COMPREHENSIVE AGRARIAN REFORM LAW farmworkers, to receive a just share of the

(R.A. 6657) fruits thereof. To this end, the State shall

encourage and undertake the just
What is Agrarian Reform? (Sec. 3a) distribution of all agricultural lands,
- redistribution of lands, regardless of crops or subject to such priorities and reasonable
fruits produced, to farmers and regular retention limits as the Congress may
farmworkers who are landless, irrespective of prescribe, taking into account ecological,
tenurial arrangement, to include the totality of developmental, or equity considerations,
factors and support services designed to lift the and subject to the payment of just
economic status of the beneficiaries and all compensation. In determining retention
other arrangements alternative to the physical limits, the State shall respect the right of
redistribution of lands, such as production or small landowners. The State shall further
profit-sharing, labor administration, and the provide incentives for voluntary land-
distribution of shares of stocks, which will allow sharing.
beneficiaries to receive a just share of the fruits 5. Article XIII, Section 5: The State shall
of the lands they work. recognize the rights of farmers,
farmworkers, and landowners, as well as
Legal Basis: cooperatives, and other independent
1. POLICE POWER – promotion of general welfare. farmers' organizations to participate in
2. EMINENT DOMAIN – taking of private property the planning, organization, and
(of landowner) for public use (to be distributed management of the program, and shall
to qualified AR beneficiaries) upon just provide support to agriculture through
compensation. (Assoc. of Small Landowners vs appropriate technology and research, and
Secretary of AR) adequate financial, production,
marketing, and other support services.
APPLICABLE PROVISIONS UNDER THE CONSTITUTION: 6. Article XIII, Section 6: The State shall
1. Article II, Section 21: The State shall apply the principles of agrarian reform or
promote comprehensive rural stewardship, whenever applicable in
development and agrarian reform. accordance with law, in the disposition or
2. Article XII, Section 1: x x x The State shall utilization of other natural resources,
promote industrialization and full including lands of the public domain
employment based on sound agricultural under lease or concession suitable to
development and agrarian reform, x x x agriculture, subject to prior rights,
3. Article XIII, Section 3: x x x The State shall homestead rights of small settlers, and
regulate the relations between workers the rights of indigenous communities to
and employers, recognizing the right of their ancestral lands.
labor to its just share in the fruits of The State may resettle landless farmers
production and the right of enterprises to and farmworkers in its own agriculture
reasonable returns on investments, and estates which shall be distributed to them
to expansion and growth. in the manner provided by law.
4. Article XIII, Section 4: The State shall, by 7. Article XIII, Section 8: The State shall
law, undertake an agrarian reform provide incentives to landowners to
program founded on the rights of farmers invest the proceeds of the agrarian
and regular farmworkers, who are reform program to promote
landless, to own directly or collectively industrialization, employment creating,
the lands they till or, in the case of other and privatization of public sector
1
 enterprises. Financial instruments used as become permanently or regularly devoted to
payment for their lands shall be honored non-agricultural purposes.t does not include
as equity in enterprises of their choice. land which has become unproductive by reason
of force majeure or any other fortuitous event,
DEFINITIONS: provided that prior to such event, such land was
previously used for agricultural or other
Agriculture, Agricultural Enterprise or economic purpose.
Agricultural Activity - cultivation of the soil,
planting of crops, growing of fruit trees, raising Farmer - natural person whose primary
of livestock, poultry or fish, including the livelihood is cultivation of land or the production
harvesting of such farm products, and other farm of agricultural crops, either by himself, or
activities and practices performed by a farmer in primarily with the assistance of his immediate
conjunction with such farming operations done farm household, whether the land is owned by
by person whether natural or juridical. him, or by another person under a leasehold or
share tenancy agreement or arrangement with
Agricultural Land - land devoted to agricultural the owner thereof.
activity as defined in this Act and not classified as
mineral, forest, residential, commercial or Farmworker - natural person who renders
industrial land. service for value as an employee or laborer in an
agricultural enterprise or farm regardless of
Agrarian Dispute - any controversy relating to whether his compensation is paid on a daily,
tenurial arrangements, whether leasehold, weekly, monthly or "pakyaw" basis. The term
tenancy, stewardship or otherwise, over lands includes an individual whose work has ceased as
devoted to agriculture, including disputes a consequence of, or in connection with, a
concerning farmworkers' associations or pending agrarian dispute and who has not
representation of persons in negotiating, fixing, obtained a substantially equivalent and regular
maintaining, changing, or seeking to arrange farm employment.
terms or conditions of such tenurial
arrangements. Regular Farmworker - natural person who is
employed on a permanent basis by an
It includes any controversy relating to agricultural enterprise or farm.
compensation of lands acquired under this Act
and other terms and conditions of transfer of Seasonal Farmworker - natural person who is
ownership from landowners to farmworkers, employed on a recurrent, periodic or
tenants and other agrarian reform beneficiaries, intermittent basis by an agricultural enterprise
whether the disputants stand in the proximate or farm, whether as a permanent or a non-
relation of farm operator and beneficiary, permanent laborer, such as "dumaan", "sacada",
landowner and tenant, or lessor and lessee. and the like.

