Agrarian Reform PD 27 and 1066.docx

7/27/2019 Agrarian Reform PD 27 and 1066.docx

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Agrarian Reform; Statutes; Presidential Decree No. 27; Presidential DecreeNo. 27, issued on 21 October 1972 by then Pres. Ferdinand E. Mar-

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51 Zamudio v. Peas, 286 SCRA 367, 375 [1998], citing Nicolas v. JudgeYuzon, A.M. No. RTJ-89-303, 15 August 1990.

* FIRST DIVISION.

16

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SUPREME COURT REPORTS ANNOTATED

Sigre vs. Court of Appeals

cos, proclaimed the entire country as a land reform area and decreed theemancipation of tenants from the bondage of the soil, transferring to themthe ownership of the land they till.Presidential Decree No. 27, issued on

October 21, 1972 by then Pres. Ferdinand E. Marcos, proclaimed the entirecountry as a land reform area and decreed the emancipation of tenants

from the bondage of the soil, transferring to them the ownership of the landthey till. To achieve its purpose, the decree laid down a system for thepurchase by tenant-farmers, long recognized as the backbone of the

economy, of the lands they were tilling. Owners of rice and corn lands thatexceeded the minimum retention area were bound to sell their lands to

qualified farmers at liberal terms and subject to conditions. It was pursuantto said decree that the DAR issued Memorandum Circular No. 6, series of

1978.

Same; Same; Same; Administrative Law; The power of subordinatelegislation allows administrative bodies to implement the broad policies laiddown in a statute by filling in the details, and all that is required is that theregulation should be germane to the objects and purposes of the law and

that the regulation be not in contradiction to but in conformity with thestandards prescribed by the law.The power of subordinate legislation

allows administrative bodies to implement the broad policies laid down in astatute by filling in the details. All that is required is that the regulation

should be germane to the objects and purposes of the law; that the


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regulation be not in contradiction to but in conformity with the standardsprescribed by the law. One such administrative regulation is DAR

Memorandum Circular No. 6. As emphasized in De Chavez v. Zobel,emancipation is the goal of P.D. 27, i.e., freedom from the bondage of thesoil by transferring to the tenant-farmers the ownership of the land theyre

tilling.

Same; Same; Same; Same; Since DAR Memorandum Circular No. 6essentially sought to accomplish the noble purpose of P.D. 27, it is

therefore valid and has the force of law.The rationale for the Circularwas, in fact, explicitly recognized by the appellate court when it stated that(T)he main purpose of the circular is to make certain that the lease rental

payments of the tenant-farmer are applied to his amortizations on thepurchase price of the land. x x x The circular was meant to remedy thesituation where the tenant-farmers lease rentals to landowner were not

credited in his favor against the determined purchase price of the land, thusmaking him a perpetual obligor for said purchase price. Since the assailedCircular essentially sought to accomplish the noble purpose of P.D. 27, it istherefore valid. Such being the case, it has the force of law and is entitled

to great respect.

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Same; Same; Same; Same; The Court cannot see any irreconcilableconflict between P.D. No. 816 and DAR Memorandum Circular No. 6.The Court cannot see any irreconcilable conflict between P.D. No. 816and DAR Memorandum Circular No. 6. Enacted in 1975, P.D. No. 816

provides that the tenant-farmer (agricultural lessee) shall pay lease rentalsto the landowner until the value of the property has been determined or

agreed upon by the landowner and the DAR. On the other hand, DARMemorandum Circular No. 6, implemented in 1978, mandates that the

tenant-farmer shall pay to LBP the lease rental after the value of the landhas been determined.

Same; Same; Same; Same; Both Memorandum Circular No. 6 and P.D.816 were issued pursuant to and in implementation of P.D. 27these must


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not be read in isolation, but rather, in conjunction with each other.Privaterespondent, however, splits hairs, so to speak, and contends that theCurso case is premised on the assumption that the Circular implements

P.D. 816, whereas it is expressly stated in the Circular that it was issued inimplementation of P.D. 27. Both Memorandum Circular No. 6 and P.D. 816were issued pursuant to and in implementation of P.D. 27. These must notbe read in isolation, but rather, in conjunction with each other. Under P.D.

