G.R. No. 191545

SECOND DIVISION

March 29, 2017

G.R. No. 191545

HEIRS OF AUGUSTO SALAS, JR., represented by TERESITA D. SALAS, Petitioners
vs
MARCIANO CABUNGCAL, SERAFIN CASTILLO, DOMINGO M. MANTUANO, MANOLITO D. BINAY, MARIA M. CABUNGCAL, REMON C. RAMOS, NENITA R. BINAY, DOMINGO L. MANTUANO, NENITA L. GUERRA, ROSALINA B. MANTUANO, DOMINADOR C. CASTILLO, LEALINE M. CABUNGCAL, ALBERTO CAPULOY, ALFREDO VALENCIA, MARIA L. VALENCIA, GERARDO GUERRA, GREGORIO M. LATAYAN, REMEDIOS M. GUEVARRA, JOSE C. BASCONCILLO, APLONAR TENORIO, JULIANA V. SUMAYA, ANTONIO C. HERNANDEZ, VERONICA MILLENA, TERSITA D.C. CASTILLO, DANTE M. LUSTRE, EFIPANIO M. CABUNGCAL, NESTOR V. LATINA, NENITA LLORCA, ROMEL L. LOMIDA, MARILOU CASTILLO, RUBEN CASTILLO, ARNOLD MANALO, RICARDO CAPULOY, AMELITA CALIMBAS, ROSALITA C. ELFANTE, LANIE CAMPIT, RODILLO RENTON, RUSTICO AMAZON A, LUZVIMINDA DE OCAMPO, DANILO DE OCAMPO, JOSE DARWIN LISTANCO, NEMESIO CABUNGCAL, RENATO ALZATE, BERNARDO AQUINO, RODRIGO CABUNGCAL, CHON A G. AGUILA, ROSA M. MANTUANO, ALLAN M. LUSTRE, FELIPE LOQUEZ, DOMINGO MANALO, DOMINADOR M. MANALO, JENNIFER H. MALIBIRAN, FELIXBERTO RITAN, LEONILA FERRER, TOMAS M. LORENO, CELSO VALENCIA, CONSTANTINO LUSTRE, REYNALDO C. MALIBIRAN, ORLANDO C. MALIBIRAN, RICARDO LLAMOSO AND SANTA DIMAYUGA, represented by JOSE C. BASCONILLO, Respondents

D E C I S I O N

LEONEN, J.:

Republic Act No. 6657 or the Comprehensive Agrarian Reform Law generally covers all public and private agricultural lands.

This resolves a Petition for Review on Certiorari under Rule 45 of the 1997 Rules of Civil Procedure. The Petition1 is an offshoot of the Court of Appeals Second Division's Decision2 dated October 26, 2009 and Resolution3 dated March 1, 2010 in the case docketed as CA-G.R. SP No. 103703.

Augusto Salas, Jr. (Salas) was the registered owner of a vast tract of agricultural land4 traversing five barangays-Pusil, Bulacnin, Balintawak, Marawoy, and Inosluban-in Lipa City, Batangas.5 Respondents Marciano Cabungcal, Serafin Castillo, Domingo M. Mantuano, Manolito D. Binay, Maria M. Cabungcal, Remon C. Ramos, Nenita R. Binay, Domingo L. Mantuano, Nenita L. Guerra, Rosalina B. Mantuano, Dominador C. Castillo, Lealine M. Cabungcal, Alberto Capuloy, Alfredo Valencia, Maria L. Valencia, Gerardo Guerra, Gregorio M. Latayan, Remedios M. Guevarra, Jose C. Basconcillo, Aplonar Tenorio, Juliana V. Sumaya, Antonio C. Hernandez, Veronica Millena, Tersita D.C. Castillo, Dante M. Lustre, Efipanio M. Cabungcal, Nestor V. Latina, Nenita llorca, Romel L. Lomida, Marilou Castillo, Ruben Castillo, Arnold Manalo, Ricardo Capuloy, Amelita Calimbas, Rosalita C. Elfante, Lanie Campit, Rodillo Renton, Rustico Amazona, Luzviminda De Ocampo, Danilo De Ocampo, Jose Darwin Listanco, Nemesio Cabungcal, Renato Alzate, Bernardo Aquino, Rodrigo Cabungcal, Chona G. Aguila, Rosa m. Mantuano, Allan M. Lustre, Felipe Loquez, Domingo Manalo, Dominador M. Manalo, Jennifer H. Malibiran, Felixberto Ritan, Leonila Ferrer, Tomas M. Lorena, Celso Valencia, Constantino Lustre, Reynaldo C. Malibiran, Orlando c. Malibiran, Ricardo Llamoso and Santa Dimayuga, represented by Jose C. Basconillo were tenant farmers in his agricultural land6 and are agrarian reform beneficiaries under the Comprehensive Agrarian Reform Program.

According to Transfer Certificate of Title (TCT) No. T-2807,7 the agricultural land of Salas had an aggregate area of 148.4354 hectares (roughly 1.5 million square meters),8 covering Lots 1 and 2.9 Lot 1 spanned 56.1361 hectares,10 while Lot 2 spanned 92.2993 hectares.11

Under Section 312 of Republic Act No. 2264,13 the applicable law at that time, municipal and city councils were empowered to adopt zoning and subdivision ordinances or regulations, in consultation with the National Planning Commission.

On February 19, 1977, then President Ferdinand Marcos created the National Coordinating Council for Town Planning, Housing and Zoning (National Coordinating Council) to prepare and oversee all government town p1ans, housing, and zoning measures.14

After a year, the National Coordinating Council was dissolved and replaced by the Human Settlements Regulatory Commission.15 Under Letter of Instruction No. 729, the power of the local government to convert or reclassify agricultural lands became subject to the approval of the Human Settlements Regulatory Commission.16

The Human Settlements Regulatory Commission was tasked to "[r]eview, evaluate and approve or disapprove comprehensive land use development plans and zoning ordinances of local government[ s]."17

On December 2, 1981, the Human Settlements Regulatory Commission issued Resolution No. 35,18 approving the Town Plan/Zoning Ordinance of Lipa City, Batangas.19 Pursuant to the approved town plan of Lipa City, Salas' agricultural land was reclassified as a farmlot subdivision20 for cultivation, livestock production, or agro-forestry.21

Sometime in May 1987, Salas entered into an Owner-Contractor Agreement with Laperal Realty Corporation (Laperal Realty) for the development, subdivision, and sale of his land.22

On November 17, 1987, the Human Settlements Regulatory Commission, now Housing and Land Use Regularoty Board (HLURB),23 issued Development Permit No. 7-0370, granting Laperal Realty a permit for a Nature Farmlots subdivision.24

Salas subdivided Lot 1 into Lots A to C under Psd-04-0262541,25 and Lot 2 into Lots A to K under Psd-04-0262542.26 A total of 14 subdivided lots were titled in his name, as follows:27

Former Lot 1 Description Area in square meters New Titles Issued

Lot A (Bgy. Inosluban) 234,967 (23.4967 ha.) TCT No. 67660

Lot B (Bgy. Inosluban) 9,366 (.9366 ha.) TCT No. 67661

Lot C (Bgy. Marawoy) 317,028 (31.7028 ha.) TCT No. 67662

Total 561,361 (56.1361 ha.)

Former Lot 2 Description Area in square meters New Titles Issued

Lot A (Bgy. Balintawak) 3,058 (.3058 ha.) TCT No. 67663

Lot B (Bgy. Balintawak) 90,587 (9.0587 ha.) TCT No. 67664

Lot C (Bgy. Bulacnin) 2,925 (.2925 ha.) TCT No. 67665

Lot D (Bgy. Bulacnin) 75,934 (7.5934 ha.) TCT No. 67666

Lot E (Bgy. Bulacnin) 13,909 (1.3909 ha.) TCT No. 67667

Lot F (Bgy. Pusil) 106,509 (10.6509 ha.) TCT No. 67668

Lot G (Bgy. Pusil) 60,121 (6.0121 ha.) TCT No. 67669

Lot H (Bgy. Pusil) 89,202 (8.9202 ha.) TCT No. 67670

Lot I (Bgy. Pusil) 9,086 (.9086 ha.) TCT No. 67671

Lot J (Bgy. Pusil) 460,633 (46.0633 ha.) TCT No. 67672

Lot K (Bgy. Pusil) 11,029 (1.1029 ha.) TCT No. 67673

Total 922,993 (92.2993 ha.)