Idle or Abandoned Land - any agricultural land Other Farmworker - farmworker who does not
not cultivated, tilled or developed to produce fall under paragraphs (g), (h) and (i).
any crop nor devoted to any specific economic
purpose continuously for a period of three (3) Cooperatives - organizations composed
years immediately prior to the receipt of notice primarily of small agricultural producers,
of acquisition by the government as provided farmers, farmworkers, or other agrarian reform
under this Act, but does not include land that has beneficiaries who voluntarily organize
2
 themselves for the purpose of pooling land, 1. the parties are the landowner and
human, technological, financial or other the tenant or agricultural lessee;
economic resources, and operated on the 2. the subject matter of the
principle of one member, one vote. A juridical relationship is agricultural land;
person may be a member of a cooperative, with 3. there is consent between the parties
the same rights and duties as a natural person. to the relationship;
4. the purpose of the relationship is to
bring about agricultural production;
5. there is personal cultivation on the
Application of CARL as to classification of land: part of the tenant or agricultural
1. Devoted to agricultural activities lessee; and
2. Lands which are arable and suitable for farming 6. the harvest is shared between the
landowner and the tenant or
agricultural lessee.
LUZ FARMS VS. DAR
- Lands used in the poultry and livestock industry STANFILCO VS. DOLE (2009)
should not be covered by the Agrarian Reform Agricultural tenancy must exist in order for a dispute to
Program because they cannot be put in the same fall under the jurisdiction of DAR Adjudication Board
category as “agricultural lands”. (DARAB), and for the provisions of CARL to apply.
- Land is not the primary resource in raising of Agrarian reform extends beyond the mere acquisition
livestock, poultry or swine. and redistribution of land; the law acknowledges other
modes of tenurial arrangements to effect the
NB: The agricultural products must be “fruits of the soil”. implementation of CARP. When the question involves
the rights and obligations of persons engaged in the
management, cultivation, and use of an agricultural land
NATALIA REALTY VS. DAR (1993) covered by CARP, the case falls squarely within the
- Townsite reservation cannot be covered by CARP jurisdictional ambit of the DAR.
because it ceased to become an agricultural land
by virtue of PD 1637.
- Agricultural land does NOT include commercial, SCOPE OF CARP
industrial or residential land.
The Comprehensive Agrarian Reform Law shall cover,
What is Agricultural Tenancy? regardless of tenurial arrangement and commodity
- the physical possession by a person of land produced, all public and private agricultural lands, as
devoted to agriculture belonging to, or legally provided in Proclamation No. 131 and Executive Order
possessed by, another for the purpose of No. 229, including other lands of the public domain
production through the labor of the former and suitable for agriculture.
of the members of his immediate farm
household, in consideration of which the former More specifically the following lands are covered by the
agrees to share the harvest with the latter, or to CARP:
pay a price certain, either in produce or in a.) All alienable and disposable lands of the public
money, or in both. domain devoted to or suitable for agriculture.
No reclassification of forest or mineral lands
GALOPE VS. BUGARIN (2012) to agricultural lands shall be undertaken after
Elements of Agricultural Tenancy: the approval of this Act until Congress, taking
into account ecological, developmental and

