27 Sta Rosa Realty vs CA.doc

8/18/2019 27 Sta Rosa Realty vs CA.doc

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FIRST DIVISION

[G.R. No. 112526. October 12, 2001]

STA. ROSA REALTY DEVELOPMENTCORPORATON, petitioner , vs. CO!RT O" APPEALS, #!AN $.AMANTE, "RANCSCO L. ANDAL, L!CA ANDAL, ANDREA P.

AYENDE, LETCA P. $ALAT, "LOMENA $. $ATNO, ANCETO A.$!RGOS, #AME A. $!RGOS, "LORENCA CAN!$AS, LORETOA. CAN!$AS, MA%MO A. CAN!$AS, REYNALDO CARNGAL,

&!RNO C. CASALME, $ENGNO A. CR!'AT, ELNO A.CR!'AT, GREGORO ". CR!'AT, R!"NO C. CR!'AT, SERGO

CR!'AT, SEVERNO ". CR!'AT, VCTORA DE SAG!N,SEVERNO DE SAG!N, "ELCSMO A. GON'ALES, "RANCSCO

A. GON'ALES, GREGORO GON'ALES, LEODEGARO N.GON'ALES, PASC!AL P. GON'ALES, ROLANDO A.

GON'ALES, "RANCSCO A. #!ANGCO, GERVACO A.#!ANGCO, LO!RDES !. L!NA, ANSELMO M. MANDANAS,

CRSANTO MANDANAS, EMLO M. MANDANAS, GREGORO A.MANDANAS, MARO G. MANDANAS, TEODORO MANDANAS,

CONSTANCO $. MAR&!E', E!GENO $. MAR&!E',ARMANDO P. MATEN'O, DANEL D. MATEN'O, MA%MNO

MATEN'O, PACENCA P. MATEN'O, DOROTEA L.PANGAN$AN, #!ANTO T. PERE', MARANTO T. PERE',

SEVERO M. PERE', NOCENCA S. PAS&!'A, $ENVENDO ".PETATE, GNACO ". PETATE, #!ANTO PETATE, PA$LO A.

PLATON, PRECLLO V. PLATON, A&!LNO $. S!$OL,CASANO T. VLLA, DOMNGO VLLA, #!AN T. VLLA, MARO C.

VLLA, NATVDAD A. VLLA, #ACNTA S. ALVARADO, RODOL"OANGELES, DOMNGO A. CAN!$AS, EDGARDO L. CASALME,

&!RNO DE LEON, LEONLO M. ENR&!E', CLA!DA P.GON'ALES, "ELSA R. LANG!E, &!NTLLANO LANG!E,

REYNALDO LANG!E, ROMEO S. LANG!E, $ON"ACO VLLA,ROGELO AYENDE, ANTONO $. "ERNANDE', 'ACARAS

(ERRERA, 'ACARAS (ERRERA, REYNARO !. LA'O,AGAPTO MATEN'O, DONSO ". PETATE, LTO G. REYES,

#OSE M. S!$OL, CELESTNO G. TOP NO, ROSA C. AMANTE,SOTERA CASALME, REMGO M. SLVERO, T(E SECRETARY

O" AGRARAN RE"ORM, DEPARTMENT O" AGRARANRE"ORM AD#!DCATON $OARD, LAND $AN) O" T(E

P(LPPNES, REGSTER O" DEEDS O" LAG!NA,DEPARTMENT O" ENVRONMENT AND NAT!RAL RESO!RCES

REGONAL E%EC!TVE DRECTOR "OR REGON V, *+REGONAL AGRARAN RE"ORM O""CER "OR REGON

V, respondents.

D E C S O N

PARDO, J .-

The case before the Court is a petition for review on certiorari of thedecision of the Court of Appeals[! affir"in# the decision of the Depart"ent of A#rarian Refor" Ad$udication %oard[&! 'hereafter DARA%( orderin# theco"pulsor) ac*uisition of petitioner+s propert) under the Co"prehensive

A#rarian Refor" ,ro#ra" 'CAR,(-

,etitioner Sta- Rosa Realt) Develop"ent Corporation 'hereafter.SRRDC( was the re#istered owner of two parcels of land. situated at%aran#a) Casile. Cabu)ao. /a#una covered b) TCT Nos- 0121 and 0201.with a total area of &32-4 hectares- Accordin# to petitioner. the parcels of land are watersheds. which provide clean potable water to the Canluban#co""unit). and that ninet) '15( li#ht industries are now located in the area-[6!

