched the 2agaaliat Para sa Ca"nlarang Agrar!o or 2A'CASACA#

President 'loria 2acapagal-Arro!o %5444-present(7

• &and :en"re ImprovementProvision of S"pport Services

• Infrastr"ct"re Pro@ect CA&AHI ARone

• Agrarian ?"stice

• .ARPER

Importance of Land Reform and its onstit!tionality"

Assoc. of Small Landowners vs. Hon. Secretary, ,< S.RA ;9;

J&and for the &andlessJ is a slogan that "nderscores the ac"te imalance in thedistri"tion of this precio"s reso"rce among o"r people# B"t it is more than aslogan# :hro"gh the rooding cent"ries1 it has ecome a attle-cr! dramati>ingthe increasingl! "rgent demand of the dispossessed among "s for a plot of earthas their place in the s"n#

Recogni>ing this need1 the .onstit"tion in ,0;< mandated the polic! of social @"stice to Jins"re the )ell-eing and economic sec"rit! of all the people1+especiall! the less privileged# In ,0;1 the ne) .onstit"tion affirmed this goaladding specificall! that Jthe State shall reg"late the ac"isition1 o)nership1 "se1en@o!ment and disposition of private propert! and e"ital! diff"se propert!o)nership and profits#J Significantl!1 there )as also the specific in@"nction to

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Jform"late and implement an agrarian reform program aimed at emancipatingthe tenant from the ondage of the soil#J

:he .onstit"tion of ,0/ )as not to e o"tdone# Besides echoing thesesentiments1 it also adopted one )hole and separate Article KIII on Social ?"sticeand H"man Rights1 containing grandiose "t "ndo"tedl! sincere provisions for

the "plift of the common people# :hese incl"de a call in the follo)ing )ords forthe adoption ! the State of an agrarian reform program7

SE.# 9# :he State shall1 ! la)1 "ndertae an agrarian reform programfo"nded on the right of farmers and reg"lar farm)orers1 )ho are landless1to o)n directl! or collectivel! the lands the! till or1 in the case of otherfarm)orers1 to receive a @"st share of the fr"its thereof# :o this end1 theState shall enco"rage and "ndertae the @"st distri"tion of all agric"lt"rallands1 s"@ect to s"ch priorities and reasonale retention limits as the.ongress ma! prescrie1 taing into acco"nt ecological1 developmental1 ore"it! considerations and s"@ect to the pa!ment of @"st compensation# Indetermining retention limits1 the State shall respect the right of smalllando)ners# :he State shall f"rther provide incentives for vol"ntar! land-sharing#

Earlier1 in fact1 R#A# No# ;/991 other)ise no)n as the Agric"lt"ral &and Reform.ode1 had alread! een enacted ! the .ongress of the Philippines on A"g"st /1,08;1 in line )ith the aove-stated principles# :his )as s"stantiall! s"persededalmost a decade later ! P#D# No# 51 )hich )as prom"lgated on Octoer 5,1,051 along )ith martial la)1 to provide for the comp"lsor! ac"isition of privatelands for distri"tion among tenant-farmers and to specif! maim"m retentionlimits for lando)ners#

On ?"l! ,1 ,0/1 President .ora>on .# A"ino iss"ed E#O# No# 55/1 declaring f"llland o)nership in favor of the eneficiaries of P#D# No# 5 and providing for theval"ation of still "nval"ed lands covered ! the decree as )ell as the manner oftheir pa!ment# :his )as follo)ed on ?"l! 551 ,0/ ! Presidential ProclamationNo# ,;,1 instit"ting a comprehensive agrarian reform program %.ARP(1 and E#O#No# 5501 providing the mechanics for its implementation#

S"se"entl!1 the revived .ongress of the Philippines too over legislativepo)er from the President and started its o)n delierations1 incl"ding etensivep"lic hearings1 on the improvement of the interests of farmers# :he res"lt1 after

almost a !ear of spirited deate1 )as the enactment of R#A# No# 88<1 other)iseno)n as the .omprehensive Agrarian Reform &a) of ,0//1 )hich PresidentA"ino signed on ?"ne ,41 ,0//# :his la)1 )hile consideral! changing theearlier mentioned enactments1 nevertheless gives them s"pplementar! effectinsofar as the! are not inconsistent )ith its provisions#

:he prom"lgation of P#D# No# 5 ! President 2arcos in the eercise of hispo)ers "nder martial la) has alread! een s"stained in Gonzales v. Estrella# Asfor the po)er of President A"ino to prom"lgate Proc# No# ,;, and E#O# Nos# 55/and 5501 the same )as a"thori>ed "nder Section 8 of the :ransitor! Provisionsof the ,0/ .onstit"tion#

AR:I.&E II

DE.&ARA:ION OF PRIN.IP&ES AND S:A:E PO&I.IES

Section 0# :he State shall promote a @"st and d!namic social order that )ill

ens"re the prosperit! and independence of the nation and free the people from

povert! thro"gh policies that provide ade"ate social services1 promote f"ll

emplo!ment1 a rising standard of living1 and an improved "alit! of life for all#

Section ,4# :he State shall promote social @"stice in all phases of national

development#

Section 5,# :he State shall promote comprehensive r"ral development and

agrarian reform#

AR:I.&E KII

NA:IONA& E.ONO2L AND PA:RI2ONL

Section ,# :he goals of the national econom! are a more e"itale distri"tion of

opport"nities1 income1 and )ealthM a s"stained increase in the amo"nt of goods

and services prod"ced ! the nation for the enefit of the peopleM and anepanding prod"ctivit! as the e! to raising the "alit! of life for all1 especiall!

the "nder-privileged#

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:he State shall promote ind"striali>ation and f"ll emplo!ment ased on so"nd

agric"lt"ral development and agrarian reform1 thro"gh ind"stries that mae f"ll

and efficient "se of h"man and nat"ral reso"rces1 and )hich are competitive in

oth domestic and foreign marets# Ho)ever1 the State shall protect Filipino

enterprises against "nfair foreign competition and trade practices#

In the p"rs"it of these goals1 all sectors of the econom! and all regions of theco"ntr! shall e given optim"m opport"nit! to develop# Private enterprises1

incl"ding corporations1 cooperatives1 and similar collective organi>ations1 shall

e enco"raged to roaden the ase of their o)nership#

Section ;# &ands of the p"lic domain are classified into agric"lt"ral1 forest or

timer1 mineral lands and national pars# Agric"lt"ral lands of the p"lic domain

ma! e f"rther classified ! la) according to the "ses to )hich the! ma! e

devoted# Alienale lands of the p"lic domain shall e limited to agric"lt"ral

lands# Private corporations or associations ma! not hold s"ch alienale lands of

the p"lic domain ecept ! lease1 for a period not eceeding t)ent!-five !ears1

rene)ale for not more than t)ent!-five !ears1 and not to eceed one tho"sand

hectares in area# .iti>ens of the Philippines ma! lease not more than fiveh"ndred hectares1 or ac"ire not more than t)elve hectares thereof1 !

p"rchase1 homestead1 or grant#

:aing into acco"nt the re"irements of conservation1 ecolog!1 and

development1 and s"@ect to the re"irements of agrarian reform1 the .ongress

shall determine1 ! la)1 the si>e of lands of the p"lic domain )hich ma! e

ac"ired1 developed1 held1 or leased and the conditions therefor#

AR:I.&E KIII

SO.IA& ?S:I.E AND H2AN RI'H:S

Section ,# :he .ongress shall give highest priorit! to the enactment of meas"res

that protect and enhance the right of all the people to h"man dignit!1 red"ce

social1 economic1 and political ine"alities1 and remove c"lt"ral ine"ities !

e"ital! diff"sing )ealth and political po)er for the common good#

:o this end1 the State shall reg"late the ac"isition1 o)nership1 "se1 and

disposition of propert! and its increments#

Section 5# :he promotion of social @"stice shall incl"de the commitment to create

economic opport"nities ased on freedom of initiative and self-reliance#

A'RARIAN AND NA:RA& RESOR.ES REFOR2Section 9# :he State shall1 ! la)1 "ndertae an agrarian reform program

fo"nded on the right of farmers and reg"lar farm)orers )ho are landless1 to

o)n directl! or collectivel! the lands the! till or1 in the case of other

farm)orers1 to receive a @"st share of the fr"its thereof# :o this end1 the State

shall enco"rage and "ndertae the @"st distri"tion of all agric"lt"ral lands1

s"@ect to s"ch priorities and reasonale retention limits as the .ongress ma!

prescrie1 taing into acco"nt ecological1 developmental1 or e"it!

considerations1 and s"@ect to the pa!ment of @"st compensation# In determining

retention limits1 the State shall respect the right of small lando)ners# :he State

shall f"rther provide incentives for vol"ntar! land-sharing#

Section <# :he State shall recogni>e the right of farmers1 farm)orers1 andlando)ners1 as )ell as cooperatives1 and other independent farmers

organi>ations to participate in the planning1 organi>ation1 and management of

the program1 and shall provide s"pport to agric"lt"re thro"gh appropriate

technolog! and research1 and ade"ate financial1 prod"ction1 mareting1 and

other s"pport services#

Section 8# :he State shall appl! the principles of agrarian reform or ste)ardship1

)henever applicale in accordance )ith la)1 in the disposition or "tili>ation of

other nat"ral reso"rces1 incl"ding lands of the p"lic domain "nder lease or

concession s"itale to agric"lt"re1 s"@ect to prior rights1 homestead rights of

small settlers1 and the rights of indigeno"s comm"nities to their ancestral lands#

:he State ma! resettle landless farmers and farm)orers in its o)n agric"lt"ral

estates )hich shall e distri"ted to them in the manner provided ! la)#




Sec. 7. :he State shall protect the rights of s"sistence fishermen1

especiall! of local comm"nitiesM to the preferential "se of the comm"nal marine

and fishing reso"rces1 oth inland and offshore# It shall provide s"pport to s"ch

fishermen thro"gh appropriate technolog! and research1 ade"ate financial1

prod"ction1 and mareting assistance1 and other services# :he State shall also

protect1 develop1 and conserve s"ch reso"rces# :he protection shall etend to

offshore fishing gro"nds of s"sistence fishermen against foreign intr"sion#Fish)orers shall receive a @"st share from their laor in the "tili>ation of marine

and fishing reso"rces#

Sec. 8. :he State shall provide incentives to lando)ners to invest the proceeds

of the agrarian reform program to promote ind"striali>ation1 emplo!ment

creation1 and privati>ation of p"lic sector enterprises# Financial instr"ments

"sed as pa!ment for their lands shall e honored as e"it! in enterprises of their

choice#

RA ;/99

BENEFICIARIES

• :enant Farmers

• Agric"lt"ral )age-earners or farm )orers

• Settlers incl"ding migrant )orers

• O)ner-c"ltivators of less than famil!-si>e farms

LAN'# O(ERE' B) $HE O'E

:enanted Areas

&anded Estates

Old Settlements

Proposed Settlements

CM!SI"IN F "#E C$E

• An agric"lt"ral leasehold s!stem to replace all eisting share tenanc!

s!stems in agric"lt"re#

Why leasehold

- Protects ten"rial and economic stat"s

- '"arantees ph!sical possession1 en@o!ment and management

- Ass"res contin"it! of relations

- In case lessor sells or alienates the legal possession1 transferee shall e

s"rogated to the rights and s"stit"ted to the oligations of lessor

Agric"lt"ral leasehold

A @"ridical tie et)een lessor and lessee

- Aolished shared tenanc!# No) leasehold tenanc!#

- $h! is it that leasehold relationship )as preferred

a# :en"rial Sec"rit! "nder Agrarian &and Reform 6 relationship can

eist even if there is death of the lessee or lessor1 sale 1 transfer or

conve!ance of agric"lt"ral land#

- :he transferee of the agriland1 the vendee is o"nd ! the leasehold

relationship

- Sho"ld it e annotated No# Not necessar!# :he la) provides for that#




- &easehold relationship )ill remain# :o protect the lessee from possile

e@ectment or disposition of propert!#

- Refers to 5 parties

- It is referred as agric"lt"ral lessor and agric"lt"ral lessee

- &ease 6 someod! m"st pa! rental

- .an the lessor e@ect the tenant

Les1 the lessor has the gro"nds provided ! ;/99 to e@ect the tenant#

nless the gro"nd for e@ectment is not en"merated in ;/991 the lessee

cannot e e@ected#

'ro"nds to dispossess a lessee7 :OP-FNS

a# Fail"re to compl! )ith terms and conditions of agreement

# Planting of crops or the "se of land for ot%er p!rpose than that

agreed "pon

c# Fail"re to adopt pro&en farm practices to conserve land

d# Fa!lt or negligence res"lting in s"stantial damage

e# Non-payment of rental )hen d"e

f# Emplo!ed a s!*lessee

- Normall! the gro"nds are last t)o gro"nds1 "nder ;/991 there is an

epress provision that the lessee )ill allo) a s"lessee#

- If the! are agric"lt"ral )orers "nder RA ;/991 the! are "nder Bill Of

Rights1 the! are entitled to minim"m )age la)1 among others#

- Agric"lt"ral lessee vs .ivil lessee

:o disting"ish lessee "nder .ivil .ode and "nder Agrarian &a)

,# 'ro"nds to e@ect - A& 6 ;/99 )hile .& 6 .ivil .ode

5# $here )ill !o" file the e@ectment case 6 agri lessee 6 DAR )hile civil

lessee 6 in reg"lar co"rts

- &essee has s"stantial rights1 !o" don3t have to allege 1 !o" have to

s"pport#

- Allegation onl! is not s"fficient

Eting"ishment of relation vs dispossession

a# Eting"ishment 6 no co"rt approval1 vol"ntar! act %aandonment of

land )itho"t no)ledge of lessor or vol"ntar! s"rrender ! lessee(

or an act of 'od

# Dispossession 6 )ith co"rt order1 premise of lessee

!an relation "e terminated "y death

No1 contin"e et)een lessor and memers of lessee3s immediate farm

ho"sehold to e chosen ! lessor )ithin , month from death7 ,#

s"rviving spo"seM 5# eldest direct descendant ! consang"init!M ;# net

eldest descendants in the order of their age#

&iailities of lessor if he e@ects tenant )itho"t a"thori>ation

-Fine or imprisonment

-Damages s"ffered

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:he .o"rt need not elaor the fact that R#A# 88< or the .ARP &a)operates distinctl! from P#D# 5# R.A. 112 co&ers all p!*lic and pri&ateagric!lt!ral land incl!ding ot%er lands of t%e p!*lic domain s!ita*le foragric!lt!re as pro&ided for in ,roclamation No. 343 and E5ec!ti&eOrder No. 6741 +%ile8 ,.'. co&ers rice and corn lands # On this score1E#O# 5501 )hich provides for the mechanism of the .omprehensive AgrarianReform Program1 specificall! states7 J'residential (ecree $o. )*, as amended,

shall continue to operate with respect to rice and corn lands, coveredthereunder. x x x+ It cannot e gainsaid1 therefore1 that R#A# 88< did not repealor s"persede1 in an! )a!1 P#D# 5# And )hatever provisions of P#D# 5 that arenot inconsistent )ith R#A# 88< shall e s"ppletor! to the latter1 and all rightsac"ired ! the tenant-farmer "nder P#D# 5 are retained even )ith the passageof R#A# 88<#

Sigre v# .A 7 PD 5 is s"ppletor! and operates separatel! from RA 88<#

.an lands ac"ired "nder PD 5 e transferred ! DAR to another "alifiedeneficiar!

Estolas vs. Mabalot, G.R. No. 133706, May 7, 2002

Facts:

A Certificate of Land Transfer (ereinafter referred to as CLT! "as iss#edin fa$or of res%ondent o$er a &,000 s'#are eter )ot (ereinafter referred to ass#*+ect )and!. Needin oney for edica) treatent, res%ondent %assed on tes#*+ect )and to te %etitioner. Accordin to res%ondent, tere "as on)y a $er*a)ortae- "i)e accordin to %etitioner, a sa)e ad taen %)ace.

Res%ondent fi)ed a Co%)aint aainst te %etitioner *efore te /aranayL#%on in anasinan for te %#r%ose of redeein te s#*+ect )and. en noaica*)e sett)eent "as reaced, te case "as referred to te AR reiona) office

. ARs istrict 4ffice fo#nd tat res%ondent ere)y a$e te s#*+ect )and to%etitioner as #arantee for te %ayent of a )oan e ad inc#rred fro te )atter-and recoendin tat te CLT reain in te nae of res%ondent and tat teoney )oan *e ret#rned to %etitioner.

etitioner insisted tat te s#*+ect )and ad *een so)d to i *yres%ondent and re'#ested te AR to cance) te CLT in res%ondents nae.

Anoter in$estiation "as cond#cted on te atter "ic )ed to te iss#ance of an4rder iss#ed *y AR Reiona) irector. 5n te said 4rder, te AR fo#nd te actof res%ondent in s#rrenderin te s#*+ect )and in fa$or of %etitioner as constit#tin

a*andonent tereof, and denied res%ondents %rayer for rede%tion of tes#*+ect )and. Res%ondents re'#est for rein$estiation "as denied in a Reso)#tion.

T#s, res%ondent a%%ea)ed te case to te AR Centra) 4ffice "ic anorder "as iss#ed re$ersin te assai)ed 4rder of AR Reiona) irector andorderin te %etitioner to ret#rn te s#*+ect )and to res%ondent. etitioners Motionfor Reconsideration "as denied.

Issues:

A. eter or not tere is a $a)id a*andonent ade *y Res%ondent Ma*a)ot.

/. eter te act of Res%ondent Ma*a)ot in con$eyin to %etitioner te rit to %ossessand c#)ti$ate te dis%#ted %arce) of )and constit#tes a $a)id a*andonent tere*y renderinte %ro%erty a$ai)a*)e for transfer to oter *onafide farers.

C. eter te iss#ance of an eanci%ation %atent and tereafter a transfer certificate oftit)e in te nae of %etitioner as $a)idated and )eitiied %ossession and o"nersi% o$erte dis%#ted %ro%erty.

Held:

Main Issue: Abandonment

Te s#*+ect %ro%erty "as a"arded to res%ondent *y $irt#e of 27. A CLT "as iss#ed inis fa$or. 27 s%ecifica))y %ro$ides tat "en %ri$ate aric#)t#ra) )and 88 "eter c)assifiedas )anded estate or not 9 is %riari)y de$oted to rice and corn #nder a syste of sarecro%or )ease tenancy, te tenant farers tereof sa)) *e deeed o"ners of a %ortionconstit#tin a fai)y8sie far of fi$e (&! ectares if not irriated, and tree (3! ectares ifirriated.

etitioner a$ers tat res%ondent neiter %rotested "en te forer ad te s#*+ect )ands#r$eyed and %)anted "it :0 ano trees, nor atte%ted to ret#rn te oney e ad*orro"ed fro %etitioner in 1;76. /eca#se te )ot as *een a*andoned *y res%ondent, te*eneficiary, and *eca#se 27 does not %roi*it te transfer of %ro%erties ac'#ired #nderit, %etitioner teories tat te e%artent of Ararian Refor (AR! ay a"ard te )and to

anoter '#a)ified farer8rantee.

Non-transferability of Land Awarded Under PD 27

e do not aree. 27 s%ecifica))y %ro$ides tat tit)e to )and ac'#ired %#rs#ant to itsandate or to tat of te Land Refor rora of te o$ernent sa)) not *e transfera*)e




e<ce%t to te rantees eirs *y ereditary s#ccession, or *ac to te o$ernent *y oter)ea) eans. Te )a" is c)ear and )ea$es no roo for inter%retation.

=%on te %ro#)ation of 27, teir eanci%ation a$e te te rits to %ossess,c#)ti$ate and en+oy te )ando)din for tese)$es. Tese rits "ere ranted *y teo$ernent to te as te ti))ers and to no oter. T#s, to ins#re teir contin#o#s%ossession and en+oyent of te %ro%erty, tey co#)d not, #nder te )a", effect any transfere<ce%t *ac to te o$ernent or, *y ereditary s#ccession, to teir s#ccessors.11

>#rterore, tis Co#rt as a)"ays r#)ed tat ararian )a"s #st *e inter%reted )i*era))y infa$or of te rantees in order to i$e f#)) force and effect to te c)ear intent of s#c )a"s? toacie$e a dinified e<istence for te sa)) farers- and to ae te ore inde%endent,se)f8re)iant and res%onsi*)e citiens, and a so#rce of en#ine strent in o#r deocraticsociety.12

Neiter are "e con$inced tat an a"ard #nder 27 ay *e transferred to anoter in casete rantee a*andons it. Te )a" is e<%)icit.

No Abandonment

>or a*andonent to e<ist, te fo))o"in re'#isites #st *e %ro$en? (a! a c)ear and a*so)#teintention to reno#nce a rit or c)ai or to desert a rit or %ro%erty and (*! an e<terna) act*y "ic tat intention is e<%ressed or carried into effect. Tere #st *e an act#a), notere)y a %ro+ected, re)in'#isent- oter"ise, te rit or c)ai is not $acated or "ai$ed

and, t#s, s#sce%ti*)e of *ein a%%ro%riated *y anoter. 5n te %resent case, no s#c "i))f#)fai)#re as *een deonstrated. @#ite te contrary, res%ondent as contin#ed to c)aidoinion o$er te )and.

No Valid Reallocation

>#rterore, e$en if res%ondent did indeed a*andon is rit to %ossess and c#)ti$ate tes#*+ect )and, any transfer of te %ro%erty ay on)y *e ade in fa$or of te o$ernent. 5nCorpuz v. Grospe,1; te Co#rt e)d tat tere "as a $a)id transfer of te )and after tefarer8rantee ad sined is conc#rrence to te aaan Nayon Reso)#tions#rrenderin is %ossession of te )ando)din. Tis $o)#ntary s#rrender to te aaanNayon constit#ted a s#rrender or transfer to te o$ernent itse)f.

5n te %resent case, tere "as no $a)id transfer in fa$or of te o$ernent. 5t "as %etitionerise)f "o re'#ested te AR to cance) res%ondents CLT and to iss#e anoter one in isfa$or.21 =n)ie in te a*o$e8cited case, res%ondents )and "as not t#rned o$er to te

o$ernent or to any entity a#toried *y te o$ernent to rea))ocate te faro)dins oftenant8farers "o ref#se to *ecoe *eneficiaries of 27. etitioner cannot, *y ise)f,tae o$er a farer8*eneficiarys )ando)din, a))eed)y on te ro#nd tat it "as a*andoned.Te %ro%er %roced#re for rea))ocation #st *e fo))o"ed to ens#re tat tere "as indeeda*andonent, and tat te s#*se'#ent *eneficiary is a '#a)ified farer8tenant as %ro$ided*y )a".

BR>4R, te etition is ere*y DENIED

Estolas v# 2aalot 7 &and ma! onl! e transferred either ! s"ccession or togovernment#DAR cannot transfer directl! to a "alified eneficiar!#

'an& Ban( of t)e !)il. *s. #ei+s of Eleute+io C+u,- G.R. No. 32328 #eptem*er 68 99:Facts;.ase is regarding the val"ation to the land of the respondents of )hich the area)as placed ! the government "nder the coverage of the operation land transferprogram "nder PD 5# :he &BP1 petitioners herein1 val"ed the land in accordance )ith the g"idelinesset forth "nder PD 5 and EO No# 55/ and pegged the val"e of the landamo"nting to P,4810;<#8 per hectare# Respondents re@ected petitioner3sval"ation and insist on claiming that the said land is )orth et)een P,<4144 toP5441444 per hectare# :he .aga!an Provincial Agrarian Reform Ad@"dicator %PARAD( ho)ever val"edthe land at P/41444 follo)ing the factors set "nder RA 8<< %.AR&( and of )hichs"ch val"e1 as @"st compensation to the respondent1 )as approve ! the lo)er

co"rt %R:.( setting as Special Agrarian .o"rt %SA.(#

Iss!e;$hether or not PD 5 or RA 8<< is the applicale la) in determining the val"eof the land )hich )as taen "nder PD 5 or efore RA 8<< )as enacted#Held; :he .o"rt laid do)n in 'aris v. Alfeche the applicailit! of P#D# No# 5 and E#O#No# 55/ in relation to R#A# No# 88< in the matter of the pa!ment of @"stcompensation# :here the .o"rt eplained that )hile "nder P#D# No# 5 tenantfarmers are alread! deemed o)ners of the land the! till1 the! are still re"iredto pa! the cost of the land efore the title is transferred to them and thatpending the pa!ment of @"st compensation1 act"al title to the tenanted landremains )ith the lando)ner#In 'aris1 the application of the process of agrarian reform )as still incomplete

th"s1 the .o"rt held therein that +it% t%e passage of R.A. No. 112 *eforeits completion8 t%e process s%o!ld no+ *e completed !nder R.A. No.1128 +it% ,.'. No. and E.O. No. : applying only s!ppletorily.It )o"ld certainl! e ine"itale to determine @"st compensation ased on theg"ideline provided ! PD No# 5 and EO 55/ considering the DAR3s fail"re todetermine the @"st compensation for a considerale length of time# :hat @"st

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compensation sho"ld e determined in accordance )ith RA 88<1 and not PD 5or EO 55/1 is especiall! imperative considering that @"st compensation sho"ld ethe f"ll and fair e"ivalent of the propert! taen from its o)ner ! theepropriator1 the e"ivalent eing real1 s"stantial1 f"ll and ample# :he land therefore sho"ld e val"ed "nder RA 88< follo)ing the g"idelines setin DAR AO no# <1 series of ,00/ and not "nder PD 5#

&and Ban v# Heirs of .r">7-:he determination of @"st compensation sho"ld e ased on RA 88<

for lands covered "nder PD 5# PD 5 applies onl! s"ppletoril!#

HA,$ER 3

• Is ind"striali>ation a component of Agrarian ReformLes#

Sec#5 %RA 88<(

*so"nd r"ral development andind"striali>ation+

*to promote ind"striali>ation+

Ind"strial inp"ts necessar! to agric"lt"re%fertili>ers1 insecticides1 h!rid seeds1 irrigation s!stems1tractors(

• .an private corporation ac"ire o)nership of alienale lands of p"licdomain

.have> v# PEA7 No1 onl! thro"gh lease not eceeding 5< !rs# Rene)ale notmore than 5<!rs# And not to eceed ,1444 hectares

%.ONS:#1 Art# KII1 Sec#;( #ec. 4 /*0 <Agric!lt!re= or <Agric!lt!ral Acti&ity=- 2eans the c"ltivation of the soil1 planting of crops1 gro)ing of fr"it trees1raising of livestoc1 po"ltr! or fish incl"ding the harvesting of s"ch farmprod"cts1 and other farm activities and practices performed ! a farmer incon@"nction )ith s"ch farming operations done ! person )hether nat"ral or

@"ridical#

&"> Farms v# Sec# 6 Sec#; %( "nconstit"tional %*raising of livestoc1 po"ltr! and s)ine+ per S.(

- *"se of land is incidental and not the principal factor+

RA //, %effective 2a! ,00<(

- amended Sec#;%( and removed *the raising of livestoc1 po"ltr! or fish+

raising of livestoc1 s)ine and po"ltr! is different from crop or treefarming#

Ind"strial1 not agric"lt"ral activit!#

'reat portion of the investment in this enterprise is in the form ofind"strial fied assets1 s"ch as7 animal ho"sing str"ct"res and facilities1drainage1 )aterers and lo)ers1 feedmill )ith grinders1 miers1conve!ors1 eha"sts and generators1 etensive )areho"sing facilities forfeeds and other s"pplies1 anti-poll"tion e"ipment lie io-gas anddigester plants a"gmented ! lagoons and concrete ponds1 deep)ells1elevated )ater tans1 p"mpho"ses1 spra!ers1 and other technologicalapp"rtenances

'AR Admin. Order No. 938 #. 99> /R?LE# @ REG?LA$ION#GO(ERNING $HE EL?#ION OF AGRI?L$?RAL LAN'# ?#E' FORA$$LE RAI#ING FROM $HE O(ERAGE OF AR,0

O*ecti&e7 :o prevent circ"mvention of .ARP and to protect the rightsof ARBs d"e to "na"thori>ed changeconversion or fra"d"lentdeclaration of areas "sed for cattle p"rposes#

o&erage7 All applications for ecl"sion from .ARP of privateagric"lt"ral lands act"all!1 ecl"sivel! and directl! "sed for cattle raisingas of ,< ?"ne ,0//#

$ypes of animal7 cattle %of ovine famil!(1 "ll1 calf1 co)#

,olicies7%,( :hose ADE "sed for cattle raising as of ,< ?"ne ,0// shall eecl"ded %ecl"sion to e granted onl! "pon proof and contin"o"sl!"tili>ed "p to time of application(M%5( An! change in "se shall e s"@ect to policies on land conversion%;( Onl! the gra>ingpast"re area and for infrastr"ct"re necessar! forcattle raising shall e ecl"dedM all other areas shall e covered#%9( Enco"rage gro)th of cattle ind"str!%<( If filing of ecl"sion is in response to notice of .ARP coverage1 DARshall den! d"e co"rse if application is filed 84 da!s after date of receiptof notice#

%8( Onl! ecl"sion applications f"ll! s"pported ! doc"ments shall eaccepted

'AR &. #!tton; 2asate land -cattle-reeding capital of Phil%GOS - d"e to &"> Farms - )ithdra) GOS(

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- .onstit"tionalit! of AO No# 01 S# ,00; %prescriing a maim"m retentionlimit for o)ners of lands devoted to livestoc raising(M

- S. n"llified AOM RA ::3 c%anged definition of <agric!lt!ralacti&ity< *y dropping from its co&erage lands t%at are de&otedto commercial li&estocC8 po!ltry and s+ine-raising. ongressclearly so!g%t to align t%e pro&isions of o!r agrarian la+s +it%t%e intent of t%e 36: onstit!tional ommission to e5cl!de

li&estocC farms from t%e co&erage of agrarian reform.