816, rental payments shall be made to the landowner. After the value of theland has been determined/established, then the tenant-farmers shall paytheir amortizations to the LBP, as provided in DAR Circular No. 6. Clearly,there is no inconsistency between them. Au contraire, P.D. 816 and DARCircular No. 6 supplement each other insofar as it sets the guidelines for

the payments of lease rentals on the agricultural property.

Same; Same; Same; That P.D. 27 does not suffer any constitutionalinfirmity is a judicial fact that has been repeatedly emphasized by the

Supreme Court.Further, that P.D. 27 does not suffer any constitutionalinfirmity is a judicial fact that has been repeatedly emphasized by this Court

in a number of cases. As early as 1974, in the aforecited case of DeChavez v. Zobel, P.D. 27 was assumed to be constitutional, and upheld aspart and parcel of the law of the land, viz.: There is no doubt then, as setforth expressly therein, that the goal is emancipation. What is more, the

decree is now part and parcel of the law of the land according to therevised Constitution itself. Ejectment therefore of petitioners is simply out of

the question. That would be to set at naught an express mandate of theConstitution. Once it has spoken, our duty is clear; obedience is

unavoidable. This is not only so because of the cardinal postulate ofconstitutionalism, the supremacy of the fundamental law. It is also because

any other approach would run the risk of setting at naught this basicaspiration to do away with all remnants of a feudalistic order at war with the

promise

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SUPREME COURT REPORTS ANNOTATED


and the hope associated with an open society. To deprive petitioners of thesmall landholdings in the face of a presidential decree considered ratified


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by the new Constitution and precisely in accordance with its avowedobjective could indeed be contributory to perpetuating the misery thattenancy had spawned in the past as well as the grave social problems

thereby created. There can be no justification for any other decision thenwhether predicated on a juridical norm or on the traditional role assigned tothe judiciary of implementing and not thwarting fundamental policy goals.

Same; Same; Same; Eminent Domain; Just Compensation; Thedetermination of just compensation under P.D. No. 27, like in Section 16 (d)of R.A. 6657 or the CARP Law, is not final or conclusiveunless both the

landowner and the tenant-farmer accept the valuation of the property by theBarrio Committee on Land Production and the DAR, the parties may bring

the dispute to court in order to determine the appropriate amount ofcompensation, a task unmistakably within the prerogative of the court.

The determination of just compensation under P.D. No. 27, like in Section16 (d) of R.A. 6657 or the CARP Law, is not final or conclusive. This is

evident from the succeeding paragraph of Section 2 of E.O. 228: x x x Inthe event of dispute with the landowner regarding the amount of lease

rental paid by the farmer beneficiary, the Department of Agrarian Reformand the Barangay Committee on Land Production concerned shall resolve

the dispute within thirty (30) days from its submission pursuant toDepartment of Agrarian Reform Memorandum Circular No. 26, series of

1973, and other pertinent issuances. In the event a party questions in courtthe resolution of the dispute, the landowners compensation shall still be

processed for payment and the proceeds shall be held in trust by the TrustDepartment of the Land Bank in accordance with the provisions of Section

5 hereof, pending the resolution of the dispute before the court. Clearlytherefrom, unless both the landowner and the tenant-farmer accept the

valuation of the property by the Barrio Committee on Land Production andthe DAR, the parties may bring the dispute to court in order to determinethe appropriate amount of compensation, a task unmistakably within the

prerogative of the court.

Same; Same; Same; Republic Act No. 6657; The Court need not belabor

the fact that R.A. 6657 or the CARP Law operates distinctly from P.D. 27R.A. 6657 did not repeal or supersede, in any way, P.D. 27; While R.A.