,etitioner alle#ed that respondents usurped its ri#hts over the propert).thereb) destro)in# the ecos)ste"- So"eti"e in Dece"ber 103.respondents filed a civil case[2! with the Re#ional Trial Court. /a#una. see7in#an ease"ent of a ri#ht of wa) to and fro" %aran#a) Casile- %) wa) of counterclai". however. petitioner sou#ht the e$ect"ent of privaterespondents-

In October 104 to Au#ust 108. petitioner filed with the 9unicipal TrialCourt. Cabu)ao. /a#una separate co"plaints for forcible entr) a#ainstrespondents-[3!

After the filin# of the e$ect"ent cases. respondents petitioned theDepart"ent of A#rarian Refor" 'DAR( for the co"pulsor) ac*uisition of the

SRRDC propert) under the CAR,-

On Au#ust . 101. the 9unicipal A#rarian Refor" Officer '9ARO( of Cabu)ao. /a#una issued a notice of covera#e to petitioner and invited itsofficials or representatives to a conference on Au#ust 0. 101- [4! Durin# the"eetin#. the followin# were present: representatives of petitioner. the /and%an7 of the ,hilippines. ,ARCCO9. ,ARO of /a#una. 9ARO of /a#una. the%ARC Chair"an of %aran#a) Casile and so"e potential far"er beneficiaries.who are residents of %aran#a) Casile. Cabu)ao. /a#una- It was theconsensus and reco""endation of the asse"bl) that the landholdin# of SRRDC be placed under co"pulsor) ac*uisition-

On Au#ust 8. 101. petitioner filed with the 9unicipal A#rarian Refor"

Office '9ARO(. Cabu)ao. /a#una a ;,rotest and Ob$ection< to theco"pulsor) ac*uisition of the propert) on the #round that the area was not

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appropriate for a#ricultural purposes- The area was ru##ed in terrain withslopes of 0= and above and that the occupants of the land were s*uatters.who were not entitled to an) land as beneficiaries-[8!

On Au#ust &1. 101. the far"er beneficiaries to#ether with the %ARCchair"an answered the protest and ob$ection statin# that the slope of theland is not 0= but onl) 3>5= and that the land is suitable andecono"icall) viable for a#ricultural purposes. as evidenced b) theCertification of the Depart"ent of A#riculture. "unicipalit) of Cabu)ao.

/a#una-[0!

On Septe"ber 0. 101. 9ARO %elen dela Torre "ade a su""ar)investi#ation report and forwarded the Co"pulsor) Ac*uisition Folder Indorse"ent 'CAFI( to the ,rovincial A#rarian Refor" Officer 'hereafter.,ARO(-[1!

On Septe"ber &. 101. ,ARO Durante ?beda forwarded hisendorse"ent of the co"pulsor) ac*uisition to the Secretar) of A#rarianRefor"-

On Nove"ber &6. 101. Actin# Director @duardo C- Visperas of the%ureau of /and Ac*uisition and Develop"ent. DAR forwarded two '&(

Co"pulsor) Ac*uisition Clai" Folders coverin# the landholdin# of SRRDC.covered b) TCT Nos- T>0121 and T>0201 to the ,resident. /and %an7 of the ,hilippines for further review and evaluation-[5!

On Dece"ber &. 101. Secretar) of A#rarian Refor" 9iria" Defensor Santia#o sent two '&( notices of ac*uisition[! to petitioner. statin# thatpetitioner+s landholdin#s covered b) TCT Nos- 0121 and 0201. containin#an area of 00-&030 and 30-3055 hectares. valued at ,2.28.863-43 and,.&&5.&&1-16. respectivel). had been placed under the Co"prehensive

A#rarian Refor" ,ro#ra"-

On Februar) 4. 115. petitioner SRRDC in two letters[&! separatel)addressed to Secretar) Florencio %- Abad and the Director. %ureau of /and