Under Psd-04-027665, Salas further subdivided Lot J into 23 smaller lots, with areas ranging from .1025 to 2.1663 hectares each.28 Then, he consolidated Lots F, G, and H and subdivided them into 1 7 smaller lots under Psd-04-003573, with areas ranging from .1546 to 2.0101 hectares each.29

The transfer certificates of title for these subdivided lots were all issued in Salas' name.30

Meanwhile, respondents continued to farm on his landholdings.31

On June 10, 1988, Republic Act No. 665732 was signed into law and became effective on June 15, 1988.33 The law sought to expand the coverage of the government's agrarian reform program.34 Salas' landholdings were among those contemplated for acquisition and distribution to qualified farmer beneficiaries.35

Before HLURB, Salas applied for a permission to sell his subdivided lots.36 On July 12, 1988, HLURB issued a License to Sel137 Phase 1 of the farmlot subdivision, consisting of 31 lots.38

From July 12, 1988 to October 1989, Laperal Realty sold unspecified portions of the subdivided lots.39

Salas also executed in favor of Laperal Realty a Special Power of Attorney "to exercise general control, supervision and management of the sale of his land[holdings ]".40

On June 10, 1989, Salas went on a business trip to Nueva Ecija and never came back.41

Pursuant to the Special Power of Attomey,42 Laperal Realty subdivided Salas' property and sold unspecified portions of these to Rockway Real Estate Corporation and to South Ridge Village, Inc. on February 22, 1990, as well as to spouses Thelma and Gregorio Abrajano, to Oscar Dacillo, and to spouses Virginia and Rodel Lava on June 27, 1991.43

The sale of these lots resulted in only 82.5569 hectares of the original 148.4354 hectares unsold and remaining under Salas' name,44 namely, Lots A to C (from the former Lot 1) and Lots B and J-7 to J-18 (from the former Lot 2), totaling 16 lots. Thus:45

Salas' remaining lots Area (in hectares) TCT No.

Lot A 23.4967 67660

Lot B 0.9366 67661

Lot C 31.7028 67662

Lot B 9.0587 67664

Lot J-7 1.2159 68223

Lot J-8 1.0757 68224

Lot J-9 1.2158 68225

Lot J-10 1.3356 68226

Lot J-11 1.0000 68227

Lot J-12 1.0000 68228

Lot J-13 1.4802 68229

Lot J-14 2.0443 68230

Lot J-15 1.8060 68231

Lot J-16 2.1663 68232

Lot J-17 1.5454 68233

Lot J-18 1.4769 68234

Total 82.5569 hectares

Petitioners Heirs of Salas assailed the inclusion of their landholdings, i.e. the 16 lots, under the Comprehensive Agrarian Reform Program.46 They filed protest letters before the Department of Agrarian Reform on January 8, 1991, and before the Department of Agrarian Reform Adjudication Board on April 12, 1991.47

On May 31, 1993, before the protests were resolved, the Municipal Agrarian Reform Officer of Lipa City sent a Notice of Coverage48 for the landholdings that would be subject to acquisition and distribution to qualified farmer beneficiaries.

Subsequently, the Department of Agrarian Reform denied petitioners' protest for lack of merit, while the Department of Agrarian Reform Adjudication Board dismissed it for lack of jurisdiction.49

The Notice of Land Valuation and Acquisition was sent on December 28, 1993.50

Between 1995 and 1996, agrarian reform beneficiaries were given Certificates of Land Ownership Award over portions of Salas' landholdings, covering a total area of about 40.8588 hectares.51

Thirteen (13) lots consisting of Lot A (from the former Lot 1) and Lots J-7 to J-18 (from the former Lot 2) were distributed to agrarian reform beneficiaries.52 The lots were registered in their names, as follows:53

Lot Former TCT No. Agrarian Reform Beneficiaries Area (has.) CLOANo.

Lot A 67660 Romeo Mantuano 0.0252 00189533

Respondent Rustico G. Amazona 0.0277

Jaime Latayan 0.0308

Rogelio Q. Valencia 0.0252 00189534

Jose B. Guerra 0.0359 00189535

Respondent Gerardo Guerra 0.0327 00189536

Alberto B. Guerra 0.0384 00189537

Respondent Nenita M. Llorca 0.0457 00189538

Respondent Maria L. Valencia 0.0383 00189539

(Church/basketball court) 0.0843

Respondent Marciano V. Cabungcal 0.0686 00189542

Ernesto Latayan 0.0509

Feliciano Cuenca 0.0578

Respondent Gregorio M. Latayan 0.0509 00189541

Francisco Cabungcal 0.0696 00189540

Antonina Mantuano 0.0729

Lorenzo Ritan 0.0934

Bernardo P. Loza 0.0678 00189543

Respondent Domingo M. Manalo 0.5979 00189544

Eduardo Castillo 0.5979 00189545

Respondent Nestor V. Latina 1.1958 00189546

Romeo Mantuano 1.1958

Respondent Alfredo L. Valencia 1.1958 00189547

Sergio I. Valencia 1.1959 00189548

Manuel L. Castillo 1.1958 00189550

Respondent Nenita M. Llorca 1.1959 00189551

Jose V. Malibiran 1.1959 00189552

Alberto B. Guerra 1.1958 00189553

Jose B. Guerra 1.1958 00189554

Respondent Gregorio M. Latayan 1.1957 00189555

Rustico O. Roxas 1.1959 00189556

Dominador C. Castillo 0.5979 00189557

Nemesio V. Cabungcal 0.5957 00189558

Francisco V. Cabungcal 1.1951 00189559

Marciano V. Cabungcal 1.1958 00189560

Mario Castillo 1.1985 00189561

Mario Castillo 1.1958 00189562

Rosemarie C. De Guzman 0.5976 00189563

Rosemarie C. De Guzman 0.5976 00189563

Ronnie D. Binay 0.5976 00189564

Lot J-7 68223 Jaime and Clemente Latayan 1.2159 00305426

Lot J-8 68224 Amado Conrado Latayan and Clemente Latayan 1.0757 00305427

Lot J-9 68225 Amado Conrado Latayan and Clemente Latayan 1.2158 00305428

Lot J-10 68226 Candido L. Amazon, et al. 1.3356 00305429

Lot J-11 68227 Ernesto M. and Diomedes H. Latayan 1 00305430

LotJ-12 68228 Ernesto M. Latayan 1 00305431

LotJ-13 68229 1.4802

LotJ-14 68230 Conchita M. Latayan 2.0443 00305417

Lot J-15 68231 Eugenia v. Latina and Conchita M. Latayan 1.8060 00305433

LotJ-16 68232 Eugenia v. Latina and Gabino Latayan 2.1663 00305418

Gabino Latayan 1.5454 00305419

Gabino Latayan 1.4769 00305434

Total 40.8588

Hectares

The 14th lot, Lot C from the former Lot 1, consisting of 31.7028 hectares, was also distributed to the beneficiaries.54

Thus, of the 16 lots unsold and remaining under Salas' name,55 14 lots were awarded to agrarian reform beneficiaries.56 Only two lots remained with Salas: 9.0587 hectares (Lot B from the former Lot 2) and 9.3864 (Lot B from the former Lot 1).57

Meanwhile, the 17^th lot, Lot C from the former Lot 2, 0.2925 hectares, was designated as a school site;58 thus, it was not included in the scope of the agrarian reform program.59

On December 8, 1995, before the Department of Agrarian Reform Adjudication Board, an action was filed for the cancellation of the Certificates of Land Ownership Award, with a prayer for the issuance of a temporary restraining order to enjoin the distribution of their landholdings to qualified farmer beneficiaries.60

By 1996, Salas, Jr. had already been missing for more than seven (7) years.61 On August 6, 1996, Salas' wife, Teresita Diaz Salas (Teresita), petitioned the court to declare him presumptively dead.62 The court granted the petition on December 12, 1996,63 and Teresita was appointed as administrator of his estate.64

In 1997, the Department of Agrarian Reform Adjudication Board denied petitioners' action for the cancellation of respondents' Certificates of Land Ownership Award.65

On July 29, 1997, the Estate of Salas, with Teresita as the administrator, filed an Application for Exemption/Exclusion from the Comprehensive Agrarian Reform Program for the 17 lots before the Department of Agrarian Reform.66 This was allegedly not acted upon.67

Meanwhile, the Center for Land Use, Policy, Planning, and Implementation II sought for a clarification with the HLURB regarding the definition of a farmlot subdivision.68 On July 16, 1998, then HLURB Commissioner Francisco L. Dagnalan stated that a farmlot subdivision is a "planned community intended primarily for intensive agricultural activities secondarily for housing."69 Such farmlot must be "located in the fringes of the urban core of cities and municipalities."70

On April 29, 2001,71 the Estate of Salas again filed an application for exemption from the coverage of the Comprehensive Agrarian Reform Program for the 17 parcels of land before the Department of Agrarian

Reform Center for Land Use, Policy, Planning, and Implementation II.72

Petitioners prayed that an aggregate area of 82.8494 hectares be exempted from the Comprehensive Agrarian Reform Program.73 Located in Barangays

Bulacnin and Inosluban-Maraouy, Lipa City,74 these lots were as follows:75

Lots Area (has.) TCT No.

