541 Phil. 448
AZCUNA, J.:
Registered Owner | TCT No. | Lot No. | Area (Ha.) | Area Applied (Ha.) |
SACI | T-7207 | 1-C | 52.4365 | 52.4365 |
SACI | T -48807 (T-4807) | 2 | 181.3353 | 181.3353 |
SAC I | T -48808 (T-4808) | 3 | 281.0874 | 281.0874 |
SACI | T -48809 (T-4809) | 4 | 241.7880 | 241.7880 |
SAC I | T-48810 (T-4810) | 5 | 40.6738 | 40.6738 |
SACI | T -48811 (T-4811) | 6 | 137.0340 | 137.0340 |
SACI | T-48812 (T-4812) | 7 | 12.3265 | 12.3265 |
Nicasio Alcantara | T-(10885) T-44538 | 10 | 20.9149 | 20.9149 |
SACI | T-9210 | 2 | 12.1425 | 12.1425 |
Tomas Alcantara | T-14359 (T-1185) | 39 | 10.9390 | 10.9390 |
Nicasio Alcantara | Untitled | 53 | 5.0672 | 5.0672 |
ACIL Corporation | T-(41758) (T-4150) | 806 | 3.3115 | 3.3115 |
SACI | Untitled | 807 | 6.7871 | 6.7871 |
… The proponent also submitted another DA certification stating that 12 parcels of land (Lot Nos. 2, 3, 4, 5, 6, 7, 12, 807, 53, 10, 39 and 806) with an area of 816.7401 hectares, located at Maribulan, Alabel, Sarangani are part of expansion for urbanizing areas. Though discussed on several meetings, no decision was made on the application since the applicant was not able to comply with the documentary requirements and clarify the issues raised by the Committee.Petitioner filed a Motion for Reconsideration of the above decision but the same was denied by the Court of Appeals in a Resolution, dated September 24, 2004.
[I]n [the] 30 March 2000 Meeting of the PLUTC, the Committee deliberated again [on] the subject application and agreed to recommend the disapproval of 158.0672 hectares area planted to banana[s] and coconuts. The Committee noted that said portion of the property is still viable for agriculture, irrigated, with Notice of Coverage and with protest or opposition from SARBAI. The Committee also agreed to request the DAR to determine the metes and bounds of the area planted to banana[s] and coconuts vis-à-vis areas devoted to other enterprises. Relative to the rest of the area applied for conversion, the committee deferred its decision subject to the submission of a 5-year comprehensive development plan, showing among others, the schedule of development by phase, the specific lots involved and the corresponding proposed use.
…The Committee acceded to the request of SACI and deferred its recommendation to deny conversion of that portion of the property planted to banana[s] and coconut[s] pending submission of a manifesto or SACI’s proof of undertaking that it will compensate farm workers affected by showing, among others, the schedule of development by phase, the specific lots involved and the corresponding proposed use [of] the conversion, concurred by the workers/oppositors, noted by the MARO and duly notarized. The Committee also requested SACI to submit details of the pomelo farm in Malandag being offered as a replacement farm for the relocation of the farm workers. SACI was given a 30-day period to submit these documents.
SACI, however, failed to submit the oath of undertaking to pay disturbance compensation to affected workers being required by the Committee and as provided under DAR Administrative Order No. 01, Series of 1999. Instead, SACI submitted an undertaking executed by the affected workers stating that they are amenable to the package of benefits offered by the company. Nevertheless, those who executed the deed of undertaking did not represent the majority of the farm workers. Out of the 95 regular banana workers only 45 and eight (8) supervisors including four (4) workers who were not included in the workers’ master list of SACI executed a deed of undertaking. As regards the 105-hectare pomelo farm, SACI failed to affirm whether they are going to pursue their offer. Likewise, DAR Region XI reported that coverage of the same area is on-going, and a different group of potential beneficiaries have already been identified. Therefore, it could no longer be offered as a relocation site. Foregoing considered, the Committee, during its 18 August 2000 Meeting, sustained its earlier recommendation to deny the conversion of that portion of the property planted to bananas and coconuts.