Ac*uisition and Distribution. sent its for"al protest. protestin# not onl) thea"ount of co"pensation offered b) DAR for the propert) but also the two '&(notices of ac*uisition-

On 9arch 8. 115. Secretar) Abad referred the case to the DARA% for su""ar) proceedin#s to deter"ine $ust co"pensation under R- A- No- 4438.Section 4-

On 9arch &6. 115. the /%, returned the two '&( clai" folderspreviousl) referred for review and evaluation to the Director of %/AD"entionin# its inabilit) to value the SRRDC landholdin# due to so"edeficiencies-

On 9arch &0. 115. @ecutive Director @""anuel S- Balve wrote/and %an7 ,resident Deo#racias Vistan to forward the two '&( clai" folders

involvin# the propert) of SRRDC to the DARA% for it to conduct su""ar)proceedin#s to deter"ine the $ust co"pensation for the land-

On April 4. 115. petitioner sent a letter to the /and %an7 of the,hilippines statin# that its propert) under the aforesaid land titles wereee"pt fro" CAR, covera#e because the) had been classified aswatershed area and were the sub$ect of a pendin# petition for landconversion-

On 9a) 5. 115. Director Narciso Villapando of %/AD turned over thetwo '&( clai" folders 'CACF+s( to the @ecutive Director of the DAR

Ad$udication %oard for proper ad"inistrative valuation- Actin# on theCACF+s. on Septe"ber 5. 115. the %oard pro"ul#ated a resolution as7in#the office of the Secretar) of A#rarian Refor" 'DAR( to first resolve two '&(issues before it proceeds with the su""ar) land valuation proceedin#s-[6!

The issues that need to be threshed out were as follows: '( whether thesub$ect parcels of land fall within the covera#e of the Co"pulsor) Ac*uisition,ro#ra" of the CAR, and '&( whether the petition for land conversion of theparcels of land "a) be #ranted-

On Dece"ber 8. 115. the Office of the Secretar). DAR. throu#h the

?ndersecretar) for Operations 'Assistant Secretar) for /uon Operations(and the Re#ional Director of Re#ion IV. sub"itted a report answerin# the twoissues raised- Accordin# to the". firstl). b) virtue of the issuance of thenotice of covera#e on Au#ust . 101. and notice of ac*uisition onDece"ber &. 101. the propert) is covered under co"pulsor)ac*uisition- Secondl). Ad"inistrative Order No- . Series of 115. Section IVD also supports the DAR position on the covera#e of the saidpropert)- Durin# the consideration of the case b) the %oard. there was nopendin# petition for land conversion specificall) concernin# the parcels of land in *uestion-

On Februar) 1. 11. the %oard sent a notice of hearin# to all theparties interested. settin# the hearin# for the ad"inistrative valuation of thesub$ect parcels of land on 9arch 4. 11- Eowever. on Februar) &&. 11.

Att)- 9a- @lena ,- Eernande>Cueva. counsel for SRRDC. wrote the %oardre*uestin# for its assistance in the reconstruction of the records of the casebecause the records could not be found as her co>counsel. Att)- Ricardo%lancaflor. who ori#inall) handled the case for SRRDC and had possessionof all the records of the case was on indefinite leave and could not becontacted- The %oard #ranted counsel+s re*uest and "oved the hearin# to

April 2. 11-

On 9arch 0. 11. SRRDC sub"itted a petition to the %oard for thelatter to resolve SRRDC+s petition for ee"ption fro" CAR, covera#e beforean) ad"inistrative valuation of their landholdin# could be had b) the %oard-

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On April 2. 11. the initial DARA% hearin# of the case was held andsubse*uentl). different dates of hearin# were set without ob$ection fro"counsel of SRRDC- Durin# the April 3. 11 hearin#. the subdivision plan of sub$ect propert) at Casile. Cabu)ao. /a#una was sub"itted and "ar7ed as@hibit ;3< for SRRDC- At the hearin# on April &6. 11. the /and %an7as7ed for a period of one "onth to value the land in dispute-

At the hearin# on April &6. 11. certification fro" Deput) onin# Ad"inistrator Beneroso %- Opina was presented- The certification issued on

Septe"ber 0. 101. stated that the parcels of land sub$ect of the case wereclassified as ;industrial ,ar7< per San#unian# %a)an Resolution No- 23>01dated 9arch &1. 101- [2!