From the former Lot 1 (subdivided under Psd-04-0262541) 1. Lot A 23.4967 67660

2. Lot B 0.9366 67661

3. Lot C 31.7028 67662

From the former Lot 2 (subdivided under Psd-04-0262542) 4. Lot B 9.0587 67664

5. Lot C 0.2925 67665

6. LotJ-7 1.2159 68223

7. LotJ-8 1.0757 68224

8. Lot J-9 1.2158 68225

9. LotJ-10 1.3356 68226

10. Lot J-11 1.0000 68227

11. Lot J-12 1.0000 68228

12. Lot J-13 1.4802 68229

13. Lot J-14 2.0443 68230

14. Lot J-15 1.8060 68231

15. Lot J-16 2.1663 68232

16. Lot J-17 1.5454 68233

17. Lot J-18 1.4769 68234

The Estate of Salas claimed that the property had been reclassified as non-agricultural prior to the effectivity of Republic Act No. 6657.76 It anchored the alleged exclusion of the 17 lots on Department of Justice Opinion No. 44, series of 1990.77

Department of Justice Opinion No. 44 states that the Department of Agrarian Reform's authority to approve reclassifications of agricultural lands to non-agricultural uses could be exercised only from the date of the effectivity of Republic Act No. 6657 on June 15, 1988.78 Thus:

Based on the foregoing premises, we reiterate the view that with respect to conversions of agricultural lands covered by [Republic Act] No. 6657 to non-agricultural uses, the authority of [Department of Agrarian Reform] to approve such conversions may be exercised from the date of the law's effectivity on June 15, 1988. This conclusion is based on a liberal interpretation of [Republic Act] No. 6657 in the light of [Department of Agrarian Reform's] mandate and extensive coverage of the agrarian reform program.79

On November 21, 2002, the farmer-beneficiaries opposed the estate's petition for exemption,80 arguing that they had already received Certificates of Land Ownership Award over the properties.81

To resolve the matter, the Department of Agrarian Reform Center for Land Use, Policy, Planning, and Implementation II prepared an Investigation Report, which revealed that 14 of the 17 lots were already subjected to agrarian reform and were being paid for by the farmer-beneficiaries as owners.82 Only Lots B and C of the former Lot 1 were not covered under the Comprehensive Agrarian Reform Program, while Lot B of the former Lot 2 was pending inclusion.83

The Department of Agrarian Reform Center for Land Use, Policy, Planning, and Implementation II also confirmed the presence of agricultural activities in these 17 lots.84 Thus:

2. The southern points, specifically Lot Nos. A [Psd-04-262541 of the former Lot l], B [Psd-04-0262542 of the former Lot 2], A and J-18 [of the former Lot 2] are planted to corn. Most of the rest of the area have been cleared in preparation for planting. Patches of grass and shrubs were also noted;

3. Topography is flat;

4. Land uses of adjacent areas are agricultural and idle agricultural;

5. A dialogue with the farmer-beneficiaries was also conducted. The result of which, among others[,] are:

a. they have been tilling the properties for several years;

b. they are recipients of [Certificates of Land Ownership Award]; and

c. payments of land amortization are continuously being made to the Land Bank of the Philippines.

6. Per information given by the DAR Municipal Office, with the exception of Lots B [Psd-04-0262541] and C [Psd-04-02625241] [,] which were never covered [i.e. not distributed to agrarian reform beneficiaries,] and Lot B [Psd-04-0262542) [,] the Claim Folder (CF) of which is still at the DAR Provincial Office, the rest have been distributed to beneficiaries.85 (Emphasis supplied)

On October 15, 2003, the HLURB issued Board Resolution No. 750, stating that "[f]or Farmlot Subdivision ... there is no change in principal use."86

In an Order87 dated January 7, 2004, then Secretary of Agrarian Reform Roberto Pagdanganan granted petitioners' application for exemption of the 1 7 lots from the Comprehensive Agrarian Reform Program.88 The dispositive portion read:

WHEREFORE, premises considered, the application for exemption clearance involving the herein described parcels of land with an aggregate area of 82.8294 hectares, located at Barangays Bulacnin and Insoluban-Maraouy, Lipa City[,] Batangas[,] is hereby GRANTED pursuant to [Department of Agrarian Reform] Administrative Order No. 6, Series of 1994. Further, petitioner is directed to maintain in peaceful possession the farmer-beneficiaries therein pending the payment of disturbance compensation due them.

SO ORDERED.89

According to respondents, they were neither informed nor furnished copies of the petitioners' application for exemption and the Regional Trial Court's January 7, 2004 Order.90 They learned about the application for exemption91 and the ruling on it only from concerned neighbors92 and from Marawoy, Lipa City Municipal Agrarian Reform Office personnel,93 who showed them a copy of the January 7, 2004 Order.94

Respondents moved for reconsideration on February 18, 2004.95 They asserted that the lots were agricultural and teeming with agricultural activity, as defined under Republic Act No. 6657.96

On September 23, 2005, the Department of Agrarian Reform Center for Land Use, Policy, Planning, and Implementation Secretariat wrote a letter to HLURB, seeking clarification or opinion on the classification of a farmlot subdivision.97

On December 19, 2005, HLURB Director Atty. Cesar A. Manuel (Atty. Manuel) replied in writing to the Department of Agrarian Reform Center for Land Use, Policy, Planning, and Implementation,98 stating that under HLURB Rules, a farmlot subdivision is considered within an agricultural zone.99 Moreover, notwithstanding the reclassification, a farmlot subdivision's principal use for farming has remained.100

In an Order dated September 19, 2006, then Officer-In-Charge Secretary of Agrarian Reform Nasser Pangandaman granted101 respondents' motion for reconsideration and set aside the January 7, 2004 Order. The dispositive portion read:

WHEREFORE, premises considered the MOTION FOR RECONSIDERATION (MR) filed by the movant-oppositors, Mariano Cabungacal, et al, is hereby GRANTED SETTING ASIDE THE ORDER dated 07 January 2004 issued by then Secretary Roberto M. Pagdanganan to Mr. Augusto Salas, Jr. The CLOA holders on the area of 40.8588 hectares shall continue the maintenance of the land while the [Provincial Agrarian Reform Office] and the [Municipal Agrarian Reform Office] is directed to look into the possibility of covering the remaining portion of the subject property.

SO ORDERED.102

Petitioners appealed the September 19, 2006 Order before the Office of the President.103

In a Decision104 dated June 29, 2007, the Office of the President set aside the September 19, 2006 Order and reinstated the January 7, 2004 Order of the Department of Agrarian Reform.

Respondents moved for reconsideration, but this was denied on April 23, 2008.105

Respondents appealed before the Court of Appeals.106 In a Decision107 dated October 26, 2009, the Court of Appeals granted respondents' petition, reversed the June 29, 2007 Office of the President Decision, and reinstated the September 19, 2006 Department of Agrarian Reform Order.