3
 equity considerations, shall have determined agricultural land, the size of which shall vary according to
by law, the specific limits of the public domain. factors governing a viable family-size farm, such as
b.) All lands of the public domain in excess of the commodity produced, terrain, infrastructure, and soil
specific limits as determined by Congress in fertility as determined by the Presidential Agrarian
the preceding paragraph; Reform Council (PARC) created hereunder, but in no case
c.) All other lands owned by the Government shall retention by the landowner exceed five (5) hectares.
devoted to or suitable for agriculture; and Three (3) hectares may be awarded to each child of the
d.) All private lands devoted to or suitable for landowner, subject to the following qualifications: (1)
agriculture regardless of the agricultural that he is at least fifteen (15) years of age; and (2) that
products raised or that can be raised thereon. he is actually tilling the land or directly managing the
farm: provided, that landowners whose lands have been
LANDS COVERED BY CARP covered by Presidential Decree No. 27 shall be allowed to
1. All public and private agricultural lands keep the areas originally retained by them thereunder:
2. Other lands of public domain suitable for provided, further, that original homestead grantees or
agriculture their direct compulsory heirs who still own the original
homestead at the time of the approval of this Act shall
LANDS NOT COVERED BY CARP retain the same areas as long as they continue to
1. Private lands with total area of 5 hectares and cultivate said homestead.
below
- landholdings of landowners with a total area of The right to choose the area to be retained, which shall
5 hectares and below shall not be covered for be compact or contiguous, shall pertain to the
acquisition and distribution to qualified landowner: provided, however, that in case the area
beneficiaries selected for retention by the landowner is tenanted, the
2. Lands actually, directly and exclusively used for: tenant shall have the option to choose whether to remain
- parks, wildlife, forest reserves, reforestation,
therein or be a beneficiary in the same or another
fish sanctuaries and breeding grounds,
agricultural land with similar or comparable features. In
watersheds and mangroves
- prawn farms and fishponds (private lands) case the tenant chooses to remain in the retained area,
3. Lands actually, directly and exclusively used and
he shall be considered a leaseholder and shall lose his
found to be necessary for: right to be a beneficiary under this Act. In case the tenant
National defense chooses to be a beneficiary in another agricultural land,
School sites and campuses he loses his right as a leaseholder to the land retained by
Experimental farm stations operated for educational the landowner. The tenant must exercise this option
purposes within a period of one (1) year from the time the
Seeds and seedling research and pilot production center landowner manifests his choice of the area for retention.
Church sites and convents appurtenant thereto
Mosque sites and Islamic centers appurtenant thereto In all cases, the security of tenure of the farmers or
Communal burial grounds and cemeteries farmworkers on the land prior to the approval of this Act
Penal colonies and penal farms actually worked by the shall be respected.
inmates
Research and quarantine centers Upon the effectivity of this Act, any sale, disposition,
All lands with 18% slope and over except those already
lease, management, contract or transfer of possession of
developed.
private lands executed by the original landowner in
RETENTION LIMITS (Sec. 6, RA 6657) violation of the Act shall be null and void: provided,
however, that those executed prior to this Act shall be
Except as otherwise provided in this Act, no person may valid only when registered with the Register of Deeds
own or retain, directly or indirectly, any public or private within a period of three (3) months after the effectivity of
4
this Act. Thereafter, all Registers of Deeds shall inform agrarian reform beneficiaries therein shall be
the Department of Agrarian Reform (DAR) within thirty paid just compensation.
(30) days of any transaction involving agricultural lands
in excess of five (5) hectares. RIGHT TO CHOOSE THE AREA TO BE RETAINED