To avert an) opportunit) that the DARA% "i#ht distribute the lands tothe far"er beneficiaries. on April 65. 11. petitioner filed a petition [3! withDARA% to dis*ualif) private respondents as beneficiaries- Eowever. DARA%refused to address the issue of beneficiaries-

In the "eanti"e. on Ganuar) &5. 11&. the Re#ional Trial Court./a#una. %ranch &2. rendered a decision. [4! findin# that private respondentsille#all) entered the SRRDC propert). and ordered the" evicted-

On Gul) . 11. DAR Secretar) %en$a"in T- /eon# issued a"e"orandu" directin# the /and %an7 of the ,hilippines to open a trustaccount in favor of SRRDC. for ,3.468.143-33. as valuation for the SRRDCpropert)-

On Dece"ber 1. 11. DARA% pro"ul#ated a decision. the decretalportion of which reads:

;HE@R@FOR@. based on the fore#oin# pre"ises. the %oard hereb) orders:

;- The dis"issal for lac7 of "erit of the protest a#ainst the co"pulsor)covera#e of the landholdin#s of Sta- Rosa Realt) Develop"ent Corporation

'Transfer Certificates of Title Nos- 0121 and 0201 with an area of &32-844hectares( in %aran#a) Casile. 9unicipalit) of Cabu)ao. ,rovince of /a#unaunder the Co"prehensive A#rarian Refor" ,ro#ra" is hereb) affir"ed

;&- The /and %an7 of the ,hilippines '/%,( to pa) Sta- Rosa Realt)Develop"ent Corporation the a"ount of Seven 9illion @i#ht Eundred Fort)>One Thousand. Nine Eundred Ninet) Seven ,esos and Sit)>Four centavos',8.02.118-42( for its landholdin#s covered b) the two '&( Transfer Certificates of Title "entioned above- Should there be a re$ection of thepa)"ent tendered. to open. if none has )et been "ade. * tr/t *cco+t or /* *o+t + t3e +*e o St*. Ro/* Re*4t Dee4o7e+t Cor7or*to+8

;6- The Re#ister of Deeds of the ,rovince of /a#una to cancel with dispatchTransfer certificate of Title Nos- 0201 and 0121 and new one be issued inthe na"e of the Republic of the ,hilippines. free fro" liens andencu"brances

;2 The Depart"ent of @nviron"ent and Natural Resources either throu#h its,rovincial Office in /a#una or the Re#ional Office. Re#ion IV. to conduct afinal se#re#ation surve) on the lands covered b) Transfer certificate of Title

Nos- 0201 and 0121 so the sa"e can be transferred b) the Re#ister of Deeds to the na"e of the Republic of the ,hilippines

;3- The Re#ional Office of the Depart"ent of A#rarian Refor" throu#h its9unicipal and ,rovincial A#rarian Refor" Office to ta7e i""ediatepossession on the said landholdin# after Title shall have been transferred tothe na"e of the Republic of the ,hilippines. and distribute the sa"e to thei""ediate issuance of @"ancipation ,atents to the far"er>beneficiaries asdeter"ined b) the 9unicipal A#rarian Refor" Office of Cabu)ao. /a#una-< [8!

On Ganuar) &5. 11&. the Re#ional Trial Court. /a#una. %ranch &2.rendered a decision in Civil Case No- %>&666[0! rulin# that respondents were

builders in bad faith-

On Februar) 4. 11&. petitioner filed with the Court of Appeals a petitionfor review of the DARA% decision- [1! On Nove"ber 3. 116. the Court of

Appeals pro"ul#ated a decision affir"in# the decision of DARA%- Thedecretal portion of the Court of Appeals decision reads:

;HE@R@FOR@. pre"ises considered. the DARA% decision dated Septe"ber 1. 11 is AFFIR9@D. without pre$udice to petitioner Sta- Rosa Realt)Develop"ent Corporation ventilatin# its case with the Special A#rarian Courton the issue of $ust co"pensation-