Petitioners moved for reconsideration, which the Court of Appeals denied on March 1, 2010.108

Thus, on March 25, 2010, petitioners filed a Petition for Review on Certiorari109 with this Court. The petition was granted due course.110

On November 9, 2010, petitioners moved for the issuance of a temporary restraining order. 111 They attached an affidavit of Gloria Linang Mantuano (Gloria) in support of their motion.112 Based on her affidavit, Gloria was told by unnamed tenants that respondents and agrarian reform beneficiaries Ricardo Capuloy, Rodrigo Cabungcal, Celso Valencia, Danilo de Ocampo, and Gerardo Guerra were able to sell their lands.113

In a Resolution dated November 22, 2010, petitioners' prayer for a temporary restraining order was granted.114 It stated that "[t]he consummation of acts leading to the disposition of the litigated property can make it difficult to implement this Court's decision[.]"115

On January 31, 2011, this Court resolved to approve the bond amounting to ₱2,000,000.00 and issue the temporary restraining order in favor of petitioners.116

On November 12, 2013, Jose C. Basconillo (Basconillo), one of the respondents, sent a letter to this Court, questioning the propriety of issuing a temporary restraining order based merely on Gloria's affidavit.117 Casting doubt on Gloria's credibility, Basconillo said that she was not even part of the land reform beneficiaries.118 Further, she lived in Barangay Balintawak, as stated in her Salaysay,119 and not in Barangay Inosluban-Marawoy or in Barangay Buclanin, where the lots allegedly disposed of were located.

The principal issue in this case is whether the reclassification of petitioners' agricultural land as a farmlot subdivision exempts the Estate of Salas from the coverage of the Comprehensive Agrarian Reform Program under Republic Act No. 6657. Subsumed in this matter are the following ISsues:

(a) Whether Republic Act No. 6657 covers lands classified into nonagricultural uses prior to its effectivity;

(b) Whether Salas' farmlot subdivision falls under an "agricultural land" as defined by applicable laws; and

(c) Whether the 17 lots are covered under the Comprehensive Agrarian Reform Program.

I

The 1987 Constitution mandates the just distribution of all agricultural lands, subject to the limits prescribed by Congress. Under Article II, Section 21 of the Constitution, "[t]he State shall promote comprehensive rural development and agrarian reform." Article XIII, Section 4 provides that an agrarian reform program shall be carried out in the country:

Section 4. The State shall, by law, undertake an agrarian reform program founded on the rights of farmers and regular farmworkers, who are landless, to own directly or collectively the lands they till or, in the case of other farmworkers, to receive a just share of the fruits thereof. To this end, the State shall encourage and undertake the just distribution of all agricultural lands, subject to such priorities and reasonable retention limits as the Congress may prescribe, taking into account ecological, developmental, or equity considerations, and subject to the payment of just compensation. In determining retention limits, the State shall respect the right of small landowners. The State shall further provide incentives for voluntary land-sharing.

On June 10, 1988, Republic Act No. 6657 or the Comprehensive Agrarian Reform Law was enacted to fulfill this constitutional mandate.

The Comprehensive Agrarian Reform Law covers all public and private agricultural lands, as provided in Proclamation No. 131120 and Executive Order No. 229,121 including other lands of the public domain suitable for agriculture, regardless of tenurial arrangement and commodity produced.122 However, a maximum of five (5) hectares of the landowner's compact or contiguous landholdings may not be distributed to qualified beneficiaries, as it is within the landowner's rights to retain this area.123

The Comprehensive Agrarian Reform Program covers the following lands: (1) all alienable and disposable lands of the public domain devoted to or suitable for agriculture; (2) all lands of the public domain exceeding the total area of five hectares and below to be retained by the landowner; (3) all government-owned lands that are devoted to or suitable for agriculture; and (4) all private lands devoted to or suitable for agriculture, regardless of the agricultural products raised or can be raised on these lands.124

Meanwhile, Section 10 of the Comprehensive Agrarian Reform125 provides the types of lands that are excluded therefrom:

1. Lands that are actually, directly and exclusively used for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, and watersheds and mangoes;

2. Private lands that are actually, directly and exclusively used for prawn farms and fishponds;126

3. Lands that are actually, directly and exclusively used and found to be necessary for:

a. National defense;

b. School sites and campuses including experimental farm stations operated by public or private schools for educational purposes;

c. Seeds and seedling research and pilot production center;

d. Church sites and convents appurtenant thereto;

e. Mosque sites and Islamic centers appurtenant thereto;

f. Communal burial grounds and cemeteries;

g. Penal colonies and penal farms actually worked by the inmates; and

h. Government and private research and quarantine centers.

4. All lands where the topography is hilly, i.e. with at least eighteen percent (18%) slope and over, and are not developed for agriculture.

The Comprehensive Agrarian Reform Law covers all agricultural lands, save for those not used or suitable for agricultural activities.1âwphi1

The law defines agricultural land as "land devoted to agricultural activity ... and not classified as mineral, forest, residential, commercial or industrial land."127 For agricultural land to be considered devoted to an agricultural activity, there must be "cultivation of the soil, planting of crops, growing of fruit trees, raising of livestock, poultry or fish, including the harvesting of such farm products, and other farm activities and practices performed by a farmer in conjunction with such farming operations done by persons whether natural or juridical."128

Aside from being devoted to an agricultural activity, the land must, likewise, not have been classified as mineral, forest, residential, commercial, or industrial land. Administrative Order No. 01-90 states:

III. Coverage

Agricultural land refers to those devoted to agricultural activity as defined in [Republic Act No.] 6657 and not classified as mineral or forest by the Department of Environment and Natural Resources (DENR) and its predecessor agencies and not classified in town plans and zoning ordinances as approved by the Housing and Land Use Regulatory Board (HLURB) and its preceding authorities prior to 15 June 1988 for residential, commercial, or industrial use.

Section 65 of Republic Act No. 6657,129 as reiterated by Administrative Order No. 01-90, states that reclassification or conversion of agricultural lands into non-agricultural lands is subject to the approval of the Department of Agrarian Reform. The law has given the Department of Agrarian Reform the power to "approve or disapprove applications for conversion ... of agricultural lands into non-agricultural uses[,]"130 such as "residential, commercial, industrial, and other land uses ... "131

Before the effectivity of Republic Act No. 6657 on June 15, 1988, the Department of Agrarian Reform had no authority to approve the conversion or reclassification of agricultural lands by local governments. Under Section 3 of Republic Act No. 2264, local governments had the power to approve reclassification of agricultural lands. Municipal and city councils could adopt zoning and subdivision ordinances or regulations reclassifying agricultural lands in consultation with the National Planning Commission.132

The question of whether the reclassification by local governments prior to the enactment of Republic Act No. 6657 still needed the approval of the Department of Agrarian Reform was raised by then Secretary of Agrarian Reform Florencio Abad to the Department of Justice.133 In response, then Secretary of Justice Franklin M. Drilon issued Department of Justice Opinion No. 44 on March 16, 1990, stating that the conversion of agricultural lands covered by Republic Act No. 6657 did not need the authority of the Department of Agrarian Reform before the date of effectivity of Republic Act No. 6657 on June 15, 1988.134 The Department of Agrarian Reform's authority to approve conversions only began on June 15, 1988.135

In light of Department of Justice Opinion No. 44, the Department of Agrarian Reform issued Administrative Order No. 06-94136 to streamline the issuance of exemption clearances by the Department of Agrarian Reform. It affirms the rule that a local government reclassification before June 15, 1988 does not need the approval of the Department of Agrarian Reform.137

In Natalia Realty Inc. v. Department of Agrarian Reform,138 lands not devoted to agricultural activity, including lands previously converted to nonagricultural use prior to the effectivity of Republic Act No. 6657 by government agencies other than the Department of Agrarian Reform, were declared outside the coverage of the Comprehensive Agrarian Reform Law. Thus:

Indeed, lands not devoted to agricultural activity are outside the coverage of [Comprehensive Agrarian Reform Law]. These include lands previously converted to non-agricultural uses prior to the effectivity of [Comprehensive Agrarian Reform Law] by government agencies other than respondent [Department of Agrarian Reform] ...

….

Since the NATALIA lands were converted prior to 15 June 1988, respondent DAR is bound by such conversion. It was therefore error to include the undeveloped portions of the Antipolo Hills Subdivision within the coverage of [Comprehensive Agrarian Reform Law].139

II

As a general rule, agricultural lands that were reclassified as commercial, residential, or industrial by the local government, as approved by the HLURB,140 before June 15, 1988 are excluded from the Comprehensive Agrarian Reform Program.

A farmlot is not included in any of these categories.

Respondents correctly argue that the 17 lots are still classified and devoted to agricultural uses.141 The definition of a "farmlot subdivision" under the HLURB Rules and Regulations Implementing Farmlot Subdivision Plan (HLURB Regulations) leaves no doubt that it is an "agricultural land" as defined under Republic Act No. 3844.