Admin. Order No. 98 #. 99:

,olicy g!idelines7

&ands ADE "sed for livestoc p"rposes as of ,< ?"ne ,0// andcontin"o"sl! "sed shall e ecl"dedM conversel!1 those not ADE ares"@ect to .ARP if one or more of the follo)ing conditions appl!7 %,(there is agric"lt"ral activit! in the area %i#e#1 c"ltivation of soil1 plantingof crops1 gro)ing of trees incl"ding harvesting(M %5( land is s"itale foragric"lt"re and occ"pied and tilled ! farmers#

In line )ith principle of reg"larit! in the performance of officialf"nctions1 all processes ! DAR per AO No# 0 are valid#

Sec# ; %c( *Agric"lt"ral land+ land devoted to agric"lt"ral activit! Q notclassified as mineral1 forest1 residential1 commercial or ind"strial land#

Rep!*lic &s #la&ador LopeD Agri-*!siness

FactsS"@ect of this petition are fo"r %9( parcels of land )ith an aggregate area of,84#,,8, hectares registered in the name of Salvador N# &ope> Agri-B"siness.orporation#On A"g"st 51 ,00,1 2"nicipal Agrarian Reform Officer %2ARO( Socorro .# Salgaiss"ed a Notice of .overage to petitioner )ith regards %sic( to theaforementioned landholdings )hich )ere s"se"entl! placed "nder.omp"lsor! Ac"isition p"rs"ant to R#A# 88< %.omprehensive Agrarian Reform&a)(#

On Decemer ,41 ,0051 petitioner filed )ith the Provincial Agrarian ReformOffice %PARO(1 Davao Oriental1 an Application for Eemption of the lots covered! :.: No# :-,58; and :-,58;0 from .ARP coverage# It alleged that p"rs"antto the case of &"> Farms v# DAR Secretar! said parcels of land are eempted

from coverage as the said parcels of land )ith a total area of ,,4#<9<< hectaresare "sed for gra>ing and haitat of petitioners ,4< heads of cattle1 < caraaos1,, horses1 0 heads of goats and ,/ heads of s)ine1 prior to the effectivit! of the.omprehensive Agrarian Reform &a) %.AR&(#

On Decemer ,;1 ,005 and 2arch ,1 ,00;1 the 2ARO cond"cted an onsiteinvestigation on the t)o parcels of land confirming the presence of the livestoc

as en"merated#

On ?"ne 591 ,00;1 :.: No# :-,58;< covering &ots ,9<9-A Q ,508 )as cancelledand a ne) one iss"ed in the name of the Rep"lic of the Philippines "nder RP :-,8;<8# On Fer"ar! 1 ,0091 petitioner thro"gh its President1 Salvador N# &ope>1 ?r#1 eec"ted a letter-affidavit addressed to the respondent-Secretar! re"estingfor the ecl"sion from .ARP coverage of &ots ,9<9-A and ,508 on the gro"ndthat the! needed the additional area for its livestoc "siness# On 2arch 5/1,00<1 petitioner filed efore the DAR Regional Director of Davao .it! anapplication for the eemption from .ARP coverage of &ots ,9<9-A and ,508stating that it has een operating gra>ing lands even prior to ?"ne ,<1 ,0// andthat the said t)o %5( lots form an integral part of its gra>ing land#

:he DAR Regional Director1 after inspecting the properties1 iss"ed an Order

dated 2arch <1 ,00 den!ing the application for eemption of &ots ,9<9-A and,508 on the gro"nd that it )as not clearl! sho)n that the same )ere act"all!1directl! and ecl"sivel! "sed for livestoc raising since in its application1petitioner itself admitted that it needs the lots for additional gra>ing area# :heapplication for eemption1 ho)ever of the other t)o %5( parcels of land )asapproved#

Iss!e7$hether or not the lands are covered "nder .AR&

Held7In contrast1 the &imot lands )ere fo"nd to e agric"lt"ral lands devoted tococon"t trees and r"er and are th"s not s"@ect to eemption from .ARPcoverage#

In the Report dated 48 April ,0091 the team that cond"cted the inspection fo"ndthat the entire &imot lands )ere devoted to cocon"ts %9,#<48 hectares( andr"er %/#444 hectares( and recommended the denial of the application foreemption# ;4 Geril!1 the &imot lands )ere act"all!1 directl! and ecl"sivel!




"sed for agric"lt"ral activities1 a fact that necessaril! maes them s"@ect to the.ARP# :hese findings of the inspection team )ere given credence ! the DARRegional Director )ho denied the application1 and )ere even s"se"entl!affirmed ! the DAR Secretar! and the .o"rt of Appeals#

In the 4 Fer"ar! ,009 &etter-Affidavit addressed to the DAR Secretar!1SN&AB. re"ested the eemption of the &imot lands on the gro"nd that the

corporation needed the additional area for its livestoc "siness# As pointed o"t! the DAR Regional Director1 this &etter-Affidavit is a clear indication that the&imot lands )ere not directl!1 act"all! and ecl"sivel! "sed for livestoc raising#SN&AB. cas"all! dismisses the clear import of their &etter-Affidavit as a Jpoorchoice of )ords#J nfort"natel!1 the semantics of the declarations of SN&AB. inits application for eemption are corroorated ! the other attendant fact"alcirc"mstances and indicate its treatment of the s"@ect properties as non-livestoc#

Geril!1 the 2ARO itself1 in the Investigation Report cited ! no less than SN&AB.1fo"nd that the livestoc )ere onl! moved to the &imot lands sporadicall! and)ere not permanentl! designated there# :he DAR Secretar! even descriedSN&AB.s "se of the area as a Jseasonal etension of the applicants gra>inglands d"ring the s"mmer#J :herefore1 the &imot lands cannot e claimed to

have een act"all!1 directl! and ecl"sivel! "sed for SN&AB.s livestoc"siness1 especiall! since these )ere onl! intermittentl! and secondaril! "sed asgra>ing areas# :he said lands are more s"itale and are in fact act"all!1directl! and ecl"sivel! eing "sed for agric"lt"ral p"rposes#

• :a declaration classified as agric"lt"ral land %one )a! to prove(- it isnot concl"sive#

Milestone Farms8 Inc. &s. Office of t%e ,resident

Facts;Petitioner 2ilestone Farms1 Inc# %petitioner( )as incorporated )ith the Sec"rities

and Echange .ommission on ?an"ar! /1 ,084# 9 Among its pertinent secondar!p"rposes are7 %,( to engage in the raising of cattle1 pigs1 and other livestocM toac"ire lands ! p"rchase or lease1 )hich ma! e needed for this p"rposeM andto sell and other)ise dispose of said cattle1 pigs1 and other livestoc and theirprod"ce )hen advisale and eneficial to the corporationM %5( to reed1 raise1

and sell po"ltr!M to p"rchase or ac"ire and sell1 or other)ise dispose of thes"pplies1 stocs1 e"ipment1 accessories1 app"rtenances1 prod"cts1 and !-prod"cts of said "sinessM and %;( to import cattle1 pigs1 and other livestoc1 andanimal food necessar! for the raising of said cattle1 pigs1 and other livestoc asma! e a"thori>ed ! la)# <

On ?"ne ,41 ,0//1 a ne) agrarian reform la)1 Rep"lic Act %R#A#( No# 88<1

other)ise no)n as the .omprehensive Agrarian Reform &a) %.AR&(1 tooeffect1 )hich incl"ded the raising of livestoc1 po"ltr!1 and s)ine in its coverage#Ho)ever1 on Decemer 91 ,0041 this .o"rt1 sitting en anc1 r"led in &"> Farms v#Secretar! of the Department of Agrarian Reform 8 that agric"lt"ral landsdevoted to livestoc1 po"ltr!1 andor s)ine raising are ecl"ded from the.omprehensive Agrarian Reform Program %.ARP(#

:h"s1 in 2a! ,00;1 petitioner applied for the eemptionecl"sion of its;,8#4955-hectare propert!1 covered ! :ransfer .ertificate of :itle Nos# %:-9,49;9( 2-,<<41 %:-9/8,4,( 2-;41 %:-9/8,45( 2-;4/1 %:-59,50( 2-,<<,1%:-9/8,4;( 2-;401 %:-9/8,49( 2-;,41 %:-;;5809( 2-,<<<1 %:-9/8,4<( 2-;,,1 %:-9/8,48( 2-;,51 2-/0,1 %:-9/8,4( 2-;,;1 %:-9/8,4/( 2-;,91 2-/081 %:-9/8,40( 2-;,<1 %:-9/8,,4( 2-0<4/1 and 2-84,;1 and located inPin"ga!1 Baras1 Ri>al1 from the coverage of the .AR&1 p"rs"ant to the

aforementioned r"ling of this .o"rt in &"> Farms#

2ean)hile1 on Decemer 51 ,00;1 the Department of Agrarian Reform %DAR(iss"ed Administrative Order No# 01 Series of ,00; %DAR A#O# No# 0(1 setting forthr"les and reg"lations to govern the ecl"sion of agric"lt"ral lands "sed forlivestoc1 po"ltr!1 and s)ine raising from .ARP coverage# :h"s1 on ?an"ar! ,41,0091 petitioner re-doc"mented its application p"rs"ant to DAR A#O# No# 0#

Acting on the said application1 the DARs &and se .onversion and Eemption.ommittee %&.E.( of Region IG cond"cted an oc"lar inspection on petitionerspropert! and arrived at the follo)ing findings7

:The act"al land "tili>ation for livestoc1 s)ine and po"ltr! is 5</#/955hectaresM the area )hich served as infrastr"ct"re is 95#4444 hectaresM ten %,4(

hectares are planted to corn and the remaining five %<( hectares are devoted tofish c"lt"reM that the livestoc pop"lation are ;, heads of co)1 54 heads ofhorses1 <18/ heads of s)ine and // heads of cocsM that the area eingapplied for ecl"sion is far elo) the re"ired or ideal area )hich is <8;hectares for the total livestoc pop"lationM that the approimate area not

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directl! "sed for livestoc p"rposes )ith an area of ,< hectares1 more or less1 islie)ise far elo) the allo)ale ,4 varianceM and1 tho"gh not directl! "sed forlivestoc p"rposes1 the ten %,4( hectares planted to s)eet corn and the five %<(hectares devoted to fishpond co"ld e considered s"pportive to livestocprod"ction#

On ?an"ar! 5,1 ,001 then DAR Secretar! Ernesto D# 'arilao %Secretar! 'arilao(

iss"ed an Order eempting from .ARP onl! 594#08 hectares of the ;,8#4955hectares previo"sl! eempted ! Director Dal"gd"g1 and declaring <#4898hectares of the propert! to e covered ! .ARP# ,9

Secretar! 'arilao opined that1 for private agric"lt"ral lands to e ecl"ded from.ARP1 the! m"st alread! e devoted to livestoc1 po"ltr!1 and s)ine raising as of ?"ne ,<1 ,0//1 )hen the .AR& too effect# He fo"nd that the .ertificates ofO)nership of &arge .attle s"mitted ! petitioner sho)ed that onl! /8 heads ofcattle )ere registered in the name of petitioners president1 2isael Gera1 ?r#1 priorto ?"ne ,<1 ,0//M ,;; )ere s"se"entl! o"ght in ,0041 )hile 549 )ereregistered from ,005 to ,00<# Secretar! 'arilao gave more )eight to thecertificates rather than to the headco"nt eca"se Jthe same eplicitl! providefor the n"mer of cattle o)ned ! petitioner as of ?"ne ,<1 ,0//#

Iss!e7$hether or not the lands are covered "nder .AR&

Held7$ith the proced"ral iss"e disposed of1 )e find that petitioners arg"ments fail topers"ade# Its invocation of S"tton is "navailing# In S"tton1 )e held7

In the case at ar1 )e find that the imp"gned A#O# is invalid as it contravenesthe .onstit"tion# :he A#O# so"ght to reg"late livestoc farms ! incl"ding themin the coverage of agrarian reform and prescriing a maim"m retention limitfor their o)nership# Ho)ever1 the delierations of the ,0/ .onstit"tional.ommission sho) a clear intent to ecl"de1 inter alia1 all lands ecl"sivel!devoted to livestoc1 s)ine and po"ltr!-raising# :he .o"rt clarified in the &">Farms case that livestoc1 s)ine and po"ltr!-raising are ind"strial activities and

do not fall )ithin the definition of Jagric"lt"reJ or Jagric"lt"ral activit!#J :heraising of livestoc1 s)ine and po"ltr! is different from crop or tree farming# It isan ind"strial1 not an agric"lt"ral1 activit!# A great portion of the investment inthis enterprise is in the form of ind"strial fied assets1 s"ch as7 animal ho"singstr"ct"res and facilities1 drainage1 )aterers and lo)ers1 feedmill )ith grinders1

miers1 conve!ors1 eha"sts and generators1 etensive )areho"sing facilities forfeeds and other s"pplies1 anti-poll"tion e"ipment lie io-gas and digesterplants a"gmented ! lagoons and concrete ponds1 deep)ells1 elevated )atertans1 p"mpho"ses1 spra!ers1 and other technological app"rtenances# :aDSH.

.learl!1 petitioner DAR has no po)er to reg"late livestoc farms )hich haveeen eempted ! the .onstit"tion from the coverage of agrarian reform# It has

eceeded its po)er in iss"ing the assailed A#O#

Petitioners admission that1 since 544,1 it leased another ranch for its o)nlivestoc is fatal to its ca"se# 89 $hile petitioner advances a defense that itleased this ranch eca"se the occ"pants of the s"@ect propert! harmed itscattle1 lie the .A1 )e find it s"rprising that not even a single police andoraranga! report )as filed ! petitioner to amplif! its indignation over thesealleged illegal acts# 2oreover1 )e accord respect to the .As een oservationthat the assailed 2ARO reports and the Investigating :eams Report do notact"all! contradict one another1 finding that the 9; co)s1 )hile o)ned !petitioner1 )ere act"all! past"red o"tside the s"@ect propert!#

• Ad@acent propert! is not covered#

Agric!lt!ral Land /#ection 4 c0

Natalia Realty &. 'AR 6 ,00

Presidential Proclamation No# ,8; set aside 541;,5 hectares of land located inthe 2"nicipalities of Antipolo1 San 2ateo and 2ontalan as to)nsite areas toasor the pop"lation overspill in the metropolis )hich )ere designated as the&"ngsod Silangan :o)nsite# :he NA:A&IA properties are sit"ated )ithin theareas proclaimed as to)nsite reservation# NA:A&IA properties later ecame theAntipolo Hills S"division# Notice of .overage on the "ndeveloped portions of theAntipolo Hills S"division )hich consisted of ro"ghl! 04#;;4 hectares# NA:A&IAimmediatel! registered its o@ection to the Notice of .overage

S.7* :he! ceased to e agric"lt"ral lands "pon approval of the reservation+# &andsprevio"sl! converted ! government agencies1 other than DAR1 to non-agric"lt"ral "ses prior to the effectivit! of the .AR& )ere o"tside the coverage of




that la)# R"ling not confined solel! to agric"lt"ral lands located )ithin to)nsitereservations1 "t applied also to real estate converted to non-agric"lt"ral "sesprior to the effectivit! of the .AR&#

NO:E7DO? Opinion No# 991 Series of ,004 and the case of $atalia ealty, -nc

opine that )ith respect to the conversion of agric"lt"ral land covered ! R#A# No#

88< to non-agric"lt"ral "ses1 the a"thorit! of the DAR to approve s"chconversion ma! e eercised from the date of its effectivit!1 on ?"ne ,<1 ,0//# :h"s1 all lands that are alread! classified as commercial1 ind"strial or residentialefore ?"ne ,<1 ,0// no longer need an! conversion clearance#

Ho)ever1 the reclassification of lands to non-agric"lt"ral "ses shall notoperate to divest tenant-farmers of their rights over lands covered ! PD 51)hich have een vested prior to ?"ne ,<1 ,0//#

In order to implement the intent and p"rpose of the provisions of theaforecited la)s1 the DAR has iss"ed g"idelines thro"gh AO No# 91 Series of 544;#'lease refer to the attached files to&ether with this reviewer/ 0he important provisions there are only the (-S012A$!E !#3'E$SA0-#$, A''#4-$G A10H#-0-ES, E55E!0 #$ 'E6E7-S0-$G !A' !#4EAGE and '#0ES0S8.

DAR AO No# 9 %R"les on eemption( - *all lands alread! classified ascommercial1 ind"strial or residential efore ?"ne ,<1,0// no longer needconversion clearance+

Re!irements 7 S)orn application1 cop! of title1 certification fromH&RB %>oning or classification1 citing >oning ordinance(1 among others#P"lic notice# Dist"rance compensation#

Roas / Co.- Inc. *s. CA- G.R. No. 3:18 'ecem*er 38 3666 Facts; :his case involves three %;( haciendas in Nas"g"1 Batangas o)ned !petitioner Roas Q .o#1 Inc and the validit! of the ac"isition of these haciendas! the government "nder RA No# 88<#Petitioner is a domestic corporation and is the registered o)ner )ith :.:s and :a Declarations of three haciendas1 namel!1 Haciendas Palico1 Banilad and

.a!la)a!1 all located in Nas"g"1 Batangas#Iss!e;$hether or not the petitioner3s landholdings are s"@ect to coverage "nder the.AR&1 in vie) of the "ndisp"ted fact that petitioner3s landholdings have eenconverted to non-agric"lt"ral "ses ! Presidential Proclamation No# ,<54 )hich

declared the 2"nicipalit! of Nas"g" as a to"rist >one1 and the >oning ordinanceof the said 2"nicipalit! re-classif!ing certain portions of the petitioner3slandholdings as non-agric"lt"ral or at the ver! least entitle the petitioner toappl! for conversion as conceded ! respondent DAR#

Held;Respondent DAR3s fail"re to oserve d"e process in the ac"isition of

petitioner3s landholdings does not ipso facto give this .o"rt the po)er toad@"dicate over petitioner3s application for conversion of its haciendas fromagric"lt"ral to non-agric"lt"ral# :he agenc! charged for conversion is the DAR# :he petition is granted in part and the ac"isition proceedings over the threehaciendas are n"llified for respondent DAR3s fail"re to oserve d"e processtherein# In and the applicale administrative proced"re1 the case is here!remanded to the respondent DAR for proper ac"isition proceedings anddetermination of petitioner3s application for conversion#

Notice of coverage )as )rongf"ll! sent

#7 # DARs fail"re to oserve d"e process in the ac"isition ofpetitioners landholdings does not ipso facto give the S"preme .o"rt thepo)er to ad@"dicate over petitioners application for conversion of itshaciendas from agric"lt"ral to non-agric"lt"ral# :he po)er to determine

)hether Hacienda Palico1 Banilad and .a!la)a! are non-agric"lt"ral)hich eempts from the coverage of the .AR& lies )ith the DAR1 not)ith the S"preme .o"rt# .ase )as remanded to DAR for properac"isition proceedings and determination of petitioners application forconversion

$HA vs. Allarde, '#R# No# ,48<0;1 Novemer ,81 ,000 Facts;&ots /;8 and /;01 registered in the of the Rep"lic of the Philippines1 andcovered ! the :.: No# ;9859 and No# ;9851 respectivel!1 )ere ac"ired !the Rep"lic on April 51 ,0;/ from Philippine :r"st .ompan!# :he! form part ofthe :ala Estate in Bagong Silang1 Calooan .it!1 )hich1 on April 581 ,0,1 )asreserved ! Proclamation No# /9; for1 among others1 the ho"sing programs of

the National ho"sing A"thorit!#According to private respondent R"fino 2ateo1 he had lived in the disp"ted lotssince his irth in ,05/# In ,0<01 he started farming and )oring on si-hectareportion of said lots1 after the death of his father )ho had c"ltivated a ,; hectareportion of the same lots#

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In ,0/01 2ateo filed )ith the DAR the petition for the a)ard to them of s"@ectdisp"ted lots "nder .ARP#On 2arch ,/1 ,0051 the respondent spo"ses 2ateo1 rel!ing on their claim thatthe s"@ect lots are agric"lt"ral land )ithin the coverage of the .ARP1 ro"ghtefore the respondent R:. a complaint for damages )ith a pra!er for a )rit ofpreliminar! in@"nction1 to en@oin the NHA from "lldo>ing f"rther and maingconstr"ctions on the lots "nder controvers!#

R:. ?"dge Allarde iss"ed the in@"nction against NHA#Held;As earl! as April 581 ,0,1 the :ala Estate %incl"ded the disp"ted lots( )asresrved1 inter alia1 "nder Presidential Proclamation No# /9;1 for the ho"singprogram of the NHA1 the same has een categori>ed as not eing devoted to theagric"lt"ral activit!

#7 As earl! as April 581 ,0,1 the :ala Estate %incl"ding the disp"tedlots( )as reserved "nder Presidential Proclamation No# /9;1 for theho"sing program of the National Ho"sing A"thorit!1 the same has eencategori>ed as not eing devoted to the agric"lt"ral activit!contemplated ! Section ; %c( of R#A# No# 88<1 and is1 therefore1o"tside the coverage of the .AR&# Geril!1 the assailed Orders of the

respondent .o"rt declaring the lots "nder controvers! as Jagric"lt"rallandJ and restraining the petitioner from involving the same in itsho"sing pro@ect thereon1 are evidentl! ereft of an! s"stainale asis

A&*incula01elas2ue, *s. CA-et al.- G.R. No. 3334:8 !ne :899> :he petitioners )ere the agric"lt"ral lessees of a Riceland located in ParaUa"e2etro 2anila#In ,0/1 Sps# Ner! and the &oren>o sold the propert! to the Delta 2otor3s.orporation %D2.(# Petitioner Gelas"e>1 in his capacit! as leaseholderagric"lt"ral tenant1 filed an action for the redemption of the said propert! eforethe .o"rt of Agrarian Relation# :he .AR dismiss the petition for lac on the partof the petitioner to redeem the propert! in its ac"isition price in the amo"nt of51;,015,4 pesos "t directing the defendant to maintain the petitioner as

agric"lt"ral lessee to the land in "estion#Petitioner Gelas"e> and the defendants appealed the decision of the .AR to theIntermediate Appellate .o"rt )ho affirmed the decision of the .AR# PetitionerGelas"e> filed a petition for revie) to the S"preme .o"rt )ho iss"ed a

temporar! restraining order en@oining the .AR3s decision pending the o"t comeof the petition# In ,0/,1 the land in "estion )as reclassified as residential >one "nder theordinance iss"ed ! the cit! of 2anila# &ater1 the land in "estion )as mortgage! the D2. to the PNB as a sec"rit! for its oligation )ho later foreclose iteca"se of the fail"re of the D2. to pa! its acco"nt# :he PNB in ,0/8 eec"teda deed of sale of the said land in favor of the Remman Enterprise Inc# )ho

decided to develop it in to a residential s"division#2ean)hile1 the S"preme .o"rt iss"e a decision on the petition for revie) filed !the petitioner Gelas"e> affirming the decision of the IA. stating that the casehad ecome moot and academic )ith regards the claim of the petitioner againstthe D2. considering that the propert! had een foreclose ! the PNB declaringho)ever that the petitioner ma! redeem the propert! from the PNB and itstransferee# :he record )as remanded to the PARAD or the Provincial AgrarianAd@"dication for the petitioner to eercise there right of redemption "t since thecase had ecome moot and academic1 the PARAD denied the action of thepetitioner to recover the propert! against the D2. since the land in "estion isno) a residential land# :he right of the petitioner as an agric"lt"ral lessee )asterminated and the propert! )as no) in the possession of the RemmanEnterprise1 Inc# :he petitioner filed a motion efore the DARAB or theDepartment of Agrarian Ad@"dication Board )ho reverses the decision of the

PARAD stating that the land in "estion is an agric"lt"ral land and "phold theright of the petitioner as an agric"lt"ral lessee to recover the said land #:heRemman Enterprise filed an appeal efore the .A )ho reverses the decision ofthe DARAB eca"se the land in "estion )as alread! reclassified as residentialland as earl! as ,0/, converting it from agric"lt"ral land in to non-agric"lt"ralland# :he petitioner filed a motion to the S"preme .o"rt#Iss!e; $hether or not the land )as an agric"lt"ral land or a residential land#Held;According to the S"preme .o"rt1 agric"lt"ral land )as defined "nder RA# 88<as those land devoted to agric"lt"ral activities and not classified as forest1minerals1 residential and ind"strial land# :he records sho) that as earl! as ,0/,1 the landholding )as reclassified as alo) densit! >one "nder 2etro 2anila oning Ordinance No# /,-4,1 Series of ,0/,

efore Rep# Act No# 88< too effect on ?"ne ,<1 ,00/# It has een considered asearl! as that time for residential p"rposes th"s not )ithin the amit of .AR#




#7 Since the propert! )as alread! reclassified as residential ! the2etro 2anila .ommission and the HSR. efore the effectivit! of Rep# ActNo# 88<1 there )as no need for the private respondent to sec"re an!post facto approval thereof from the DAR

ose !nio8 et.8 al &s GarilaoFacts;

JIn a .omplaint dated Fer"ar! ,51 ,0091 filed )ith the Department of AgrarianReform Ad@"dication Board %DARAB(T ! complainants %some of )hom are hereinpetitioners(1 identified as Potential .ARP Beneficiaries per .ertification of OI.2"nicipal Agrarian Reform Officer %2ARO(T dated Novemer 5,1 ,00, # # #1 it ispra!ed that a )rit of preliminar! in@"nction e iss"ed against the registeredo)ners of a certain parcel of agric"lt"ral land consisting of , hectares1 more orless1 no)n as &ot No# /;<-B of Bacolod .adastre1 Brg!# Pahanoco!1 Bacolod.it!1 covered ! :ransfer .ertificate of :itle No# :-0855# Petitioners claimthat # # # Sta# &"cia Realt! .orporation and the Estate of '"illermo Gillasor1represented ! Irving Gillasor1 are "lldo>ing and leveling the s"@ect propert!for the p"rpose of converting it into a residential s"divisionM that as prospective.ARP eneficiaries of the land in "estion1 eing former laorers1 act"alocc"pants and permanent residents of Baranga! Pahanoco!1 their rights )ill epre@"diced ! the illegal conversion of the land into a residential s"division # # # #

JOn April ,;1 ,0091 the DARAB OI. Eec"tive Director for)arded the complaintto Provincial Agrarian Reform Ad@"dicator %PARAD(T1 DAR1 Region GI1 Bacolod.it! for appropriate action # # # # Before an! hearing co"ld e cond"cted thereon1the Secretar! of the Department of Agrarian Reform iss"ed an Order datedSeptemer ,;1 ,009 in RE7 PE:I:ION FOR EKE2P:ION FRO2 .ARP .OGERA'EPRSAN: :O DO? OPINION NO# 991 SERIES OF ,0041 IRGIN' P# GI&&ASOR1 et al#1Rep# ! Att!# Angel &oaton1 ?r#1 Petitioners1 portions of )hich read as follo)s7

After a caref"l st"d! of the facts of the case and the evidences presented ! theparties1 this Office finds the petition for eemption to e )ell fo"nded# nderDO? Opinion No# 991 Series of ,0041 it provides that lands )hich has alread!een classified as mineral1 forest1 residential1 commercial and ind"strial areas1prior to ?"ne ,<1 ,0// shall e ecl"ded from .ARP coverage# :o this1 it is an

iTnescapale concl"sion that the s"@ect propert! is eempted from .ARPcoverage considering the fact that the same )as classified as residential asevidenced ! the Resol"tion No# <,<;-A1 Series of ,08 of the .it! .o"ncil ofBacolod and as approved ! the H"man Settlements Reg"lator! .ommission%no) H&RB( in its Resol"tion dated Septemer 591 ,0/4 as per .ertification

dated ?"ne 551 ,009 iss"ed ! the said .ommission# :he .ertification of theNational Irrigation Administration %NIA( dated ?"ne 01 ,009 stated that thes"@ect land is not irrigale or is o"tside the service area of the irrigation s!stemin the localit!# In effect the said application had conformed to the re"irementsof the la) on eemption# In accord thereto1 the stand of 2r# Espanola that theportion1 )hich he planted to trees and developed into mini-forest sho"ld ecovered ! .ARP1T is e!ond recognition as the program does not appl! to

those )hich are alread! classified as residential lands prior to the effectivit! of.AR& on ?"ne ,<1 ,0//# Instead1 it is confined onl! to agric"lt"ral lands1 )hich"nder R#A# 88<1 Sec# ;%c(1 it defines agric"lt"ral lands as lands devoted toagric"lt"ral activit! as defined in this Act and not classified as mineral1 forest1residential or ind"strial land# $ith the aove stated definition1 it is e!ondreason that the placing of the said portion "nder .ARP coverage %,#< hectare( isdevoid of legal and fact"al asis#J

Iss!e;$hether the respondent DAR secretar! had the inherent a"thorit! or po)er toecl"de or eempt at )ill from the coverage of the .omprehensive AgrarianReform Program %.ARP( the s"@ect agric"lt"ral land )hich )as alread!a"tomaticall! covered ! the .AR& %RA 88<( "pon its effectivit! on ?"ne ,<1,0// )itho"t affording d"e process to herein petitioners and )itho"t the

necessit! of .ongress having first to amend Section 9 of the said la) a"thori>ings"ch eemption or ecl"sion from .ARP coverage#

Held;Section ;%c( of the .AR& defines agric"lt"ral land as that )hich is Jdevoted toagric"lt"ral activit! # # # and not classified as mineral1 forest1 residential1commercial or ind"strial land#J

:he meaning of agric"lt"ral lands covered ! the .AR& )as eplained f"rther !the DAR in its Administrative Order No# ,1 Series of ,0041 ,5 entitled JRevisedR"les and Reg"lations 'overning .onversion of Private Agric"lt"ral &and to Non-Agric"lt"ral ses1J iss"ed p"rs"ant to Section 90 of .AR&1 )hich )e "ote7

J# # # # Agric"lt"ral land refers to those devoted to agric"lt"ral activit! as defined

in R#A# 88< and not classified as mineral or forest ! the Department ofEnvironment and Nat"ral Reso"rces %DENR( and its predecessor agencies1 andnot classified in to)n plans and >oning ordinances as approved ! the Ho"singand &and se Reg"lator! Board %H&RB( and its preceding competenta"thorities prior to ,< ?"ne ,0// for residential1 commercial or ind"strial "se#J

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Prior to this Order1 Department of ?"stice Opinion No# 99 dated 2arch ,81 ,0041)hich )as addressed to then DAR Secretar! Florencio Aad1 recogni>ed the factthat efore the date of the la)s effectivit! on ?"ne ,<1 ,0//1 the reclassificationor conversion of lands )as not ecl"sivel! done ! the DAR# ,; Rather1 it )as aJcoordinated effortJ of all concerned agenciesM namel!1 the Department of &ocal'overnments and .omm"nit! Development1 the H"man Settlements

.ommission and the DAR#

It is th"s settled that )ith respect to areas classified and identified as >onalareas not for agric"lt"ral "ses1 lie those approved ! the HSR. efore theeffectivit! of RA 88< on ?"ne ,<1 ,0//1 the DARs clearance is no longernecessar! for conversion#

'AR &s. Bereng!erFacts; :he respondents )ere the registered o)ners of several residential and ind"striallands )ith a total area of </#4890 hectares located in Baranga! Biincahan1Sorsogon#

In April ,00/1 the respondents received from the DAR notices of coverage of

their said landholdings ! the 'overnments .omprehensive Agrarian ReformProgram %.ARP( p"rs"ant to Rep"lic Act No# 88< %.omprehensive AgrarianReform &a)1 or .AR&(# :he! protested the notices of coverage1 filing on Octoer<1 ,00/1 in the office of DAR Regional Director Percival Dal"gd"g %RegionalDirector Dal"gd"g( in &egaspi .it!1 their application for ecl"sion of theirlandholdings from .ARP coverage1 and pra!ing for the lifting of the notices ofcoverage#In Octoer and Novemer ,00/1 the DAR Secretar!1 )itho"t acting on therespondents application for ecl"sion1 cancelled their titles and iss"edcertificates of land o)nership a)ards %.&OAs(1 covering their landholdings1 tothe memers of the Bariag Agrarian Reform Beneficiaries Development.ooperative %Bariag(1 not to the respondents )orers on the landholdings1altho"gh Bariag )as not impleaded in the respondents application forecl"sion#

In s"pport of their claim that their landholdings )ere alread! classified asresidential and ind"strial1 the respondents s"mitted the follo)ing doc"ments1namel!7 /

a#:he certification dated 2a! ,/1 ,000 iss"ed ! H&RB1 stating1 among others1that the :o)n Planoning Ordinance of Sorsogon1 Sorsogon %classif!ingBaranga! Biincalan1 V )here the respondents properties )ere located1 as aresidential and commercial area(1 )as approved ! H&RB %then H"manSettlements .ommissionH"man Settlements Reg"lator! .ommission(M

#An ecerpt from the .omprehensive Development Plan of the 2"nicipalit! of

Sorsogon1 Sorsogon1 sho)ing that Baranga! Biincalan V )as part of the .entralB"siness DistrictM hence1 the respondents landholdings in Biincalan V )ereclassified as residential and ind"strialM

c#Resol"tion No# < of the Sangg"niang Ba!an of Sorsogon1 series of ,0/,1epanding the area of the polacion to incl"de Baranga! Biincalan1 V amongothersM

d#:he certification dated A"g"st 51 ,00 iss"ed ! the Office of the oningAdministrator1 Office of the 2a!or1 Sorsogon1 Sorsogon1 signed ! Dep"ti>edoning Administrator Ra"l ?alman>ar1 declaring that the respondentslandholdings )ere sit"ated in Baranga! Biincalan V )ithin the Polacion area ofthe 2"nicipalit! of SorsogonM and

e#Department of ?"stice Opinion No# 991 series of ,0041 stating that a parcel ofland )as considered non-agric"lt"ral1 and1 therefore1 e!ond the coverage ofthe .ARP1 if it had een classified as residential1 commercial1 or ind"strial in the.it! or 2"nicipalit! &and se Plan or oning Ordinance approved ! H&RBefore the effectivit! of R#A# No# 88< on ?"ne ,<1 ,0//#