6657 covers all public and private agricultural lands including other lands ofthe public domain suitable for agriculture as provided for in Proclamation

No. 131 and Executive Order No. 229, P.D. 27 covers rice and cornlands.The Court need not belabor the fact that R.A. 6657 or the CARP


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Law operates distinctly from P.D. 27. R.A. 6657 covers all public andprivate agricultural land including other lands of the public domain suit-

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VOL. 387, AUGUST 8, 2002

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able for agriculture as provided for in Proclamation No. 131 and ExecutiveOrder No. 229; while, P.D. 27 covers rice and corn lands. On this score,

E.O. 229, which provides for the mechanism of the ComprehensiveAgrarian Reform Program, specifically states: (P)residential Decree No.

27, as amended, shall continue to operate with respect to rice and cornlands, covered thereunder. x x x It cannot be gainsaid, therefore, that R.A.6657 did not repeal or supersede, in any way, P.D. 27. And whateverprovisions of P.D. 27 that are not inconsistent with R.A. 6657 shall be

suppletory to the latter, and all rights acquired by the tenant-farmer underP.D. 27 are retained even with the passage of R.A. 6657. [Sigre vs. Court

of Appeals, 387 SCRA 15(2002)]

FIRST DIVISION

[G.R. No. 109568. August 8, 2002]

ROLANDO SIGRE, peti t ioner, vs . COURT OF APPEALS and LILIA Y.GONZALES, as co-administratrix of the Estate of Matias

Yusay, respondents.

[G.R. No. 113454. August 8, 2002]

LAND BANK OF THE PHILIPPINES, pet i t ioner, vs. COURT OFAPPEALS and LILIA Y. GONZALES, as co-administratrix of theEstate of Matias Yusay, respondents.


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D E C I S I O N

AUSTRIA-MARTINEZ, J.:

In a not-so-novel attempt to challenge the long-settled constitutionality ofPresidential Decree No. 27, private respondent Lilia Y. Gonzales, as co-administratrix of

the Estate of Matias Yusay, filed with the Court of Appeals on September 15, 1992, apetition for prohibition and mandamus docketed as CA-G.R. SP No. 28906, seeking toprohibit the Land Bank of the Philippines (LBP) from accepting the leasehold rentalsfrom Ernesto Sigre (predecessor of petitioner Rolando Sigre), and for LBP to turn overto private respondent the rentals previously remitted to it by Sigre. It appears thatErnesto Sigre was private respondents tenant in an irrigated rice land located inBarangay Naga, Pototan, Iloilo. He was previously paying private respondent a leaserental of sixteen (16) cavans per crop or thirty-two (32) cavans per agricultural year. Inthe agricultural year of 1991-1992, Sigre stopped paying his rentals to privaterespondent and instead, remitted it to the LBP pursuant to the Department of AgrarianReforms Memorandum Circular No. 6, Series of 1978, which set the guidelines in the

payment of lease rental/partial payment by farmer-beneficiaries under the land transferprogram of P.D. No. 27. The pertinent provision of the DAR Memorandum Circular No.6 reads:

A. Where the value of the land has already been established.

The value of the land is established on the date the Secretary or his authorized

representative has finally approved the average gross production data established by

the BCLP or upon the signing of the LTPA by landowners and tenant farmers

concerned heretofore authorized.