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;The Court therefore. resolved to restrain: 'a( the Depart"ent of A#rarianRefor" Ad$udication %oard fro" enforcin# its decision dated Dece"ber 1.11 in DARA% Case No- GC>R>IV>/AB>555. which was affir"ed b) theCourt of Appeals in a Decision dated Nove"ber 3. 116. and which ordered.a"on# others. the Re#ional Office of the Depart"ent of A#rarian Refor"throu#h its 9unicipal and ,rovincial Refor" Office to ta7e i""ediatepossession of the landholdin# in dispute after title shall have beentransferred to the na"e of the Republic of the ,hilippines and to distribute

the sa"e throu#h the i""ediate issuance of @"ancipation ,atents to thefar"er>beneficiaries as deter"ined b) the 9unicipal A#rarian Officer of Cabu)ao. /a#una. 'b( The Depart"ent of A#rarian Refor" andJor theDepart"ent of A#rarian Refor" Ad$udication %oard. and all persons actin#for and in their behalf and under their authorit) fro" enterin# the propertiesinvolved in this case and fro" introducin# per"anent infrastructures thereonand 'c( the private respondents fro" further clearin# the said properties of their #reen cover b) the cuttin# or burnin# of trees and other ve#etation.effective toda) until further orders fro" this Court-


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sub"ission. the DAR shall decide the case and infor" the owner of itsdecision and the a"ount of $ust co"pensation-

?pon receipt b) the owner of the correspondin# pa)"ent. or. in case of re$ection or lac7 of response fro" the latter. the DAR shall deposit theco"pensation in cash or in /%, bonds with an accessible ban7- The DARshall i""ediatel) ta7e possession of the land and cause the issuance of atransfer certificate of title in the na"e of the Republic of the ,hilippines- Theland shall then be redistributed to the far"er beneficiaries- An) part) "a)

*uestion the decision of the DAR in the special a#rarian courts 'provisionall)the Supre"e Court desi#nated branches of the re#ional trial court as speciala#rarian courts( for final deter"ination of $ust co"pensation-

The DAR has "ade co"pulsor) ac*uisition the priorit) "ode of landac*uisition to hasten the i"ple"entation of the Co"prehensive A#rarianRefor" ,ro#ra" 'CAR,(- ?nder Sec- 4 of the CAR/. the first step inco"pulsor) ac*uisition is the identification of the land. the landowners andthe far"er beneficiaries- Eowever. the law is silent on how the identificationprocess shall be "ade- To fill this #ap. on Gul) &4. 101. the DAR issued

Ad"inistrative Order No- &. series of 101. which set the operatin#procedure in the identification of such lands- The procedure is as follows:

A- The 9unicipal A#rarian Refor" Officer '9ARO(. with the assistance of thepertinent %aran#a) A#rarian Refor" Co""ittee '%ARC(. shall:

- ?pdate the "asterlist of all a#ricultural lands covered under theCAR, in his area of responsibilit) the "asterlist should includesuch infor"ation as re*uired under the attached CAR,"asterlist for" which shall include the na"e of the landowner.landholdin# area. TCTJOCT nu"ber. and ta declarationnu"ber-

&- ,repare the Co"pulsor) Ac*uisition Case Folder 'CACF( for

each title 'OCTJTCT( or landholdin# covered under ,hase I andII of the CAR, ecept those for which the landowners havealread) filed applications to avail of other "odes of landac*uisition- A case folder shall contain the followin# dul)acco"plished for"s:

a( CAR, CA For" K9ARO investi#ation report

b( CAR, CA For" No & Su""ar) investi#ation report findin#s andevaluation

c( CAR, CA For" 6KApplicant+s Infor"ation sheet

d( CAR, CA For" 2 %eneficiaries underta7in#

e( CAR, CA For" 3 Trans"ittal report to the ,ARO

The 9AROJ%ARC shall certif) that all infor"ation contained in the above>"entioned for"s have been ea"ined and verified b) hi" and that the sa"eare true and correct-

6- Send notice of covera#e and a letter of invitation to aconferenceJ"eetin# to the landowner covered b) theCo"pulsor) Case Ac*uisition Folder- Invitations to the saidconference "eetin# shall also be sent to the prospectivefar"er>beneficiaries. the %ARC representatives. the /and %an7of the ,hilippines '/%,( representative. and the other interestedparties to discuss the inputs to the valuation of the propert)-