Iss!e;$hether or not the land is covered "nder RA 88<

Held;

In r"ling that the respondents landholdings )ere not devoted to cattle raising1the DAR relied on DAR Administrative Order %DAO( No# 01 series of ,00;1 )hichre"ired that properties sho"ld e considered ecl"ded from the coverage of the

.AR& onl! if it )as estalished that as of ?"ne ,<1 ,0//1 the date of effectivit! ofthe la)1 there eisted the minim"m ratio of one head of cattle to one hectare ofland1 and one head of cattle to ,#/,< hectares of infrastr"ct"re#

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According to the DAR1 onl! ,< heads of cattle )ere fo"nd )ithin the </ hectaresso"ght to e ecl"ded ased on the semestral s"rve! cond"cted in Sorsogon !the B"rea" of Agric"lt"ral Statistics in the period from ,0// to ,0051 )hich )asin contravention of DAO No# 01 series of ,00;#

:he .A fo"nd1 ho)ever1 that heads of cattle )ere reall! eing raised in thelandholdings of the respondents# :his finding )as not disp"ted ! the DAR# In

vie) of the finding of the .A1 )e cannot no) hold differentl!1 for )e are o"nd! the finding of fact of the .A# Geril!1 the ins"fficienc! of the n"mer of headsof cattle fo"nd d"ring the semestral s"rve! did not a"tomaticall! mean that thelandholdings )ere not devoted to the raising of livestoc# $e conc"r )ith the .Athat there co"ld e several reasons to eplain )h! the n"mer of cattle )aselo) the ratio prescried "nder DAO No# 0 at the time of the s"rve!1 incl"dingpestilence1 cattle r"stling1 or sale of the cattle#

Resol"tion No# <1 passed on 2arch ,51 ,0/, ! the Sangg"niang Ba!an ofSorsogon1 Sorsogon1 sho)ed that the limits of the polacion area of them"nicipalit! incl"ded Baranga! Biincahan1 )here the respondentslandholdings )ere sit"ated#

:here is no disp"te that as earl! as ,0/,1 the respondents landholdings have

een part of the polacion of Sorsogon1 Sorsogon# .onsistent )ith Hilario andNatalia1 holding that the respondents landholdings )ere non-agric"lt"ral1 and1conse"entl!1 o"tside the coverage of the .AR&1 )as f"ll! )arranted# In fact1 theecerpt from the .omprehensive Development Plan of Sorsogon1 Sorsogonsho)ed that Baranga! Biincahan )as )ithin the .entral B"siness District of them"nicipalit!#

Alangilan &. Office of ,resident

#7 It is e!ond cavil that the Alangilan landholding )as classified asagric"lt"ral1 reserved for residential in ,0/51 and )as reclassified asresidential-, in ,009# Ho)ever1 contrar! to petitioners assertion1 theterm reserved for residential does not change the nat"re of the landfrom agric"lt"ral to non-agric"lt"ral# As aptl! eplained ! the DARSecretar!1 the term reserved for residential simpl! reflects the intended

land "se# It does not denote that the propert! has alread! eenreclassified as residential1 eca"se the phrase reserved for residential isnot a land classification categor!# Ind"ital!1 at the time of theeffectivit! of the .AR& in ,0//1 the s"@ect landholding )as stillagric"lt"ral# :his )as olstered ! the fact that the Sangg"niang

Panlala)igan had to pass an Ordinance in ,0091 reclassif!ing thelandholding as residential-,# If1 indeed1 the landholding had alread! eenearmared for residential "se in ,0/51 as petitioner claims1 then there)o"ld have een no necessit! for the passage of the ,009 Ordinance#

Heirs of 'eleste &s Le&iste

Facts7

:he spo"ses 'regorio Nanaman %'regorio( and Hilaria :a"clin %Hilaria( )ere

the o)ners of a parcel of agric"lt"ral land located in :amo1 Iligan .it!1

consisting of ;9# hectares %s"@ect propert!(# Said spo"ses )ere childless1 "t

'regorio had a son named Girgilio Nanaman %Girgilio( ! another )oman# Girgilio

had een raised ! the co"ple since he )as t)o !ears old# 'regorio also had t)o

da"ghters1 Esperan>a and .aridad1 ! still another )oman# ;

$hen 'regorio died in ,09<1 Hilaria and Girgilio administered the s"@ect

propert!# 9 On Fer"ar! ,81 ,0<91 Hilaria and Girgilio sold the s"@ect propert!

to Dr# ?ose Deleste %Deleste( for PhP,81444# < :he deed of sale )as notari>ed on

Fer"ar! ,1 ,0<9 and registered on 2arch 51 ,0<9# Also1 the ta declaration in

the name of Girgilio )as canceled and a ne) ta declaration )as iss"ed in the

name of Deleste# :he arrears in the pa!ment of taes from ,0<5 had een

"pdated ! Deleste and from then on1 he paid the taes on the propert!# 8

On 2a! ,<1 ,0<91 Hilaria died# 'regorios rother1 ?"an Nanaman1 )as

appointed as special administrator of the estate of the deceased spo"ses#

S"se"entl!1 Edilerto Noel %Noel( )as appointed as the reg"lar administrator

of the @oint estate# /

On April ;41 ,08;1 Noel1 as the administrator of the intestate estate of the

deceased spo"ses1 filed efore the .o"rt of First Instance1 Branch II1 &anao del

Norte an action against Deleste for the reversion of title over the s"@ectpropert!1 doceted as .ivil .ase No# 80/# 0 Said case )ent "p to this .o"rt in

Noel v# .A1 )here $e rendered a Decision ,4 on ?an"ar! ,,1 ,00<1 affirming the

r"ling of the .A that the s"@ect propert! )as the con@"gal propert! of the late

spo"ses 'regorio and Hilaria and that the latter co"ld onl! sell her one-half %,5(




share of the s"@ect propert! to Deleste# As a res"lt1 Deleste1 )ho died in ,0051

and the intestate estate of 'regorio )ere held to e the co-o)ners of the s"@ect

propert!1 each )ith a one-half %,5( interest in it# ,,

Notal!1 )hile .ivil .ase No# 80/ )as still pending efore the .FI1 partic"larl! on

Octoer 5,1 ,051 Presidential Decree No# %PD( 5 )as iss"ed# :his la)

mandates that tenanted rice and corn lands e ro"ght "nder the Operation&and :ransfer %O&:( Program and a)arded to farmer-eneficiaries# :h"s1 the

s"@ect propert! )as placed "nder the said program# ,5 Ho)ever1 onl! the heirs

of 'regorio )ere identified ! the Department of Agrarian Reform %DAR( as the

lando)ners# .oncomitantl!1 the notices and processes relative to the coverage

)ere sent to these heirs# ,;

In ,0<1 the .it! of Iligan passed .it! Ordinance No# ,;,;1 no)n as the Joning

Reg"lation of Iligan .it!1J reclassif!ing the s"@ect propert! as

commercialresidential# ,9

Event"all!1 on Fer"ar! ,51 ,0/91 DAR iss"ed .ertificates of &and :ransfer

%.&:s( in favor of private respondents )ho )ere tenants and act"al c"ltivators of

the s"@ect propert!# ,< :he .&:s )ere registered on ?"l! ,<1 ,0/8#

In ,00,1 the s"@ect propert! )as s"rve!ed# , :he s"rve! of a portion of the

land consisting of 54#58,, hectares1 designated as &ot No# ,941 )as approved

on ?an"ar! /1 ,000# ,/ :he claim folder for &ot No# ,94 )as s"mitted to the

&BP )hich iss"ed a 2emorand"m of Gal"ation and a .ertificate of .ash Deposit

on 2a! 5,1 544, and Septemer ,51 544,1 respectivel!# :hereafter1

Emancipation Patents %EPs( and Original .ertificates of :itle %O.:s( )ere iss"ed

on A"g"st ,1 544, and Octoer ,1 544,1 respectivel!1 in favor of private

respondents over their respective portions of &ot No# ,94#

On Fer"ar! 5/1 54451 the heirs of Deleste1 petitioners herein1 filed )ith the

Department of Agrarian Reform Ad@"dication Board %DARAB( a petition seeing

to n"llif! private respondents EPs# 5, :his )as doceted as Reg# .ase No# K-

9,-&N-5445#

On ?"l! 5,1 544;1 the Provincial Agrarian Reform Ad@"dicator %PARAD( rendered a

Decision 55 declaring that the EPs )ere n"ll and void in vie) of the pending

iss"es of o)nership1 the s"se"ent reclassification of the s"@ect propert! into

a residentialcommercial land1 and the violation of petitioners constit"tional

right to d"e process of la)#

S"se"entl!1 the DARAB1 in DARAB .ase No# ,59/81 reversed the r"ling of thePARAD in its Decision 5< dated 2arch ,<1 5449# It held1 among others1 that the

EPs )ere valid as it )as the heirs of Deleste )ho sho"ld have informed the DAR

of the pendenc! of .ivil .ase No# 80/ at the time the s"@ect propert! )as

placed "nder the coverage of the O&: Program considering that DAR )as not a

part! to the said case# F"rther1 it stated that the record is ereft of an! evidence

that the cit! ordinance has een approved ! the Ho"sing and &and se

Reg"lator! Board %H&RB(1 as mandated ! DAR Administrative Order No# 4,1

Series of ,0041 and held that )hether the s"@ect propert! is indeed eempt

from the O&: Program is an administrative determination1 the @"risdiction of

)hich lies ecl"sivel! )ith the DAR Secretar! or the latters a"thori>ed

representative# Petitioners motion for reconsideration )as lie)ise denied !

the DARAB in its Resol"tion 58 dated ?"l! /1 5449#

Iss!e7

$hether the land is covered "nder agrarian reform

Held;

$e agree )ith petitioners that the s"@ect propert!1 partic"larl! &ot No# ,941 is

o"tside the coverage of the agrarian reform program in vie) of the enactment

! the .it! of Iligan of its local >oning ordinance1 .it! Ordinance No# ,;,;#

aSAH.E

It is "ndeniale that the local government has the po)er to reclassif!

agric"lt"ral into non-agric"lt"ral lands# In Pasong Ba!aas Farmers Association1

Inc# v# .A1 9< this .o"rt held that p"rs"ant to Sec# ; of Rep"lic Act No# %RA(

55891 amending the &ocal 'overnment .ode1 m"nicipal andor cit! co"ncils are




empo)ered to Jadopt >oning and s"division ordinances or reg"lations in

cons"ltation )ith the National Planning .ommission#J It )as also emphasi>ed

therein that JtThe po)er of the local government to convert or reclassif! lands

from agric"lt"ral to non-agric"lt"ral lands prior to the passage of RA 88<T is

not s"@ect to the approval of the DART#J

&ie)ise1 it is not controverted that .it! Ordinance No# ,;,;1 )hich )as enacted! the .it! of Iligan in ,0<1 reclassified the s"@ect propert! into a

commercialresidential area#

Ho)ever1 the reclassification of lands to non-agric"lt"ral "ses shall not operate

to divest tenant-Tfarmers of their rights over lands covered ! Presidential

Decree %PD( No# 51 )hich have een vested prior to ,< ?"ne ,0//#

Rom &s Ro5as @ co.

Facts;

On Septemer ;41 ,001 respondent so"ght the eemption of 5 parcels of land

located in Baranga! Aga1 Nas"g"1 Batangas1 having an aggregate area of5,#,5;8 hectares and constit"ting portions of the land covered ! :ransfer

.ertificate of :itle #

Respondent asserted that .omprehensive Agrarian Reform &a) %.AR&( covers

onl! agric"lt"ral land < )hich is defined "nder Section ; %c( thereof as Jland

devoted to agric"lt"ral activit! # # # and not classified as mineral1 forest1

residential1 commercial or ind"strial land#J Respondent claimed that prior to the

effectivit! of the .AR& on ?"ne ,<1 ,0//1 the lands s"@ect of its application )ere

alread! re-classified as part of the Residential .l"ster Area specified in one A

GII of the Nas"g" 2"nicipal oning Ordinance No# 91 Series of ,0/51 )hich

>oning ordinance )as approved ! the H"man Settlement Reg"lator!

.ommission %HSR. no) the Ho"sing and &and se Reg"lator! Board %H&RB(T(

"nder HSR. Resol"tion No# ,5;1 Series of ,0/;# Respondent cited DO? Opinion

No# 99 %,004( )hich provides that lands alread! classified ! a valid >oning

ordinance for commercial1 ind"strial or residential "se1 )hich ordinance )as

approved prior to the effectivit! of the .AR&1 no longer need conversion

clearance from the DAR#

In its Order ,, of Novemer 81 54451 the DAR granted the application in this

)ise7

$HEREFORE1 premises considered1 the Application for Eemption .learance

from .ARP coverage filed ! Roas Q .ompan!1 Inc#1 involving t)ent!-seven

%5( parcels of land1 specificall! descried in pages , and 5 of this Order1,5T

eing portions of :.: No# :-998891 )ith an aggregate area of 5,#,5;8 hectares

located inT Baranga! Aga1 Nas"g"1 Batangas is here! 'RAN:ED1 s"@ect to

the follo)ing conditions7

,#:he farmer-occ"pants )ithin s"@ect parcels of land shall e maintained in

their peacef"l possession and c"ltivation of their respective areas of tillage "ntil

a final determination has een made on the amo"nt of dist"rance

compensation d"e and entitlement of s"ch farmer-occ"pants thereto ! the

PARAD of Batangas#

5#No development shall e "ndertaen )ithin the s"@ect parcels of land "ntilthe appropriate dist"rance compensation has een paid to the farmer-

occ"pants )ho are determined ! the PARAD to e entitled thereto# Proof of

pa!ment of dist"rance compensation shall e s"mitted to this Office )ithin

ten %,4( da!s from s"ch pa!mentM and

;#:he cancellation of the .&OA iss"ed to the farmer eneficiaries shall e s"@ect

of a separate proceeding efore the PARAD of Batangas#

I##?E7

$hether the land is covered "nder .AR&#

Held;

Having estalished thro"gh said doc"ments that the 5 parcels of land are

)ithin the coverage of the said %Nas"g"( 2"nicipal oning Ordinance No# 91 the

DAR declared as )ell that respondent s"stantiall! complied )ith the

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:o restate a asic post"late1 the provisions of RA 88< appl! onl! to agric"lt"ral

lands "nder )hich categor! the Doronilla propert!1 d"ring the period material1

no longer falls1 having een effectivel! classified as residential ! force of

Proclamation ,8;# It ceased1 follo)ing Natalia Realt!1 Inc#1 to e agric"lt"ral

land "pon approval of its incl"sion in the &S :o)nsite Reservation p"rs"ant to

the said reclassif!ing presidential iss"ance# In this regard1 the .o"rt cites )ith

approval the follo)ing ecerpts from the appealed .A decision7

:he aove Natalia Realt!1 Inc#T r"ling )as reiterated in National Ho"sing

A"thorit! vs# Allarde )here the S"preme .o"rt held that lands reserved for1

converted to1 non-agric"lt"ral "ses ! government agencies other than the

DART1 prior to the effectivit! of RAT 88< # # # are not considered and treated as

agric"lt"ral lands and therefore1 o"tside the amit of said la)# :he High .o"rt

declared that since the :ala Estate as earl! as April 581 ,0, )as reserved1 inter

alia1 "nder Presidential Proclamation No# /9;1 for the ho"sing program of the

NHAT1 the same has een categori>ed as not eing devoted to agric"lt"ral

activit! contemplated ! Section ;%c( of R#A# No# 88<1 and therefore o"tside the

coverage of .AR&#

GONALO ,?)A$ @ #ON#8 IN.&s R?BEN ALAI'E

Facts;

Petitioner 'on>alo P"!at and Sons1 Inc# is the registered o)ner of ,9 parcels of

land#

n April ,91 ,00/1 the 2"nicipal Agrarian Reform Officer %2ARO( iss"ed a Notice

of .overage over the s"@ect landholding informing petitioner that the s"@ect

properties )ere eing considered for distri"tion "nder the governments

agrarian reform program# 9 :hereafter1 on Novemer ,<1 ,00/1 the

corresponding Notice of Gal"ation and Ac"isition < )as iss"ed informing

petitioner that a ;#;<;-hectare portion of its propert! is s"@ect to immediate

ac"isition and distri"tion to "alified agrarian reform eneficiaries and that

the government is offering P14,10//#/4 as compensation for the said propert!#

Petitioner then filed a Petition 8 efore the Department of Agrarian Reform

%DAR(1 )herein it arg"ed that the properties )ere o"ght from their previo"s

o)ners in good faithM that the same remains "nc"ltivated1 "nocc"pied1 and

"ntenanted "p to the presentM and1 that the s"@ect landholdings )ere classified

as ind"strial1 th"s1 eempt from the coverage of the .omprehensive Agrarian

Reform Program %.ARP(# Petitioner pra!ed1 among other things1 that the Notice

of .overage and Notice of Ac"isition e lifted and that the properties edeclared eempt from the coverage of .ARP#

Respondents / on their part co"ntered1 among other things1 that the

classification of the land as ind"strial did not eempt it from the coverage of the

.ARP considering that it )as made onl! in ,00M the H&RB 0 certification that

the 2"nicipalit! of BiUan1 &ag"na does not have an! approved plan>oning

ordinance to dateM that the! are not among those farmer-eneficiaries )ho

eec"ted the )aivers or vol"ntar! s"rrenderM and1 that the s"@ect landholdings

)ere planted )ith pala!# ,4

On ?"ne /1 544,1 then DAR Secretar! Hernani A# Bragan>a1 iss"ed an Order ,, infavor of the respondent declaring that the s"@ect properties are agric"lt"ral

land#

Iss!e;

$hether or not the land is eempted#

Held;

As aptl! fo"nd ! the Office of the President1 the importance of cond"cting an

oc"lar inspection cannot e "nderstated1 since it is one of the steps designed to

compl! )ith the re"irements of administrative d"e process# :he Office of the

President stressed this in its Decision1 to )it7

In other )ords1 efore the 2ARO sends a Notice of .overage to the lando)ner

concerned1 he m"st first cond"ct a preliminar! oc"lar inspection to determine

)hether or not the propert! ma! e covered "nder .ARP# :he foregoing

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"ndertaing is reiterated in the latest DAR AO No# 4,1 s# of 544;1 entitled J544;

R"les 'overning Iss"ance of Notice of .overage and Ac"isition of Agric"lt"ral

&ands nder RA 88<#J Section , ,#,T thereof provides that7

J,#,.ommencement ! the 2"nicipal Agrarian Reform Officer %2ARO( After

determining that a landholding is coverale "nder the .ARP1 and "pon

accomplishment of the Pre-Oc"lar Inspection Report1 the 2ARO shall prepare theNO. %.ARP Form No# <-,(#J %NO. stands for Notice of .overage(

Fo"nd on the records of this case is a read!-made form Preliminar! Oc"lar

Inspection Report %"ndated( signed ! the concerned 2ARO# Interestingl!1

ho)ever1 the chec o allotted for the all-important items J&and

.onditionS"itailit! to Agric"lt"reJ and J&and seJ )as not filled "p# :here is no

separate report on the record detailing the res"lt of the oc"lar inspection

cond"cted# :hese circ"mstances cast serio"s do"ts on )hether the 2ARO

act"all! cond"cted an on-site oc"lar inspection of the s"@ect land# $itho"t an

oc"lar inspection1 there is no fact"al asis for the 2ARO to declare that the

s"@ect land is devoted to or s"itale for agric"lt"ral p"rposes1 more so1 iss"e

Notice of .overage and Notice of Ac"isition#

:he importance of cond"cting an oc"lar inspection cannot e "nderstated# In the

event that a piece of land so"ght to e placed from .ARP coverage is later fo"nd

"ns"itale for agric"lt"ral p"rposes1 the lando)ner concerned is entitled to1 and

the DAR is d"t! o"nd to iss"e1 a certificate of eemption p"rs"ant to DAR

2emorand"m .irc"lar No# ;91 s# of ,001 entitled JIss"ance of .ertificate of

Eemption for &ands S"@ect of Gol"ntar! Offer to Sell %GOS( and .omp"lsor!

Ac"isition %.A( Fo"nd ns"itale for Agric"lt"ral P"rposes#J

2ore importantl!1 the need to cond"ct oc"lar inspection to determine initiall!

)hether or not the propert! ma! e covered "nder the .ARP is one of the steps

designed to compl! )ith the re"irements of administrative d"e process# :he

.ARP )as not intended to tae a)a! propert! )itho"t d"e process of la)

%Development Ban of the Philippines vs# .o"rt of Appeals1 585 S.RA 59<#

,008T(# :he eercise of the po)er of eminent domain re"ires that d"e process

e oserved in the taing of private propert!# In Roas Q .o#1 Inc# v# .o"rt of

Appeals1 ;5, S.RA ,48 ,000T1 the S"preme .o"rt n"llified the .ARP ac"isition

proceedings eca"se of the DARs fail"re to compl! )ith administrative d"e

process of sending Notice of .overage and Notice of Ac"isition of the

lando)ner concerned#

.onsidering the claim of appellant that the s"@ect land is not agric"lt"ral

eca"se it is "nocc"pied and "nc"ltivated1 and no agric"lt"ral activit! is eing

"ndertaen thereon1 there is a need for the DAR to ascertain )hether or not thesame ma! e placed "nder .ARP coverage# 9VV AcI.HD

:h"s1 the "estion of )hether or not petitioners properties co"ld e covered !

the .ARP has not !et een resolved# ntil s"ch determination1 it follo)s that

petitioners landholdings cannot e the proper s"@ect of ac"isition and

event"al distri"tion to "alified farmer-eneficiaries# Ho)ever1 these involve

fact"al controversies1 )hich are clearl! e!ond the amit of this .o"rt# Geril!1

the revie) of fact"al matters is not the province of this .o"rt# :he S"preme

.o"rt is not a trier of facts1 and is not the proper for"m for the ventilation and

s"stantiation of fact"al iss"es#

A'RARIAN DISP:E Section ;%d(T

an! controvers! relating to ten"rial arrangements %leasehold1 tenanc!1ste)ardship( over lands devoted to agric"lt"re

an! controvers! relating to compensation of lands ac"ired "nder .AR&and other terms and conditions of transfer of o)nership#

*tenanc! relationship+

ESSEN:IA& RE=ISI:IES7 PS.-PPS

,( Parties %lando)ner Q tenants(5( S"@ect matter is agric"lt"ral land;( .onsent of parties

9( P"rpose is agric"lt"ral prod"ction<( Personal c"ltivation ! tenant8( Sharing of harvest et)een parties

All re"isites m"st conc"r1 asence of one does not mae one a tenant#




Isidro &. A8 Private resp is o)ner of land# Sister of priv resp allo)ed Isidro to occ"p!

s)amp! portion s"@ect to condition to vacate "pon demand# Fail"re tovacate1 "nla)f"l detainer )as filed against Isidro# R:. dismissed ecland is agric"lt"ral and so agrarian#

S.7

?"risdiction over s"@ect matter determined from allegations ofcomplaint# .o"rt does not lose @"risdiction ! defense of tenanc!relationship and onl! after hearing that1 if tenanc! is sho)n1 the co"rtsho"ld dismiss for lac of @"risdiction# .ase involving agri land does nota"tomaticall! mae s"ch case agrarian# Si re"isites )ere not present# :here )as no contract to c"ltivate Q petitioner failed to s"stantiateclaim that he )as pa!ing rent for "se of land#

#?,LIO &. A

S"plico is a lessee of rice land# Private respondent )as allo)ed !S"plico to till the land )hile S"plico )ill provide the farm implementsand thereafter S"plico )as to receive cavans from the pala! ! )a! ofrental# Lears later1 S"plico threatened to e@ect priv# resp# from thepropert!1 so private respondent filed an action for damages against

S"plico in .AR# Resp# O)ner intervened in case and alleged the asenceof contract"al relationship# :rial co"rt declared private respondent asagric"lt"ral lessee and confirmed ! .A#

S.78 S. fo"nd no reasons to dist"r findings

,# Private respondent )as in act"al possession of land )ith famil! in afarmho"se @"st lie )hat a farm tenant normall! )o"ld#5# Private resp# and )ife )ere personall! plo)ing1 planting1 )eeding andharvesting#;# 2anagement )as left entirel! to private respondent9# Private respondent shared the harvest )ith S"plico#

MON#AN$O &. ERNA7 tenanc! relationship ma! e estalished verall! or

)riting Sps# erna )ere charged )ith "alified theft for the taing of cocon"ts

o)ned ! petitioner# :he! )ere ac"itted "t re"ired erna to ret"rnP,1,44 to 2onsanto on the gro"nd that 2onsanto did not consent to

harvest of cocon"t# $ho is entitled to P,1,44 proceeds of copra sale# :his falls "nder DARAB

:here is Agrarian disp"te7,# S"@ect of disp"te )as taing of cocon"ts5# Private respondents )ere overseers at the time of taing ! virt"e of

Agreement #

tenanc! relationship ma! e estalished verall! or )riting1 epressl!or impliedl!- here there )as agreement )hich contradicts petitioner3s contentionthat private respondents are mere overseers# Being overseers does notforeclose their eing tenants# Petitioner allo)ed respondent to plantcocon"t1 etc# Harvests7 receipts of remittance ! respondent# Petitioneris claiming the amo"nt of P,1,44 as alance from proceeds of coprasale# Private respondents contend that this P,1,44 is their compensationp"rs"ant to ten"rial arrangements# Since this amo"nt is intert)ined)ith the resol"tion of agra disp"te1 .A correctl! r"led that DARAB has @"risdiction# R:. has onl! @"risdiction over criminal and it acted e!ond)hen it r"led that agri tenanc! et)een parties# :his elongs to DARAB#

BEA#A &. AFA.:S7.andelaria o)ned t)o parcels of land1 )hich she leased to 2alaanan#2alaanan hired the Be@asas to plant on the land and clear it1 )ith all theepenses sho"ldered ! 2alaanan# Be@asas contin"ed to sta! on the land anddid not give an! consideration for its "se1 e it in the form of rent or a sharedharvestISSE7 $hether or not there is a tenanc! relationship in favor of the [email protected]"rt fo"nd that there )as no tenanc! relationship et)een the parties# :here)as no proof that 2alaanan and the Be@asas shared the harvests# .andelarianever gave her consent to the Be@asas3 sta! on the land # :here )as no proofthat the Dinglasans gave a"thorit! to the Be@asas to e the tenant of the land in"estion# Not all the elements of tenanc! )ere met in this case# :here )as no

proof of sharing in harvest# $hile Be@asa testified1 S. said onl! Be@asa3s )ord)as presented to prove this# Besides testimon! )as s"spicio"s eca"se ofinconsistenc! Be@asa testified that he agreed to deliver ,< of harvest as o)ner3sshare1 !et at one time1 he also mentioned that 5< )as for 2alaanan and <4for o)ner# 2oreover1 lando)ners never gave consent1 citing .hico vs# .A 1 5/9

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<;9 6 *self serving statement are inade"ate1 proof m"st e adhered+# Evenass"ming that lando)ner agreed to lease it for P541444per !ear1 s"chagreement did not prove tenanc! # .onsideration sho"ld e harvest sharing#

(ALENIA &. AFA.:S7

8 Galencia is the o)ner of land1 she leased the propert! for five %<(!ears

to Fr# Andres Flores "nder a civil la) lease conceptM lease )ithprohiition against s"leasing or enc"mering the land )itho"tGalencia3s )ritten consent# D"ring the period of his lease1 privaterespondents )ere instit"ted to c"ltivate )itho"t consent of Galencia#After lease1 Galencia demanded vacate "t ref"sedM Private respondents)ere later a)arded )ith .&:s after the! filed application )ith DARM .&:s)ere "pheld ! Eec Sec and .A#

ALM?E$E &. AN'RE# /Iss!e on O+ners%ip0

Facts7Alm"ete )as in ecl"sive possession of s"@ect land# nno)n toAlm"ete1 Andres )as a)arded homestead patent d"e to investigationreport that Alm"ete )as "nno)n and )aived his rightsM Andres alsorepresented that Alm"ete sold the propert! to 2asiglat for radiophone

set and that 2asiglat sold to him for a caraao and P844# Alm"ete filedan action for recover! of possession and reconve!ance efore trial co"rt#Iss"e is )ho et)een 5 a)ardees of lot has etter right to propert!#

S.7 :his is controvers! relating to o)nership of farmland so1 e!ond the amitof agrarian disp"te# No @"ridical tie of lando)ner and tenant )as allegedet)een petitioners and respondent# R:. )as competent to tr! the case#

,A#ONG BA)ABA# &. A 7 *no evidence+Development of land7 converted from agric"lt"ral to residential asapproved ! DAR# Petitioners1 claimed the! are act"al tillers of land1the! filed a complaint for damages alleging s"rreptitio"s conversionM privresp denied c"ltivation Q )aiver of rights )as eec"ted ! some#

S. 7 no tenanc!

no allegation in complaint that petitioners memers are tenantsM )aiverof rights constit"tes aandonment# No s"stantial evidence that privaterespondent is landlord# Possessionentr! is )o no)ledge of o)ner#

."ltivation possession not proven# As to the remaining t)ent! andmore other complainants1 it is "nfort"nate that the! have not sho)n thattheir c"ltivation1 possession and en@o!ment of the lands the! claim to tillhave een ! a"thorit! of a valid contract of agric"lt"ral tenanc!# On thecontrar!1 as admitted in their complaint a n"mer of them have simpl!occ"pied the premises in s"it )itho"t an! specific area of tillage eingprimaril! mere farm helpers of their relatives

E#ARI &. RE(ILLEA 7 *tenanc! is not pres"med+Involving fr"it on land o)ned ! private respondent# Petitioner isclaiming tenanc!# DARAB considered petitioner a tenantM .A reversed

S.7 :enanc! is not pres"med# :here )as no evidence to prove consent of partiesand sharing of harvest# S. agreed )ith .A that there is no evidence on record toprove the eistence of the follo)ing elements7 %a( the consent of the parties and%( the sharing of harvests#

HEIR# OF ?GALBO$ (. AFA.:S7

?"galot )as iss"ed EPM EP )as challenged ! Heirs of priv resp efore

DARAB and see cancellation of title and recover! possessionM on appeal1 DARAB"pheld "t .A reversed#

S.7 Asence of tenanc! relationship# :he taing of propert! violated d"eprocess %.A )as correct in pointing o"t that Girginia A# Roa )as denied d"eprocess eca"se the DAR failed to send notice of the impending land reformcoverage to the proper part!(M no oc"lar inspection or an! on-site fact-findinginvestigation and report to verif! the tr"th of the allegations of Nicolas ?"galotthat he )as a tenant of the propert!# B! analog!1 Roas Q .o#1 Inc# v# .o"rt ofAppeals applies to the case at ar since there )as lie)ise a violation of d"eprocess# No concrete evidence of c"ltivationM No proof )as presented ecept fortheir self-serving statements# Independent evidence1 aside from self-servingstatements1 is needed# Pl"s .A findings- ?"galot )as soldier of S Arm! andmigrated to S and ret"rned onl! in ,00/1 )ife and da"ghter )ere residents of

.alifornia# &and involved is residential and not agric"lt"ral eca"se of >oningordinance# .overage Section 97 All alienale and disposale p"lic lands# Allprivate lands devoted to or s"itale to agric"lt"re Sched"le of implementation 6Sec# < *:he distri"tion shall e implemented immediatel! and completed)ithin ten !ears from effectivit! hereof#+ Sec# 8;7 *:he initial amo"nt needed to




implement this Act for the period of ten !ears "pon approval hereof shall ef"nded from the Agrarian Reform F"nd created "nder Sections 54 and 5, ofEec"tive Order No# 500# #+# RA /<957 amended Sec# 8; as follo)s7 *:heamo"nt needed to implement this Act "ntil 544/ shall e f"nded from theAgrarian Reform F"nd#+ RA 0441 Sec# 5,7