Rule V, Section 18 (d) of the BLURB Regulations provides:

….

d. A Farmlot Subdivision - is a planned community intended primarily for intensive agricultural activities and secondarily for housing. A planned community consists of the provision for basic utilities judicious allocation of areas, good layout based on sound planning principles. (Emphasis supplied)

Under the HLURB Regulations, a farmlot for varied farm activities, such as milking cow and raising poultry,142 is allowed only on a "backyard scale"143 or a small-scale operation, and not for mass production. In a farmlot for agro-industrial purposes, the maximum buildable area for food processing or preservation is limited144 to only twenty-five percent (25%) of the total lot area.145 Likewise, a rice mill must be less than 300 square meters in size, and must be more than one hectare away from another mill.146

In contrast, under Rule 2, Section 9 (G) of the BLURB Regulations, a farmlot subdivision plan for planting tree crops, mixed orchard, or diversified crops has none of these restrictions in scale, size, or use, thus recognizing a farmlot subdivision's principal use for farming.

The BLURB Regulations also provide for the minimum site criteria for a farmlot subdivision plan. First, it must be near a marketplace where the farm produce can be utilized and marketed. Second, it must meet the needs of farming activities. Third, the topography, soil, and climate must be suited for planting crops.147 These highlight a farmlot subdivision's primarily agricultural nature.148 Thus:

SECTION 7. SITE CRITERIA. Farmlots subdivision shall conform to the following criteria:

A. Accessibility.

The site must be accessible to transportation lines. Road, railroad facilities should add to the site's proximity to market center and industries where farm produce maybe utilized.

B. Availability of Community Services and Facilities

Basic utilities like roads and water sources must be found and readily available to adequately serve the needs of the intended/prospective farm activities. Where available, subdivision development must include the provision of power lines to the farm lots.

C. Distance from the Urban Centers

Farmlot subdivisions must be away from the center of Metro Manila and/or in the fringes of the urban core of the metropolis and of cities and municipalities. However, they shall be accessible from employment centers and population centers where the products of the farmlots can be readily marketed.

D. Physical suitability of the site varies with respect to the intended farm activities within the subdivisions. Natural features considered for varied activities are slope, climate/temperature and types of soil.

Even succeeding HLURB issuances affirm the agricultural use of a farmlot subdivision.

In 2003, the HLURB declared that devoting an agricultural land into a farmlot subdivision does not change its principal use for agricultural activities.149 HLURB Director Atty. Manuel's letter dated December 19, 2005 also confirmed that a farmlot subdivision is considered to be within an agricultural zone.150

Moreover, HLURB Board Resolution Nos. 922-14,151 926-15,152 and 921-14153 all state that a farmlot subdivision is "primarily intended for agricultural production, with a minimum lot area of 1,000 sq.m. and with a twenty-five percent (25%) maximum allowable buildable area." HLURB Memorandum Circular No. 001-15154 reiterates the same definition.

The records show that the 17 lots are agricultural in nature. In its Investigation Report, the Department of Agrarian Reform Center for Land Use, Policy, Planning, and Implementation II found that the lots, being flat, were suitable for cultivating crops, and had been cleared for planting, or were planted with corn.155 The areas covered by the original TCT No. T- 2807 had been tilled for several years156 and had been found to be irrigable.157 Even the "[l]and uses of adjacent areas are agricultural and idle agricultural" in nature.158

The reclassification of Salas' landholding into a farmlot subdivision, although effected before Republic Act No. 6657, has not changed the nature of these agricultural lands, the legal relationships existing over such lands, or the agricultural usability of the lands. Thus, these lots were properly subjected to compulsory coverage under the Comprehensive Agrarian Reform Law.

Invoking Natalia Realty v. Department of Agrarian Reform,159 petitioners argue for the exclusion of the 17 lots.160 They claim that, as in Natalia, a zoning ordinance prior to the effectivity of Republic Act No. 6657 prescribed the uses for the landholdings as non-agricultural; therefore, these lots are exempted from the Comprehensive Agrarian Reform Program.161

Petitioners cite other cases where, with the approval of BLURB, the local government converted agricultural lands into residential162 or commercial163 lands, or reclassified an agricultural zone into an urban zone164 prior to June 15, 1988. Unfortunately, none of these cases applies.

For instance, Natalia165 involves a land that was converted into a town site or residential land, intended for residential use. De Guzman v. Court of Appeals166 involves a land that was converted into a wholesale market complex, intended for commercial use. Agrarian Reform Beneficiaries Association v. Nicolas167 involves the reclassification of a farming area into an urban zone.

Meanwhile, this case involves a land that was reclassified as a "farmlot subdivision," intended for "intensive agricultural activities."168 Likewise, located away from the city center,169 the farmlot subdivision has not been developed into an urban zone.

When Salas' agricultural land was reclassified as a farmlot subdivision, the applicable law was Republic Act No. 3844, as amended.170

Republic Act No. 3844, sought "to make the small farmers more independent, self-reliant and responsible citizens, and a source of genuine strength in our democratic society."171 Thus, Republic Act No. 3844 established the Land Authority172 to initiate proceedings for the acquisition of private agricultural lands,173 and the subdivision of these lands into economic family-size farm units for resale to bona fide tenants, occupants, and qualified farmers.174

Section 166 (1) of Republic Act No. 3844 defined an agricultural land as "land devoted to any growth, including but not limited to crop lands[.]"175 The law neither made reference to a "farmlot subdivision," nor did it exclude a farmlot from the definition of an agricultural land.

Not being excluded, Salas' landholdings were thus contemplated in the definition of an agricultural land under Republic Act No. 3844.

Likewise, Republic Act No. 6657 does not exclude a farmlot subdivision from the definition of an agricultural land. Section 3(c) of Republic Act No. 6657 states that agricultural lands refer to "land devoted to agricultural activity . . . and not classified as mineral, forest, residential, commercial, or industrial land." Section 76 expressly provides that any other definition inconsistent with Republic Act No. 6657 has been repealed by this law.176

III

Insisting on the exclusion of the 17 lots from the Comprehensive Agrarian Reform Program, petitioners rely on the definition of an agricultural land under the HLURB Regulations. Rule V, Section 18 (e) states that agricultural lands are "parcels of land ranging from 0.2 to 50 or more hectares ... exclusively or predominantly used for cultivation, livestock production and agro-forestry without the intended qualities of the farmlot subdivision."

A farmlot subdivision has the following intended qualities under the HLURB Regulations: it is a planned community primarily for intensive agricultural activities, and secondarily for housing.177

Petitioners argue that, to be considered an agricultural land, the property must be used exclusively for agricultural purposes and cannot be used secondarily for housing.178 Since the reclassification as a farmlot subdivision rendered the lots no longer exclusively for agricultural purposes, then these lots ceased to be agricultural land.179

Petitioners are mistaken.

First, an executive regulation cannot go beyond the law.180 Republic Act No. 3844 (1963) broadly defined an agricultural land as "land devoted to any growth, including but not limited to crop lands."181 Republic Act No. 6657, as amended, also broadly defines agricultural land as land devoted to agricultural activity.182 In contrast, the HLURB Regulations restrict the definition of agricultural lands to those lands "exclusively or predominantly used for cultivation," not being a farmlot subdivision.183

In limiting the definition of an agricultural land to one "without the intended qualities of a farmlot subdivision," the HLURB Regulations are overriding, supplanting, and modifying a statutory definition. This is prohibited. A mere executive issuance cannot alter, expand, or restrict the provisions of the law it seeks to enforce.184

It bears stressing that neither Republic Act No. 3844 nor Republic Act No. 6657 excludes a farmlot subdivision, which is primarily agricultural in nature, from the definition of an agricultural land.

Second, in case of doubt, any other definition of an agricultural land inconsistent with the law, such as that found under the HLURB Regulations, has been expressly185 repealed by Section 76 of Republic Act No. 6657.

Republic Act No. 6657 never required that a landholding must be exclusively used for agricultural purposes to be covered by the Comprehensive Agrarian Reform Program. What determines a tract of land's inclusion in the program is its suitability for any agricultural activity.