Ee shall discuss the 9AROJ%ARC investi#ation report and solicit the views.ob$ection. a#ree"ents or su##estions of the participants thereon- Thelandowner shall also as7 to indicate his retention area- The "inutes of the"eetin# shall be si#ned b) all participants in the conference and shall for"

an inte#ral part of the CACF-

2- Sub"it all co"pleted case folders to the ,rovincial A#rarianRefor" Officer ',ARO(-

%- The ,ARO shall:

- @nsure the individual case folders are forwarded to hi" b) his9AROs-

&- I""ediatel) upon receipt of a case folder. co"pute thevaluation of the land in accordance with A-O- No- 4. series of 100- The valuation wor7sheet and the related CACF valuationfor"s shall be dul) certified correct b) the ,ARO and all thepersonnel who participated in the acco"plish"ent of thesefor"s-

6- In all cases. the ,ARO "a) validate the report of the 9AROthrou#h ocular inspection and verification of the propert)- Thisocular inspection and verification shall be "andator) when theco"puted value eceeds ,355.555 per estate-

2- ?pon deter"ination of the valuation. forward the case folder.to#ether with the dul) acco"plished valuation for"s and his

reco""endations. to the Central Office-


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The /%, representative and the 9ARO concerned shall be furnished a cop)each of his report-

C- DAR Central Office. specificall) throu#h the %ureau of /and Ac*uisitionand Distribution '%/AD(. shall:

- Hithin three da)s fro" receipt of the case folder fro" the ,ARO.review. evaluate and deter"ine the final land valuation of the

propert) covered b) the case folder- A su""ar) review andevaluation report shall be prepared and dul) certified b) the%/AD Director and the personnel directl) participatin# in thereview and final valuation-

&- ,repare. for the si#nature of the Secretar) or her dul)authoried representative. a notice of ac*uisition 'CAR, For"0( for the sub$ect propert)- Serve the notice to the landowner personall) or throu#h re#istered "ail within three da)s fro" itsapproval- The notice shall include a"on# others. the areasub$ect of co"pulsor) ac*uisition. and the a"ount of $ustco"pensation offered b) DAR-

6- Should the landowner accept the DAR+s offered value. the%/AD shall prepare and sub"it to the Secretar) for approval theorder of ac*uisition- Eowever. in case of re$ection or non>repl).the DAR Ad$udication %oard 'DARA%( shall conduct a su""ar)ad"inistrative hearin# to deter"ine $ust co"pensation. inaccordance with the procedures provided under Ad"inistrativeOrder No- 6. series of 101- I""ediatel) upon receipt of theDARA%+s decision on $ust co"pensation. the %/AD shallprepare and sub"it to the Secretar) for approval the re*uiredorder of ac*uisition-

2- ?pon the landowner+s receipt of pa)"ent. in case of

acceptance. or upon deposit of pa)"ent in the desi#nated ban7.in case of re$ection or non>response. the Secretar) shalli""ediatel) direct the pertinent Re#ister of Deeds to issue thecorrespondin# Transfer Certificate of Title 'TCT( in the na"e of the Republic of the ,hilippines- Once the propert) istransferred. the DAR. throu#h the ,ARO. shall ta7e possessionof the land for redistribution to *ualified beneficiaries-<

Ad"inistrative Order No- &. Series of 101 re*uires that the 9unicipal A#rarian Refor" Officer '9ARO( 7eep an updated "aster list of alla#ricultural lands under the CAR, in his area of responsibilit) containin# allthe re*uired infor"ation- The 9ARO prepares a Co"pulsor) Ac*uisitionCase Folder 'CACF( for each title covered b) CAR,- The 9ARO then sends

the landowner a ;Notice of Covera#e< and a ;letter of invitation< to a;conferenceJ "eetin#< over the land covered b) the CACF- Ee also sends

invitations to the prospective far"er>beneficiaries. the representatives of the%aran#a) A#rarian Refor" Co""ittee '%ARC(. the /and %an7 of the,hilippines '/%,( and other interested parties to discuss the inputs to thevaluation of the propert) and solicit views. su##estions. ob$ections or a#ree"ents of the parties- At the "eetin#. the landowner is as7ed toindicate his retention area-