*:he amo"nt needed to f"rther implement the .ARP as provided in thisAct1 "ntil ?"ne ;41 54,91 "pon epiration of f"nding "nder Rep"lic Act No# /<;5

and other pertinent la)s1 shall e f"nded from the Agrarian Reform F"nd andother f"nding so"rces in the amo"nt of at least One h"ndred fift! illion pesos%P,<4144414441444#44(+

#,O?#E# E#?# FAAR'O and EMER FAAR'O8 &s. ANI$A R. FLORE#

Facts;&eopoldo delos Re!es o)ned a parcel of land located in Baranga! S"mandig inHacienda B"enavista1 San Ildefonso1 B"lacan# In ,08;1 he allo)ed petitioner ?es"s Fa@ardo to c"ltivate said land# :he net harvests )ere divided e"all!et)een the t)o "ntil ,0< )hen the relationship )as converted to leasehold

tenanc!# Per Order 5 from the Department of Agrarian Reform %DAR(1 RegionalOffice1 Region III1 San Fernando1 Pampanga1 rent )as provisionall! fied at 5#95cavans per !ear1 )hich ?es"s Fa@ardo religio"sl! complied )ith# From the timepetitioner c"ltivated the land1 he )as allo)ed ! &eopoldo delos Re!es to erect aho"se for his famil! on the ston! part of the land1 )hich is the s"@ect ofcontrovers!#

On ?an"ar! 581 ,0//1 &eopoldo delos Re!es died# His da"ghter and sole heir1herein respondent Anita Flores1 inherited the propert!# On ?"ne 5/1 ,00,1 AnitaFlores and ?es"s Fa@ardo eec"ted an agreement1 denominated as JCASNDANN' PA'HAHA:I N' &PA A: PA':A:A&A'A N' DAAN CO& SA 2A'CABI&AN'PANI'#J ; :his )as follo)ed ! another agreement1 JCASNDAN SA HA:IAN SA&PA1J eec"ted on ?"l! ,41 ,00,1 )herein the parties agreed to ded"ct from &otNo# 5;<, an area of ,4105; s m1 allotting the same to petitioner# Apparentl!1

there )as a conflict of claims in the interpretation of the Cas"nd"an et)eenAnita Flores and ?es"s Fa@ardo1 )hich )as referred to the DAR1 ProvincialAgrarian Reform Office1 Bali"ag1 B"lacan# 9 In the Report and Recommendationdated 2a! ;1 54441 the &egal Officer advised the parties to ventilate their claims

and co"nterclaims )ith the Department of Agrarian Reform Ad@"dication Board%DARAB(1 2alolos1 B"lacan#

On Decemer 551 54441 a complaint for e@ectment )as filed ! hereinrespondent Anita Flores1 assisted ! her h"sand Bienvenido Flores1 againstpetitioners )ith the 2"nicipal :rial .o"rt %2:.(1 San Ildefonso1 B"lacan# In thecomplaint1 she alleged that1 as the sole heir of the late &eopoldo delos Re!es1

she inherited a parcel of land consisting of ston! land1 not devoted toagric"lt"re1 and land s"itale and devoted to agric"lt"re located in Baranga!S"mandig1 San Ildefonso1 B"lacanM that1 sometime in the ,084s1 d"ring thelifetime of &eopoldo delos Re!es1 ?es"s Fa@ardo re"ested the former to allo)him to )or and c"ltivate that portion of land devoted to agric"lt"reM that ?es"sFa@ardo )as then allo)ed to erect a ho"se on the ston! part of the land1 and thatthe "se and occ"pation of the ston! part of the land )as ! mere tolerance onl!Mand that the land1 )hich )as divided e"all! et)een the t)o parties1 ecl"dedthe ston! portion# In Fer"ar! ,0001 respondent approached petitioners andverall! informed them of her intention to repossess the ston! portion1 "tpetitioners ref"sed to heed the re"est#

Iss!e;$hether or not 2:. or the DARAB )hich has @"risdiction over the case#

Held;An agrarian disp"te refers to an! controvers! relating to ten"rial arrangements1)hether leasehold1 tenanc!1 ste)ardship1 or other)ise1 over lands devoted toagric"lt"re1 incl"ding disp"tes concerning farm)orers associations orrepresentation of persons in negotiating1 fiing1 maintaining1 changing1 orseeing to arrange terms or conditions of s"ch ten"rial arrangements# It incl"desan! controvers! relating to compensation of lands ac"ired "nder this Act andother terms and conditions of transfer of o)nership from lando)ner tofarm)orers1 tenants1 and other agrarian reform eneficiaries1 )hether thedisp"tants stand in the proimate relation of farm operator and eneficiar!1lando)ner and tenant1 or lessor and lessee# It relates to an! controvers! relatingto1 inter alia1 tenanc! over lands devoted to agric"lt"re#

ndenial!1 the instant case involves a controvers! regarding ten"rialarrangements# :he contention that the Cas"nd"ans1 )hich allegedl! terminatedthe tenanc! relationship et)een the parties and1 therefore1 removed the casefrom the amit of R#A# No# 88<1 is "ntenale# :here still eists an agrarian




disp"te eca"se the controvers! involves the home lot of petitioners1 an incidentarising from the landlord-tenant relationship#

JIndeed1 section 5, of the Rep"lic Act No# ,,001 provides that all casesinvolving the dispossession of a tenant ! the landlord or ! a third part! andorthe settlement and disposition of disp"tes arising from the relationship oflandlord and tenant # # # shall e "nder the original and ecl"sive @"risdiction of

the .o"rt of Agrarian Relations# :his @"risdiction does not re"ire thecontin"ance of the relationship of landlord and tenant at the time of thedisp"te# :he same ma! have arisen1 and often times arises1 precisel! from theprevio"s termination of s"ch relationship# If the same eisted immediatel!1 orshortl!1 efore the controvers! and the s"@ect-matter thereof is )hether or notsaid relationship has een la)f"ll! terminated1 or if the disp"te springs ororiginates from the relationship of landlord and tenant1 the litigation is %then(cogni>ale ! the .o"rt of Agrarian Relations # # #J

In the case at ar1 petitioners claim that the tenanc! relationship has eenterminated ! the Cas"latan is of no moment# As long as the s"@ect matter ofthe disp"te is the legalit! of the termination of the relationship1 or if the disp"teoriginates from s"ch relationship1 the case is cogni>ale ! the DAR1 thro"gh theDARAB# :he severance of the ten"rial arrangement )ill not render the action

e!ond the amit of an agrarian disp"te#

(IEN$E A'RIANO &s. ALIE $ANO

Facts;On Decemer ,/1 ,0<1 respondent Alice :anco %Alice( p"rchased a parcel ofland consisting of 5/#9805 hectares located in Nor>agara!1 B"lacan# :he land)as devoted to mango plantation# &ater on1 it )as partitioned among therespondents#

.ontrovers! arose )hen Alice sent to Gicente a letter 8 dated ?an"ar! ,81 ,00<informing him that s"@ect landholding is not covered ! the .omprehensiveAgrarian Reform Program %.ARP(# She ased him to vacate the propert! as soonas possile#

Seeing the letter of Alice as a threat to his peacef"l possession of s"@ectfarmland )hich might impair his sec"rit! of ten"re as a tenant1 Gicente filedefore the regional office of DARAB in Region III a .omplaint for 2aintenance ofPeacef"l Possession )ith Pra!er for :emporar! Restraining Order andor $rit of

Preliminar! In@"nction# He averred that in ,041 Arsenio :anco %Arsenio(1 theh"sand of Alice1 instit"ted him as tenant-caretaer of the entire mangoplantation# Since then1 he has een performing all phases of farm )ors1 s"ch asclearing1 pr"ning1 sm"dging1 and spra!ing of the mango trees# :he fr"its )erethen divided e"all! et)een them# He also alleged that he )as allo)ed toimprove and estalish his home at the old "ilding left ! Ang :ia! Shoeslocated at the middle of the plantation# Presentl!1 he is in act"al possession of

and contin"es to c"ltivate the land#

In their Ans)er1 respondents denied having instit"ted an! tenant on theirpropert!# :he! stressed that Gicente never )ored and has no emplo!er-emplo!ee relationship )ith 'eraldine1 Ronald1 and Patric# Insofar as Alice isconcerned1 respondents asserted that Gicente is not a tenant "t a mere reg"larfarm )orer#

Iss!e;$HE:HER or not GI.EN:E IS A BONA FIDE tenant#

Held; :enanc! relationship is a @"ridical tie )hich arises et)een a lando)ner and atenant once the! agree1 epressl! or impliedl!1 to "ndertae @ointl! the

c"ltivation of a land elonging to the lando)ner1 as a res"lt of )hich relationshipthe tenant ac"ires the right to contin"e )oring on and c"ltivating the land# 5;

:he eistence of a tenanc! relationship cannot e pres"med and allegations thatone is a tenant do not a"tomaticall! give rise to sec"rit! of ten"re# 59 Fortenanc! relationship to eist1 the follo)ing essential re"isites m"st e present7%,( the parties are the lando)ner and the tenantM %5( the s"@ect matter isagric"lt"ral landM %;( there is consent et)een the partiesM %9( the p"rpose isagric"lt"ral prod"ctionM %<( there is personal c"ltivation ! the tenantM and1 %8(there is sharing of the harvests et)een the parties# 5< All the re"isites m"stconc"r in order to estalish the eistence of tenanc! relationship1 and theasence of one or more re"isites is fatal#

After a thoro"gh eval"ation of the records of this case1 )e affirm the findings of

the .A that the essential re"isites of consent and sharing are lacing#

:he essential element of consent is sorel! missing eca"se there is no proof thatthe lando)ners recogni>ed Gicente1 or that the! hired him1 as their legitimatetenant# And1 altho"gh Gicente claims that he is a tenant of respondents

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agric"lt"ral lot in Nor>agara!1 B"lacan1 and that he has contin"o"sl! c"ltivatedand openl! occ"pied it1 no evidence )as presented to estalish the presence ofconsent other than his self-serving statements# :hese cannot s"ffice eca"seindependent and concrete evidence is needed to prove consent of thelando)ner#

&ie)ise1 the essential re"isite of sharing of harvests is lacing# Independent

evidence1 s"ch as receipts1 m"st e presented to sho) that there )as sharing ofthe harvest et)een the lando)ner and the tenant# 5/ Self-serving statementsare not s"fficient#

Here1 there )as no evidence presented to sho) sharing of harvest in the contetof a tenanc! relationship et)een Gicente and the respondents# :he onl!evidence s"mitted to estalish the p"rported sharing of harvests )ere theallegations of Gicente )hich1 as disc"ssed aove1 )ere self-serving and have noevidentiar! val"e# 2oreover1 petitioners allegations of contin"ed possession andc"ltivation do not s"pport his ca"se# It is settled that mere occ"pation orc"ltivation of an agric"lt"ral land does not a"tomaticall! convert a tiller or farm)orer into an agric"lt"ral tenant recogni>ed "nder agrarian la)s# ;4 It isessential that1 together )ith the other re"isites of tenanc! relationship1 theagric"lt"ral tenant m"st prove that he transmitted the lando)ners share of the

harvest#

Neither can )e agree )ith the DARABs theor! of implied tenanc! eca"se thelando)ner never ac"iesced to Gicentes c"ltivating the land# Besides1 forimplied tenanc! to arise it is necessar! that all the essential re"isites oftenanc! m"st e present#

E#$A$E OF ,A#$OR M. #AM#ON &s. MERE'E# R. #?#ANO

Facts;Pastor 2# Samson %Pastor( o)ned a ,#4,;/-hectare parcel of land no)n as &ot,,4/ of the :ala Estate S"division located in Bag"mong1 .aloocan .it!#

Pastor )as approached ! his friend 2acario S"sano %2acario( )ho ased for

permission to occ"p! a portion of &ot ,,4/ to "ild a ho"se for his famil!# SincePastor )as godfather to one of 2acarios children1 Pastor acceded to 2acariosre"est# 2acario and his famil! occ"pied 854 s"are meters of &ot ,,4/ anddevoted the rest of the land to pala! c"ltivation# Herein respondents1 2acarios)ife 2ercedes R# S"sano and their son Norerto R# S"sano1 insist that )hile no

agric"lt"ral leasehold contract )as eec"ted ! Pastor and 2acario1 2acarioreligio"sl! paid ,< cavans of pala! per agric"lt"ral !ear to Pastor1 )hich rent)as red"ced ! Pastor in ,0/8 to / cavans of pala! per agric"lt"ral !ear#

Pastor s"divided &ot ,,4/ into three portions of )hich he sold portions of it)itho"t 2acarios no)ledge#Pastor sold 51<<5 s"are meters of &ot ,,4/-A to spo"ses Feli Pacheco and

?"anita .lamor1 allegedl! also )itho"t 2acarios no)ledge and consent#

According to respondents1 no )ritten notice )as sent ! Pastor to 2acario priorto the sale to .han of &ot ,,4/-. comprising an area of 81808 s"are meters# :he! aver that 2acario came to no) of the transaction onl! after .han visitedthe propert! sometime in Octoer ,004 accompanied ! an emplo!ee from thecit! government#

Iss!e7

$hether or not there )as a tenanc! relation et)een Pastor Samson and2acario S"sano and in inding herein petitioner#

Held;

$e find in favor of petitioners# Appl!ing o"r prono"ncement in &evardo v# Latco1<, )e r"le that the s"@ect land cannot e s"@ect to the O&: program of P#D#No# 5 for t)o reasons7 first1 the s"@ect land is less than seven hectaresM andsecond1 respondents failed to sho) that Pastor o)ned other agric"lt"ral lands inecess of seven hectares or "ran land from )hich he derived ade"ate income1as re"ired ! &etter of Instr"ction %&OI( No# 99# <5

2oreover1 the DAR 2emorand"m on the JInterim '"idelines on Retention !Small &ando)nersJ dated ?"l! ,41 ,0< is eplicit7

<#:enanted rice andor corn lands seven %( hectares or less shall not e covered! Operation &and :ransfer# :he relation of the land o)ner and tenant-farmers inthese areas shall e leasehold # # # <;

Ho)ever1 )hile the disp"ted landholding )hich had an original aggregate areaof onl! ,#4,;/ hectares is not covered ! the O&: program1 the same ma! stille covered ! P#D# No# 51 aleit "nder its Operation &and &easehold %O&&(program# :he O&& program placed lando)ners and tenants of agric"lt"ral landdevoted to rice and corn into a leasehold relationship as of Octoer 5,1 ,05# <9




B"t the fact that 2acario1 respondents predecessor-in-interest1 )as a de @"retenant m"st e estalished#

In the case at ar1 )hile the RARAD1 DARAB and the .A are "nanimo"s in theirconcl"sion that an implied tenanc! relationship eisted et)een Pastor Samsonand 2acario S"sano1 no specific evidence )as cited to s"pport s"ch concl"sionother than their oservation that Pastor failed to protest 2acarios possession

and c"ltivation over the s"@ect land for more than ;4 !ears# .ontrar! to )hat isre"ired ! la)1 ho)ever1 no independent and concrete evidence )ere add"ced! respondents to prove that there )as indeed consent and sharing of harvestset)een Pastor and 2acario#

It has een repeatedl! held that occ"panc! and c"ltivation of an agric"lt"ralland )ill not ipso facto mae one a de @"re tenant# Independent and concreteevidence is necessar! to prove personal c"ltivation1 sharing of harvest1 orconsent of the lando)ner# S"stantial evidence necessar! to estalish the factof sharing cannot e satisfied ! a mere scintilla of evidenceM there m"st econcrete evidence on record ade"ate to prove the element of sharing# :o provesharing of harvests1 a receipt or an! other credile evidence m"st e presented1eca"se self-serving statements are inade"ate# :enanc! relationship cannot epres"medM the elements for its eistence are eplicit in la) and cannot e done

a)a! )ith ! con@ect"res# &easehold relationship is not ro"ght ao"t ! themere congr"ence of facts "t1 eing a legal relationship1 the m"t"al )ill of theparties to that relationship sho"ld e primordial# For implied tenanc! to arise it isnecessar! that all the essential re"isites of tenanc! m"st e present#

:he affidavits eec"ted ! three of respondents neighors are ins"fficient toestalish a finding of tenanc! relationship et)een Pastor and 2acario#

?AN GALO,E &s. RE#ENIA B?GARIN

Facts7

Respondent o)ns a parcel of land# Petitioner farms the land#In Baranga! .ase No# 00-81 respondent complained that she lent the land to

petitioner in ,005 )itho"t an agreement1 that )hat she receives in ret"rn frompetitioner is insignificant1 and that she )ants to recover the land to farm it onher o)n# Petitioner co"ntered that respondent cannot recover the land !et for hehad een farming it for a long time and that he pa!s rent ranging from P91444 toP81444 or ,< cavans of pala! per harvest# :he case )as not settled# <

Represented ! .elso Raang1 respondent filed a petition for recover! ofpossession1 e@ectment and pa!ment of rentals efore the Department ofAgrarian Reform Ad@"dication Board %DARAB(1 doceted as DARAB .ase No#0;/# Raang claimed that respondent lent the land to petitioner in ,00, andthat the latter gave nothing in ret"rn as a sign of gratit"de or monetar!consideration for the "se of the land# Raang also claimed that petitioner

mortgaged the land to ?ose Allingag )ho allegedl! possesses the land#

Provincial Ad@"dicator dismissed the petition and r"led that petitioner is a tenantentitled to sec"rit! of ten"re# :he Ad@"dicator said s"stantial evidence provethe tenanc! relationship et)een petitioner and respondent# :he Ad@"dicatornoted the certification of the Department of Agrarian Reform %DAR( thatpetitioner is the registered farmer of the landM that Baranga! :anods said thatpetitioner is the tenant of the landM that ?ose Allingag affirmed petitionerspossession and c"ltivation of the landM that Allingag also stated that petitionerhired him onl! as farm helperM and that respondents o)n )itness1 .esar Andres1said that petitioner is a farmer of the land#

:he DARAB fo"nd no tenanc! relationship et)een the parties and stressed thatthe elements of consent and sharing are not present# :he DARAB noted

petitioners fail"re to prove his pa!ment of rentals ! appropriate receipts1 andsaid that the affidavits of Allingag1 Rolando Ale@o and Angelito dela .r"> are self-serving and are not concrete proof to re"t the allegation of nonpa!ment ofrentals# :he DARAB added that respondents intention to lend her land topetitioner cannot e taen as implied tenanc! for s"ch lending )as )itho"tconsideration#

Iss!e;$hether or not there is a tenanc! relationship

Held; :he matter of rental receipts is not an iss"e given respondents admission thatshe receives rentals from petitioner# :o recall1 respondents complaint inBaranga! .ase No# 00-8 )as that the rental or the amo"nt she receives from

petitioner is not m"ch# ,9 :his fact is evident on the record ,< of said case)hich is signed ! respondent and )as even attached as Anne JDJ of herDARAB petition# .onse"entl!1 )e are th"s "nale to agree )ith DARABs r"lingthat the affidavits ,8 of )itnesses that petitioner pa!s ,< cavans of pala! or thee"ivalent thereof in pesos as rent are not concrete proof to re"t the allegation

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*:he State shall appl! the principles of agrarian reform or ste)ardship1)henever applicale in accordance )ith la)1 in the disposition or "tili>ation ofother nat"ral reso"rces1 incl"ding lands of p"lic domain "nder lease orconcession s"itale to agric"lt"re1 s"@ect to prior rights1 homestead rights ofsmall settlers1 and the rights of indigeno"s comm"nities to their ancestrallands#+

Additionall!1 it is )orth! of note that the ne)l! prom"lgated .omprehensiveAgrarian Reform &a) of ,0// or Rep"lic Act No# 88< lie)ise contains aproviso s"pporting the inapplicailit! of P#D# 5 to lands covered ! homesteadpatents lie those of the propert! in "estion1 reading1Section 8# Retention &imits# *### Provided f"rther1 :hat original homesteadgrantees or their direct comp"lsor! heirs )ho still o)n the original homestead atthe time of the approval of this Act shall retain the same areas as long as the!contin"e to c"ltivate said homestead#+

A&I:A v# .A7 %,0/0(

private respondents predecessors-in-interest have ac"ired 5parcels of land in amoanga del S"r thr" homestead patent

petitioners tenants ref"se to vacate rel!ing on PD5 S.7

PD decreed the emancipation of tenants from ondage of soil andtransferring to them o)nership of land the! till#

Ho)ever1 PD5 cannot e involved to defeat the ver! p"rpose of .A ,9,%P"lic &and Act(

Phil# .onstit"tion respects the s"periorit! of homesteader3s rights and.AR& also#

Sec# 87Provided1 f"rther1 :hat original homestead grantees or their direct

comp"lsor! heirs )ho still o)n the original homestead at the time of theapproval of this Act shall retain the same areas as long as the! contin"e toc"ltivate said homestead#

,aris &s. Alfec%e8 41> #RA 339Facts7

Petitioner Florencia Paris is the o)ner of ,4#8,98 hectare of land inPaitan1B"idnon# :he said parcels are f"ll! tenanted ! private respondentsDionisio Alfeche1 et al# )ho are recipients of Emancipation Patents in theirnames p"rs"ant to Operation &and :ransfer %O&:( "nder PD 5 not)itstanding

the fact that neither the tenants nor the &and Ban hasT paid a single centavofor the said land#

Petitioner contends that since she is entitled to a retention of hectares "nder PD 5 andor < hectares and ; hectares each for her children"nder .AR&#1 the tenants are not s"pposed to ac"ire the s"@ect land and theEmancipation Patents precipitatel! iss"ed to them are n"ll and void for eingcontrar! to la)# Petitioner f"rther alleged that she o)ns the s"@ect propert! as

original homestead grantee )ho still o)ned the same )hen RA 88< )asapproved1 th"s she is entitled to retain the area to the ecl"sion of her tenants#As regards to the land1 petitioner has applied for retention of hectares

contending that the lands s"@ect of the instant petition are covered !Homestead Patents1 and as decided ! the S"preme .o"rt in Patricio vs# Ba!"gand Alita vs# .A1 the homesteaders and their heirs have the right to c"ltivatetheir homesteads personall!1 )hich is a s"perior right over that of tenant-farmers#Held7

Petitioner3s contention is )itho"t legal asis# PD 51 "nder )hich the EPso"ght to e canceled here )ere iss"ed to respondents1 applies to all tenantedprivate agric"lt"ral lands primaril! devoted to rice and corn "nder a s!stem ofshare-crop or lease-tenanc!1 )hether classified as landed estate or not# :he la)maes no eceptions )hatsoever in its coverage# No)here therein does it

appear that the lots otained ! homestead patents are eempt from itoperation#Petitioner3s claimed entitlement to retain hectares is also "ntenale#

PD 51 )hich provides the retention limit1 states7*In all cases1 the lando)ner ma! retain an area of not more than hectares ifs"ch lando)ner is c"ltivating s"ch area or )ill no) c"ltivate it#+

.learl!1 the right to retain an area of hectares is not asol"te# It ispremised on the condition that the lando)ner is c"ltivating the area so"ght toe retained or )ill act"all! c"ltivate it "pon effectivit! of the la)#

In the case at ar1 neither of the conditions for retention is present# Asadmitted ! petitioner herself1 the s"@ect parcels are f"ll! tenantedM th"s1 she isclearl! not c"ltivating them1 not )ill she personall! c"ltivate an! part thereof#ndo"tedl!1 therefore1 she has no right to retain an! portion of herlandholdings#

Even "nder the c"rrent primar! la) on agrarian reform1 Rep"lic Act%RA( No# 88<1 to )hich the application of PD 5 is s"ppletor!1 petitioners landsare s"@ect to land reform# :he said Act la!s do)n the rights of homesteadgrantees "nder Sec# 8 thereof#




Indisp"tal!1 homestead grantees or their direct comp"lsor! heirs can o)n andretain the original homesteads1 onl! for Jas long as the! contin"e to c"ltivateJthem# :hat parcels of land are covered ! homestead patents )ill nota"tomaticall! eempt them from the operation of land reform# It is the fact ofcontin"ed c"ltivation ! the original grantees or their direct comp"lsor! heirsthat shall eempt their lands from land reform coverage#

Neither petitioner nor her heirs are personall! c"ltivating the s"@ect

homesteads# :he DAR and the .A fo"nd that respondents )ere the ones )hohad een c"ltivating their respective portions of the disp"ted properties#Ho)ever1 petitioner can retain five %<( hectares in accordance )ith

Section 8 of RA 88<1 )hich re"ires no "alif!ing condition for the lando)ner toe entitled to retain s"ch area#

Petitioners heirs1 ho)ever1 are not entitled to a)ards of three %;(hectares each1 since the! are not act"all! tilling the parcels or directl! managingthe farm#

,ARI# &. ALFEHE /9930

Paris is o)ner of ,4 hectares in B"idnon and another propert! of ,;

hectares# She admitted that land is f"ll! tenanted ! privaterespondents Alfeche1et al#

Paris claimed that she is entitled to retention and that as originalhomestead grantee1 she is entitled to retain the lands to the ecl"sion oftenants#

S. 7

Petitioner3s contention is )o legal asis# PD applies to all tenantedprivate agric"lt"re lands primaril! devoted to rice and corn# No)heredoes it appear that lots otained ! homestead patents are eemptedfrom its operation# nder RA 88<1 rights of homestead grantee areprovided "t )ith condition7 onl! for *as long as the! contin"e toc"ltivate them+# :hat parcels of land are covered ! homestead )ill nota"tomaticall! eempt them from operation of land reform# It is the fact

of contin"ed c"ltivation ! original grantees or direct comp"lsor! heirsthat shall eempt their lands# Petitioner can retain ho)ever < hectares)hich re"ire no "alif!ing condition %Sec#8(

RE$EN$ION RIGH$#N..7 con@"gal 6 total is <M capitalparaphernal 6 not more than < each "t noteceed ,4F. %A"g#;1,0//( per DAR Adm# Order No# 51 s# 544;7

capitalparaphernal - not to eceed < provided )ith @"dicial separationasol"te %pres"med( 6 not to eceed <

&ANDO$NER3s RE:EN:ION RI'H:SIs this right defeated ! the iss"ance of .&:sEPs or .&OAs 'AE &. A

Iss"ance of EPs.&OA3s to eneficiaries does not asol"tel! arlando)ner from retaining the area# In fact1 EP or .&OA ma! e cancelled if landcovered in later fo"nd to e part of lando)ner3s retained area# In this case1 .&:sof private respondent )ere leased )o according Dae> her right of choice# SoDAR )as ordered to f"ll! accord Dae> her rights "nder Sec#8 of RA 88<#

Retention ! lando)ner7 < hectares

Retention ! each child of lando)ner7 ; hectares provided7,# at least ,< !ears of ageM and5# act"all! tilling the land or directl! managing the farm

DAR Adm# Order W 51 S#544; $ho ma! appl! for retention

Period to eercise right of retention

$here to file

Instance )here o)ner is considered to have )aived his right of retention

Operating prod"ces 7 2ARO 6 PARO 6 RE'# DIRE.:OR- Sec# %Appeal(

*:hat landholdings of lando)ners )ith a total area of five %<( hectares and elo)

shall not "e covered for ac:uisition and distri"tion to "alified eneficiaries+#%RA 0441 Sec# ;(

*SE.# 1-A. Ece3tion to Retention 'iits. 0 Provincial1 cit! and m"nicipalgovernment 1"nits ac"iring private agric"lt"ral lands ! epropriation or other

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modes of ac"isition to e "sed for act"al1 direct and ecl"sive p"lic p"rposes1s"ch as roads and ridges1 p"lic marets1 school sites1 resettlement sites1 localgovernment facilities1 p"lic pars and aranga! pla>as or s"ares1 consistent)ith the approved local comprehensive land "se plan1 shall not e s"@ect to thefive %<(-hectare retention limit "nder this Section #+ %RA 0441 Sec# 9(

Sec# ,4# Eemptions and Ecl"sions from coverage of .AR&

%a( &ands ADE "sed for pars1 )ildlife1 forest reserves1 reforestation1 fishsanct"aries and reeding gro"nds1 )atersheds and mangroves %eempt(M%( private lands ADE "sed for pra)n farms and fishponds %eempt(%c( lands ADE "sed and fo"nd to e necessar! for national defense1 school sitesand camp"ses incl"ding eperimental farm stations1 seeds and seedlingsresearch1 ch"rch sites and convents1 mos"e sites1 comm"nal "rial gro"ndsand cemeteries1 penal colonies and farms and all lands )ith ,/ slope and over%eempt(

DAR AD2INIS:RA:IGE ORDER NO# 48-48

SE.:ION ;# ="alifications of .hildren-A)ardees# :he child of a lando)ner)hose landholding is s"@ect of ac"isition and distri"tion "nder the .ARP ma!e a)arded and given preference in the distri"tion of said lands if heshe

meets all of the follo)ing criteria7 Da.:cA

;#, Filipino citi>enM

;#5 At least fifteen %,<( !ears of ageM and

;#; Act"al tillers or one directl! managing the farm as of ?"ne ,<1 ,0// "p tothe time of the cond"ct of field investigation of the landholding "nder .ARP#Direct management shall refer to the c"ltivation of the land thro"gh personals"pervision "nder the s!stem of laor administration# It shall e interpretedalong the lines of farm management as an act"al ma@or activit! eing performed! the lando)ners child from )hich heshe derives hisher primar! so"rce ofincome#

SE.:ION 9# Rights and Oligations# :he children-a)ardees shall have thefollo)ing rights and oligations7

9#, All children-a)ardees shall eercise diligence in the "se1 c"ltivation andmaintenance of the land incl"ding the improvements thereon# na"thori>ed sale

of the land1 or negligence or mis"se of the land and s"pport etended tochildren-a)ardees1 and other violations "nder eisting g"idelines shall egro"nds for the forfeit"re of their right as s"chM

9#5 &ands a)arded to "alified children of lando)ners ma! not e sold1transferred or conve!ed ecept thro"gh hereditar! s"ccession or to thegovernment1 or to the &BP1 or to other "alified eneficiaries for a period of ten

%,4( !earsM Provided1 ho)ever1 that the children or the spo"se of the transferorshall have a right to rep"rchase the land from the government or the &BP )ithina period of t)o %5( !ears from the date of transferM and9#; :he children-a)ardees ma! avail of an! s"pport services eing provided! the government in agrarian reform areas#

Eemptions from coverage %Section ,4(

Sec# ,4# Eemptions and Ecl"sions from coverage of .AR&%a( &ands ADE "sed for pars1 )ildlife1 forest reserves1 reforestation1 fishsanct"aries and reeding gro"nds1 )atersheds and mangroves %eempt(M%( private lands ADE "sed for pra)n farms and fishponds %eempt(%c( lands ADE "sed and fo"nd to e necessar! for national defense1 school sites

and camp"ses incl"ding eperimental farm stations1 seeds and seedlingsresearch1 ch"rch sites and convents1 mos"e sites1 comm"nal "rial gro"ndsand cemeteries1 penal colonies and farms and all lands )ith ,/ slope and over%eempt(

CEN"RA' MIN$ANA *. $ARAB

:he s"@ect lands are eempted eca"se the! are act"all!1 directl! Qecl"sivel! "sed and fo"nd necessar! for school site and camp"s1incl"ding eperimental farm stations for ed"cational p"rposes and forestalishing seed and seeding research

:he constr"ction of DARAB in Section ,4 restricting the land area of.2 to its present needs overlooed the significant factor it gro)th of a"niversit! in !ears to come# B! the nat"re of .21 )hich is a schoolestalished to promote agric"lt"re Q ind"str!1 the need for vast tract of

agric"lt"re land for f"t"re programs of epansion is ovio"s# $hile portion of .2 land )as leased ! Phil# Pacing .orp#%no) Del