Payment of lease rentals to landowners covered by OLT shall terminate on the date

the value of the land is established. Thereafter, the tenant-farmers shall pay their lease

rentals/amortizations to the LBP or its authorized agents: provided that in case where

the value of the land is established during the month the crop is to be harvested, the

cut-off period shall take effect on the next harvest season. With respect to cases

where lease rentals paid may exceed the value of the land, the tenant-farmers may no

longer be bound to pay such rental, but it shall be his duty to notify the landowner and

the DAR Team Leader concerned of such fact who shall ascertain immediately the

veracity of the information and thereafter resolve the matter expeditiously as

possible. If the landowner shall insist after positive ascertainment that the tenant-farmer is to pay rentals to him, the amount equivalent to the rental insisted to be paid

shall de deposited by the tenant-farmer with the LBP or its authorized agent in his

name and for his account to be withdrawn only upon proper written authorization of

the DAR District Officer based on the result of ascertainment or

investigation.[1](Emphasis ours)
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According to private respondent, she had no notice that the DAR had already fixed the3-year production prior to October 1972 at an average of 119.32 cavans perhectare,[2]and the value of the land was pegged at Thirteen Thousand Four HundredFive Pesos and Sixty-Seven Centavos (P13,405.67).[3]Thus, the petition filed before theCourt of Appeals, assailing, not only the validity of Memorandum Circular No. 6, but also

the constitutionality of P.D. 27.The appellate court, in its decision dated March 22, 1993, gave due course to the

petition and declared Memorandum Circular No. 6 null and void. [4]The LBP was directedto return to private respondent the lease rentals paid by Sigre, while Sigre was directedto pay the rentals directly to private respondent.[5]In declaring Memorandum Circular No.6 as null and void, the appellate court ruled that there is nothing in P.D. 27 whichsanctions the contested provision of the circular;[6]that said circular is in conflict withP.D. 816 which provides that payments of lease rentals shall be made to the landowner,and the latter, being a statute, must prevail over the circular; [7]that P.D. 27 isunconstitutional in laying down the formula for determining the cost of the land as it setslimitations on the judicial prerogative of determining just compensation; [8]and that it is no

longer applicable, with the enactment of Republic Act No. 6657.[9]

Hence, this present recourse, which is a consolidation of the separate petitions forreview filed by Rolando Sigre (who substituted his predecessor Ernesto Sigre),docketed as G.R. No. 109568 and the LBP, docketed as G.R. No. 113454.

Petitioner Sigre, in G.R. No. 109568, alleges that:

"I

PUBLIC RESPONDENT COURT OF APPEALS ACTED WITH GRAVE ABUSE

OF DISCRETION IN RULING THAT DAR MEMORANDUM CIRCULAR NO. 6,

SERIES OF 1978 RUNS COUNTER TO PRESIDENTIAL DECREE NO. 816.

II

PUBLIC RESPONDENT ERRED IN RULING THAT DARMEMORANDUM

CIRCULAR NO. 6, SERIES OF 1978 AMENDS OR EXPANDS PRESIDENTIAL

DECREE NO. 27.

III

PUBLIC RESPONDENT ERRED IN RULING THAT PROVISION OF

PRESIDENTIAL DECREE NO. 27 ON THE FORMULA FOR DETERMININGTHE COST OF THE LAND IS UNCONSTITUTIONAL.

IV
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PUBLIC RESPONDENT ERRED IN RULING THAT THE PROVISION OF

PRESIDENTIAL DECREE NO. 27 ON FIXING THE JUST COMPENSATION OF

THE LAND HAS BEEN REPEALED BY REPUBLIC ACT NO. 6657.[10]

Petitioner LBP, in G.R.No. 113454, claims that:

A

THE COURT OF APPEALS GRAVELY ERRED IN NOT FINDING THAT MAR

CIRCULAR NO. 6 IS A VALID PIECE OF ADMINISTRATIVE RULES AND

REGULATION COVERING A SUBJECT GERMANE TO THE OBJECTS AND

PURPOSES OF PRESIDENTIAL DECREE NO. 27, CONFORMING TO THE

STANDARDS OF SAID LAW AND RELATING SOLELY TO CARRYING INTO

EFFECT THE GENERAL PROVISIONS OF SAID LAW.