The 9ARO shall "a7e a report of the case to the ,rovincial A#rarianRefor" Officer ',ARO( who shall co"plete the valuation of the land- Ocular

inspection and verification of the propert) b) the ,ARO shall be "andator)when the co"puted value of the estate eceeds ,355.555-55- ?pondeter"ination of the valuation. the ,ARO shall forward all papers to#ether with his reco""endation to the Central Office of the DAR- The DAR CentralOffice. specificall). the %ureau of /and Ac*uisition and Distribution '%/AD(shall prepare. on the si#nature of the Secretar) or his dul) authoriedrepresentative. a notice of ac*uisition of the sub$ect propert)- Fro" thispoint. the provisions of R- A- No- 4438. Section 4 shall appl)-

For a valid i"ple"entation of the CAR, ,ro#ra". two notices arere*uired: '( the notice of covera#e and letter of invitation to a preli"inar)conference sent to the landowner. the representative of the %ARC. /%,.

far"er beneficiaries and other interested parties pursuant to DAR A- O- No-&. series of 101 and '&( the notice of ac*uisition sent to the landowner under Section 4 of the CAR/-

The i"portance of the first notice. that is. the notice of covera#e and theletter of invitation to a conference. and its actual conduct cannot beunderstated- The) are steps desi#ned to co"pl) with the re*uire"ents of ad"inistrative due process- The i"ple"entation of the CAR/ is an eerciseof the State+s police power and the power of e"inent do"ain- To the etentthat the CAR/ prescribes retention li"its to the landowners. there is aneercise of police power for the re#ulation of private propert) in accordancewith the Constitution- %ut where. to carr) out such re#ulation. the owners aredeprived of lands the) own in ecess of the "ai"u" area allowed. there is

also a ta7in# under the power of e"inent do"ain- The ta7in# conte"platedis not "ere li"itation of the use of the land- Hhat is re*uired is the surrender of the title to and ph)sical possession of the ecess and all beneficial ri#htsaccruin# to the owner in favor of the far"er beneficiar)-

In the case at bar. DAR has eecuted the ta7in# of the propert) in*uestion- Eowever. pa)"ent of $ust co"pensation was not in accordancewith the procedural re*uire"ent- The law re*uired pa)"ent in cash or /%,bonds. not b) trust account as was done b) DAR-

In Association of S"all /andowners in the ,hilippines v- Secretar) of A#rarian Refor". we held that ;The CAR, /aw. for its part. conditions thetransfer of possession and ownership of the land to the #overn"ent onreceipt of the landowner of the correspondin# pa)"ent or the deposit b) the


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DAR of the co"pensation in cash or /%, bonds with an accessibleban7- ?ntil then. title also re"ains with the landowner- No outri#ht chan#eof ownership is conte"plated either-an river watersheds. the) concludedthat:

;The Casile baran#a) covered b) C/OA in *uestion is situated in theheartland of both watersheds- Considerin# the baran#a)s proi"it) to the9atan#tubi# waterwor7s. the activities of the far"ers which are in conflictwith proper soil and water conservation practices $eopardie and endan#er

the vital waterwor7s- De#radation of the land would have double ed#edetri"ental effects- On the Casile side this would "ean direct siltation of the9an#u"it river which drains to the water i"poundin# reservoir below- Onthe Maban#a>an side. this would "ean destruction of forest covers whichacts as rechar#ed areas of the 9atan# Tubi# sprin#s- Considerin# that thepeople have little if no direct interest in the protection of the 9atan# Tubi#structures the) couldn+t care less even if it would be destro)ed-

The Casile and Maban#a>an watersheds can be considered a "ost vital lifesupport s)ste" to thousands of inhabitants directl) and indirectl) affected b)it- Fro" these watersheds co"e the natural Bod>#iven precious resource water-