2onte(1 the agreement )as prior to .AR& Q )as directl! connected tothe p"rpose Q o@ectives of .2 as ed"cational instit"tion




As to determination of )hen and )hat lands are fo"nd to e necessar!for "se of .21 school is in est position to resolve Q ans)er the"estion# DARAB Q .A have no right to s"stit"te "nless it is manifestthat .2 has no real need for land#

Atlas FertiliDer orp. &s. #ecretary of 'AR8 > #RA 49

Facts7 Petitioners are engaged in the a"ac"lt"re ind"str! "tili>ing fishpondsand pra)n farms# :he! "estion Sections ;T1 ,,1 ,;1 8dT1 , and ;5 of RA88< as "nconstit"tional eca"se the! etend the agrarian reform toa"ac"lt"re lands even as Sec# 91 Art# ,; of the .onstit"tion limits agrarianreform onl! to agric"lt"ral lands#Held7 :he .o"rt r"led that provisions of RA //, epressl! states that fishpond andpra)n farms are ecl"ded from the coverage of .AR&# :h"s1 petition to "estionthe constit"tionalit! of some portion of the .omprehensive Agrarian Reform &a)is moot and academic )ith the passage of RA //,#

Atlas Fertili>er v# Sec#

Atlas engaged in the a"ac"lt"re ind"str! "tili>ing fishponds and pra)n

farmsM challenged RA 88< )hich coverage lands devoted to thea"ac"lt"re ind"str!1 partic"larl! fishponds and pra)n farms#

S.7R#A# No# //, epressl! state that fishponds and pra)n farms are

ecl"ded from the coverage of .AR&# In vie) of the foregoing1 the "estionconcerning the constit"tionalit! of the assailed provisions has ecome moot andacademic )ith the passage of R#A# No# //,

#anc%eD &. MarinIss!e7

$hether the s"@ect fishpond is eemptedecl"ded from the coverageof the .omprehensive Agrarian Reform Program of the government ! virt"e of

the amendments introd"ced ! R#A# No# //, to R#A# No# 88<

#7

Section 5 of Rep"lic Act No# //, amended Section ,4 of Rep"lic ActNo# 88< ! epressl! eemptingecl"ding private lands act"all!1 directl! andecl"sivel! "sed for pra)n farms and fishponds from the coverage of the .AR&#

Rep!*lic &s. A8 4> #RA 3:6Facts7

Parcels of land in ?ala-?ala1 Ri>al )as covered and has a ta declarationclassif!ing the said land as agric"lt"ral# :he DAR then iss"ed a Notice of.overage of the s"@ect parcels of land "nder comp"lsor! ac"isition p"rs"antto Section 1 .hapter II of RA 88<#Private respondent corporation filed )ith the DAR office an application foreemption of the land from agrarian reform "t the same )as denied# :he .A reversed the DAR orders declaring those portions of the land of thepetitioner )hich are mo"ntaino"s and residential to e eempt from the .ARP#DAR then appealed to S. contending and claiming that the s"@ect propertieshave alread! een classified as agric"lt"ral ased on the ta declaration andtherefore is covered ! .AR&#

Held7RA 88< %.AR&( covers all private and agric"lt"ral land# Agric"lt"ral lands are

*land devoted for agric"lt"ral activit! and not classified as minerals1 forest1residential commercial or ind"strial+No la) or @"rispr"dence holds that the land classification emodied in the tadeclarations is concl"sive and final nor )o"ld proscrie an! f"rther in"ir!# :heDAR administrative order no#8 lists the other doc"ments1 aside from tadeclaration1 that m"st e s"mitted )hen appl!ing for eception from .ARP# :he classification made ! the &and Reg"lator! Board o"t)eighed theclassification stated in the ta declaration#

RE,?BLI &. A :a declaration classified s"@ect land as agric"lt"ral# DAR iss"ed notice ofcoverage Q o)ner applied for eemption# Application )as denied and on appealthe .o"rt of Appeals created a commission to cond"ct oc"lar inspection and

s"rve! the land# &ater1 ased on the report s"mitted ! the commission1 the.o"rt of Appeals reversed the Order of the DAR and eempted the lands from.AR&# Rep"lic contends that ta declaration classified it as agric"lt"re Q )hichcannot e altered ! mere oc"lar inspection#

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#; :here is no la)@"rispr"dence that land classification in ta declaration isconcl"siveM ta declaration is clearl! not sole asis of classification of land# S.gave credence to commission3s report# Based on their report1 it )as fo"nd thatthe land "se map s"mitted ! private respondent )as an appropriatedoc"ment consistent )ith the eisting land "se# It )as confirmed that the landsare not )holl! agric"lt"ral as the! consist of mo"ntaino"s area )ith an averageof 5/ slope# :he .AR& has f"rther provided that all lands )ith ,/ slope and

over ecept those alread! developed shall e eempt from the coverage of.AR&#

#ta. Rosa Realty 'e&t orp. &s. A8 41 #RA 32Facts7

Petitioner Sta# Rosa Realt! Development .orporation )as the registeredo)ner of t)o parcels of land at .a"!ao1 &ag"na# According to the petitioner1the parcels of land are )atersheds1 )hich provide clean potale )ater to the.anl"ang comm"nit!1 and thet 04 light ind"stries are no) located in thearea# :h"s1 pra!ing for the eemption of the said parcels of land for thecomp"lsor! ac"isition "nder .ARP#Held7

:he disp"ted land is classified as PARC and s"se"ent st"dies ands"rve! sho)ed that the parcel of land in "estion forms a vital part of a

)atershed# Article ,4 of RA 88< epressl! states that *&ands act"all!1 directl!and ecl"sivel! "sed for pars1 )ildlife1 forest reserves1 reforestation1 fishsanct"aries and reeding gro"nds1 )atersheds and mangroves shall e eemptfrom the coverage of this Act#

Another factor that needs to e mentioned is the fact that d"ring theDARAB hearing1 petitioner presented proof that the .asile propert! has slopes of,/ and over1 )hich eempted the land from the coverage of .AR&# R# A# No#88<1 Section ,41 provides7JSection ,4# Eemptions and Ecl"sions# 6 *##and all lands )ith eighteenpercent %,/( slope and over1 ecept those alread! developed shall e eemptfrom coverage of this Act#JHence1 d"ring the hearing at DARAB1 there )as proof sho)ing that the disp"tedparcels of land ma! e ecl"ded from the comp"lsor! ac"isition coverage of.ARP eca"se of its ver! high slopes#

NIOR, MANAGEMEN$ AN' 'E(ELO,MEN$ OR,ORA$ION &s. LEONI'A'E LEONFacts;

On A"g"st 581 54491 respondent filed a complaint efore the Office of theProvincial Agrarian Reform Ad@"dicator %PARAD( of Region IG-Province of .avite1pra!ing that petitioners Salvador R# &im andor NI.ORP 2anagement andDevelopment .orporation %NI.ORP( e ordered to respect her tenanc! rightsover a parcel of land located in Baranga! 2amog III1 Bacoor1 .avite1 registered"nder :.: No# :-5880 in the name of &eoncia De &eon and S"sana De &eon&oppacher %De &eon sisters(1 )ho )ere lie)ise impleaded as parties-defendants

in the s"it#

Respondent alleged that she )as the act"al tiller and c"ltivator of the land s incetime immemorial )ith f"ll no)ledge and consent of the o)ners1 )ho )ere hersisters-in-la)M that sometime in 54491 petitioners circ"lated r"mors that the!have p"rchased the propert! from the De &eon sistersM that petitioners ignoredrespondents re"ests to sho) proof of their alleged o)nershipM that on A"g"st,51 54491 petitioners entered the land and "prooted and destro!ed the riceplanted on the land and graded portions of the land )ith the "se of heav!e"ipmentM that the incident )as reported to the 2"nicipal Agrarian ReformOffice %2ARO( )hich iss"ed a .ease and Desist Order < "t to no avail#

Respondent th"s pra!ed that petitioners e ordered to respect her tenanc!rights over the landM restore the land to its original condition and not to convert

the same to non-agric"lt"ral "seM that an! act of disposition of the land to an!other person e declared n"ll and void eca"se as a tenant1 she allegedl! had aright of pre-emption or redemption over the land#

Petitioner &im denied that respondent )as a tenant of the s"@ect propert!"nder the .omprehensive Agrarian Reform Program %.ARP(# He alleged thatrespondent is a sept"agenarian )ho is no longer ph!sicall! capale of tilling thelandM that the 2ARO iss"ed a certification that the land had no registeredtenantM that respondent co"ld not e regarded as a landless tiller "nder the.ARP eca"se she o)ns and resides in the propert! ad@acent to the s"@ect land)hich she ac"ired thro"gh inheritanceM that an Affidavit of Non-:enanc! / )aseec"ted ! the De &eon sisters )hen the! sold the propert! to him# D:Ia.S

2oreover1 &im claimed that respondent and her famil! s"rreptitio"sl! enteredthe s"@ect land and planted a fe) crops to pass themselves off as c"ltivatorsthereofM that respondent tried to negotiate )ith petitioner &im for the sale of theland to her1 as the latter )as interested in entering into a @oint vent"re )ithanother residential developer1 )hich sho)s that respondent has s"fficientreso"rces and cannot e a eneficiar! "nder the .ARPM that the land is no longer




classified as agric"lt"ral and co"ld not th"s e covered ! the .ARP# Percertification iss"ed ! the Office of the 2"nicipal Planning and Development.oordinator of Bacoor1 .avite1 the land is classified as residential p"rs"ant to a.omprehensive &and se Plan approved ! the Sangg"niang Panlala)igan#

Iss!e;$hether or not the land is eempted#

Held;In the instant case1 there is no s"stantial evidence to s"pport the appellateco"rts concl"sion that respondent is a ona fide tenant on the s"@ect propert!#Respondent failed to prove the third and sith elements cited aove# It )as notsho)n that the De &eon sisters consented to a tenanc! relationship )ithrespondent )ho )as their sister-in-la)M or that the De &eon sisters received an!share in the harvests of the land from respondent or that the latter delivered aproportionate share of the harvest to the lando)ners p"rs"ant to a tenanc!relationship#

:he affidavits did not mention at all that the De &eon sisters received a portionof the harvests or that respondent delivered the same to her sisters-in-la)# :heaffidavits failed to disclose the circ"mstances or details of the alleged harvest

sharingM it merel! stated that the affiants have no)n respondent to e thec"ltivator of the land since time immemorial# It cannot therefore e deemed asevidence of harvest sharing#

:hat respondent )as allo)ed to c"ltivate the propert! )itho"t opposition1 doesnot mean that the De &eon sisters impliedl! recogni>ed the eistence of aleasehold relation )ith respondent# Occ"panc! and contin"ed possession of theland )ill not ipso facto mae one a de @"re tenant#

Finall!1 the sale of the s"@ect land to petitioners did not violate Sections 8< ;;and ; ;9 %c( of R#A# No# 88<# :here )as no illegal conversion of the landeca"se Sec# 8< applies onl! to lands )hich )ere covered ! the .ARP1 i#e#1those lands e!ond the five-hectare retention limit allo)ed to lando)ners "nderthe la)1 )hich )ere distri"ted to farmers-eneficiaries# In the instant case1 it)as not sho)n that the s"@ect land )as covered ! the .ARP# Neither )as itsho)n that the sale )as made to circ"mvent the application of R#A# 88< oraimed at dispossessing tenants of the land that the! till

/#ec. 330 ; OMMERIAL FARM#.ommercial farms 6 private agric"lt"ral lands devoted to salteds1 fr"it farms1orchards1 vegetale and c"t-flo)er farms and cacao1 coffee and r"erplantations# :he! are s"@ect to comp"lsor! ac"isition and distri"tion after ,4!ears from effectivit!#

& FAR2S

Sec# II )hich incl"des *private agric"lt"ral land devoted to commerciallivestoc1 po"ltr! Q s)ine raising+ in definition of *commercial farms+ isinvalid#

Adm# Order W4, %5449(7 r"les Q reg"lations governing ecl"sion of agric"lt"ralland "sed for cattle raising from .ARP# .iting &"> Farms case private agric"lt"ralland or portions thereof act"all!1 ecl"sivel! Qdirectl! "sed for cattle raising asof ,< ?"ne ,0// shall e ecl"ded# Ecl"sion shall e granted onl! "pon proof ofAED prior to ,< ?"ne ,0// Q contin"o"sl! "tili>ed for s"ch p"rpose "p toapplication# An! act to change or convert M ) intent to avoid .ARP1shall einvalid# Onl! the gra>ing area Q portions of propert! re"ired for infrastr"ct"renecessar! for cattle raising shall e considered for ecl"sion

'AR A.O 68 # of 366: 6 allo)s commercial farms certain options1 s"@ect to

approval of DAR Q )orers7 %aside from vol"ntar! Q comp"lsor! coverage( .&OAs are iss"ed - @oint vent"re

in name of cooperative - gro)er ship agreementof )orers - lease 6 ac

- direct pa!ment

'AR &s. #!tton8 et al.8 G.R. No. 31998 Octo*er 368 992DAR iss"ed A#O# No# 0 to limit the area of livestoc farm that ma! e retained !a lando)ner p"rs"ant to its mandate to place all p"lic and private agric"lt"rallands "nder the coverage of agrarian reform#

Iss!e7

:he constit"tionalit! of DAR A#O# No# 01 series of ,00;#

Held7

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Petitioner DAR has no po)er to reg"late livestoc farms )hich have eeneempted ! the .onstit"tion from the coverage of agrarian reform# It haseceeded its po)er in iss"ing the assailed A#O# :he f"ndamental r"le in administrative la) is that1 to e valid1 administrativer"les and reg"lations m"st e iss"ed ! a"thorit! of a la) and m"st notcontravene the provisions of the .onstit"tion# :he r"le-maing po)er of anadministrative agenc! ma! not e "sed to aridge the a"thorit! given to it !

.ongress or ! the .onstit"tion# Nor can it e "sed to enlarge the po)er of theadministrative agenc! e!ond the scope intended# .onstit"tional and stat"tor!provisions control )ith respect to )hat r"les and reg"lations ma! eprom"lgated ! administrative agencies and the scope of their reg"lations In thecase at ar1 )e find that the imp"gned A#O# is invalid as it contravenes the.onstit"tion# :he A#O# so"ght to reg"late livestoc farms ! incl"ding them inthe coverage of agrarian reform and prescriing a maim"m retention limit fortheir o)nership# Ho)ever the delierations of the ,0/ .onstit"tional.ommission sho) a clear intent to ecl"de1 inter alia1 all lands ecl"sivel!devoted to livestoc1 s)ine and po"ltr!- raising# :he .o"rt clarified in the &">Farms case that livestoc1 s)ine and po"ltr!-raising are ind"strial activities anddo not fall )ithin the definition of *agric"lt"re+ or *agric"lt"ral activit!#+ :heraising of livestoc1 s)ine and po"ltr! is different from crop or tree farming# It isan ind"strial1 not an agric"lt"ral1 activit!#

'AR &. #?$$ON 7&and devoted to co) Q calf reeding# &ands "nder GOS efore .ARP#

After .ARP Q &"> Farms case1 S"tton filed )ithdra)al of GOS# DAR iss"ed A#O W0%,00;( )hich provide that onl! portions of land "sed for raising of livestoc1po"ltr! Q s)ine shall e ecl"ded# DAR partiall! eempted portion "t orderedac"isition the rest#S.7 AO is invalid as it contravene .onstit"tion since livestoc 1 s)inepo"ltr!raising do not fall "nder *agric"lt"re+ Q *agric"lt"ral activit!+

DAR Adm# Order No# -544/Polic! '"idelines7,# Private agric"lt"ral lands or portions therof act"all!1 directl! or ecl"sivel!"sed for livestoc p"rposes other than agric"lt"ral lie cattle raising as of @"ne,<1 ,0// and contin"o"sl! and ecl"sivel! "tili>ed or devoted for s"ch p"rpose"p "ntil the time of inventor! shall e ecl"ded from .ARP coverage#

5# .onversel!1 landholdings or an! portions thereof not act"all!1 directl! andecl"sivel! "sed for livestoc raising are s"@ect to .ARP coverage if one ormore of the follo)ing conditions appl!75#, if there is agric"lt"ral activit! in the area1 i#e c"ltivation of the soil1 plantingof crops1 gro)ing of fr"it trees1 incl"ding the harvesting of s"ch prod"cts1 andother farm activities and practices1 )hether done ! a nat"ral or @"ridical personand regardless of the final "se or destination of s"ch agric"lt"ral prod"cts

5#5 the land is s"itale for agric"lt"re and it is presentl! occ"pied and tilled !farmers#<# in case of an! of the conditions "nder items 5#, and 5#5 are evident1 the PAROshall immediatel! proceed )ith the iss"ance of NO:I.E of .OGERA'E on thes"@ect landholding or portions thereof /# an! act of the lando)ner to change or convert his agric"lt"ral land forlivestoc raising shall not affect the coverage of his landholdings "nder .ARP#An! diversification or change in the agric"lt"ral "se of the landholdings1 or shiftfrom crop prod"ction to livestoc raising shall e s"@ect to the eistingg"idelines on land "se conversion#

Adm# Order W %544/( %'"idelines per S"tton .ase %livestoc raising(

&ands ADE "sed for livestoc lie cattle raising as of ,< ?"ne ,0// Q

contin"o"sl! devoted shall e ecl"ded# :hose not ADE are s"@ect to .ARP provided that the agric"lt"ral activit!

in land is s"itale for agric"lt"re presentl! tilled ! farmers

%apter III /IM,RO(EMEN$ OF $EN?RIAL @ LABOR RELA$ION0

$HA: ARE :HE $ALS IN DIS:RIB:IN' &ANDS :O =A&IFIED FAR2ERS1. .omp"lsor! ac"isition %Sec#,8(2. Gol"ntar! offer to sellvol"ntar! land transfer %Sec#54(3. Non-land transfer schemer 6stoc distri"tion option%SDO(M

prod"ction Q profit sharing %PPS(- Sec# ,;;5M leaseholdoperation%Sec#,5(

DAR Adm# Order No# 5-48

RA 8;/0 a"tomaticall! converted share tenanc! thro"gho"t the co"ntr! intoagric"lt"ral leasehold relationship

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,# aolition of share tenanc! no) covers all agric"lt"ral landholdings )itho"teceptions5# the conversion of share tenanc! into leasehold is mandated ! la)#;# All share-crop tenants )ere a"tomaticall! converted into agric"lt"ral lesseesas of @"ne ,<1 ,0// )hether or not a leasehold agreement has een eec"ted9# &easeholders sec"rit! of ten"re shall e respected and g"aranteed#

RA 88< mandates Dar to determine the fi rentals )ithin retained areas andareas not !et ac"ired for agrarian reform- Farmer has a right to elect )hether to ecome a farmer eneficiar! or aleaseholder in the retention are of the landholder#

Agric"lt"ral leasehold shall e ased on tenanc! relationship# Essential elementsof agric"lt"ral tenanc!7,#, the parties are the landholder and the tenant,#5 the o@ect of the relationship is an agric"lt"ral land,#; the consent freel! given either orall! or in )riting1 epress or implied,#9 the p"rpose of the relationship is agric"lt"ral prod"ction,#< there is personal c"ltivation,#8 there is consideration given to the lessor either in a form of share of theharvest or pa!ment of fied amo"nt in mone! or prod"ce to or oth#

Agric"lt"ral leasehold relation shall not e eting"ished ! mere epiration ofthe term of period in a leasehold contract nor ! the sale1 alienation or transferof the legal possession of the land#

Sec#,5 of 88< mandates DAR to determine Q fi the lease rentals )ithin theretained areas and areas not !et ac"ired#

Sec# 8 of 88< recogni>es the right of farmer to elect )hether farmer-eneficiar!OR leaseholds in retained area#

Sec#8 of 88< directs RD to register patents1 title Q doc"ments re"ired forimplementation of .ARP

P"rs"ant to DAR3s mandate to protect the rights Q improve ten"rial Qeconomic stat"s of farmers in tenanted lands1 DAR iss"ed AO 9-

91/RE(I#E' R?LE# @ ,ROE'?RE# GO(ERNING LEA#EHOL'IM,LEMEN$A$ION IN $ENAN$E' AGRI?L$?RAL LAN'#0;-&easehold is ased on tenanc! relationship %repeat 8 re"isites(

-&easehold relation shall not e eting"ished ! epiration at term nor! sale# In case of alienation1 p"rchasertransferee shall e s"@"gatedto rightsoligation of lessor#-DARAB has @"risdiction to cancel leasehold contract #-:he consideration of lease shall not e more than 5< of averagenormal harvest d"ring ; agri !ears-AO 45-48 states1 among others1 the rights Q oligations of lessorlessee#

HA,$ER I( J REGI#$RA$ION

Sec# ,9 Q ,< re"ire the registration of lando)ners Q eneficiaries )DAR# P"rpose is to estalish dataan Q identif! act"al famer-eneficiaries#

Fortich, et al. vs. Corona, et al., G.R. 131:&7, A##st 1;, 1;;;

Tis case in$o)$es a 1::8ectare )and )ocated at an Dicente, #i)ao, /#idnon,o"ned *y te Nor*erto @#is#*in, r. Manaeent and e$e)o%ent Cor%oration(N@RMC!, one of te %etitioners. Te %ro%erty is co$ered *y a Transfer Certificate ofTit)e No. 1:371 3 of te Reistry of eeds of te ro$ince of /#idnon.

5n 1;E:, te )and "as )eased as a %inea%%)e %)antation to te i)i%%ine acin

Cor%oration, no" e) Monte i)i%%ines, 5nc. (M5!, a #)tinationa) cor%oration, for a%eriod of ten (10! years #nder te Cro% rod#cer and Gro"erFs Areeent d#)y annotatedin te certificate of tit)e. Te )ease e<%ired in A%ri), 1;;:.

5n 4cto*er, 1;;1, d#rin te e<istence of te )ease, te e%artent of ArarianRefor (AR! %)aced te entire 1::8ectare %ro%erty #nder co%#)sory ac'#isition andassessed te )and $a)#e at 2.3E i))ion. 4

N@RMC resisted te ARFs action. 5n >e*r#ary, 1;;2, it so#t and "asranted *y te AR Ad+#dication /oard (ARA/!, tro# its ro$incia) Ararian Refor

Ad+#dicator (ARA! in ARA/ Case No. 8&76, a "rit of %roi*ition "it %re)iinaryin+#nction "ic ordered te AR Reion irector, te ro$incia) Ararian Refor 4fficer(AR4! of /#idnon, te M#nici%a) Ararian Refor 4ffice (MAR4! of #i)ao, /#idnon,te Land /an of te i)i%%ines (Land /an!, and teir a#toried re%resentati$es todesist fro %#rs#in any acti$ity or acti$ities concernin te s#*+ect )and #nti) f#rterorders. 5

4n No$e*er 7, 1;;7, te 4ffice of te resident reso)$ed te striersF %rotest *yiss#in te so8ca))ed inHin Reso)#tion %enned *y ten e%#ty <ec#ti$e ecretaryRenato C. Corona




%a( After having identified the land1 the lando)ners and the eneficiaries1 theDAR shall send its notice to ac"ire the land to the o)ners thereof1 ! personaldeliver! or registered mail1 and post the same in a conspic"o"s place in them"nicipal "ilding and aranga! hall of the place )here the propert! is located#Said notice shall contain the offer of the DAR to pa! a corresponding val"e inaccordance )ith the val"ation set forth in Sections ,1 ,/1 and other pertinentprovisions hereof#

%( $ithin thirt! %;4( da!s from the date of receipt of )ritten notice ! personaldeliver! or registered mail1 the lando)ner1 his administrator or representativeshall inform the DAR of his acceptance or re@ection of the offer#

%c( If the lando)ner accepts the offer of the DAR1 the &BP shall pa! thelando)ner the p"rchase price of the land )ithin thirt! %;4( da!s after heeec"tes and delivers a deed of transfer in favor of the 'overnment ands"rrenders the .ertificate of :itle and other m"niments of title#

%d( In case of re@ection or fail"re to repl!1 the DAR shall cond"ct s"mmar!administrative proceedings to determine the compensation of the land !re"iring the lando)ner1 the &BP and other interested parties to s"mmitevidence as to the @"st compensation for the land1 )ithin fifteen %,<( da!s fromthe receipt of the notice# After the epiration of the aove period1 the matter isdeemed s"mitted for decision# :he DAR shall decide the case )ithin thirt! %;4(da!s after it is s"mitted for decision#

%e( pon receipt ! the lando)ner of the corresponding pa!ment or in case ofre@ection or no response from the lando)ner1 "pon the deposit )ith anaccessile an designated ! the DAR of the compensation in cash or &BPonds in accordance )ith this Act1 the DAR shall tae immediate possession ofthe land and shall re"est the proper Register of Deeds to iss"e a :ransfer.ertificate of :itle %:.:( in the name of the Rep"lic of the Philippines# :he DARshall thereafter proceed )ith the redistri"tion of the land to the "alifiedeneficiaries#

%f( An! part! )ho disagrees )ith the decision ma! ring the matter to the co"rtof proper @"risdiction for final determination of @"st compensation#

Sec# ,8 o"tlines the proced!re for ac!isition of pri&ate land

:ae note of Sec#,8%d( Q %e(7

%,( practice of having no deed of transfer or conve!ance%5( titles are cancelled )o o)ner3s cop! s"rrendered %in :orrensS!stem1 if there is ref"sal in invol"ntar! dealings remed! is file petitionin co"rt

%;( RD titles are cancelled )hile o)ner3s cop! is s"sisting

Sec# 88 %Eemptions from taes Qfees of land transfer(

Sec# 8 %Free Registration of patents1 titles Q doc"ments re"ired forimplementation of .ARP(Sec# %e( 7 Once DAR re"est and &BP maes deposit of initial val"ation1 DAR canre"est RD to cancel title Q transfer it to Rep"lic of Phil# So even if lando)nersprotests val"ation1 distri"tion of land )ill proceed# .&OAs are iss"ed "pon landac"isition7 so cancellation of title of lando)ner can sim"ltaneo"sl! go )iss"ance of .&OA#

In Association of small land o)ners1 S. did not sa! *a"tomaticall!+# S.said that title and o)nership remain ) &O "ntil f"ll pa!ment of pastconversation#

ONFE' &s. 'AR

Facts;Petitioners .ONFED1 NFSP1 NIFED and PANALFED claim that their memers o)nor administer private agric"lt"ral lands devoted to s"garcane# :he! and theirpredecessors-in-interest have een planting s"garcane on their lands allegedl!since time immemorial# $hile their petition is denominated as one forprohiition and mandam"s1 the petitioners lie)ise see to n"llif! paragraphs%d(1 %e( and %f( of Section ,8 < of Rep"lic Act No# %RA( 88<1 other)ise no)n asthe .omprehensive Agrarian Reform &a)# In other )ords1 their arg"ments1 )hich)ill e disc"ssed shortl!1 are anchored on the proposition that these provisionsare "nconstit"tional#

:he! allege the follo)ing gro"nds in s"pport of their petition7

It is the principal contention of the petitioners that1 in the eercise ! the Stateof the po)er of eminent domain1 )hich in the case of RA 88< is the ac"isitionof private lands for distri"tion to farmer-eneficiaries1 epropriationproceedings1 as prescried in R"le 8 of the R"les of .o"rt1 m"st e strictl!complied )ith# :he petitioners rel! on the case of Gisa!as Refining .ompan! v#.am"s and Paredes decided ! the .o"rt in ,0,0# In the said case1 the

Agrarian Reform O"tline Revie)er - Att!# .apanas - A2a$S Page 9,



'overnment of the Philippine Islands1 thro"gh the 'overnor-'eneral1 instr"ctedthe Attorne!-'eneral to initiate condemnation proceedings for the p"rpose ofepropriating a tract of land containing an area of ,1,44198; s"are meters toe "sed for militar! and aviation p"rposes# In compliance there)ith1 theAttorne!-'eneral filed a complaint )ith the .o"rt of First Instance %.FI( andamong the defendants impleaded )as Gisa!an Refining .o# )hich o)ned aportion of the propert! intended to e epropriated# :he .FI provisionall! fied

the total val"e of the s"@ect propert! at P8441444 and "pon pa!ment thereof asdeposit1 the .FI a"thori>ed that the 'overnment e placed in possessionthereof#

Paragraph %e( is assailed ! the petitioners as it a"thori>es the DAR1 ! allegedl!merel! ca"sing the deposit )ith the &and Ban of the compensation1 toimmediatel! tae possession of the propert! and to direct the Register of Deedsto cancel the certificate of title of the lando)ner )itho"t notice to and consent ofthe latter# :he petitioners contend that1 in contrast1 "nder the .ivil .ode1 if thecreditor or oligee ref"ses to accept the tender of pa!ment1 it is the d"t! of thedetor or oligor to mae consignation of the thing or amo"nt d"e# nder the.ivil .ode1 there is no effective pa!ment )itho"t valid tender of pa!ment andconsignation in co"rt# ,< :he petitioners theori>e that1 in the same manner1 theDAR cannot e allo)ed to tae possession of the propert! of a lando)ner1 !mere deposit of the compensation that it has s"mmaril! fied "nder paragraph%e(1 )itho"t having to go to co"rt#

Paragraph %f( is characteri>ed ! the petitioners as meaningless and "seless tothe lando)ner# It allegedl! compels him to file a case1 and in the process inc"rcosts therefor1 for the final determination of @"st compensation )hen1 in themeantime1 he has alread! een deprived of possession of his propert! and hiscertificate of title cancelled#

:he Respondents .o"nter-Arg"ments

:he &and Ban "rges the .o"rt to dismiss the petition since the constit"tionalit!of RA 88< had alread! een categoricall! "pheld ! the .o"rt in Association ofSmall &ando)ners# F"rther1 some of the gro"nds relied "pon ! the petitionersallege matters that re"ire fact"al determination# For eample1 the allegationthat the DAR is s"@ecting the s"gar lands to the coverage of RA 88< )itho"tfirst ascertaining )hether there are reg"lar farm)orers therein and )hetherthe! are interested to o)n1 directl! or collectivel!1 the land the! till1 allegedl!

re"ires fact"al determination# .onsidering that the .o"rt is not a trier of facts1the &and Ban arg"es that these matters are etter threshed o"t in a trial co"rt#

HEL';DARs comp"lsor! ac"isition proced"re is ased on Section ,8 of RA 88<# Itdoes not1 in an! )a!1 precl"de @"dicial determination of @"st compensation

.ontrar! to the petitioners s"mission that the comp"lsor! ac"isitionproced"re adopted ! the DAR is )itho"t legal asis1 it is act"all! ased onSection ,8 of RA 88<# nder the said la)1 there are t)o modes of ac"isition ofprivate agric"lt"ral lands7 comp"lsor! and vol"ntar!# :he proced"re forcomp"lsor! ac"isition is that prescried "nder Section ,8 of RA 88<# :.DcSE

In Roas Q .o#1 Inc# v# .o"rt of Appeals1 9, the .o"rt painstaingl! o"tlined theproced"re for comp"lsor! ac"isition1 incl"ding the administrative orders iss"ed! the DAR in relation thereto1 in this manner7