The Department of Agrarian Reform Administrative Order No. 01-90 (Revised Rules and Regulations Governing Conversion of Private Agricultural Lands to Non-Agricultural Uses) defines agricultural land as follows:

III. Coverage

Agricultural land refers to those devoted to agricultural activity as definedin [Republic Act No.] 6657 and not classified as mineral or forest by the Department of Environment and Natural Resources (DENR) and its predecessor agencies and not classified in town plans and zoning ordinances as approved by the Housing and Land Use Regulatory Board (HLURB) and its preceding authorities prior to 15 June 1988 for residential, commercial, or industrial use.

We parse this definition into its three elements. Agricultural lands consist of lands:

(1) Devoted to agricultural activity, as defined in Republic Act No. 6657;

(2) Not classified as mineral or forest by the Department of Environment and Natural Resources; and

(3) Prior to June 15, 1988, not classified for residential, commercial, or industrial use under a local government town plan and zoning ordinance, as approved by the BLURB (or its predecessors, the National Coordinating Council and the Human Settlements Regulatory Commission).

Salas' farmlot subdivision fulfills these elements.

For the first element, the lots are devoted to agricultural activity.

Agricultural activity refers to the "cultivation of the soil, planting of crops, growing of fruit trees, raising of livestock, poultry or fish, including the harvesting of such farm products, and other farm activities and practices performed by a farmer in conjunction with such farming operations done by persons whether natural or juridical."186

Petitioners never denied the continued existence of agricultural activity within these lots.187

Moreover, the Department of Agrarian Reform Center for Land Use, Policy, Planning, and Implementation II, as affirmed by the Court of Appeals, found that the estate's landholdings have been used for agricultural purposes.188

In issuing a Notice of Coverage and Notice of Valuation to the Estate of Salas,189 the Municipal Agrarian Reform Office also found that the lots are for agricultural use, and therefore, covered under the Comprehensive Agrarian Reform Program.190 The awarding of the lands191 to the agrarian reform beneficiaries bolsters the agricultural activity present in them.

For the second element, it is undisputed that the lots have not been declared as mineral or forest lands by the Department of Environment and Natural Resources.1avvphi1 No application has been filed to declare the landholdings as mineral or forest lands, and neither has the Department of Environment and Natural Resources ever declared the properties as such.

As to the third element, the lands were not classified by the Lipa City Town Plan/Zoning Ordinance as commercial, residential, or industrial lands prior to June 15, 1988. Rather, the reclassification, which was approved by HLURB's predecessor agency, was that of a "farmlot subdivision."192

Section 4 (d) of Republic Act No. 6657 covers "[a]ll private lands devoted to or suitable for agriculture[,] regardless of the agricultural products raised or that can be raised thereon." As the estate's private lands are (a) devoted to or suitable for agriculture; and (b) not classified as mineral, forest, residential, commercial, or industrial, then these may be included in the Comprehensive Agrarian Reform Program.

Finally, whenever there is reasonable uncertainty in the interpretation of the law, the balance must be tilted in favor of the poor and underprivileged.193

Republic Act No. 6657 was enacted as social legislation, pursuant to the policy of the State to pursue a Comprehensive Agrarian Reform Program.194 Agrarian reform is the means towards a viable livelihood and, ultimately, a decent life for the landless farmers.

In Perez-Rosario v. Court of Appeals:195

Agrarian reform is a perceived solution to social instability. The edicts of social justice found in the Constitution and the public policies that underwrite them, the extraordinary national experience, and the prevailing national consciousness, all command the great departments of government to tilt the balance in favor of the poor and underprivileged whenever reasonable doubt arises in the interpretation of the law. But annexed to the great and sacred charge of protecting the weak is the diametric function to put every effort to arrive at an equitable solution for all parties concerned: the jural postulates of social justice cannot shield illegal acts, nor do they sanction false sympathy towards a certain class, nor yet should they deny justice to the landowner whenever truth and justice happen to be on her side. In the occupation of the legal questions in all agrarian disputes whose outcomes can significantly affect societal harmony, the considerations of social advantage must be weighed, an inquiry into the prevailing social interests is necessary in the adjustment of conflicting demands and expectations of the people, and the social interdependence of these interests, recognized.196 (Emphasis supplied, citations omitted)

The general policy of Republic Act No. 6657 is to cover as many lands suitable for agricultural activities as may be allowed.197

Where there is doubt as to the intention of the local government in the area where the property is located, the interpretation should be towards the declared intention of the law.

WHEREFORE, the petition filed by Heirs of Augusto Salas is DENIED, and the Decision of the Court of Appeals Second Division, Manila, promulgated on October 20, 2009 in CA-G.R. SP No. 103703, is AFFIRMED.

The temporary restraining order dated November 22, 2010 is PERMANENTLY LIFTED.

SO ORDERED.

MARVIC M.V.F. LEONEN
Associate Justice

WE CONCUR:

ANTONIO T. CARPIO
Associate Justice
Chairperson

On Official Leave

JOSE CATRAL MENDOZA*
Associate Justice
FRANCIS H. JARDELEZA**
Associate Justice

SAMUEL R. MARTIRES
Associate Justice

A T T E S T A T I O N

I attest that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.

ANTONIO T. CARPIO
Associate Justice
Chairperson, Second Division

C E R T I F I C A T I O N

Pursuant to the Section 13, Article VIII of the Constitution and the Division Chairperson’s Attestation, I certify that the conclusions in the above Decision had been reached in consultation before the case was assigned to the writer of the opinion of the Court’s Division.

MARIA LOURDES P.A. SERENO
Chief Justice

Footnotes

* On official leave.

** Designated additional member per Ratl1e dated March 15, 2017.

1 Rollo, pp. 3-34.

2 Id. at 35-57.

3 Id. at 58-61.

4 Id. at 37.

5 Id. at 37-39.

6 Id. at 82, Department of Agrarian Reform Order dated September 19, 2006. They claimed to have so worked even before Republic Act No. 6657 took effect in 1988.

7 Id. at 137, OSG Comment.

8 Id. at 37-38.

9 Id. at 6-8.

10 Id. at 38.

11 Id. at 39.

12 Republic Act No. 2264, sec. 3 provides:

Section 3. Additional Powers of Provincial Boards, Municipal Boards or City Councils and Municipal and Regularly Organized Municipal District Councils. -

Power to adopt zoning and planning ordinances. - Any provision of law to the contrary notwithstanding, Municipal Boards or City Councils in cities, and Municipal Councils in municipalities are hereby authorized to adopt zoning and subdivision ordinances or regulations for their respective cities and municipalities subject to the approval of the City Mayor or Municipal Mayor, as the case may be. Cities and municipalities may, however, consult the National Planning Commission on matters pertaining to planning and zoning.

13 An Act Amending The Laws Governing Local Governments By Increasing Their Autonomy And Reorganizing Provincial Governments. Also known as the Local Autonomy Act of 1959.

14 L.O.I. No. 511 (1977).

15 Ong v. Imperial, G.R. No. 197127, July 15, 2015, <

http://sc.judiciary.gov.ph/pdf/web/viewer.html?file=/jurisprudence/2015/july2015/197127.pdf> [Per J. Leonardo-De Castro, First Division].

16 See Pasong Bayabas Farmers Association Inc. v. Court ofAppeals, 473 Phil. 64 (2004) [Per J. Callejo Sr., Second Division].

17 Exec. Order No. 648 (1981), art. IV, sec. 5(b),

18 Rollo, p. 44.

19 Id. at 114, Comment.

20 Id. at 47.

21 Id. at 140, Comment.

22 Id. at 38.

23 Executive Order No. 90 (1996), sec. 1 (c).

24 Rollo, p. 87, Department of Agrarian Reform Order dated January 7, 2004.

25 Id. at 38.

26 Id. at 38-39.

27 Id. at 38.

28 Id. at 39.

29 Id.

30 Id. at 39-40.

31 Id. at 82, Department of Agrarian Reform Order dated September 19, 2006.

32 An Act Instituting A Comprehensive Agrarian Reform Program To Promote Social Justice And Industrialization, Providing The Mechanism For Its Implementation, And For Other Purposes. Also known as the Comprehensive Agrarian Reform Law of 1988.

33 Rollo, pp. 40-41.

34 Id. at 41.

35 Id.

36 Id. at 40.

37 Under Section 12 of Rule III of the Human Settlements Regulatory Commission (now HLURB) Rules and Regulations Implementing Farmlot Subdivision Plan, farmlots may only be disposed of pursuant to a license to sell by the HLURB.