B

THE COURT OF APPEALS SERIOUSLY ERRED IN RULING THAT MAR

CIRCULAR NO. 6 IS INVALID IN THAT IT SUFFERS IRRECONCILABLE

CONFLICT WITH PRESIDENTIAL DECREE NO. 816, THUS GROSSLY

DISREGARDING THE APPLICABLE DECISION OF THE SUPREME COURT

THAT THERE IS NO INCONSISTENCY OR INCOMPATIBILITY BETWEEN

MAR CIRCULAR NO. 6 AND P.D. 816.

C

THE COURT OF APPEALS GRAVELY ERRED IN RULING THAT P.D. 27,INSOFAR AS IT SETS FORT (sic) THE FORMULA FOR DETERMINING THE

VALUE OF THE RICE/CORN LAND, IS UNCONSTITUTIONAL, THUS

GROSSLY DISREGARDING THE EXISTING JURISPRUDENCE THAT

CONSISTENTLY RULED THAT P.D. 27 IS SUSTAINED AGAINST ALL

CONSTITUTIONAL OBJECTIONS RAISED AGAINST IT.

D

THE COURT OF APPEALS GRAVELY ERRED IN FINDING THAT P.D. 27

HAS BEEN IMPLIEDLY REPEALED BY REPUBLIC ACT NO. 6657.[11]

Presidential Decree No. 27,[12]issued on October 21, 1972 by then Pres. FerdinandE. Marcos, proclaimed the entire country as a land reform area and decreed theemancipation of tenants from the bondage of the soil, transferring to them theownership of the land they till. To achieve its purpose, the decree laid down a systemfor the purchase by tenant-farmers, long recognized as the backbone of the economy,of the lands they were tilling. Owners of rice and corn lands that exceeded the minimumretention area were bound to sell their lands to qualified farmers at liberal terms and
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subject to conditions.[13]It was pursuant to said decree that the DAR issuedMemorandum Circular No. 6, series of 1978.

The Court of Appeals held that P.D. No. 27 does not sanction said Circular,particularly, the provision stating that payment of lease rentals to landowners shallterminate on the date the value of the land is established, after which the tenant-farmer

shall pay their lease rentals/amortizations to the LBP or its authorized agents.

We disagree. The power of subordinate legislation allows administrative bodies toimplement the broad policies laid down in a statute by "filling in" the details. All that isrequired is that the regulation should be germane to the objects and purposes of thelaw; that the regulation be not in contradiction to but in conformity with the standardsprescribed by the law.[14]One such administrative regulation is DAR MemorandumCircular No. 6. As emphasized in De Chavez v. Zobel,[15]emancipation is the goal ofP.D. 27., i.e., freedom from the bondage of the soil by transferring to the tenant-farmersthe ownership of the land theyre tilling. As noted, however, in the whereas clauses ofthe Circular, problems have been encountered in the expeditious implementation of the

land reform program, thus necessitating its promulgation, viz.:

1. Continued payment of lease rentals directly to landowners by tenant-farmers may

result to situations wherein payments made may even exceed the actual value of the

land. x x x

2. There is difficulty in recording lease rental payments made by tenant-farmers to

landowners specifically in cases where landowners concerned refuse to issue

acknowledgment/official receipts for payments made;

3. Payments made by tenant-farmers to landowners after the establishment of

Farmer Amortization Schedule (FAS) through the National Computer Center were

found to be ineffectively captured or accounted for. x x x

4. The prolonged disagreement between parties concerned on the total payments

made by the tenant-farmers has delayed program implementations.