Clearin# and tillin# of the lands are totall) inconsistent with sound watershed"ana#e"ent- 9ore so. the introduction of earth disturbin# activities li7e roadbuildin# and erection of per"anent infrastructures- ?nless the perniciousa#ricultural activities of the Casile far"ers are i""ediatel) stopped. it wouldnot be lon# before these watersheds would cease to be of value- The i"pactof watershed de#redation threatens the livelihood of thousands of peopledependent upon it- Toward this. we hope that an acceptable co"prehensivewatershed develop"ent polic) and pro#ra" be i""ediatel) for"ulated andi"ple"ented before the irreversible da"a#e finall) happens-

Eence. the followin# are reco""ended:

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8-& The Casile far"ers should be relocated and #iven financial assistance-

8-6 Declaration of the two watersheds as critical and in need of i""ediaterehabilitation-

8-2 A co"prehensive and detailed watershed "ana#e"ent plan andpro#ra" be for"ulated and i"ple"ented b) the Canluban# @state incoordination with pertinent #overn"ent a#encies-evaluation of the issue-

N VE? ?(EREO". the Court SETS ASDE the decision of the Courtof Appeals in CA>B- R- S, No- &8&62-

In lieu thereof. the Court REMANDS the case to the DARA% for re>evaluation and deter"ination of the nature of the parcels of land involved toresolve the issue of its covera#e b) the Co"prehensive /and Refor",ro#ra"-

In the "eanti"e. the effects of the C/OAs issued b) the DAR tosupposed far"er beneficiaries shall continue to be sta)ed b) the te"porar)restrainin# order issued on Dece"ber 3. 116. which shall re"ain in effectuntil final decision on the case-

No costs-SO ORDERED.

Davide, Jr., C.J., (Chairman), and Ynares-Santiago, JJ., concur .Puno, J., no part due to relationship-Kapunan, J., on official leave-

[! In CA>B- R- S, No- &8&62. pro"ul#ated on Nove"ber 53. 116. 9artin.Gr-. J -. ponente. Chua and Buerrero. JJ -. concurrin#. Rollo. Vol- I. pp- &&0>&30-

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[&! DARA% 'Case No- GC>IV>/AB>555( entitled Guan A"ante. et. al. vs. Sta-Rosa Realt) Develop"ent Corporation. pro"ul#ated on Dece"ber 1.11. Rollo. Vol- I. pp- 66>64-

[6! ,etition. Rollo. Vol- I. p-5-

[2! ,etition. Re#ional Trial Court. /a#una. doc7eted as Civil Case No- %>&666. Rollo. Vol- I. p- -

[3! Civil Cases Nos- &35. &30. &45. &4& and &44. p- -

[4! ,etition. Anne ;A- In Civil Case Nos- &35. &45. &30. &4&. and &44-

[8! Folder GC>R>IV>/AB>555>C-O-. Decision. penned b) %en$a"in T- /eon#Chair"an. concurred in b) Renato %- ,adilla. /oreno R- Re)es. /eopoldo

9- Serrano. Gr- and Gosefina 9- Sidian#co. "e"bers-[0! ,etition. Anne ;F06-

[1! Doc7eted as CA>B- R- S, No- &8&62-

[&5! CA Rollo. Decision. 9artin. Gr-. J -. ponente. Chua and Buerrero. JJ -.concurrin#. pp- 211>3&1-

[&! ,etition filed on Nove"ber &2. 116- B-R- No- &3&4. Rollo. Vol- I. pp- &>3&- On Septe"ber &0. 112. the Court #ave due course to the petition- B-R-No- &3&4. Rollo. Vol- II. pp- 805>80-

[&&! Resolution. Rollo. pp- &14>655-

[&6! R- A- No- 4438. Sec- 38-

[&2! 83 SCRA 626. 61 '101(-

[&3! In CA>B- R- S, No- &8&62-

[&4! Co""ent of private respondents. Anne ;66&-

[&8! ,- D- No- 221. Sec- 2 'b(-

[&0! &&3 SCRA &80. &06 [116!-

[&1!

,etition. Anne ;M< 'Anne ;%< of(. B-R- No- &3&4. Rollo. Vol- I . p- &&3Repl). Anne ;B3&-

[65! Repl). Anne ;A302-

[6! Rollo. Vol- I. 9e"orandu". Secretar) Alcala to FVR. p- &&3-
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