38 Rollo, p. 40.

39 Id.

40 Heirs of Salas, Jr. v. Laperal Realty Corporation, 378 Phil. 369, 372 (1999) [Per J. De Leon Jr., Second Division].

41 Heirs of Salas, Jr. v. Laperal Realty Corporation, 378 Phil. 369, 372 (1999) [Per J. De Leon Jr., Second Division].

42 Id. at 373.

43 Id.

44 Rollo, p. 40.

45 Id.

46 Id. at 41.

47 Id.

48 Id. at 41-42.

49 Rollo, p. 41.

50 Id. at 42.

51 Id.

52 Id. at 42--43.

53 Id.

54 Id. at 89, Department of Agrarian Reform Order dated January 7, 2004.

55 Id. at 40, Court of Appeals Decision.

56 Id. at 51.

57 Id.

58 Id. at. 39.

59 Id. at 89, Department of Agrarian Reform Order dated January 7, 2004.

60 Id. at 42, Court of Appeals Decision.

61 Heirs of Salas v. Laperal Realty Corporation, 378 Phil. 369, 372 (1999) [Per J. De Leon Jr., Second Division].

62 Rollo, p. 41.

63 Heirs of Salas v. Laperal Realty Corporation, 378 Phil. 369, 372 (1999) [Per 1. De Leon Jr., Second Division].

64 Rollo, p. 41.

65 Id. at 42.

66 Id. at 43.

67 Id.

68 Id. at 89, Department of Agrarian Reform Order dated January 7, 2004.

69 Id. at 90, Department of Agrarian Reform Order dated January 7, 2004.

70 Id.

71 Id. at 96.

72 The CLUPPI is a "'one-stop-shop' [that] handles all matters regarding land use conversion, exemption and exclusion." (Adm. Order No. 02-02, Institutionalization of the Center for Land Use Policy, Planning and Implementation)

73 Id. at 87.

74 Id. at 92, Department of Agrarian Reform Order dated January 7, 2004.

75 Id. at 86, Department of Agrarian Reform Order dated January 7, 2004.

76 Rollo, p. 11.

77 Id. at 10.

78 Id. at 49.

79 Id.

80 Id. at 89.

81 Id.

82 Id. at 51.

83 Id. at 52.

84 Id. at 51.

85 Id. at 51-52.

86 Id. at 53.

87 Id. at 86-93.

88 Id. at 44.

89 Id. at 92.

90 Id. at 111.

91 Id. at 110-118.

92 Id. at 111.

93 Id. at 81.

94 Id. at 111.

95 Id. at 81.

96 Id. at 45.

97 Id. at 83.

98 Id.

99 Id.

100 Id.

101 Id. at 80-85. Order penned by Officer-In-Charge Secretary Nasser C. Pangandaman

102 Id. at 84.

103 Id. at 46.

104 Id. at 70-76. The Decision was penned by Executive Secretary Eduardo R. Ermita of the Office of the President.

105 Id. at 77. The Resolution was penned by Executive Secretary Eduardo R. Ermita of the Office of the President.

106 Id. at 62-69.

107 Id. at 35-57. The Decision was penned by Associate Justice Portia Alifio-Hormachuelos and concurred in by Associate Justices Fernanda Lampas Peralta and Ramon R. Garcia of the Second Division, Court of Appeals Manila.

108 Id. at 58-61. The Resolution was penned by Associate Justice Portia Alifio-Hormachuelos and concurred in by Associate Justices Fernanda Lampas Peralta and Ramon R. Garcia of the Former Second Division, Court of Appeals Manila.

109 Id. at 3-34.

110 On April 26, 2010, this Court required (Rollo, p. 105) respondents to file their Comment. On June 15, 2010, respondents filed a Motion to Admit Comment (Rollo, pp. 108-109) and their Comment (Rollo, pp. 110-118). The Office of the Solicitor General filed its Comment (Rollo, pp. 137-151) on July 16, 2010. In a Resolution dated July 28, 2010, this Court granted (Rollo, p. 126) and noted respondents' Motion to Admit Comment and their Comment. On April 18, 2010, petitioners filed a Motion for Leave to File Attached Reply (Rollo, pp. 155-156) and their Reply (Rollo, pp. 159-167). In a Resolution dated September 15, 2010, this Court noted the Office of the Solicitor General's Comment, granted petitioners' leave to file Reply, noted their Reply, dispensed with the filing of the memorandum, and gave due course to the petition (Rollo, p. 171).

111 Rollo, pp. 175-184.

112 Id. at 185-186.

113 Id. at 185.

114 Id. at 191-198. The Resolution was penned by Chief Justice Renato Corona and concurred in by Associate Justices Presbitero J. Velasco Jr., Teresita J. Leonardo-De Castro, Diosdado M. Peralta, and Jose Portugal-Perez of the First Division of the Supreme Court.

115 Id. at 196-197.

116 Id. at 219.

117 Id. at 239-246.

118 Id. at 239.

119 Id. at 244-245.

120 Instituting a Comprehensive Agrarian Reform Program (1987) provides:

…

NOW, THEREFORE, I, CORAZON COJUANGCO AQUINO, President of the Republic of the Philippines, by virtue of the powers vested in me by the Constitution, do hereby order:

SECTION 1. Scope. - Comprehensive Agrarian Reform Program (CARP) is hereby instituted which shall cover, regardless of tenurial arrangement and commodity produced all public and private agricultural lands as provided in the Constitution, including whenever applicable in accordance with law, other lands of the public domain suitable to agriculture.

121 Providing the Mechanisms for the Implementation of the Comprehensive Agrarian Reform Program (1987).

122 Rep. Act No. 6657, sec. 4, as amended by Rep. Act No. 9700 provides:

SEC. 4. Scope. - The Comprehensive Agrarian Reform Law of 1988 shall cover, regardless of tenurial arrangement and commodity produced, all public and private agricultural lands as provided in Proclamation No. 131 and Executive Order No. 229, including other lands of the public domain suitable for agriculture: Provided, That landholdings of landowners with a total area of five (5) hectares and below shall not be covered for acquisition and distribution to qualified beneficiaries.

123 Rep. Act No. 6657, sec. 6-A, as amended by Rep. Act No. 9700 provides:

Section 6-A. Exception to Retention Limits. - Provincial, city and municipal government units acquiring private agricultural lands by expropriation or other modes of acquisition to be used for actual, direct and exclusive public purposes, such as roads and bridges, public markets, school sites, resettlement sites, local government facilities, public parks and barangay plazas or squares, consistent with the approved local comprehensive land use plan, shall not be subject to the five (5)-hectare retention limit under this Section and Sections 70 and 73(a) of Republic Act No. 6657, as amended: Provided, That lands subject to CARP shall first undergo the land acquisition and distribution process of the program: Provided, further, That when these lands have been subjected to expropriation, the agrarian reform beneficiaries therein shall be paid just compensation.

124 Rep. Act No. 6657, sec. 4, as amended by Rep. Act No. 9700 provides:

Section 4. Scope. –

….

More specifically, the following lands are covered by the CARP:

(a) All alienable and disposable lands of the public domain devoted to or suitable for agriculture. No reclassification of forest or mineral lands to agricultural lands shall be undertaken after the approval of this Act until Congress, taking into account ecological, developmental and equity considerations, shall have determined by law, the specific limits of the public domain;

(b) All lands of the public domain in excess of the specific limits as determined by Congress in the preceding paragraph;

(c) All other lands owned by the Government devoted to or suitable for agriculture; and

(d) All private lands devoted to or suitable for agriculture regardless of the agricultural products raised or that can be raised thereon.

125 Rep. Act No. 6657, sec. 10 provides: Section 10. Exemptions and Exclusions. - Lands actually, directly and exclusively used and found to be necessary for parks, wildlife, forest reserves, reforestation, fish sanctuaries and breeding grounds, watersheds, and mangroves, national defense, school sites and campuses including experimental farm stations operated by public or private schools for educational purposes, seeds and seedlings research and pilot production centers, church sites and convents appurtenant thereto, mosque sites and Islamic centers appurtenant thereto, communal burial grounds and cemeteries, penal colonies and penal farms actually worked by the inmates, government and private research and quarantine centers and all lands with eighteen percent (18%) slope and over, except those already developed shall be exempt from the coverage of this Act.

126 Provided, that said prawn farms and fishponds have not been distributed and Certificate of Land Ownership Award (CLOA) issued to agrarian reform beneficiaries under the Comprehensive Agrarian Reform Program.