The rationale for the Circular was, in fact, explicitly recognized by the appellatecourt when it stated that (T)he main purpose of the circular is to make certain that thelease rental payments of the tenant-farmer are applied to his amortizations on thepurchase price of the land. x x x The circular was meant to remedy the situation where

the tenant-farmers lease rentals to landowner were not credited in his favor against thedetermined purchase price of the land, thus making him a perpetual obligor for saidpurchase price.[16]Since the assailed Circular essentially sought to accomplish the noblepurpose of P.D. 27, it is therefore valid.[17]Such being the case, it has the force of lawand is entitled to great respect.[18]

The Court cannot see any irreconcilable conflict between P.D. No. 816 [19]and DARMemorandum Circular No. 6. Enacted in 1975, P.D. No. 816 provides that the tenant-
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farmer (agricultural lessee) shall pay lease rentals to the landowner until the value of theproperty has been determined or agreed upon by the landowner and the DAR. On theother hand, DAR Memorandum Circular No. 6, implemented in 1978, mandates that thetenant-farmer shall pay to LBP the lease rental after the value of the land has beendetermined.

In Curso v. Court of Appeals,[20]involving the same Circular and P.D. 816, it wascategorically ruled that there is no incompatibility between these two. Thus:

Actually, we find no inconsistency nor incompatibility between them. Of

significance are the two whereas clauses of P.D. 816 quoted hereunder:

x x x

Clearly, under P.D. No. 816, rentals are to be paid to the landowner by the agricultural

lessee until and after the valuation of the property shall have been determined.

In the same vein, the MAR Circular provides:

x x x

In other words, the MAR Circular merely provides guidelines in the payment of lease

rentals/amortizations in implementation of P.D. 816. Under both P.D. 816 and the

MAR Circular, payment of lease rentals shall terminate on the date the value of the

land is established. Thereafter, the tenant farmers shall pay amortizations to the Land

Bank (LBP). The rentals previously paid are to be credited as partial payment of the

land transferred to tenant-farmers.[21]

Private respondent, however, splits hairs, so to speak, and contends thatthe Curso case is premised on the assumption that the Circular implements P.D. 816,whereas it is expressly stated in the Circular that it was issued in implementation of P.D.27.[22]Both Memorandum Circular No. 6 and P.D. 816 were issued pursuant to and inimplementation of P.D. 27. These must not be read in isolation, but rather, inconjunction with each other. Under P.D. 816, rental payments shall be made to thelandowner. After the value of the land has been determined/established, then thetenant-farmers shall pay their amortizations to the LBP, as provided in DAR Circular No.6.[23]Clearly, there is no inconsistency between them. Au contraire, P.D. 816 and DAR

Circular No. 6 supplement each other insofar as it sets the guidelines for the paymentsof lease rentals on the agricultural property.

Further, that P.D. 27 does not suffer any constitutional infirmity is a judicial fact thathas been repeatedly emphasized by this Court in a number of cases. As early as 1974,in the aforecited case ofDe Chavez v. Zobel,[24]P.D. 27 was assumed to beconstitutional, and upheld as part and parcel of the law of the land, viz.:
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There is no doubt then, as set forth expressly therein, that the goal is

emancipation. What is more, the decree is now part and parcel of the law of the land

according to the revised Constitution itself. Ejectment therefore of petitioners is

simply out of the question. That would be to set at naught an express mandate of the

Constitution. Once it has spoken, our duty is clear; obedience is unavoidable. This is

not only so because of the cardinal postulate of constitutionalism, the supremacy ofthe fundamental law. It is also because any other approach would run the risk of

setting at naught this basic aspiration to do away with all remnants of a feudalistic

order at war with the promise and the hope associated with an open society. To

deprive petitioners of the small landholdings in the face of a presidential decree

considered ratified by the new Constitution and precisely in accordance with its

avowed objective could indeed be contributory to perpetuating the misery that tenancy

had spawned in the past as well as the grave social problems thereby created. There

can be no justification for any other decision then whether predicated on a juridical

norm or on the traditional role assigned to the judiciary of implementing and not

thwarting fundamental policy goals.[25]

Thereafter, in Gonzales v. Estrella,[26]which incidentally involves private respondentand counsel in the case at bench, the Court emphatically declared that PresidentialDecree No. 27 has survived the test of constitutionality.[27]