With regard to the rest. of the area, the Committee deferred its decision subject to the delineation by the SACI of the total area that they can develop within the allowed five-year period. Likewise, the PLUTC is requesting the SACI to submit a revised five-year development plan that will show the schedule of development by phase, by year, and the proposed use for each parcel of land.
WHEREFORE, premises considered, it is hereby ordered that:SO ORDERED.[8]
- The application filed by the Sarangani Agricultural Company, Inc. (SACI), represented by Cynthia Adao-Prat, involving parcels of land planted to banana[s] and coconut[s] and with Notice of Coverage identified as TCT Nos. T-10885 (20.9149 ha.), T-14359 (10.9390 ha.), T-41718 (3.3115 ha.), OCT No. V-19574 or T-9210 (12.1425 ha.), Lot 807 (6.7871 ha.) and portion of P-V-125 (95.00 ha.) and [an] area covered by Lot 53 (5.0672 ha.) with an aggregate area of 154.622 [actually it is 154.1622] hectares is hereby DENIED. The Dar Regional Office of Region XI is hereby instructed to determine the metes and bounds of the area subject for distribution to the qualified FWBs.
- The resolution of the application involving the rest of the area applied for conversion is DEFERRED pending submission by the applicant of a revised five-year development plan indicating the specific use of each parcel of land.
WHEREFORE, premises considered, the present petition is hereby GIVEN DUE COURSE. Consequently, the assailed Decision and Order dated June 30, 2003 and September 12, 2003, respectively, of the Office of the President, as well as the Orders dated November 9, 2000 and August 28, 2002 of the DAR Secretary are hereby REVERSED and SET ASIDE insofar as the DAR directs the MARO of Alabel, Sarangani to proceed with the distribution of the banana and coconut areas subject of the June 16, 1998 Notice of Coverage. The Secretary of the Department of Agrarian Reform is hereby directed to issue a conversion order covering the aforesaid area under the terms and conditions as provided in pertinent guidelines of the department. As to the rest of the area applied for conversion, action on which has been deferred, the DAR Regional Office (DAR Region No. XI) is hereby DIRECTED to expedite the processing and evaluation of petitioners’ land use conversion application in accordance with the provisions of DAR AO No.7, Series of 1997, and DAR AO No. 01-99 whenever the provisions of the latter issuance are made applicable to those applications filed before its effectivity.Hence, this petition alleging that the Court of Appeals erred:
The DAR Secretary and all officers and employees acting on his behalf are hereby enjoined from proceeding with the distribution of petitioners’ lands under compulsory acquisition provided in Sec. 16 of R.A. No. 6657. Whatever actions already taken in pursuance of the June 16, 1998 Notice of Coverage under CARP are hereby nullified for DAR’s failure to observe due process therein.
No pronouncement as to costs.
SO ORDERED.[11]
With regard to the first issue on due process, this Court holds that, under the circumstances, a notice of coverage is not an indispensable requirement before DAR can acquire the subject lots or commercial farms, which are covered by a deferment period[12] under the Comprehensive Agrarian Reform Law (CARL) or R.A. No 6657 upon its effectivity on June 15, 1998. The pertinent provision of the law states:IWHEN IT RULED THAT THE JUNE 16, 1998 NOTICE OF COVERAGE WAS ILLEGAL AS DAR ALLEGEDLY FAILED TO OBSERVE DUE PROCESS.IIWHEN IT RULED THAT DAR SHOULD USE THE COMPREHENSIVE LAND USE PLANS AND ACCOMPANYING ORDINANCE OF THE LOCAL SANGGUNIAN AS PRIMARY REFERENCE SO AS NOT TO DEFEAT THE VERY PURPOSE OF THE LOCAL GOVERNMENT UNIT (LGU) CONCERNED IN RECLASSIFYING CERTAIN AREAS TO ACHIEVE SOCIAL AND ECONOMIC BENEFITS IN PURSUANCE TO ITS MANDATE TOWARDS THE GENERAL WELFARE.IIIWHEN IT FAILED TO TAKE INTO CONSIDERATION THE BASIC PROVISIONS AND PRINCIPLES OF LAW WITH SPECIAL ATTENTION TO THE REQUIREMENTS OR PRECONDITIONS FOR LAND CLASSIFICATION/CONVERSION AND THE BASIC MANDATE OF THE CARP.