In cases where the fishponds or prawn farms have been subjected to the Comprehensive Agrarian Reform Law, by voluntary offer to sell, or commercial farms deferment or notices of compulsory acquisition, a simple and absolute majority of the actual regular workers or tenants must consent to the exemption within one (1) year from the effectivity of this Act. When the workers or tenants do not agree to this exemption, the fishponds or prawn farms shall be distributed collectively to the worker-beneficiaries or tenants who shall form a cooperative or association to manage the same.

127 Rep. Act No. 6657, sec. 3(c).

128 Rep. Act No. 6657, sec. 3(b).

129 Rep. Act No. 6657, sec. 65 provides:

SECTION 65. Conversion of Lands. -After the lapse of five (5) years from its award, when the land ceases to be economically feasible and sound for agricultural purposes, or the locality has become urbanized and the land will have a greater economic value for residential, commercial or industrial purposes, the DAR, upon application of the beneficiary or the landowner, with due notice to the affected parties, and subject to existing laws, may authorize the reclassification or conversion of the land and its disposition: Provided, That the beneficiary shall have fully paid his obligation.

130 DAR Adm. 0. No. Ol-90, II(A).

131 DAR Adm. 0. No. 01-90, II(B).

132 Rep. Act No. 2264, sec. 3 provides:

….

Power to adopt zoning and planning ordinances. - Any provision of law to the contrary notwithstanding, Municipal Boards or City Councils in cities, and Municipal Councils in municipalities are hereby authorized to adopt zoning and subdivision ordinances or regulations for their respective cities and municipalities subject to the approval of the City Mayor or Municipal Mayor, as the case may be. Cities and municipalities may, however, consult the National Planning Commission on matters pertaining to planning and zoning.

133 Sec. of Justice Op. No. 44, s. 1990, p. l.

134 Sec. of Justice Op. No. 44, s. 1990.

135 Sec. of Justice Op. No. 44, s. 1990.

136 Guidelines for the Issuance of Exemption Clearances Based on Sec. 3(c) of Republic Act No. 6657 and the Sec. of Justice Op. No. 44, s. 1990.

137 Adm. Order No. 06-94 provides:

II
Legal Basis

Sec. 3 (c) of RA 6657 states that agricultural lands refers to land devoted to agricultural activity as defined in this act and not classified as mineral, forest, residential, commercial or industrial land. Department of Justice Opinion No. 44 series of 1990 has ruled that with respect to the conversion of agricultural lands covered by R.A. No. 6657 to non-agricultural uses, the authority of DAR to approve such conversion may be exercised from the date of its effectivity, on June 15, 1988. Thus, all lands that already classified as commercial, industrial or residential before 15 June 1988 no longer need any conversion clearance.

However, the reclassification of lands to non-agricultural uses shall not operate to divest tenant-farmers of their rights over lands covered by Presidential Decree No. 27, which have vested prior to June 15, 1988.

138 Natalia Realty, Inc. v. Department of Agrarian Reform, 296-A Phil. 271 (1993) [Per J. Bellosillo, En Banc]. See also Pasong Bayabas Farmers Association Inc. v. Court of Appeals, 473 Phil. 64 (2004) [Per J. Callejo Sr., Second Division].

139 Id. at 278-279.

140 Before Republic Act No. 6657 took effect on June 15, 1988, the HLURB had the authority to approve a local government's reclassification of an agricultural land into non-agricultural uses (See Pasong Bayabas Farmers Association Inc. v. Court of Appeals, 473 Phil. 64 (2004) [Per J. Callejo Sr., Second Division]. After Republic Act No. 6657 was implemented, that authority came under the Department of Agrarian Refonn (See Section 65 of Rep. Act No. 6657).

141 Rollo, pp. 146-149.

142 See HLURB Regulations, Rule II, sec. 7(D).

143 HLURB Regulations, Rule II, sec. 9 G(2) - (8).

144 HLURB Regulations, Rule II, sec. 9 G (7) and (7 .1).

145 HLURB Regulations, Rule II, sec. 8 (B)(3).

146 BLURB Regulations, Rule II, sec. 9 G (7) and (7 .1).

147 BLURB Regulations, Rule II, sec. 7.

148 HLURB Regulations, Rule V, sec. 18 (d).

149 HLURB Board Resolution No. 750 (2003), Liberalizing the Requirements for the Issuance of Certification of Registration and License to Sell for Farmlot Subdivisions.

150 Rollo, p. 83, Department of Agrarian Reform Order dated September 19, 2006.

151 HLURB Board Res. No. 922-14, Rule 1, sec. 4(4.15).

152 HLURB Board Res. No. 926-15, sec. 4(4.8).

153 HLURB Board Res. No. 921-14, sec. 4(4.13).

154 Section 4 (4.15).

155 Rollo, p. 52.

156 Id.

157 Id. at 87, Department of Agrarian Reform Order dated January 7, 2004.

158 Rollo, p. 52, Court of Appeals Decision.

159 Natalia Realty, Inc. v. Department of Agrarian Reform, 296-A Phil. 271 (1993) [Per J. Bellosillo, En Banc].

160 Rollo, pp. 26-27.

161 Id.

162 Junia v. Garilao, 503 Phil. 154 (2005) [Per J. Panganiban, Third Division]; Pasong Bayabas Farmers Association Inc. v. Court of Appeals, 473 Phil. 64 (2004) [Per J. Callejo Sr., Second Division].

163 De Guzman v. Court of Appeals, 535 Phil. 248 (2006) [Per J. Tinga, Third Division].

164 Agrarian Reform Beneficiaries Association v. Nicolas, 588 Phil. 827 (2008) [Per J. Reyes, R.T., Third Division].

165 296-A Phil. 271 (1993) [Per J. Bellosillo, En Banc].

166 535 Phil. 248 (2006) [Per J. Tinga, Third Division].

167 588 Phil. 827-844 (2008) [Per J. Reyes, R.T., Third Division].

168 HLURB Regulations, Rule V, sec. 18(d).

169 HLURB Regulations, Rule II, sec. 7(c).

170 Agricultural Land Reform Code (1963).

171 Rep. Act No. 3844, sec. 2(6).

172 Rep. Act No. 3844, sec. 49.

173 Rep. Act No. 3844, sec. 51(1) in relation to sec. 166.

174 Rep. Act No. 3844, sec. 51(1).

175 Emphasis supplied.

176 Rep. Act No. 3844, sec. 76 .

177 HLURB Regulations, Rule V, sev. 18(d).

178 Rollo, p. 29.

179 Id.

180 Lakin, Jr. v. Commission on Elections, 635 Phil. 372, 392 (2010) [Per J. Bersamin, En Banc].

181 Rep. Act No. 6657, sec.166(1).

182 Rep. Act No. 6657, sec. 3(c).

183 HLURB Regulations, Rule V, sec. 18 (e)

184 Lakin, Jr. v. Commission on Elections, 635 Phil. 372, 392 (2010) [Per J. Bersamin, En Banc].

185 Rep. Act No. 6657, sec. 76 provides:

Section 76. Repealing Clause. - Section 35 of Republic Act No. 3834, Presidential Decree No. 316, the last two paragraphs of Section 12 of Presidential Decree No. 946, Presidential Decree No. 1038, and all other laws, decrees executive orders, rules and regulations, issuances or parts thereof inconsistent with this Act are hereby repealed or amended accordingly.

186 Rep. Act No. 6657, sec. 3(b).

187 Rollo , p. 51.

188 Id.

189 Id. at 54.

190 DAR Adm. 0. No. 01-03 (2003).

191 Rollo, p. 51.

192 Id. at 48. As shown in the HLURB Board Secretariat Officer-in-Charge Carolina Casaje's Certification dated May 5, 1997 and HLURB City Planning and Development Coordinator Dante Villanueva's Certification dated October 5, 1998.

193 Perez-Rosario v. Court of Appeals, 526 Phil. 562, 586 (2006) [Per J. Martinez, First Division].

194 Remman Enterprises, Inc. v. Court of Appeals, 534 Phil. 496, 516-517 (2006) [Per J. Chico-Nazario, First Division].

195 Perez-Rosario v. Court of Appeals, 526 Phil. 562 (2006) [Per J. Martinez, First Division].

196 Id. at 586.

197 DAR Adm. 0. No. 01-90, Part IV.

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