Then, in 1982, P.D. 27, once again, was stamped withjudicial imprimaturinAssociation of Rice & Corn Producers of the Philippines, Inc. v.The National Land Reform Council,[28]to wit:

x x x If as pointed out in the opening paragraph, the validity of Presidential Decree

No. 27 was assumed as early as 1974, on the first anniversary of the presentconstitution, in De Chavez v. Zobel and specifically upheld in Gonzales v. Estrella

five years later, there cannot be any justification for holding that it is unconstitutional

on its face without any factual foundation.[29]

Further, inAssociation of Small Landowners in the Philippines, Inc. v. Secretary ofAgrarian Reform,[30]involving the constitutionality of P.D. 27, E.O. Nos. 228[31]and229,[32]and R.A. 6657,[33]any other assault on the validity of P.D. 27 was ultimatelyforeclosed when it was declared therein that R.A. No. 6657, P.D. No. 27, Proc. No.131, and E.O. Nos. 228 and 229 are SUSTAINED against all the constitutional

objections raised in the herein petition.[34]

The objection that P.D. 27 is unconstitutional as it sets limitations on the judicial

prerogative of determining just compensation is bereft of merit. P.D. 27 provides:

For the purpose of determining the cost of the land to be transferred to the tenant-

farmer pursuant to this Decree, the value of the land shall be equivalent to two and
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one half (2 ) times the average harvest of three normal crop years immediately

preceding the promulgation of this Decree;

E.O. 228 supplemented such provision, viz.:

SEC. 2. Henceforth, the valuation of rice and corn lands covered by P.D. 27 shall bebased on the average gross production determined by the Barangay Committee on

Land Production in accordance with Department Memorandum Circular No. 26, series

of 1973 and related issuances and regulation of the Department of Agrarian

Reform. The average gross production per hectare shall be multiplied by two and a

half (2.5), the product of which shall be multiplied by Thirty Five Pesos (P35.00), the

government support price for one cavan of 50 kilos of palay on October 21, 1972, or

Thirty One Pesos (P31.00), the government support price for one cavan of 50 kilos of

corn on October 21, 1972, and the amount arrived at shall be the value of the rice and

corn land, as the case may be, for the purpose of determining its cost to the farmer and

compensation to the landowner.

The determination of just compensation under P.D. No. 27, like in Section 16 (d) of R.A.6657 or the CARP Law, is not final or conclusive.[35]This is evident from the succeedingparagraph of Section 2 of E.O. 228:

x x x In the event of dispute with the landowner regarding the amount of lease

rental paid by the farmer beneficiary, the Department of Agrarian Reform and the

Barangay Committee on Land Production concerned shall resolve the dispute within

thirty (30) days from its submission pursuant to Department of Agrarian Reform

Memorandum Circular No. 26, series of 1973, and other pertinent issuances. In theevent a party questions in court the resolution of the dispute, the landowners

compensation shall still be processed for payment and the proceeds shall be held in

trust by the Trust Department of the Land Bank in accordance with the provisions of

Section 5 hereof, pending the resolution of the dispute before the court.

Clearly therefrom, unless both the landowner and the tenant-farmer accept the valuationof the property by the Barrio Committee on Land Production and the DAR, the partiesmay bring the dispute to court in order to determine the appropriate amount ofcompensation, a task unmistakably within the prerogative of the court.

Finally, the Court need not belabor the fact that R.A. 6657 or the CARP Lawoperates distinctly from P.D. 27. R.A. 6657 covers all public and private agriculturalland including other lands of the public domain suitable for agriculture as provided for inProclamation No. 131 and Executive Order No. 229;[36]while, P.D. 27 covers rice andcorn lands. On this score, E.O. 229, which provides for the mechanism of theComprehensive Agrarian Reform Program, specifically states: (P)residential DecreeNo. 27, as amended, shall continue to operate with respect to rice and corn lands,covered thereunder. x x x[37]It cannot be gainsaid, therefore, that R.A. 6657 did not
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repeal or supersede, in any way, P.D. 27. And whatever provisions of P.D. 27 that arenot inconsistent with R.A. 6657 shall be suppletory to the latter, [38]and all rights acquiredby the tenant-farmer under P.D. 27 are retained even with the passage of R.A. 6657 .[39]