In the comp"lsor! ac"isition of private lands1 the landholding1 the lando)nersand the farmer eneficiaries m"st first e identified# After identification1 the DARshall send a Notice of Ac"isition to the lando)ner1 ! personal deliver! orregistered mail1 and post it in a conspic"o"s place in the m"nicipal "ilding andaranga! hall of the place )here the propert! is located# $ithin thirt! da!s fromreceipt of the Notice of Ac"isition1 the lando)ner1 his administrator orrepresentative shall inform the DAR of his acceptance or re@ection of the offer# Ifthe lando)ner accepts1 he eec"tes and delivers a deed of transfer in favor ofthe government and s"rrenders the certificate of title# $ithin thirt! da!s fromthe eec"tion of the deed of transfer1 the &and Ban of the Philippines %&BP(pa!s the o)ner the p"rchase price# If the lando)ner re@ects the DARs offer orfails to mae a repl!1 the DAR cond"cts s"mmar! administrative proceedings todetermine @"st compensation for the land# :he lando)ner1 the &BPrepresentative and other interested parties ma! s"mit evidence on @"stcompensation )ithin fifteen da!s from notice# $ithin thirt! da!s froms"mission1 the DAR shall decide the case and inform the o)ner of its decisionand the amo"nt of @"st compensation# pon receipt ! the o)ner of thecorresponding pa!ment1 or1 in case of re@ection or lac of response from thelatter1 the DAR shall deposit the compensation in cash or in &BP onds )ith anaccessile an# :he DAR shall immediatel! tae possession of the land andca"se the iss"ance of a transfer certificate of title in the name of the Rep"lic ofthe Philippines# :he land shall then e redistri"ted to the farmer eneficiaries#




An! part! ma! "estion the decision of the DAR in the reg"lar co"rts for finaldetermination of @"st compensation#

:he DAR has made comp"lsor! ac"isition the priorit! mode of land ac"isitionto hasten the implementation of the .omprehensive Agrarian Reform Program%.ARP(# nder Section ,8 of the .AR&1 the first step in comp"lsor! ac"isition isthe identification of the land1 the lando)ners and the eneficiaries# Ho)ever1 the

la) is silent on ho) the identification process m"st e made# :o fill in this gap1the DAR iss"ed on ?"l! 581 ,0/0 Administrative Order No# ,51 Series of ,0/01)hich set the operating proced"re in the identification of s"ch lands# :heproced"re is as follo)s7

II.O,ERA$ING ,ROE'?RE

A#:he 2"nicipal Agrarian Reform Officer1 )ith the assistance of the pertinentBaranga! Agrarian Reform .ommittee %BAR.(1 shall7 EDA:SI

,#pdate the master list of all agric"lt"ral lands covered "nder the .ARP in hisarea of responsiilit!# :he master list shall incl"de s"ch information as re"ired"nder the attached .ARP 2aster &ist Form )hich shall incl"de the name of thelando)ner1 landholding area1 :.:O.: n"mer1 and ta declaration n"mer#

5#Prepare a .omp"lsor! Ac"isition .ase Folder %.A.F( for each title %O.::.:(or landholding covered "nder Phase I and II of the .ARP ecept those for )hichthe lando)ners have alread! filed applications to avail of other modes of landac"isition# A case folder shall contain the follo)ing d"l! accomplished forms7

a(.ARP .A Form , 2ARO Investigation Report

(.ARP .A Form 5 S"mmar! Investigation Report of Findings and Eval"ation

c(.ARP .A Form ; Applicants Information Sheet

d(.ARP .A Form 9 Beneficiaries ndertaing

e(.ARP .A Form < :ransmittal Report to the PARO

:he 2AROBAR. shall certif! that all information contained in the aove-mentioned forms have een eamined and verified ! him and that the sameare tr"e and correct# IEH:aA

;#Send a Notice of .overage and a letter of invitation to a conferencemeeting tothe lando)ner covered ! the .omp"lsor! .ase Ac"isition Folder# Invitations tothe said conferencemeeting shall also e sent to the prospective farmer-eneficiaries1 the BAR. representative%s(1 the &and Ban of the Philippines %&BP(representative and other interested parties to disc"ss the inp"ts to the val"ationof the propert!# He shall disc"ss the 2AROBAR. investigation report and solicit

the vie)s1 o@ection1 agreements or s"ggestions of the participants thereon# :helando)ner shall also e ased to indicate his retention area# :he min"tes of themeeting shall e signed ! all participants in the conference and shall form anintegral part of the .A.F#

9#S"mit all completed case folders to the Provincial Agrarian Reform Officer%PARO(#

B#:he PARO shall7

,#Ens"re that the individ"al case folders are for)arded to him ! his 2AROs#

5#Immediatel! "pon receipt of a case folder1 comp"te the val"ation of the landin accordance )ith A#O# No# 81 Series of ,0//# :he val"ation )orsheet and therelated .A.F val"ation forms shall e d"l! certified correct ! the PARO and allthe personnel )ho participated in the accomplishment of these forms# :.ASIH

;#In all cases1 the PARO ma! validate the report of the 2ARO thro"gh oc"larinspection and verification of the propert!# :his oc"lar inspection and verificationshall e mandator! )hen the comp"ted val"e eceeds <441444 per estate#

9#pon determination of the val"ation1 for)ard the case folder1 together )ith thed"l! accomplished val"ation forms and his recommendations1 to the .entralOffice# :he &BP representative and the 2ARO concerned shall e f"rnished acop! each of his report#

.#DAR .entral Office1 specificall! thro"gh the B"rea" of &and Ac"isition andDistri"tion %B&AD(1 shall7 E.:HIA

,#$ithin three da!s from receipt of the case folder from the PARO1 revie)1eval"ate and determine the final land val"ation of the propert! covered ! thecase folder# A s"mmar! revie) and eval"ation report shall e prepared and d"l!




certified ! the B&AD Director and the personnel directl! participating in therevie) and final val"ation#

5#Prepare1 for the signat"re of the Secretar! or her d"l! a"thori>edrepresentative1 a Notice of Ac"isition %.ARP .A Form /( for the s"@ectpropert!# Serve the Notice to the lando)ner personall! or thro"gh registeredmail )ithin three da!s from its approval# :he Notice shall incl"de1 among others1

the area s"@ect of comp"lsor! ac"isition1 and the amo"nt of @"st compensationoffered ! DAR#

;#Sho"ld the lando)ner accept the DARs offered val"e1 the B&AD shall prepareand s"mit to the Secretar! for approval the Order of Ac"isition# Ho)ever1 incase of re@ection or non-repl!1 the DAR Ad@"dication Board %DARAB( shallcond"ct a s"mmar! administrative hearing to determine @"st compensation1 inaccordance )ith the proced"res provided "nder Administrative Order No# ,;1Series of ,0/0# Immediatel! "pon receipt of the DARABs decision on @"stcompensation1 the B&AD shall prepare and s"mit to the Secretar! for approvalthe re"ired Order of Ac"isition#

9#pon the lando)ners receipt of pa!ment1 in case of acceptance1 or "pondeposit of pa!ment in the designated an1 in case of re@ection or non-response1the Secretar! shall immediatel! direct the pertinent Register of Deeds to iss"ethe corresponding :ransfer .ertificate of :itle %:.:( in the name of the Rep"licof the Philippines# Once the propert! is transferred1 the DAR1 thro"gh the PARO1shall tae possession of the land for redistri"tion to "alified eneficiaries#JAED.Hc

ONFE' &s. 'AR

.omp"lsor! Ac"isition

Notice of Ac"isition

First step7 identification of the land1 the lando)ners and theeneficiaries#

&a) is silent

Administrative Order No# ,51 Series of ,0/0

Galid implementation 1 t)o notices DAR A#O# No#,51 Series of ,0/01 amended in ,004 ! DAR A#O# No#01

Series of ,004 and in ,00; ! DAR A#O No#,1 Series of ,00;

LB, &s $rinidad

Facts;Private respondent is the registered o)ner of a parcel of agric"lt"ral landsit"ated in Sampao1 Capalong1 Davao del Norte )ith an approimate area of;#,4,4 hectares covered ! :ransfer .ertificate of :itle No# :-905441 ,9#000hectares of )hich )as covered ! RA No# 88< thro"gh the Gol"ntar! Offer toSell %GOS( scheme of the .omprehensive Agrarian Reform Program %.ARP(#

Private respondent offered to the Department of Agrarian Reform %DAR( theprice of P514441444#44 per hectare for said portion of the land covered ! .ARP#

Petitioner &and Ban of the Philippines %&BP( val"ed and offered as @"stcompensation for said ,9#000 hectares the amo"nt of P,1,9<1/48#48 orP81;/#< per hectare# :he offer )as re@ected ! private respondent#

In accordance )ith Section ,8 of RA No# 88<1 petitioner &BP deposited for theacco"nt of private respondent P,1,9<1/48#48 in cash and in onds as provisionalcompensation for the ac"isition of the propert!#

:hereafter1 the DAR Ad@"dication Board %DARAB(1 thro"gh the RegionalAd@"dicator %RARAD( for Region KI cond"cted s"mmar! administrativeproceedings "nder DARAB .ase No# &G-KI-4;;4-DN-5445 to fi the @"stcompensation#

On ?"ne 581 54451 the DARAB rendered a decision fiing the compensation of thepropert! at P,4150915,#44 or P8/81;,0#;8 per hectare#

Petitioner &BP filed a motion for reconsideration of the aove decision "t thesame )as denied on Septemer 91 5445#

Petitioner &BP filed a petition against private respondent for @"dicialdetermination of @"st compensation efore the Special Agrarian .o"rt1 Regional :rial .o"rt1 Branch 51 :ag"m .it!1 doceted as DAR .ase No# /-54451 )hich isthe s"@ect of this petition#

Private respondent1 on the other hand1 filed a similar petition against DAR eforethe same Special Agrarian .o"rt doceted as DAR .ase No# 0-54451 to )hichpetitioner &BP filed its ans)er and moved for the dismissal of the petition foreing filed o"t of time#




Private respondent filed a 2otion for Deliver! of the Initial Gal"ation pra!ing thatpetitioner &BP e ordered to deposit the DARAB determined amo"nt ofP,4150915,#44 in accordance )ith the S"preme .o"rt r"ling in J&and Ban ofthe Philippines vs# .o"rt of Appeals1 Pedro &# Lap1 Et Al#1 '#R# No# ,,/,51Octoer 81 ,00<J# EAIc.S

Petitioner &BP filed a 2anifestation pra!ing that the amo"nt of the depositsho"ld onl! e the initial val"ation of the DAR&BP in the amo"nt ofP,1,9<1/48#48 and not P,4150915,#44 as determined ! the DARAB#

On Decemer ,51 54451 p"lic respondent rendered the assailed resol"tionordering petitioner &BP to deposit for release to the private respondent theDARAB determined @"st compensation of P,4150915,#44#

On Decemer ,;1 54451 petitioner &BP filed a motion for reconsideration of thesaid order to deposit#

On Decemer ,1 54451 private respondent filed a motion to cite RomeoFernando L# .aanal and Att!# Isagani .emrano1 manager of petitioner &BPsAgrarian Operations Office in Region KI and its handling la)!er1 respectivel!1 forcontempt for fail"re to compl! )ith the order to deposit#

After the filing of private respondents comment to the motion forreconsideration and petitioner &BPs eplanation and memorand"m to themotion for reconsideration1 p"lic respondent rendered the assailed resol"tiondated Fer"ar! ,1 544;1 den!ing petitioner &BPs motion for reconsideration#

Petitioner &BP filed a motion to admit a second motion for reconsideration )hichstill remains "nacted "pon ! p"lic respondent#

I##?E; :he lone iss"e in this controvers! is the correct amo"nt of provisionalcompensation )hich the &BP is re"ired to deposit in the name of the lando)nerif the latter re@ects the DAR&BPs offer# Petitioner maintains it sho"ld e itsinitial val"ation of the land s"@ect of Gol"ntar! Offer to Sell %GOS( )hilerespondent claims it pertains to the s"m a)arded ! the PARADRARADDARABin a s"mmar! administrative proceeding pending final determination ! theco"rts#

HEL';

Section ,8 of R#A# No# 88< reads7

%d(In case of re@ection or fail"re to repl!1 the DAR shall cond"ct s"mmar!administrative proceedings to determine the compensation for the land !re"iring the lando)ner1 the &BP and other interested parties to s"mit evidenceas to the @"st compensation for the land1 )ithin fifteen %,<( da!s from the receiptof the notice# After the epiration of the aove period1 the matter is deemeds"mitted for decision# :he DAR shall decide the case )ithin thirt! %;4( da!safter it is s"mitted for decision#

%e(pon receipt ! the lando)ner of the corresponding pa!ment or in case ofre@ection or no response from the lando)ner1 "pon the deposit )ith anaccessile an designated ! the DAR of the compensation in cash or in &BPonds in accordance )ith this Act1 the DAR shall tae immediate possession ofthe land and shall re"est the proper Register of Deeds to iss"e a :ransfer.ertificate of :itle %:.:( in the name of the Rep"lic of the Philippines# :he DARshall thereafter proceed )ith the redistri"tion of the land to the "alifiedeneficiaries#

$e find the foregoing as a strained interpretation of a simple and clear eno"ghprovision on the proced"re governing ac"isition of lands "nder .ARP1 )hether"nder the comp"lsor! ac"isition or GOS scheme# Indeed1 it )o"ld mae nosense to mention an!thing ao"t the provisional deposit in s"-paragraphs %a(and %( the lando)ner is sent a notice of val"ation to )hich he sho"ld repl!)ithin a specified time1 and in s"-paragraph %c( )hen the lando)ner acceptsthe offer of the DAR&BP as compensation for his land# S"-paragraph %d(provides for the conse"ence of the lando)ners re@ection of the initial val"ationof his land1 that is1 the cond"ct of a s"mmar! administrative proceeding for apreliminar! determination ! the DARAB thro"gh the PARAD or RARAD1 d"ring)hich the &BP1 lando)ner and other interested parties are re"ired to s"mitevidence to aid the DARABRARADPARAD in the val"ation of the s"@ect land#S"-paragraph %e(1 on the other hand1 states the precondition for the Statestaing of possession of the lando)ners propert! and the cancellation of thelando)ners title1 th"s paving the )a! for the event"al redistri"tion of the landto "alified eneficiaries7 pa!ment of the compensation %if the lando)neralread! accepts the offer of the DAR&BP( or deposit of the provisionalcompensation %if the lando)ner re@ects or fails to respond to the offer of theDAR&BP(# Indeed1 the .ARP &a) conditions the transfer of possession ando)nership of the land to the government on receipt ! the lando)ner of the




corresponding pa!ment or the deposit of the compensation in cash or &BP onds)ith an accessile an#

LB, &s ,agayatanFacts;

On Octoer 5,1 ,051 the ;18/5#45/8-hectare S"nta! Estate1 consisting ofirrigated"nirrigated rice and corn lands covered ! :ransfer .ertificate of :itleNo# :-;,%,;58( located in the Baranga!s of 'en# Emilio Ag"inaldo1 Sta# &"cia1and San Nicolas in Sala!an1 Occidental 2indoro1 )as s"@ected to the operationof Presidential Decree No# 51 "nder its Operation &and :ransfer %O&:(1 )ith thefarmer-eneficiaries declared as o)ners of the propert!# Ho)ever1 a ;44-hectareportion of the land )as s"@ected to the .omprehensive Agrarian ReformProgram %.ARP( instead of the O&:# :h"s1 .ertificates of &ando)nership A)ard)ere iss"ed to the farmer-eneficiaries in possession of the land# < S"chapplication of the .ARP to the ;44-hectare land )as later the s"@ect of a caseefore the Department of Agrarian Reform Ad@"dicator! Board %DARAB(1 )hichr"led that the s"@ect land sho"ld have een the s"@ect of O&: instead of .ARP# :he lando)ner admitted efore the PARAD that said case )as pending )ith this.o"rt and doceted as '#R# No# ,4/0541 entitled Federico S"nta! v# .o"rt ofAppeals#

2ean)hile1 the o)ner of the land remained "npaid for the propert!# :h"s1 ?osefina S# &"rica1 in her capacit! as assignee of the o)ner of the propert!1Federico S"nta!1 filed a Petition for S"mmar! Determination of ?"st.ompensation )ith the PARAD1 doceted as .ase No# D.N-494<-4455-5445# :hereafter1 the PARAD iss"ed its Decision dated 2arch 5,1 544;1 the dispositiveportion of )hich reads7 E.SHID

$HEREFORE1 @"dgment is here! rendered7

,#Fiing the preliminar! @"st compensation for 9;,#,94 hectare propert! atP,881,<4#44 per hectare or a total of P,18;9145#;4#

5#Directing the &and Ban of the Philippines to immediatel! pa! the aforestatedamo"nt to the Petitioner#

;#Directing the DAR to immediatel! compl! )ith all applicale re"irements sothat the s"@ect propert! ma! e formall! distri"ted and t"rned over to the

farmer eneficiaries thereof1 in accordance )ith the Decision of the DARAB.entral in DARAB .ase No# 5/98#

:he &BP then filed a Petition dated 2arch 91 5449 )ith the R:. doceted asAgrarian .ase No# ,;041 appealing the PARAD Decision# In the Petition1 the &BParg"ed that eca"se '#R# No# ,4/054 )as pending )ith this .o"rt in relation tothe ;44-hectare land s"@ect of the instant case1 the Petition for S"mmar!Determination of ?"st .ompensation filed efore the PARAD )as premat"re# :he&BP arg"ed f"rther that the PARAD co"ld onl! mae an a)ard of "p to PhP<million onl!# :he PARAD1 therefore1 co"ld not a)ard an amo"nt ofPhP,18;9145#;4# :he &BP also contended that it co"ld not satisf! the demandfor pa!ment of &"rica1 considering that the doc"ments necessar! for it to"ndertae a preliminar! val"ation of the propert! )ere still )ith the Departmentof Agrarian Reform %DAR(#

I##?E;$hat is the proper amo"nt to e deposited "nder Section ,8 of Rep"lic Act No#88< Is it the PARADDARAB determined val"ation or the preliminar! val"ationas determined ! the DAR&BP

HEL'; :he &BP posits that "nder Sec# ,8 %e( of RA 88<1 and as espo"sed in &and Banof the Philippines v# .o"rt of Appeals1 ,/ it is the p"rchase price offered ! theDAR in its notice of ac"isition of the land that m"st e deposited in anaccessile an in the name of the lando)ner efore taing possession of theland1 not the val"ation of the PARAD#

:he .o"rt agrees )ith the &BP#

.onspic"o"sl!1 there is no mention of the PARAD in the foregoing Sec# ,8 %e()hen it speas of Jthe deposit )ith an accessile an designated ! the DAR ofthe compensation in cash or &BP onds in accordance )ith this Act#J 2oreover1 itis onl! after the DAR has made its final determination of the initial val"ation ofthe land that the lando)ner ma! resort to the @"dicial determination of the @"stcompensation for the land# .learl!1 therefore1 it is the initial val"ation made !the DAR and &BP that is contained in the letter-offer to the lando)ner "nder Sec#,8 %a(1 said val"ation of )hich m"st e deposited and released to the lando)nerprior to taing possession of the propert!#




It is clear from Sec# ,8 of RA 88< that it is the initial val"ation made ! the DARand the &BP that m"st e released to the lando)ner in order for DAR to taepossession of the propert!# Other)ise stated1 Sec# ,8 of RA 88< does nota"thori>e the release of the PARADs determination of @"st compensation for theland )hich has not !et ecome final and eec"tor!#

ompensation in cas% or in LB, *onds /#ection 310

Land BanC &. A

Private respondent challenged the admin order iss"ed ! DARpermitting the opening of tr"st acco"nt ! &BP1 in lie" of depositing incash or in &BP onds#

S.7

Sec# ,8 %e( is eplicit that deposit e in *cash+ or in *&BP onds+M

No)here does it appear nor can it e inferred that the deposit can emade in an! other form lie a tr"st acco"ntM

:here )as no asis for iss"ance of order#

Land BanC &. AFacts

Private respondents are lando)ners )hose landholdings )ere ac"ired ! theDAR and s"@ected to transfer schemes to "alified eneficiaries "nder the.omprehensive Agrarian Reform &a) %.AR&1 Rep"lic Act No# 88<(# Aggrieved! the alleged lapses of the DAR and the &andan )ith respect to the val"ationand pa!ment of compensation for their land p"rs"ant to the provisions of RA88<1 private respondents filed )ith this .o"rt a Petition for .ertiorari and2andam"s )ith pra!er for preliminar! mandator! in@"nction# Privaterespondents "estioned the validit! of DAR Administrative Order No# 81 Series of,005 8 and DAR Administrative Order No# 01 Series of ,0041 and so"ght tocompel the DAR to epedite the pending s"mmar! administrative proceedings tofinall! determine the @"st compensation of their properties1 and the &andan todeposit in cash and onds the amo"nts respectivel! Jearmared1J JreservedJand Jdeposited in tr"st acco"ntsJ for private respondents1 and to allo) them to)ithdra) the same#

Private respondents arg"ed that Administrative Order No# 01 Series of ,004 )asiss"ed )itho"t @"risdiction and )ith grave a"se of discretion eca"se it permitsthe opening of tr"st acco"nts ! the &andan1 in lie" of depositing in cash oronds in an accessile an designated ! the DAR1 the compensation for the

land efore it is taen and the titles are cancelled as provided "nder Section,8%e( of RA 88<# 0 Private respondents also assail the fact that the DAR and the&andan merel! Jearmared1J Jdeposited in tr"stJ or JreservedJ thecompensation in their names as lando)ners despite the clear mandate thatefore taing possession of the propert!1 the compensation m"st e depositedin cash or in onds# ,4

Petitioner DAR1 ho)ever1 maintained that Administrative Order No# 0 is a valideercise of its r"le-maing po)er p"rs"ant to Section 90 of RA 88<# ,,2oreover1 the DAR maintained that the iss"ance of the J.ertificate of DepositJ! the &andan )as a s"stantial compliance )ith Section ,8%e( of RA 88<#

I##?E;$hether the opening of tr"st acco"nts for pa!ment of @"st compensation is valid#

HEL'; :he contention is "ntenale# Section ,8%e( of RA 88< provides as follo)s7

JSE.:ION ,8#Proced"re for Ac"isition of Private &ands# # # #

%e(pon receipt ! the lando)ner of the corresponding pa!ment or1 in case ofre@ection or no response from the lando)ner1 "pon the deposit )ith anaccessile an designated ! the DAR of the compensation in cash or in &BPonds in accordance )ith this Act1 the DAR shall tae immediate possession ofthe land and shall re"est the proper Register of Deeds to iss"e a :ransfer.ertificate of :itle %:.:( in the name of the Rep"lic of the Philippines# # # #J%Emphasis s"pplied#(

It is ver! eplicit therefrom that the deposit m"st e made onl! in JcashJ or inJ&BP onds#J No)here does it appear nor can it e inferred that the deposit cane made in an! other form# If it )ere the intention to incl"de a Jtr"st acco"ntJamong the valid modes of deposit1 that sho"ld have een made epress1 or atleast1 "alif!ing )ords o"ght to have appeared from )hich it can e fairl!ded"ced that a Jtr"st acco"ntJ is allo)ed# In s"m1 there is no amig"it! inSection ,8%e( of RA 88< to )arrant an epanded constr"ction of the termJdeposit#J

LB, &s Honeycom*Facts;




Hone!com Farms .orporation %Hone!com Farms( )as the registered o)ner oft)o parcels of agric"lt"ral land in .ataingan1 2asate# :he &and Ban of the Philippines %&BP(1 as the agenc! vested )ith theresponsiilit! of determining the land val"ation and compensation for parcels ofland ac"ired p"rs"ant to the .AR&1 8 and "sing the g"idelines set forth in DARAdministrative Order %AO( No# ,1 series of ,0/01 as amended ! DAR AO No# ;1series of ,00,1 fied the val"e of these parcels of land#

$hen Hone!com Farms re@ected this val"ation for eing too lo)1 the Gol"ntar!Offer to Sell )as referred to the DAR Ad@"dication Board1 Region G1 &egaspi .it!1for a s"mmar! determination of the maret val"e of the properties#

HEL';As a final point1 )e have not failed to notice that the &BP in this case made "seof tr"st acco"nts to pa! Hone!com Farms# In &and Ban of the Phil# v# .A1 50this .o"rt str"c do)n as void DAR Administrative .irc"lar No# 01 Series of ,0041providing for the opening of tr"st acco"nts in lie" of the deposit in cash or inonds contemplated in Section ,8 %e( of RA 88<# $e said7 .SDc:H

It is ver! eplicit # # # from Section ,8%e(T that the deposit m"st e made onl! inJcashJ or in J&BP onds#J No)here does it appear nor can it e inferred that thedeposit can e made in an! other form# If it )ere the intention to incl"de a Jtr"stacco"ntJ among the valid modes of deposit1 that sho"ld have een madeepress1 or at least1 "alif!ing )ords o"ght to have appeared from )hich it cane fairl! ded"ced that a Jtr"st acco"ntJ is allo)ed# In s"m1 there is no amig"it!in Section ,8%e( of RA 88< to )arrant an epanded constr"ction of the termJdeposit#J

In the present s"it1 the DAR clearl! overstepped the limits of its po)er to enactr"les and reg"lations )hen it iss"ed Administrative .irc"lar No# 0# :here is noasis in allo)ing the opening of a tr"st acco"nt in ehalf of the lando)ner ascompensation for his propert! eca"se1 as heretofore disc"ssed1 Section ,8%e(of RA 88< is ver! specific that the deposit m"st e made onl! in JcashJ or inJ&BP onds#J In the same vein1 petitioners cannot invoe &RA .irc"lar Nos# 501

50-A and <9 eca"se these implementing reg"lations cannot o"t)eigh the clearprovision of the la)# Respondent co"rt therefore did not commit an! error instriing do)n Administrative .irc"lar No# 0 for eing n"ll and void#

omp!lsory ac!isition and notice re!irements /#ection 310

'LR A'MINI#$RA$I(E OR'ER NO. 9>-92

PRO.EDRES

,# .ommencement

,#,# .ommencement ! the Provincial Agrarian Reform Officer %PARO( After determination ! the 2"nicipal Agrarian Reform Officer %2ARO( of theagric"lt"ral landholdings coverale "nder .ARP in his area of @"risdiction1 heshall s"mit the list of these agric"lt"ral landholdings to the PARO )ho shallprepare and send1 thro"gh the 2ARO1 the NO. %.ARP-&A Form No# ( to theconcerned &O#

,#5# .ommencement ! a part! An! person ma! commence theproceedings herein ! filing a petition for coverage efore the Department of&and Reform %D&R( .entral Office %D&R.O(1 D&R Regional Office %D&RRO(1 D&RProvincial Office %D&RPO( or D&R 2"nicipal Office %D&R2O( of the regionprovinceor m"nicipalit! )here the s"@ect landholding is located# :he D&R office )hichreceived the petition for coverage shall transmit or for)ard the same to thePARO of the province )here the s"@ect landholding is located# :he D&RPO1thro"gh the 2ARO1 shall validate the petition and shall iss"e the NO.1 if)arranted# In the event that the res"lt of the validationeval"ation ! theD&R2OD&RPO is s"ch that an NO. is not )arranted1 the D&RPO shall for)ard itsfindings or that of the D&R2O to the D&RRO for eval"ation and iss"ance of anOrder1 treating the petition as an Agrarian &a) Implementation %A&I( case#

5# Posting of the NO.

:he 2ARO shall post copies of the NO. for at least seven %( da!s in the"lletin oards or an! conspic"o"s places in the m"nicipalit!cit! and thearanga! )here the propert! is located and thereafter iss"e the corresponding.ertification of Posting .ompliance %.ARP-&A Form No# <(#

;# B! $hom the NO. is served

;#,# pon receipt of a cop! of the NO. and "pon instr"ction ! the PARO%.ARP-&A Form No# /(1 the 2ARO )here the s"@ect landholding is located or an!




D&R personnel officiall! a"thori>ed ! the PARO shall ca"se the service of theNO. to the &O in accordance )ith these r"les#

;#5# If the &Os residence is o"tside the Philippines or "nno)n1 the 2ARO ofthe place )here the s"@ect landholding is located shall s"mit a report of s"chfact or fail"re to notif! the &O thro"gh the reg"lar mode of service to the PARO1and shall re"est the latter to ca"se the p"lication of the NO. in a ne)spaperof general circ"lation#

9# Service of the NO.