Sec. 11. Commercial Farming. – Commercial farms, which are private agricultural lands devoted to saltbeds, fruit farms, orchards, vegetables and cut-flower farms, cacao, coffee and rubber plantations, shall be subject to immediate compulsory acquisition and distribution after ten (10) years from the effectivity of this Act.[13] In the case of new farms, the ten-year period shall begin from the first year of commercial production and operation, as determined by the DAR. During the ten-year period, the Government shall initiate steps necessary to acquire these lands, upon payment of just compensation for the land and the improvements thereon, preferably in favor of organized cooperatives or associations, which shall thereafter manage the said lands for the workers-beneficiaries. (AS amended by R.A. 7881; Rules and regulations on the acquisition, valuation compensation and distribution of deferred commercial farms – DAR AO No. 09, s. 1998)DAR Administrative Order No.9, Series of 1998,[14] on the Rules and Regulations on the Acquisition, Valuation, Compensation and Distribution of Deferred Commercial Farms applies to all commercial farms as defined under Section 11 of R.A. No. 6657:[15]
SEC. 2. Statement of Policies. – The acquisition, valuation, compensation, distribution, operation and management of deferred commercial farms shall be governed by the following policies:The process of acquisition of these commercial farms by DAR is specifically provided under Article III, Section 9 of the above administrative order, to wit:
(a) All commercial farms whose deferment expired as of June 15, 1998 shall be subject to immediate acquisition and distribution under the Comprehensive Agrarian Reform Program (CARP). Those whose deferments have yet to expire will be acquired and distributed only upon expiration of their respective deferment period as originally determined by the Department of Agrarian reform (DAR), or earlier if the DAR determines that the purpose for which it was deferred no longer exists and revokes its deferment;
SEC. 9. Procedure for Acquisition.—The acquisition of deferred commercial farms shall be governed by the following procedures:Clearly, it was unnecessary for petitioner to issue a notice of coverage to respondents in order to place the properties in question under CARP coverage. Hence, the contention by respondents that due process was not duly observed by petitioner must fail. Accordingly, the denial of the application for conversion must be upheld.
(a) Voluntary Offer to Sell/Compulsory Acquisition
1) The Order of Deferment previously issued over the landholding shall serve, upon expiration of the deferment period of the subject commercial farm, as the Notice of Coverage,[16] supported by the Compliance Work Program and Summary of Exceptions (Form A) originally submitted with the approved deferment application. However, for record purposes, the landowner shall be served a Notice of Expiration of Deferment (Annex 2) which shall contain a reminder of his right of retention, should he wish to exercise the same;
2) In general, the procedure for acquisition shall follow DAR Administrative Order No. 01, Series of 1998, as amended by DAR Administrative Order No. 02, Series of 1996, entitled “Revised Rules and Procedures governing the Acquisition of Agricultural Lands subject of Voluntary offer to Sell and Compulsory Acquisition Pursuant to Republic Act No. 6657,” subject to certain modifications intended to expedite the process as provided herein.