WHEREFORE, the consolidated petitions filed by Rolando Sigre and the Land Bankof the Philippines are hereby GRANTED. The assailed Decision of the Court of Appeals

is hereby NULLIFIED and SET ASIDE and the petition in CA-G.R. SP No. 28906isDISMISSED for lack of merit.

SO ORDERED.

Davide, Jr., C.J., (Chairman), and Vitug, JJ., concur.Kapunan, and Ynares-Santiago, JJ., no part.

[1]Rollo, CA-G.R. SP No. 28906, pp. 25-26, Annex C.

[2]Ibid., p. 23, Annex A.

[3]Ibid., p. 24, Annex B.

[4]Ibid., p. 80.

[5]Ibid., p. 92.

[6]Ibid., pp. 86-87.

[7]Ibid., p. 88.

[8]Ibid., pp. 89-90.

[9]Ibid., p. 92.

[10]Rollo, G.R. No. 109568, p. 4.

[11]Rollo, G.R. 113454, pp. 9-10.

[12]Entitled, Decreeing the Emancipation of Tenants from the Bondage of the Soil Transferring to Themthe Ownership of the Land they Till and Providing the Instruments and Mechanism therefore.

[13]Pagtalunan v. Tamayo, 183 SCRA 252, 258 [1990].

[14]The Conference of Maritime Manning Agencies, Inc. vs. POEA, 243 SCRA 666, 675 [1995].

[15]55 SCRA 26 [1974].

[16]Rollo, CA-G.R. SP No. 28906, pp. 87-88.

[17]Grego vs. Commission on Elections, 274 SCRA 481, 498 [1997].

[18]Vinzons-Magana vs. Estrella, 201 SCRA 536, 540 [1991].

[19]Presidential Decree No. 816 entitled, Providing that Tenant -Farmers/Agricultural Lessees Shall Paythe Leasehold Rentals When They Fall Due and Providing Penalties Therefor, issued on October 21,1975.

[20]128 SCRA 567 [1984].

[21]Ibid., pp. 573-574.
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[22]Rollo, pp. 178-179; Memorandum, pp. 4-5.

[23]Supra., Curso vs. Court of Appeals; see also P.D. 816 and DAR Memorandum Circular No. 6.

[24]55 SCRA 26 [1974]

[25]Ibid., p. 31.

[26]91 SCRA 294 [1979][27]Ibid., p. 295.

[28]113 SCRA 798 [1982]

[29]Ibid., p. 801.

[30]175 SCRA 343 [1989]

[31]Issued on July 17, 1987, entitled Declaring Full Land Ownership to Qualified Farmer BeneficiariesCovered by Presidential Decree No. 27; Determining the Value of Remaining Unvalued Rice and CornLands Subject of P.D. 27; and Providing for the Manner of Payment by the Farmer Beneficiary and Modeof Compensation to the Landowner.

[32]Issued on July 22, 1987, entitled Providing the Mechanisms for the Implementation of theComprehensive Agrarian Reform Program.

[33]Signed into law on June 10, 1988, entitled An Act Instituting a Comprehensive Agrarian ReformProgram to Promote Social Justice and Industrialization; Providing the Mechanism for its Implementation,and For Other Purposes.

[34]Supra., note no. 19, p. 393.

[35]Vinzons case, note 18, p. 541; Association of Small Landowners in the Philippines, Inc. case, note 30,p. 382.

[36]Section 2 of R.A. 6657.

[37]Section 27 of E.O. 229.

[38]

Section 75 of R.A. 6657.[39]Association of Small Landowners in the Philippines, Inc. case, note 30, p. 391.
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