9#,# 'eneral r"le :he NO. shall e addressed to and received ! the &O#

9#5# Service "pon co-o)ners In case of co-o)nership1 the NO. shall eserved "pon each and ever! co-o)ner1 "nless one is specificall! a"thori>ed toreceive for the other co-o)ners# AHEDaI

9#;# Service "pon minors or incompetents $hen the &O is a minor1 insaneor other)ise incompetent1 service shall e made "pon him personall! and to hislegal g"ardian if he has one1 or if none1 "pon his g"ardian ad litem )hoseappointment shall e applied for ! the D&R# In the case of a minor1 service ma!also e made on his father andor mother#

9#9# Service "pon entit! )itho"t @"ridical personalit! $hen the &Os )ho arepersons associated in an entit! )itho"t @"ridical personalit! are s"ed "nder thename ! )hich the! are generall! or commonl! no)n1 service ma! e effected"pon all the &Os ! serving "pon an! one of them1 or "pon the person in chargeof the Office or place of "siness maintained in s"ch name# S"ch service shallnot ind individ"all! an! person )hose connection )ith the entit! has1 "pon d"enotice1 een severed efore the proceeding )as ro"ght#

9#<# Service "pon domestic private @"ridical entit! $hen the &O is acorporation1 partnership or association organi>ed "nder the la)s of thePhilippines )ith a @"ridical personalit!1 service ma! e made on the president1managing partner1 general manager1 corporate secretar!1 treas"rer1 in-ho"seco"nsel or administrator#

9#8# Service "pon &O )hose identit! or )hereao"ts is "nno)n In an!proceeding )here the &O is designated as an "nno)n o)ner1 or the lie1 or)henever his )hereao"ts are "nno)n and cannot e ascertained ! diligent

in"ir!1 service ma! e effected "pon him ! p"lication in a ne)spaper ofgeneral circ"lation in s"ch places and for s"ch time as the D&R ma! order#

9## Etraterritorial service $hen the &O does not reside and is not fo"ndin the Philippines1 or )hen the &O ordinaril! resides )ithin the Philippines "t istemporaril! o"t of the co"ntr!1 service ma! e made ! p"lication in ane)spaper of general circ"lation in s"ch places and for s"ch time as the D&Rma! order#

<# 2odes of Service7

<#,# Personal Service :his is made ! handing a cop! of the NO. to the &Oin person1 or if the &O ref"ses to receive and sign the NO. for )hatever reason1! tendering the same to himher#

<#5# S"stit"ted Service If personal service of the NO. cannot e serveddirectl! to the &O )ithin a reasonale time1 service ma! e made ! leavingcopies of the NO. at the &Os7

<#5#,# residence )ith some person of s"itale age and discretion residingthereinM or<#5#5# office or reg"lar place of "siness )ith some competent person in chargethereof#<#;# Service ! Registered 2ail if personal or s"stit"ted service is notpracticale1 service ! registered mail )ill e made to the last no)n address ofthe &O# :he registered mail envelope shall e mared JDE&IGER :O ADDRESSEEON&LJ and JRE:RN :O SENDERJ if addressee has7 2OGED O:1 NCNO$NADDRESS1 REFSED :O A..EP: OR INSFFI.IEN: ADDRESS#<#9# Service ! p"lication If an! of the preceding three %;( modes ofservice fails1 the NO. )ill e p"lished once in a ne)spaper of generalcirc"lation# A JRE:RN :O SENDERJ stamped on the mailing envelope )ill serveas proof that the NO. )as not received ! the &O# :he p"lication need notstate the entire contents of the NO. "t onl! the follo)ing essential partic"lars7

<#9#,# .omplete names of the &Oall &Os and last no)n address1 if availaleM<#9#5# Address or location of the s"@ect landholding %aranga!1

m"nicipalit!cit!1 province(M<#9#;# :he n"mer of the Original or :ransfer .ertificate of :itle %O.: or :.:( orlatest :a Declaration %:D( covering the s"@ect landholdingM




Petitioners contend that DAR failed to notif! them that it is s"@ecting thes"@ect propert! "nder the coverage of the agrarian reform programM hence1their right to d"e process of la) )as violated#

$e agree )ith petitioners# :he importance of an act"al notice in s"@ecting apropert! "nder the agrarian reform program cannot e "nderrated1 as non-compliance )ith it trods ro"ghshod )ith the essential re"irements ofadministrative d"e process of la)#

It )as inc"ment "pon the DAR to notif! Deleste1 eing the lando)ner of thes"@ect propert!# It sho"ld e noted that the deed of sale eec"ted ! Hilaria infavor of Deleste )as registered on 2arch 51 ,0<91 and s"ch registration servesas a constr"ctive notice to the )hole )orld that the s"@ect propert! )as alread!o)ned ! Deleste ! virt"e of the said deed of sale# In Naval v# .A1 this .o"rtheld7

Appl!ing the la)1 )e held in Ba"tista v# F"le that the registration of aninstr"ment involving "nregistered land in the Registr! of Deeds createsconstr"ctive notice and inds third person )ho ma! s"se"entl! deal )ith thesame propert!#

It ears stressing that the principal p"rpose of registration is Jto notif! otherpersons not parties to a contract that a transaction involving the propert! haseen entered into#J 89 :here )as1 therefore1 no reason for DAR to feignignorance of the transfer of o)nership over the s"@ect propert!#

2oreover1 that DAR sho"ld have sent the notice to Deleste1 and not to theNanamans1 is olstered ! the fact that the ta declaration in the name ofGirgilio )as alread! canceled and a ne) one iss"ed in the name of Deleste#Altho"gh ta declarations or realt! ta pa!ments of propert! are not concl"siveevidence of o)nership1 the! are nonetheless Jgood indicia of possession in theconcept of an o)ner1 for no one in his right mind )o"ld e pa!ing taes for apropert! that is not in his act"al or1 at least1 constr"ctive possession#J

Petitioners right to d"e process of la) )as1 indeed1 violated )hen the DAR failedto notif! them that it is s"@ecting the s"@ect propert! "nder the coverage of

the agrarian reform program#

HA,$ER (I JOM,EN#A$ION

!st ompensation7

*f"ll Q fair e"ivalent of propert! taen from o)ner ! epropriation+%Assoc# of Small &ando)ners(# :he )ord J@"stJ is "sed to intensif! themeaning of the )ord JcompensationJ to conve! the idea that thee"ivalent to e rendered for the propert! to e taen shall e real1s"stantial1 f"ll1 ample#+

#ec. 8 RA 6997JSE.# ,# Determination of ?"st .ompensation# In determining @"st

compensation1 the cost of ac"isition of the land1 t%e &al!e of t%e standingcrop1 the c"rrent val"e of lie properties1 its nat"re1 act"al "se and income1 thes)orn val"ation ! the o)ner1 the ta declarations1 the assessment made !government assessors1 and se&enty percent /90 of t%e Donal &al!ationof t%e B!rea! of Internal Re&en!e /BIR(1 translated into a *asic form!la*y t%e 'AR shall e considered1 s"@ect to the final decision of the properco"rt# :he social and economic enefits contri"ted ! the farmers and thefarm)orers and ! the 'overnment to the propert! as )ell as the nonpa!mentof taes or loans sec"red from an! government financing instit"tion on the saidland shall e considered as additional factors to determine its val"ation#J

Assoc. of small lando+ners &s Hon. #ecretary

?S: .O2PENSA:IONM DEFINED# ?"st compensation is defined as the f"ll andfair e"ivalent of the propert! taen from its o)ner ! the epropriator#

LB, &. '!mlaoFacts7

Respondents are o)ners of agri lands covered "nder PD 5MDetermination of @"st compensation remained pending )ith DAR1 so the!filed complaint )ith R:. for determination#

S.7

if @"st compensation )as not settled prior to the passage of RA No# 88<1it sho"ld e comp"ted in accordance )ith said la)1 altho"gh propert!)as ac"ired "nder PD No# 5M

the determination made ! the trial co"rt1 )hich relied solel! on the

form"la prescried ! PD No# 5 and EO No# 55/1 is grossl! erroneo"s# :he amo"nt of P810,5#<4 per hectare1 )hich is ased on the DARval"ation of the properties Jat the time of their taing in the ,04sJ1does not come close to a f"ll and fair e"ivalent of the propert! taenfrom respondentsM

Agrarian Reform O"tline Revie)er - Att!# .apanas - A2a$S Page <5



Petitioner filed a petition for determination of ?"st .ompensation efore R:.#R:. acting as Special Agrarian .o"rt %SA.(1 citing appraisal report decidedP10/1<4#44 as @"st compensation and ordered &BP to pa!#

Petition for revie) ! &BP to .A and fo"nd that the SA. made a)holesale adoption of the val"ation of the appraisal compan! and did notconsider the other factors set forth in R#A# No# 88< even tho"gh the appraisalcompan! admitted that it did not consider as applicale the .ARP val"ation ofthe propert!# Hence1 this petition#Held7

:he .o"rt too note7*:hese factors have alread! een incorporated in a asic form"la ! the DARp"rs"ant to its r"le-maing po)er "nder Section 90 of R#A# No# 88<# AO No# <precisel! filled in the details of Section ,1 R# A# No# 88< ! providing a asicform"la ! )hich the factors mentioned therein ma! e taen into acco"nt# :hisform"la has to e considered ! the SA. in tandem )ith all the factors referredto in Section , of the la)# :he administrative order provides7A# :here shall e one asic form"la for the val"ation of lands covered ! GOS or.A7

&G X %.NI 4#8( Y %.S 4#;( Y %2G 4#,(

$here7&G X &and Gal"e.NI X .apitali>ed Net Income.S X .omparale Sales2G X 2aret Gal"e per :a Declaration

:he aove form"la shall e "sed if all three factors are present1 relevant1 andapplicale#

A,# $hen the .S factor is not present and .NI and 2G are applicale1 theform"la shall e7&G X %.NI 4#0( Y %2G 4#,(

A5# $hen the .NI factor is not present1 and .S and 2G are applicale1 theform"la shall e7&G X %.S 4#0( Y %2G 4#,(

A;# $hen oth the .S and .NI are not present and onl! 2G is applicale1 theform"la shall e7&G X 2G 5

In no case shall the val"e of idle land "sing the form"la 2G 5 eceed thelo)est val"e of land )ithin the same estate "nder consideration or )ithin thesame aranga! or m"nicipalit! %in that order( approved ! &BP )ithin one %,(!ear from receipt of claimfolder#

---

$here7.NIX%A'PSP( - .O #,5

A'PX Average 'ross Prod"ction corresponding to the latest availale ,5 monthsgross prod"ction immediatel! preceding the date of FI %field investigation(

SPX Selling Price %the average of the latest availale ,5 months selling pricesprior to the date of receipt of the .F %claim folder( ! &BP for processing1 s"chprices to e sec"red from the Department of Agric"lt"re %DA( and other

appropriate reg"lator! odies or1 in their asence1 from the B"rea" ofAgric"lt"ral Statistics# If possile1 SP data shall e gathered for the aranga! orm"nicipalit! )here the propert! is located# In the asence thereof1 SP ma! esec"red )ithin the province or region#

.O X .ost of Operations

$henever the cost of operations co"ld not e otained or verified1 an ass"mednet income rate %NIR( of 54 shall e "sed# &andholdings planted to cocon"t)hich are prod"ctive at the time of FI shall contin"e to "se the ass"med NIR of4 # DAR and &BP shall contin"e to cond"ct @oint ind"str! st"dies to estalishthe applicale NIR for each crop covered "nder .ARP#

4#,5 X .apitali>ation rate+

:he .o"rt finds that the factors re"ired ! the la) and enforced ! theDAR Administrative Order )ere not oserved ! the SA. )hen it adopted)holeheartedl! the val"ation arrived at in the appraisal report# :he .o"rt




repremands the case to the R:. acting as a Special Agrarian .o"rt for thedetermination of @"st compensation in accordance )ith Section , of Rep"licAct No# 88<#

#ps. Lee &. LB,

If val"ation is ased not on the factors1 it is not valid #%Note that in this case1 there )as admission that val"ation )as not

ased on factors "nder .AR&7 a representative of the compan! admitted that itdid not consider the .ARP val"ation to e applicale(#

.ase remanded#

Land BanC of t%e ,%ils. &s. Heirs of Ele!terio r!D8Facts;

&andholding of the respondents )as placed "nder the coverage of theland transfer program of P#D# 5# Petitioner pegged the val"e of the ac"iredlandholding at P,4810;<#8 ased on the g"idelines set forth "nder P#D# No# 5and E#O# 55/# Respondents petitioned for val"ation and determination of @"stcompensation efore the Provincial Agrarian Reform Ad@"dicator )hich fied it toP/41444#44 per hectare# 2otion for Reconsideration )as denied so the Petitionerpetition for the determination of @"st compensation efore the R:. acting as SA.held that the val"e of P/41444#44 per hectare fied ! the PARAD sho"ld eaccorded )eight and proative val"e and that the SA. is g"ided ! the vario"sfactors en"merated in Section ,of R#A# No# 88< in determining @"stcompensation# It disregarded respondents claim that the val"ation sho"ld eased on the c"rrent maret val"e of the landholding since no evidence )asadd"ced in s"pport of the claim and also did not accept petitioners val"ation asit )as ased on P#D# No# 51 in )hich @"st compensation )as determined at thetime of the taing of the propert!# .A rendered the assailed decision partl!granting petitioners appeal "t affirmed the SA. decision fiing @"stcompensation at P/41444#44 per hec# Reconsideration )as denied# Hence1 theinstant petition1 arg"ing that the form"la set forth in P#D# No# 5E#O# No# 55/sho"ld e applied in fiing @"st compensation since respondents landholding)as ac"ired "nder P#D# No# 5 in cogni>ance to a settled r"le that @"stcompensation is the val"e of the propert! at the time of the taing1 on 5,Octoer ,05#

Held7 :he .o"rt citing &and Ban of the Philippines v# Natividad1 *It )o"ld

certainl! e ine"itale to determine @"st compensation ased on the g"ideline

provided ! PD No# 5 and EO 55/ considering the DARs fail"re to determinethe @"st compensation for a considerale length of time# :hat @"st compensationsho"ld e determined in accordance)ithRA88<1and not PD 5 or EO 55/1 isespeciall! imperative considering that @"st compensation sho"ld e the f"ll andfair e"ivalent of the propert! taen from its o)ner ! the epropriator1 thee"ivalent eing real1 s"stantial1 f"ll and ample#+

:he .o"rt remanded the determination of @"st compensation to R:.acting as SA.#

LB, &. Heirs of r!D

If val"ation is not ased on an! evidence1 it is )o asis1 sodetermination e remanded#

In this case1 decision of PARAD and SA. points to no evidence1 so case)as remanded#

Is prior reco"rse to DARAB necessar! efore case for determination of ?. ma! efiled

No7 %a( eca"se DAR ma! contin"e to alienate the lots d"ring the pendenc!

of protestM%( Sec# < of RA 88< states that SA. has orig and ecl"sive

@"risdiction#

.ontent and 2anner %Section ,/(

Sec# ,/ speas of cash or shares of stoc1 ta credits or &BP onds#

Is this not violation of "s"al )a! of pa!ment in cashNo1 eca"se *revol"tionar! ind+#

Parties involved %Section ,/(

LB, &s. ocson and sonsFacts; :he propert! )as placed "nder the coverage of the governments Operation&and :ransfer 5 %O&:( p"rs"ant to Presidential Decree %P#D#( No# 5 ; anda)arded to the tenant-eneficiaries ! the Department of Agrarian Reform%DAR(1 )hich val"ed the compensation therefor in the total amo"nt ofP5<41<8;#/4 follo)ing the form"la prescried in P#D# No# 5 and Eec"tive Order

%E#O#( No# 55/# 9

:he val"ation )as later increased to P04;18;#4; after comp"ting the 8ann"al interest increment < d"e on the propert! per DAR Administrative OrderNo# ,;1 series of ,0091 )hich amo"nt respondent )ithdre) in ,001 )itho"t

Agrarian Reform O"tline Revie)er - Att!# .apanas - A2a$S Page <<



pre@"dice to the o"tcome of the case it had filed here"nder to fi @"stcompensation#

Finding the DARs offer of compensation for the propert! to e grossl!inade"ate1 respondent filed a complaint 8 on ?"l! ,/1 ,00 efore the Regional :rial .o"rt of Bacolod .it!1 Br# 981 sitting as a Special Agrarian .o"rt %SA.(1against the &and Ban %petitioner(1 the DAR1 and the tenant-eneficiaries1 forJDetermination and Fiing of ?"st .ompensation for the Ac"isition of &and andPa!ment of RentalsJ#

In their respective Ans)ers1 petitioner and the DAR claimed that the propert!)as ac"ired ! the government "nder its O&: program and their val"ationthereof constit"ted @"st compensation1 having een made p"rs"ant to theg"idelines set ! E#O# No# 55/ and P#D# No# 5#

In arriving at the @"st compensation1 the SA. adopted a higher val"ation%P0;18<#44hectare( )hich the DAR had applied to a similar landholdingelonging to one Palo Estacion ad@acent to respondents#

Iss!e;$hether the SA. erred in the val"ation the land

HEL';In the recent case of &and Ban of the Philippines v# .hico1 5 the .o"rt declaredin no "ncertain terms that R#A# No# 88< is the relevant la) for determining @"stcompensation after noting several decided cases )here the .o"rt fo"nd it moree"itale to determine @"st compensation ased on the val"e of the propert! atthe time of pa!ment# :his )as a clear depart"re from the .o"rts earlier stancein 'aatin v# &and Ban of the Philippines )here it declared that the reconingperiod for the determination of @"st compensation is the time )hen the land )astaen appl!ing P#D# No# 5 and E#O# No# 55/#

P#D# No# 5E#O# No# 55/ vis a vis R#A# No# 88< )as applied to cases involvinglands placed "nder the coverage of P#D# No# 5E#O# No# 55/ )here pa!ment of @"st compensation had not een completed# $hen in the interim R#A# No# 88<)as passed efore the f"ll pa!ment of @"st compensation1 as in the case at ar1

the provisions of R#A# No# 88< on @"st compensation control#

It )o"ld certainl! e ine"itale to determine @"st compensation ased on theg"ideline provided ! PD 5 and EO 55/ considering the DARs fail"re to

determine the @"st compensation for a considerale length of time# :hat @"stcompensation sho"ld e determined in accordance )ith RA 88<1 and not PD 5or EO 55/1 is especiall! imperative considering that @"st compensation sho"ld ethe f"ll and fair e"ivalent of the propert! taen from its o)ner ! theepropriator1 the e"ivalent eing real1 s"stantial1 f"ll and ample#

LB, &s Li&iocoFacts;Respondent Enri"e &ivioco %&ivioco( )as the o)ner of ;4#8;50 hectares ofs"garland 8 located in Dapdap1 2aalacat1 Pampanga# Sometime et)een ,0/and ,0//1 &ivioco offered his s"garland to the Department of Agrarian Reform%DAR( for ac"isition "nder the .ARP at P;4#44 per s"are meter1 for a total ofP01,/01/4#44# :he vol"ntar!-offer-to-sell %GOS( form / he s"mitted to the DARindicated that his propert! is ad@acent to residential s"divisions and to aninternational paper mill#

:he DAR referred &iviocos offer to the &BP for val"ation# Follo)ing Section , ofRep"lic Act %RA( No# 88< and DAR Administrative Order No# ,1 series of ,0/01,, as amended ! Administrative Order No# ;1 series of ,00,1 ,5 the &BP set theprice at P;#5, per s"are meter or a total of P/5109;#9/ for 58 hectares#&ivioco )as then promptl! informed of the val"ation ,9 and that the cashportion of the claim proceeds have een Jept in tr"st pending hisT s"mission

of the o)nership doc"mentar!T re"irements#J ,< It appears ho)ever that&ivioco did not act "pon the notice given to him ! oth government agencies#On Septemer 541 ,00,1 &BP iss"ed a certification to the Register of Deeds ofPampanga that it has earmared the amo"nt of P/5109;#9/ as compensationfor &iviocos 58 hectares#

It )as onl! t)o !ears later , that &ivioco re"ested for a reeval"ation of thecompensation on the gro"nd that its val"e had alread! appreciated from thetime it )as first offered for sale# ,/ :he re"est )as denied ! Regional DirectorAntonio N"esa on the gro"nd that there )as alread! a perfected sale#

nale to recover his propert! "t "n)illing to accept )hat he elieves )as ano"trageo"sl! lo) val"ation of his propert!1 &ivioco finall! filed a petition for @"dicial determination of @"st compensation against DAR1 &BP1 and the .&OA

holders#

In this Petition efore "s1 &BP assails the .As assent to the val"ation of &iviocospropert! as a residential land# It maintains that it is not the States polic! to




p"rchase residential land# Since the propert! )as ac"ired "nder the .ARP1 ithad to e val"ed as an agric"lt"ral land#

Iss!e

$as the compensation for respondents propert!determined in accordance )ith la)

HEL';For p"rposes of @"st compensation1 the fair maret val"e of an epropriatedpropert! is determined ! its character and its price at the time of taing# 8/ :here are three important concepts in this definition the character of thepropert!1 its price1 and the time of act"al taing#

:he lo)er co"rts erred in r"ling that the character or "se of the propert! haschanged from agric"lt"ral to residential1 eca"se there is no allegation or proofthat the propert! )as approved for conversion to other "ses ! DAR# It is theDAR that is mandated ! la) to eval"ate and to approve land "se conversions; so as to prevent fra"d"lent evasions from agrarian reform coverage# Evenreclassification 9 and plans for epropriation < ! local government "nits%&'s( )ill not ipso facto convert an agric"lt"ral propert! to residential1ind"strial or commercial# :h"s1 in the asence of an! DAR approval for the

conversion of respondents propert! or an act"al epropriation ! an &'1 itcannot e said that the character or "se of said propert! changed fromagric"lt"ral to residential# Respondents propert! remains agric"lt"ral andsho"ld e val"ed as s"ch# Hence1 the .A and the trial co"rt had no legal asisfor considering the s"@ect propert!s val"e as residential#

Respondents evidence of the val"e of his land as residential propert! %)hich thelo)er co"rts fo"nd to e preponderant( co"ld1 at most1 refer to the potential "seof the propert!# $hile the potential "se of an epropriated propert! issometimes considered in cases )here there is a great improvement in thegeneral vicinit! of the epropriated propert!1 8 it sho"ld never control thedetermination of @"st compensation %)hich appears to e )hat the lo)er co"rtshave erroneo"sl! done(# :he potential "se of a propert! sho"ld not e theprincipal criterion for determining @"st compensation for this )ill e contrar! to

the )ell-settled doctrine that the fair maret val"e of an epropriated propert! isdetermined ! its character and its price at the time of taing1 not its potential"ses# If at all1 the potential "se of the propert! or its Jadaptailit! for conversionin the f"t"re is a factor1 not the "ltimate in determining @"st compensation#J

:he proper approach sho"ld have een to val"e respondents propert! as anagric"lt"ral land1 )hich val"e ma! e ad@"sted in light of the improvements inthe 2"nicipalit! of 2aalacat# Gal"ing the propert! as a residential land %as thelo)er co"rts have done( is not the correct approach1 for reasons eplainedaove# It )o"ld also e contrar! to the social polic! of agrarian reform1 )hich isto free the tillers of the land from the ondage of the soil )itho"t deliveringthem to the ne) oppression of eoritant land val"ations# Note that in lands

ac"ired "nder RA 88<1 it is the farmer-eneficiaries )ho )ill "ltimatel! pa!the val"ations paid to the former land o)ners %&BP merel! advances thepa!ment(# / If the farmer-eneficiaries are made to pa! for lands val"ed asresidential lands %the val"ation for )hich is s"stantiall! higher than theval"ation for agric"lt"ral lands(1 it is not "nliel! that s"ch farmers1 "nale toeep "p )ith pa!ment amorti>ations1 )ill e forced to give "p their landholdingsin favor of the State or e driven to sell the propert! to other parties# :his ma! @"st ring the State right ac to the starting line )here the landless remainlandless and the rich ac"ire more landholdings from desperate farmers#

LB, &s Honeycom*HEL'; $e reiterated the mandator! application of the form"la in the applicaleDAR administrative reg"lations in &and Ban of the Philippines v# &im1 59 &andBan of the Philippines v# Heirs of Ele"terio .r">1 5< and &and Ban of the

Philippines v# Barrido# 58 In Barrido1 )e )ere eplicit in stating that7

$hile the determination of @"st compensation is essentiall! a @"dicial f"nctionvested in the R:. acting as a Special Agrarian .o"rt1 the @"dge cannot a"se hisdiscretion ! not taing into f"ll consideration the factors specificall! identified! la) and implementing r"les# Special Agrarian .o"rts are not at liert! todisregard the form"la laid do)n in DAR A#O# No# <1 series of ,00/1 eca"se"nless an administrative order is declared invalid1 co"rts have no option "t toappl! it# :he co"rts cannot ignore1 )itho"t violating the agrarian la)1 theform"la provided ! the DAR for the determination of @"st compensation#

(al!ation and ,ayment /#ection 3:0FORM# OF ,A)MEN$SE.# ,/# Gal"ation and 2ode of .ompensation# - :he &BP shall compensate the

lando)ner in s"ch amo"nt as ma! e agreed "pon ! the lando)ner and theDAR and &BP or as ma! e finall! determined ! the co"rt as @"st compensationfor the land#

Agrarian Reform O"tline Revie)er - Att!# .apanas - A2a$S Page <



:he compensation shall e paid in one of the follo)ing modes at the option ofthe lando)ner7

%,( .ash pa!ment1 "nder the follo)ing terms and conditions7%a( For lands aove fift! %<4( hectares1 insofar as the ecess hectarage isconcerned - :)ent!-five percent %5<( cash1 the alance to e paid ingovernment financial instr"ments negotiale at an! time#

%( For lands aove t)ent!-fo"r hectares and "p to fift! %<4( hectares - :hirt!percent %;4( cash1 the alance to e paid in government financial instr"mentsnegotiale at an! time#

%c( For lands t)ent!-fo"r %59( hectares and elo) - :hirt!-five percent %;<(cash1 the alance to e paid in government financial instr"ments negotiale atan! time#

%5( Shares of stoc in government-o)ned or controlled corporations1 &BPpreferred shares1 ph!sical assets or other "alified investments in accordance)ith g"idelines set ! the PAR.M

%;( :a credits )hich can e "sed against an! ta liailit!M

%9( &BP onds1 )hich shall have the follo)ing feat"res7

%a( 2aret interest rates aligned )ith 0,-da! treas"r! ill rates# :en percent%,4( of the face val"e of the onds shall mat"re ever! !ear from the date ofiss"ance "ntil the tenth %,4th( !ear7 Provided1 :hat sho"ld the lando)ner chooseto forego the cash portion1 )hether in f"ll or in part1 he shall e paidcorrespondingl! in &BP ondsM%( :ransferailit! and negotiailit!# S"ch &BP onds ma! e "sed ! thelando)ner1 his s"ccessors-in-interest or his assigns1 "p to the amo"nt of theirface val"e for an! of the follo)ing7

%i( Ac"isition of land or other real properties of the government1 incl"dingassets "nder the Assets Privati>ation Program and other assets foreclosed !government financial instit"tion in the same province or region )here the lands

for )hich the onds )ere paid are s it"atedM

%ii( Ac"isition of shares of stoc of government-o)ned or controlledcorporations or shares or stoc o)ned ! the government in privatecorporationsM

%iii( S"stit"tion for s"ret! or ail onds for the provisional release of acc"sedpersons1 or for performance ondsM

%iv( Sec"rit! for loans )ith an! government financial instit"tion1 provided the

proceeds of the loans shall e invested in an economic enterprise1 preferal! ina small and medi"m-scale ind"str!1 in the same province or region as the landfor )hich the onds are paidM

%v( Pa!ment for vario"s taes and fees to the government7 Provided1 :hat the"se of these onds for these p"rposes )ill e limited to a certain percentage ofthe o"tstanding alance of the financial instr"ment7 Provided1 f"rther1 :hat thePAR. shall determine the percentages mentioned aoveM

%vi( Pa!ment for t"ition fees of the immediate famil! of the original ondholderin government "niversities1 colleges1 trade schools and other instit"tionsM

%vii( Pa!ment for fees of the immediate famil! of the original ondholder ingovernment hospitalsM and

%viii( S"ch other "ses as the PAR. ma! from time to time allo)#In case of etraordinar! inflation1 the PAR. shall tae appropriate

meas"res to protect the econom!#

LB, &s 'ara*- the val"ation made ! PARAB )as re@ected ! the lando)ners1 After re-comp"tation "pon order of PARAD1 a reval"ated amo"nt )as made "t &os stillfo"nd it lo)# &os appealed to DARAB1# Pending resol"tion of their appeal &osinterposed a 2otion to $ithdra) Amended Gal"ation seeing the release to temof the amo"nt representing the difference et)een the initial val"e#

S.- the need to allo) the lando)ners to )ithdra) immediatel! the amo"ntdeposited in their ehalf1 pending final determination of )hat is @"st

compensation for their land- it is a an oppressive eercise of eminent domain if !o" do not allo))ithdra)

Agrarian Reform O"tline Revie)er - Att!# .apanas - A2a$S Page </



- it is "nnecessar! to disting"ish et)een provisional compensation"nder Section ,8 %e( and final compensation "nder Section ,/ for the p"rposesof eercising the lando)ners3 right to appropriate the same# :he immediateeffect in other sit"ations in the same1 the lando)ner is deprived of the "se andpossession of his propert! for )hich he sho"ld e fairl! and immediatel!compensated#

Heirs of LorenDo &s. LB,

- Petitioner are o)ners of landM first val"ation )as re@ected "t "pon re-comp"tation and order of RRAD1 the reval"ation )as accepted ! o)ners &BPfiled 2R "t denied1 &BP filed an opposition for determination of ?. )ith the R:.- Petitioner s"mit that &BP has no legal personalit!- SE. ,/1 clearl! states there sho"ld e a consens"s among- &BP is an indispensale part! in epropriation proceedings"nd9r RA88< and th"s has the legal personalit! to "estion the determination#

'AR &s Heirs of 'omingoFacts; :he late Angel :# Domingo %Domingo( is the registered o)ner of a 4#;954-hectare rice land sit"ated at 2acapaellag1 '"ima1 N"eva Eci@a1 covered ! :ransfer .ertificate of :itle No# N:-0,<#

On Octoer 5,1 ,051 Presidential Decree No# 5 5 %P#D# No# 5( )as iss"ed1p"rs"ant to )hich act"al tenant farmers of private agric"lt"ral lands devoted torice and corn )ere deemed as f"ll o)ners of the land the! till# :he land transferprogram "nder P#D# No# 5 )as s"se"entl! implemented ! Eec"tive OrderNo# 55/#

On April 581 54441 Domingo filed )ith the Regional :rial .o"rt %R:.( of '"ima1N"eva Eci@a a complaint for determination and pa!ment of @"st compensationagainst the &and Ban of the Philippines %&BP( and DAR#

Domingo opposed the said val"ation and claimed that the @"st compensation forthe s"@ect land sho"ld e comp"ted "sing the parameters set forth "nderRep"lic Act No# 88< 9 %R#A# No# 88<(#

:he &BP and DAR disp"ted Domingos val"ation and claimed that thedetermination of @"st compensation sho"ld e governed ! the provisions of P#D#No# 5 in relation to E#O# No# 55/#

I##?E7$hether the method set forth "nder R#A# No# 88< in the comp"tation of @"stcompensation ma! e applied to private agric"lt"ral lands taen ! thegovernment "nder the a"spices of P#D# No# 5 in relation to E#O# No# 55/#

HEL';nder the fact"al circ"mstances of this case1 the agrarian reform process is stillincomplete as the @"st compensation to e paid private respondents has !et to

e settled# .onsidering the passage of Rep"lic Act No# 88< %RA 88<( eforethe completion of this process1 the @"st compensation sho"ld e determined andthe process concl"ded "nder the said la)# Indeed1 RA 88< is the applicale la)1)ith PD 5 and EO 55/ having onl! s"ppletor! effect1 conformal! )ith o"rr"ling in Paris v# Alfeche#

It )o"ld certainl! e ine"itale to determine @"st compensation ased on theg"ideline provided ! PD 5 and EO 55/ considering the DARs fail"re todetermine the @"st compensation for a considerale length of time# :hat @"stcompensation sho"ld e determined in accordance )ith RA 88<1 and not PD 5or EO 55/1 is especiall! imperative considering that @"st compensation sho"ld ethe f"ll and fair e"ivalent of the propert! taen from its o)ner ! the

epropriator1 the e"ivalent eing real1 s"stantial1 f"ll and ample#

ontent and manner of compensation

Assoc. of small lando+ners &s Hon. #ec.