In connection with the afore-stated administrative order, Section 20 of Republic Act No. 7160, otherwise known as the Local Government Code of 1991, empowers the local government units to reclassify agricultural lands:
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- General Guidelines
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b) Conversion may be allowed if at the time of the application, the lands are reclassified as commercial, industrial, residential or other non-agricultural in the new or revised town plans promulgated by the local government unit (LGU) and approved by the Housing and Land Use Regulatory Board (HLURB) or by the Sangguniang Panlalawigan (SP) after June 15, 1988, in accordance with Section 20 of R.A. No. 7160, as implemented by MC No. 54, and Executive Order No. 72, Series of 1993[17] of the Office of the President.
Sec. 20. Reclassification of Lands. - (a) A city or municipality may, through an ordinance passed by the Sanggunian after conducting public hearings for the purpose, authorize the reclassification of agricultural lands and provide for the manner of their utilization or disposition in the following cases: (1) when the land ceases to be economically feasible and sound for agricultural purposes as determined by the Department of Agriculture or (2) where the land shall have substantially greater economic value for residential, commercial, or industrial purposes, as determined by the Sanggunian concerned: Provided, That such reclassification shall be limited to the following percentage of the total agricultural land area at the time of the passage of the ordinance:
(1) For highly urbanized and independent component cities, FIFTEEN PERCENT (15%);
(2) For component cities and first to third class municipalities, ten percent (10%), and
(3) For fourth to sixth class municipalities, five percent (5%); Provided further, That agricultural lands distributed to agrarian reform beneficiaries pursuant to Republic Act No. 6657, otherwise known as “The Comprehensive Agrarian Reform Law,” shall not be affected by the said reclassification and the conversion of such lands into other purposes shall be governed by Section 65 of said Act.
SECTION 4. Use of the comprehensive land use plans[19] and ordinances as primary reference documents in land use conversions. - Pursuant to RA 6657 and EO 129-A, actions on applications for land use conversions on individual landholdings shall remain as the responsibility of DAR, which shall utilize as its primary reference documents the comprehensive land use plans and accompanying ordinance passed upon and approved by the LGUs concerned, together with the National Land Use Policy.Hence, with regard to agricultural lands that have been reclassified for non-agricultural uses by the local government unit concerned, the CA is correct in declaring that DAR should refer to the comprehensive land use plans and the ordinances of the Sanggunian in assessing land use conversion applications, thus:
Construing Sec. 20 of the Local Government Code and the subsequent administrative issuances implementing the same, we are of the opinion that while the DAR retains the responsibility for approving or disapproving applications for land use conversion filed by individual landowners on their landholdings, the exercise of such authority should be confined to compliance with the requirements and limitations under existing laws and regulations, such as the allowable percentage of agricultural [area] to be reclassified, ensuring sufficient food production, areas non-negotiable for conversion and those falling under environmentally critical areas or highly restricted for conversion under the NIPAS law. Definitely, the DAR’s power in such cases may not be exercised in such a manner as to defeat the very purpose of the LGU concerned in reclassifying certain areas to achieve social and economic benefits in pursuit of its mandate towards the general welfare. Precisely, therefore, the DAR is required to use the comprehensive land use plans and accompanying ordinances of the local Sanggunian as primary references in evaluating applications for land use conversion filed by individual landowners. In this case, petitioners have already complied with the standard requirements laid down under the applicable rules and regulations of the DAR....[20]The conversion of agricultural lands into non-agricultural uses shall be strictly regulated and may be allowed only when the conditions prescribed under R.A. No. 6657 are present.[21] In this regard, the Court agrees with the ratiocination of the CA that DAR’s scope of authority in assessing land use conversion applications is limited to examining whether the requirements prescribed by law and existing rules and regulations have been complied with. This holds true in the present case where, because of the creation of the Province of Sarangani and in view of its thrust to urbanize, particularly its provincial capital which is the Municipality of Alabel, the local government has reclassified certain portions of its land area from agricultural to non-agricultural. Thus, to reiterate, in accordance with E.O. No. 72, Series of 1993, and subject to the limitations prescribed by law, DAR should utilize the comprehensive land use plans in evaluating the land use conversion application of respondents whose lands have already been reclassified by the local government for non-agricultural uses.