$e do not deal here )ith the traditional eercise of the po)er of eminentdomain# :his is not an ordinar! epropriation )here onl! a specific propert! ofrelativel! limited area is so"ght to e taen ! the State from its o)ner for aspecific and perhaps local p"rpose# $hat )e deal )ith here is a revol"tionar!ind of epropriation# :he epropriation efore "s affects all private agric"lt"rallands )henever fo"nd and of )hatever ind as long as the! are in ecess of themaim"m retention limits allo)ed their o)ners# S"ch a program )ill involve notmere millions of pesos# :he cost )ill e tremendo"s#

:he other modes1 )hich are lie)ise availale to the lando)ner at his option1are also not "nreasonale eca"se pa!ment is made in shares of stoc1 &BP




onds1 other properties or assets1 ta credits1 and other things of val"ee"ivalent to the amo"nt of @"st compensation#

:herefore1 pa!ment of the @"st compensation is not al)a!s re"ired to e madef"ll! in mone!#

,arties In&ol&ed /#ection 3:0

Land BanC &. A7 :he parties are DAR1 lando)ner and &BP# :he la) does not mention the

participation of farmer-eneficiar!#So consent of farmer-eneficiar! is not re"ired in estalishing proper

compensation#

Gol"ntar! offer %Section ,0(

Section ,0 provides for additional < cash pa!ment if &O vol"ntaril!offers land for sale#

Gol"ntar! land transfer %Secs# 54 and 5,(

How is 4L0 madeSec# 54 6 &O ma! enter into vol"ntar! arrangement for direct transfer to"alified eneficiaries "t s"@ect to g"idelines %i#e#1 all notices for G&: es"mitted to DAR )ithin ,st !ear of implementation of .ARP1 terms andconditions shall not e less favorale to transferee(#

Sec# 5, 6 direct pa!ment ma! e made in cash or ind ! ARB "nder termsm"t"all! agreed and )hich shall e inding "pon registration and approval !DAR#

Sec# 99 %5( 6 provides that PAR.O2 shall recommend to PAR. theadoption of direct pa!ment scheme# So1 AO W51 s# ,00< )as iss"ed7

Beneficiaries are determined ! DARM

Area to e transferred to ARB sho"ld not e less than the area )hich thegovt )o"ld other)ise ac"ireM

.&OA3s sho"ld ear proper annotations#

,ayment in interest in !st compensation

Apo Fr!its corp. &s A

Facts;

On Octoer ,51 ,00<1 AF. and HPI vol"ntaril! offered to sell the lands s"@ect ofthis case p"rs"ant to Rep"lic Act No# 88< %.omprehensive Agrarian Reform&a)1 or .AR&(# :he Department of Agrarian Reform %DAR( referred theirvol"ntar!-offer-to-sell %GOS( applications to &and Ban for initial val"ation# &andBan fied the @"st compensation at P,8<19/9#9hectare1 that is1P/81044105<#//1 for AF.1 and P,8919/1,/#,91 for HPI# :he val"ation )asre@ected1 ho)ever1 prompting &and Ban1 "pon the advice of DAR1 to opendeposit acco"nts in the names of the petitioners1 and to credit in said acco"nts

the s"ms of P5819401<90#/8 %AF.( and P9<19/,148#8 %HPI(# Both petitioners)ithdre) the amo"nts in cash from the acco"nts1 "t after)ards1 on Fer"ar!,91 ,001 the! filed separate complaints for determination of @"st compensation)ith the DAR Ad@"dication Board %DARAB(#

$hen DARAB did not act on their complaints for determination of @"stcompensation after more than three !ears1 the petitioners filed complaints fordetermination of @"st compensation )ith the Regional :rial .o"rt %R:.( in :ag"m.it!1 Branch 51 acting as a special agrarian co"rt %SA.(1 doceted as Agrarian.ases No# <9-5444 and No# <<-5444# S"mmonses )ere served on 2a! 5;1 5444to &and Ban and DAR1 )hich respectivel! filed their ans)ers on ?"l! 581 5444and A"g"st ,/1 5444# :he R:. cond"cted a pre-trial1 and appointed persons itconsidered competent1 "alified and disinterested as commissioners todetermine the proper val"ation of the properties#

:he R:. rendered its decision7

DEPAR:2EN: OF A'RARIAN REFOR2 andor &AND BANC OF :HE PHI&IPPINES1thr" its &and Gal"ation Office1 to pa! @ointl! and severall! the .ommissionersfees herein taed as part of the costs p"rs"ant to Section ,51 R"le 8 of the,00 R"les of .ivil Proced"re1 e"ivalent to1 and comp"ted at :)o and One-Half%5 ,5( percent of the determined and fied amo"nt as the fair1 reasonale and @"st compensation of plaintiffs land and standing crops pl"s interest e"ivalentto the interest of the 0,-Da! :reas"r! Bills from date of taCing "ntil f"llpa!mentM

I##?E;

$hether or not the interest )as validl! imposed#

HEL';




transfer of their lands to "alified eneficiaries s"@ect to the follo)ingg"idelines7%a( All notices for vol"ntar! land transfer m"st e s"mitted to the DAR )ithinthe first !ear of the implementation of the .ARP# Negotiations et)een thelando)ners and "alified eneficiaries covering an! vol"ntar! land transfer)hich remain "nresolved after one %,( !ear shall not e recogni>ed and s"chland shall instead e ac"ired ! the government and transferred p"rs"ant tothis Act#

%( :he terms and conditions of s"ch transfer shall not e less favorale to thetransferee than those of the governments standing offer to p"rchase from thelando)ner and to resell to the eneficiaries1 if s"ch offers have een made andare f"ll! no)n to oth parties#%c( :he vol"ntar! agreement shall incl"de sanctions for non-compliance !either part! and shall e d"l! recorded and its implementation monitored ! theDAR#

SE.# 5,# Pa!ment of .ompensation ! Beneficiaries nder Gol"ntar! &and :ransfer#- Direct pa!ment in cash or in ind ma! e made ! the farmer-eneficiar! to the lando)ner "nder terms to e m"t"all! agreed "pon ! othparties1 )hich shall e inding "pon them1 "pon registration )ith and approval! the DAR# Said approval shall e considered given1 "nless notice ofdisapproval is received ! the farmer-eneficiar! )ithin ;4 da!s from the date of

registration# In the event the! cannot agree on the price of the land1 theproced"re for comp"lsor! ac"isition as provided in Section ,8 shall appl!# :he&BP shall etend financing to the eneficiaries for p"rposes of ac"iring theland#

%apter (II

K?ALIFIE' BENEFIIARIE#%,( :he lands covered ! the .ARP shall e distri"ted as m"ch as possile tolandless residents of the same aranga!1 or in the asence thereof1 landlessresidents of the same m"nicipalit! in the follo)ing order of priorit!7 %a( agric"lt"ral lessees and share tenantsM %( reg"lar farm)orersM %c( seasonal farm)orersM

%d( other farm)orersM%e( act"al tillers or occ"pants of p"lic landsM%f( collectives or cooperatives of the aove eneficiariesM and

%g( others directl! )oring on the landM

%5( :he children of lando)ners )ho are "alified shall e given preference in thedistri"tion of the land of their parents#

%;( Act"al tenant-tillers in the landholding shall not e e@ected or removedtherefrom#

%9( Beneficiaries "nder Presidential Decree No#5 )ho have c"lpal! sold1

disposed of1 or aandoned their lands are dis"alified to ecome eneficiaries"nder the Program#

%<( A asic "alification of a eneficiar! shall e his )illingness1 aptit"de1 andailit! to c"ltivate and mae the land as prod"ctive as possile#%8( If1 d"e to the lando)ner3s retention rights or to the n"mer of tenants1lessees1 or )orers on the land1 there is not eno"gh land to accommodate an!or some of them1 the! ma! e granted o)nership of other lands availale fordistri"tion "nder the Act1 at the option of the eneficiaries#

%/( No "alified eneficiar! ma! o)n more than three %;( hectares of agric"lt"ralland# %Sec# 5;(

Section 55 of the .AR& does not limit "alified eneficiaries to tenants of the

lando)ners# :h"s1 the DAR cannot e deemed to have committed grave a"seof discretion simpl! eca"se its chosen eneficiaries )ere not tenants of P.P.I/'AR &s. ,olo ocon!t ,lantation o.8 In.8 et al.8 G.R. 31::8#eptem*er 48 99:0.

A)ard .eiling &imit %Section 5;(

SE.# 5;# Distri"tion &imit# - No "alified eneficiar! ma! o)n more than three%;( hectares of agric"lt"ral land#

A$ARD :O BENEFI.IARIES

O)nership of the eneficiar! shall e evidenced ! a .ertificate of &andO)nership A)ard1 )hich shall contain the restrictions and conditions

provided for in the Act1 and shall e recorded in the Register of Deedsconcerned and annotated on the .ertificate of :itle# %Sec# 59(

Iss"ance of .ARP Beneficiar! .ertificate




On 5 ?"ne ,00<1 petitioner ?"lian S# &er"do %&er"do(1 no) deceased andrepresented ! his son1 petitioner Re!naldo &# &er"do1 filed )ith the Office ofthe Provincial Agrarian Reform Ad@"dicator %PARAD( of :rece 2artires .it!1.avite1 an action 8 for the cancellation of the :.:.&OA in the name of &o!olaand the iss"ance of another for the one-half portion of the lot in &er"dos favor#

In a Decision dated ,/ Decemer ,00<1 the PARAD dismissed the case )itho"t

pre@"dice on the gro"nd that the case )as filed premat"rel!# On ,, 2arch ,0081&er"do re-filed the same action# /

&er"do alleged that he )as approached ! &o!ola sometime in ,0/0 to redeemthe lot1 )hich )as mortgaged ! &o!olas mother1 .ristina H"go1 to :rinidadBarreto# After &er"do redeemed the lot for P5<4#44 and a cavan of pala!1&o!ola again so"ght &er"dos help in otaining title to the lot in her name !sho"ldering all the epenses for the transfer of the title of the lot from hermother1 .ristina H"go# In echange1 &o!ola promised to give &er"do the one-half portion of the lot# :hereafter1 :.:.&OA No# 00/ )as iss"ed in favor of&o!ola# &o!ola then allegedl! eec"ted a Sin"mpaang Sala!sa! 0 dated 5/Decemer ,0/01 )aiving and transferring her rights over the one-half portion ofthe lot in favor of &er"do# :o reiterate her commitment1 &o!ola allegedl!eec"ted t)o more Sin"mpaang Sala!sa! ,4 dated , Decemer ,005 and ;

Decemer ,0051 committing herself to remove her ho"se constr"cted on thecorresponding one-half portion to e allotted to &er"do#

:hereafter1 &er"do ased &o!ola to compl! )ith her promise# Ho)ever1 &o!olaref"sed# &er"do so"ght the assistance of the Sangg"niang Baranga! of2ilagrosa1 .armona1 .aviteM the Philippine National Police %PNP( of .armona1.aviteM and the Department of Agrarian Reform to mediate# Ho)ever1 despitesteps taen to amical! settle the iss"e1 as evidenced ! certifications from thePNP and the aranga!1 there )as no amicale settlement# :h"s1 &er"do filed anaction against &o!ola#

In her Ans)er1 &o!ola maintained that &er"do )as the one )ho approached herand offered to redeem the lot and the release of the .&OA# &o!ola deniedpromising one-half portion of the lot as pa!ment for the transfer1 titling and

registration of the lot# &o!ola eplained that the lot )as her onl! propert! and it)as alread! eing occ"pied ! her children and their families#

I##?E;

:he main iss"e is )hether &er"do is entitled to the one-half portion of the lotcovered ! RA 88< on the asis of the )aiver and transfer of rights emodiedin the t)o Sin"mpaang Sala!sa!#

HEL';

A .ertificate of &and O)nership or .&OA is a doc"ment evidencing o)nership ofthe land granted or a)arded to the eneficiar! ! DAR1 and contains the

restrictions and conditions provided for in RA 88< and other applicale la)s#Section 5 of RA 88<1 as amended ! RA 0441 54 )hich provides for thetransferailit! of a)arded lands1 states7

SE.# 5#:ransferailit! of A)arded &ands# &ands ac"ired ! eneficiaries"nder this A.: ma! not e sold1 transferred or conve!ed ecept thro"ghhereditar! s"ccession1 or to the government1 or to the &BP1 or to other "alifiedeneficiaries for a period of ten %,4( !ears#

It is clear from the provision that lands a)arded to eneficiaries "nder the.omprehensive Agrarian Reform Program %.ARP( ma! not e sold1 transferred orconve!ed for a period of ,4 !ears# :he la) en"merate fo"r eceptions7 %,(thro"gh hereditar! s"ccessionM %5( to the governmentM ;( to the &and Ban of thePhilippines %&BP(M or %9( to other "alified eneficiaries# In short1 d"ring the

prohiitor! ,4-!ear period1 an! sale1 transfer or conve!ance of land reformrights is void1 ecept as allo)ed ! la)1 in order to prevent a circ"mvention ofagrarian reform la)s#

In the present case1 &er"do insists that he is entitled to one-half portion of thelot a)arded to &o!ola "nder the .ARP as pa!ment for sho"ldering all theepenses for the transfer of the title of the lot from &o!olas mother1 .ristinaH"go1 to &o!olas name# &er"do "sed the t)o Sin"mpaang Sala!sa! eec"ted! &o!ola alloting to him the one-half portion of the lot as asis for his claim#

&er"dos assertion m"st fail# :he la) epressl! prohiits an! sale1 transfer orconve!ance ! farmer-eneficiaries of their land reform rights )ithin ,4 !earsfrom the grant ! the DAR# :he la) provides for fo"r eceptions and &er"dodoes not fall "nder an! of the eceptions# In 2a!lem v# Ellano1 5, )e held that

the )aiver of rights and interests over landholdings a)arded ! the governmentis invalid for eing violative of agrarian reform la)s# .learl!1 the )aiver andtransfer of rights to the lot as emodied in the Sin"mpaang Sala!sa! eec"ted




! &o!ola is void for falling "nder the ,4-!ear prohiitor! period specified in RA88<#

NON-&AND :RANSFER S.HE2ES%,( &easehold Operations %&O(- lands )ithin the land o)ners3 retained areas

or lands not !et d"e for distri"tion are placed "nder leasehold toens"re farmers3 sec"rit! over the land the! till and pre-empt theirdisplacement )hile )aiting for the event"al distri"tion of the landM

%5( Prod"ction Profit Sharing %PPS(- :his scheme is an interim meas"re )hilethe lands o)ned or operated ! agric"lt"ral entities a)ait coverage"nder the .ARP# :here entities are companies mostl! involved in thecommercial prod"ction of r"er1 anana1 and pineappleM

%;( Stoc Distri"tion Option %SDO(# - nder this arrangement1 the farmersare entitled to dividends and other financial enefits and are alsoass"red of at least a representatives at the Board of Directors1management or eec"tive committee to protect the rights and interestof shareholdersM and

%9( .ommercial Farm Deferment %SFD(# 6 :his scheme provides corporatelando)ners of ne)l!-estalished commercial plantations eno"gh time torecover their investment efore s"ch agric"lt"ral lands are covered !.ARP# :he deferment period )as "p to ,00/# Pending final land transfer1ho)ever1 these corporations shall implement a prod"ction and profit-

sharing scheme in their farms# :he monitoring of non-land transfer activities ! the field offices of the DAR hasnot een given m"ch priorit!1 as there has een greater press"re for them todeliver their land ac"isition and distri"tion %&AD( targets#

%apter (III /orporate Farms0

#E. 43. orporate Lando+ners# - .orporate lando)ners ma! vol"ntaril!transfer o)nership over their agric"lt"ral landholdings to the Rep"lic of thePhilippines p"rs"ant to Section 54 hereof or to "alified eneficiaries1 "nders"ch terms and conditions consistent )ith this Act1 as the! ma! agree "pon1s"@ect to confirmation ! the DAR#pon certification ! the DAR1 corporations o)ning agric"lt"ral lands ma! givetheir "alified eneficiaries the right to p"rchase s"ch proportion of the capital

stoc of the corporation that the agric"lt"ral land1 act"all! devoted toagric"lt"ral activities1 ears in relation to the compan!s total assets1 "nder s"chterms and conditions as ma! e agreed "pon ! them# In no case shall thecompensation received ! the )orers at the time the shares of stocs are

distri"ted e red"ced# :he same principle shall e applied to associations1 )ithrespect to their e"it! or participation#

.orporations or associations )hich vol"ntaril! divest a proportion of their capitalstoc1 e"it! or participation in favor of their )orers or other "alifiedeneficiaries "nder this section shall e deemed to have complied )ith theprovisions of this Act7 Provided1 :hat the follo)ing condition are complied )ith7

%a( In order to safeg"ard the right of eneficiaries )ho o)n shares of stocs todividends and other financial enefits1 the oos of the corporation orassociation shall e s"@ect to periodic a"dit ! certified p"lic acco"ntantschosen ! the eneficiariesM%( Irrespective of the val"e of their e"it! in the corporation or association1 theeneficiaries shall e ass"red of at least one %,( representative in the oard ofdirectors1 or in a management or eec"tive committee1 if one eists1 of thecorporation or associationM%c( An! shares ac"ired ! s"ch )orers and eneficiaries shall have the samerights and feat"res as all other sharesM and%d( An! transfer of shares of stocs ! the original eneficiaries shall e void ainitio N&ESS said transaction is in favor of a "alified and registered eneficiar!)ithin the same corporation#

If )ithin t)o %5( !ears from the approval of this Act1 the land or stoc transferenvisioned aove is not made or reali>ed or the plan for s"ch stoc distri"tionapproved ! the PAR. )ithin the same period1 the agric"lt"ral land of thecorporate o)ners or corporation shall e s"@ect to the comp"lsor! coverage ofthis Act#

HLI &s ,RA

BA#I Facts; :HE HA.IENDA .O2PRISED 8199; HAS# IN ,0< :ABA.A&ERA SO&D :HE &AND :O :ADE.O O$NED BL :HE .O?AN.OS# 'SIS FINAN.ED :HE PR.HASE ON.ONDI:ION :HA: :HE &AND $I&& &:I2A:E&L BE SBDIGIDED AND SO&D :O :HE :ENAN:S#

IN ,0/4 'OG: FI&ED A: R:. 2ANI&A .ASE A'AINS: :ADE.O FOR I: :OSRRENDER :HE HA.IENDA :O 2AR %NO$ DAR( SO :HE &AND $I&& BEDIS:RIB:ED :O FAR2ERS# 2ANI&A R:. R&ED A'AINS: :ADE.O# :ADE.OAPPEA&ED :O .A# IN ,0// .A DIS2ISSED :HE APPEA& SB?E.: :O REGIGA& IF




:ADE.O FAI&S :O 'E: APPROGA& OF FAR2ERS OF S:O.C DIS:RIB:ION OP:ION%SDO( AND IF OP:ED BL FAR2ERS :ADE.O FAI&S :O I2P&E2EN: SDO# IN ,0// :ADE.O .REA:ED HA.IENDA &ISI:A IN. %H&I( AND :ADE.O BO'H:SHARES OF H&I IN EK.HAN'E OF :HE HA.IENDA &AND# :HE :O:A& SHARES$ERE 94414441444 $I:H PAR GA&E OF P94414441444#44# ,<414441444 SHARES$ERE FOR FAR2ERS AND 5<414441444 SHARES FOR O:HER S:O.CHO&DERS#FAR2ERS AND H&I EN:ERED IN:O S:O.C DIS:RIB:ION OP:ION A'REE2EN:

%SDOA( $HI.H PROGIDES :HA: FAR2ERS A'REE BE.ASE S.H SDO $I&&I2PROGE :HEIR &IGES AND :HEL $I&& 'E: 'REA:ER BENEFI:S# DAR APPROGEDSDOA# IN ,00< H&I APP&IED :O .ONGER: <44 HAS :O INDS:RIA& SE# .ONGERSION$S APPROGED# :HEN I: :RANSFERRED :HE <44 HAS :O .EN:ENNARLHO&DIN'S IN. $HI.H :RANSFERRED I: :O &IS:A INDS:RIA& PARC .ORP OR&IP.O# &IP.O .ONGELED SO2E &ANDS :O R.B. AS PAL2EN: FOR &OANS# INADDI:ION :O :HE <44 HAS SO&D :O &IP.O1 /4#<, HAS $AS EKPROPRIA:ED FORSE OF S.:EK# IN 544; FAR2ER 'ROPS FI&ED .ASE A: DAR FOR EI:HER RENE'O:IA:ION OFSDOA OR I:S REGO.A:ION ON 'ROND :HA: :HEIR &IGES DID NO: I2PROGEAND :HEL DID NO: 'E: FAIR SHARES IN :HE SA&E OF &ANDS :O &IP.O AND FOR

S.:EK SE# DAR .REA:ED :ASC FOR.E $HI.H RE.O22ENDED :O PAR.%PRESIDEN:IA& A'RARIAN REFOR2 .O.I&( :HA: :HE PREGIOS ORDERAPPROGIN' :HE SDO BE REGOCED# IN 544< PAR. REGOCED :HE SDO AND ORDERED :HE .O2P&SORLA.=ISI:ION OF :HE HA.IENDA FOR DIS:RIB:ION :O FAR2ERS# H&I $EN: :O :HE S. AND ASCED FOR :RO :O S:OP I2P&E2EN:A:ION OF PARC ORDER# IN5448 S. ISSED :RO# HEN.E :HE .ASE#KKKKKKKKKKKKKKKKKK

I##?E;H&I AR'ES :HA: PAR. IS $I:HO: A:HORI:L :O REGOCE :HE S:O.CDIS:RIB:ION P&AN %SDP(# :HE &A$ 'IGES PAR. :HE PO$ER :O APPROGDESDP# B: :HE &A$ DOES NO: PROGIDE :HA: I: .AN DISAPPROGE :HE SDP# IS

H&I3S AR'2EN: .ORRE.:

NO# IF PAR. $AS 'IGEN PO$ER :O APPROGE SDP1 I: HAS :HE PO$ER :OREGOCE I: BL :HE DO.:RINE OF NE.ESSARL I2P&I.A:ION# O:HER$ISE PAR.$O&D BE A :OO:H&ESS A'EN.L# On the post"late that the s"@ect @"risdiction is conferred ! la)1 H&I maintainsthat PAR. is )itho"t a"thorit! to revoe an SDP1 for neither RA 88< nor EO 550epressl! vests PAR. )ith s"ch a"thorit!# $hile1 as H&I arg"ed1 EO 550empo)ers PAR. to approve the plan for stoc distri"tion in appropriate cases1

the empo)erment onl! incl"des the po)er to disapprove1 "t not to recall itsprevio"s approval of the SDP after it has een implemented ! the parties#,;T0;T :o H&I1 it is the co"rt )hich has @"risdiction and a"thorit! to order therevocation or rescission of the PAR.-approved SDP#

HEL'$e disagree#nder Sec# ;, of RA 88<1 as implemented ! DAO ,41 the a"thorit! to approvethe plan for stoc distri"tion of the corporate lando)ner elongs to PAR.#Ho)ever1 contrar! to petitioner H&I3s post"re1 PAR. also has the po)er torevoe the SDP )hich it previo"sl! approved# It ma! e1 as "rged1 that RA 88<or other eec"tive iss"ances on agrarian reform do not eplicitl! vest the PAR.)ith the po)er to revoerecall an approved SDP# S"ch po)er or a"thorit!1ho)ever1 is deemed possessed ! PAR. "nder the principle of necessar!

implication1 a asic post"late that )hat is implied in a stat"te is as m"ch a partof it as that )hich is epressed#,9T09T$e have eplained that *ever! stat"te is "nderstood1 ! implication1 to containall s"ch provisions as ma! e necessar! to effect"ate its o@ect and p"rpose1 orto mae effective rights1 po)ers1 privileges or @"risdiction )hich it grants1incl"ding all s"ch collateral and s"sidiar! conse"ences as ma! e fairl! andlogicall! inferred from its terms#+,<T0<T F"rther1 *ever! stat"tor! grant ofpo)er1 right or privilege is deemed to incl"de all incidental po)er1 right orprivilege#,8T08T

'ordon v# Geridiano II is instr"ctive7 :he po)er to approve a license incl"des ! implication1 even if not epressl!granted1 the po)er to revoe it# B! etension1 the po)er to revoe is limited !the a"thorit! to grant the license1 from )hich it is derived in the first place#

:h"s1 if the FDA grants a license "pon its finding that the applicant dr"g storehas complied )ith the re"irements of the general la)s and the implementingadministrative r"les and reg"lations1 it is onl! for their violation that the FDAma! revoe the said license# B! the same toen1 having granted the permit "pon




his ascertainment that the conditions thereof as applied have eencomplied )ith1 it is onl! for the violation of s"ch conditions that the ma!or ma!revoe the said permit#,T0T %Emphasis s"pplied#(

Follo)ing the doctrine of necessar! implication1 it ma! e stated that theconferment of epress po)er to approve a plan for stoc distri"tion of theagric"lt"ral land of corporate o)ners necessaril! incl"des the po)er to revoe or

recall the approval of the plan# As p"lic respondents aptl! oserve1 to den! PAR. s"ch revocator! po)er )o"ldred"ce it into a toothless agenc! of .ARP1 eca"se the ver! same agenc! tasedto ens"re compliance ! the corporate lando)ner )ith the approved SDP )o"lde )itho"t a"thorit! to impose sanctions for non-compliance )ith it#,/T0/T$ith the vie) $e tae of the case1 onl! PAR. can effect s"ch revocation# :heDAR Secretar!1 ! his o)n a"thorit! as s"ch1 cannot pla"sil! do so1 as theacceptance andor approval of the SDP so"ght to e taen ac or "ndone is theact of PAR. )hose official composition incl"des1 no less1 the President as chair1the DAR Secretar! as vice-chair1 and at least eleven %,,( other departmentheads#,0T00T

K

$HA: IS :HIS DO.:RINE OF NE.ESSARL I2P&I.A:ION

$HA: IS I2P&IED IN A S:A::E IS AS 2.H A PAR: OF I: AS :HA: $HI.H ISEKPRESSED#54T09T EGERL S:A::E IS NDERS:OOD1 BL I2P&I.A:ION1 :O.ON:AIN A&& S.H PROGISIONS AS 2AL BE NE.ESSARL :O EFFE.:A:E I:SOB?E.: AND PRPOSE1 OR :O 2ACE EFFE.:IGE RI'H:S1 PO$ERS1 PRIGI&E'ESOR ?RISDI.:ION $HI.H I: 'RAN:S1 IN.&DIN' A&& S.H .O&&A:ERA& ANDSBSIDIARL .ONSE=EN.ES AS 2AL BE FAIR&L AND &O'I.A&&L INFERREDFRO2 I:S :ER2S#+5,T0<TFR:HER1 *EGERL S:A::ORL 'RAN: OF PO$ER1RI'H: OR PRIGI&E'E IS DEE2ED :O IN.&DE A&& IN.IDEN:A& PO$ER1 RI'H: ORPRIGI&E'E

I##?E

RESPONDEN: FAR2 AR'ES :HA: SE. ;, OF RA 88< $HI.H A&&O$S S:O.CDIS:RIB:ION INS:EAD OF &AND DIS:RIB:ION IS N.ONS:I::IONA& AS I:.ON:RAGENES SE.:ION 91 AR:# K,,, OF :HE .ONS:I::ION# IS :HISAR'2EN: .ORRE.: NO# :HE RE=IRE2EN:S FOR =ES:IONIN' :HE .ONS:I::IONA&I:L OF A &A$ARE NO: A&& .O2P&IED $I:H# :HESE RE=IRE2EN:S ARE7 %,( :HERE IS ANA.:A& .ASE OR .ON:ROGERSLM %5( :HA: :HE .ONS:I::IONA& =ES:ION IS

RAISED A: :HE EAR&IES: POSSIB&E OPPOR:NI:L BL A PROPER PAR:L OR ONE$I:H &O.S S:ANDIM AND %;( :HE ISSE OF .ONS:I::IONA&I:L 2S: BE :HE GERL &IS 2O:A OF :HE .ASE#;5T,4/T :HE FAR2ERS =ES:IONED :HE .ONSI::IONA&I:L OF R#A# 88< ON&L AF:ER,9 LEARS SIN.E :HE SDP $AS DRA$N AND I2P&E2EN:ED# I: IS :OO &A:E#A&SO1 :HE .ONS:I::IONA&I:L ISSE RE'ARDIN' :HE SDP $AS NO: :HE &IS:2O:A# I: $AS :HE I2P&E2EN:A:ION OF :HE SDP# FAR2 ass for the invalidation of Sec# ;, of RA 88<1 insofar as it affords thecorporation1 as a mode of .ARP compliance1 to resort to stoc distri"tion1 anarrangement )hich1 to FAR21 impairs the f"ndamental right of farmers andfarm)orers "nder Sec# 91 Art# KIII of the .onstit"tion#;;T,48T :o a more specific1 "t direct point1 FAR2 arg"es that Sec# ;, of RA 88<

permits stoc transfer in lie" of o"tright agric"lt"ral land transferM in fine1 thereis stoc certificate o)nership of the farmers or farm)orers instead of themo)ning the land1 as envisaged in the .onstit"tion# For FAR21 this modalit! ofdistri"tion is an anomal! to e ann"lled for eing inconsistent )ith the asicconcept of agrarian reform ingrained in Sec# 91 Art# KIII of the .onstit"tion#;9T,4TReacting1 H&I insists that agrarian reform is not onl! ao"t transfer of lando)nership to farmers and other "alified eneficiaries# It dra)s attention in thisregard to Sec# ;%a( of RA 88< on the concept and scope of the term *agrarianreform#+ :he constit"tionalit! of a la)1 H&I added1 cannot1 as here1 e attacedcollaterall!# :he instant challenge on the constit"tionalit! of Sec# ;, of RA 88< andnecessaril! its co"nterpart provision in EO 550 m"st fail as eplained elo)#$hen the .o"rt is called "pon to eercise its po)er of @"dicial revie) over1 and

pass "pon the constit"tionalit! of1 acts of the eec"tive or legislativedepartments1 it does so onl! )hen the follo)ing essential re"irements are firstmet1 to )it7%,( there is an act"al case or controvers!M




%5( that the constit"tional "estion is raised at the earliest possileopport"nit! ! a proper part! or one )ith loc"s standiM and %;( the iss"e of constit"tionalit! m"st e the ver! lis mota of the case#;<T,4/T Not all the foregoing re"irements are satisfied in the case at ar#

$hile there is indeed an act"al case or controvers!1 intervenor FAR21 composedof a small minorit! of 5 farmers1 has !et to eplain its fail"re to challenge theconstit"tionalit! of Sec# ;l of RA 88<1 since as earl! as Novemer 5,1 l0/0 )henPAR. approved the SDP of Hacienda &"isita or at least )ithin a reasonale timethereafter and )h! its memers received enefits from the SDP )itho"t so m"chof a protest# It )as onl! on Decemer 91 544; or ,9 !ears after approval of theSDP via PAR. Resol"tion No# /0-,5-5 dated Novemer 5,1 ,0/0 that said planand approving resol"tion )ere so"ght to e revoed1 "t not1 to stress1 ! FAR2or an! of its memers1 "t ! petitioner A2BA&A# F"rthermore1 the A2BA&Apetition did NO: "estion the constit"tionalit! of Sec# ;, of RA 88<1 "tconcentrated on the p"rported fla)s and gaps in the s"se"entimplementation of the SDP# Even the p"lic respondents1 as represented ! theSolicitor 'eneral1 did not "estion the constit"tionalit! of the provision# On theother hand1 FAR21 )hose 5 memers formerl! elonged to A2BA&A1 raised the

constit"tionalit! of Sec# ;, onl! on 2a! ;1 544 )hen it filed its S"pplemental.omment )ith the .o"rt# :h"s1 it too FAR2 some eighteen %,/( !ears fromNovemer 5,1 ,0/0 efore it challenged the constit"tionalit! of Sec# ;, of RA88< )hich is "ite too late in the da!# :he FAR2 memers slept on their rightsand even accepted enefits from the SDP )ith nar! a complaint on the alleged"nconstit"tionalit! of Sec# ;, "pon )hich the enefits )ere derived# :he .o"rtcannot no) e goaded into resolving a constit"tional iss"e that FAR2 failed toassail after the lapse of a long period of time and the occ"rrence of n"mero"sevents and activities )hich res"lted from the application of an alleged"nconstit"tional legal provision#It has een emphasi>ed in a n"mer of cases that the "estion ofconstit"tionalit! )ill not e passed "pon ! the .o"rt "nless it is properl! raisedand presented in an appropriate case at the first opport"nit!#;8T,40T FAR2 is1therefore1 remiss in elatedl! "estioning the constit"tionalit! of Sec# ;, of RA

88<# :he second re"irement that the constit"tional "estion sho"ld e raisedat the earliest possile opport"nit! is clearl! )anting# :he last "t the most important re"isite that the constit"tional iss"e m"st ethe ver! lis mota of the case does not lie)ise otain# :he lis mota aspect is not

present1 the constit"tional iss"e tendered not eing critical to the resol"tion ofthe case# :he "n!ielding r"le has een to avoid1 )henever pla"sile1 an iss"eassailing the constit"tionalit! of a stat"te or governmental act#;T,,4T If someother gro"nds eist ! )hich @"dgment can e made )itho"t to"ching theconstit"tionalit! of a la)1 s"ch reco"rse is favored#;/T,,,T 'arcia v# Eec"tiveSecretar! eplains )h!7&is 2ota the fo"rth re"irement to satisf! efore this .o"rt )ill "ndertae @"dicial revie) means that the .o"rt )ill not pass "pon a "estion of

"nconstit"tionalit!1 altho"gh properl! presented1 if the case can e disposed ofon some other gro"nd1 s"ch as the application of the stat"te or the general la)# :he petitioner m"st e ale to sho) that the case cannot e legall! resolved"nless the constit"tional "estion raised is determined# :his re"irement isased on the r"le that ever! la) has in its favor the pres"mption ofconstit"tionalit!M to @"stif! its n"llification1 there m"st e a clear and "ne"ivocalreach of the .onstit"tion1 and not one that is do"tf"l1 spec"lative1 orarg"mentative#;0T,,5T %Italics in the original#( :he lis mota in this case1 proceeding from the asic positions originall! taen !A2BA&A %to )hich the FAR2 memers previo"sl! elonged( and the S"pervisor!'ro"p1 is the alleged non-compliance ! H&I )ith the conditions of the SDP tos"pport a plea for its revocation# And efore the .o"rt1 the lis mota is )hether ornot PAR. acted in grave a"se of discretion )hen it ordered the recall of theSDP for s"ch non-compliance and the fact that the SDP1 as co"ched and

implemented1 offends certain constit"tional and stat"tor! provisions# :o e s"re1an! of these e! iss"es ma! e resolved )itho"t pl"nging into theconstit"tionalit! of Sec# ;, of RA 88<# 2oreover1 looing deepl! into the"nderl!ing petitions of A2BA&A1 et al#1 it is not the said section per se that isinvalid1 "t rather it is the alleged application of the said provision in the SDPthat is fla)ed#


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