A landowner may only retain a maximum of five (5) The right to choose the area to be retained, which shall
hectares of land of his choice. be compact or contiguous, shall pertain to the
landowner.
- Retained area does not have to be personally
cultivated by the landowner. Cultivation can be If the land retained is tenanted, the tenant shall have the
done indirectly through labor administration. option to choose whether to remain therein or be a
beneficiary in the same or another agricultural land. The
Additional three (3) hectares may be awarded to each tenant must exercise this option within a period of one
child of the landowner, subject to the following (1) year from the time the landowner manifest his choice
qualifications: of the area for retention.

1. That the child is at least fifteen (15) years of age; In case the tenant chooses to remain in the retained
2. That the child is actually tilling the land or area, he shall be considered a leaseholder and shall lose
directly managing the farm. his right to be a beneficiary under this Act.

EXCEPTIONS to the retention limit of 5 hectares: In case the tenant chooses to be a beneficiary in another
agricultural land, he loses his right as a leaseholder to
1. Landowners whose lands have been covered by the land retained by the landowner.
PD 27; and
2. Original homestead grantees or direct IN CASE OF SPOUSES:
compulsory heirs who still own the original
homestead at the time of the approval of CARL, ▪ Conjugal or Absolute Community – spouses can
as long as they continue to cultivate said only retain 5 hectares.
homestead. ▪ Separation of property – spouses can retain 5
3. Provincial, city, and municipal government, units hectares each or a total of 10 hectares.
acquiring private agricultural lands by
expropriation or other modes of acquisition to RETENTION RIGHT VIS A VIS LANDS COVERED BY
be used for actual, direct and exclusive public EMANCIPATION PATENT (EP) OR CERTIFICATE OF LAND
purposes, such as roads and bridges, public OWNERSHIP AWARD (CLOA):
markets, school sites, resettlement sites, local
government facilities, public parks and barangay ▪ Emancipation Patent or Certificate of Land
plazas or squares, consistent with the approved Ownership Award to beneficiaries does not
local comprehensive land use plan, shall not be absolutely bar landowner from retaining area
subject to the five-hectare retention limit under covered.
this Section and Sections 70 and 73(a) of
Republic Act No. 6657, as amended: Provided, ▪ If landowner is deprived of right to retention, he
That lands subject to CARP shall first undergo the may file a petition for cancellation of EP or CLOA
land acquisition and distribution process of the issued to the tenants.
program: Provided, further, That when these
lands have been subjected to expropriation, the EP or CLOA may be cancelled if land covered is
found to be part of landowner’s retained area.
5
 Example: Child already owns 3 hectares of agricultural
IF RETAINED AREA IS TENANTED: land, he can still be awarded 2 hectares from his parent’s
landholding.
Choice of tenant:
Land awarded to qualified children of landowners cannot
1. Remain in the area chosen as retention area by be sold, transferred, conveyed within a period of 10
landowner (becomes an Agricultural Lessee and years except:
will no longer qualify as an agrarian reform
beneficiary) 1. Hereditary succession
2. Choose to become a beneficiary in the same or 2. To the government
another agricultural land with similar or 3. Land Bank of the Philippines
comparable features (loses his right to become 4. Other qualified beneficiaries
an agricultural lessee and may qualify as an
agrarian reform beneficiary). Children or spouse can repurchase land from
government or land bank within 2 years from date of
To be applicable, there must be a sufficient evidence of transfer.
landlord-tenant relationship:
HOMESTEADERS VS. TENANTS
1. Landowner has engaged a person to personally
cultivate an agricultural land. The Constitution and CARL respect the superiority of
2. Landowner is compensated: rights of homesteaders over rights of tenants.

- in terms of share in produce (share tenancy); or Original homestead grantees or their direct compulsory
- in terms of price certain or ascertainable in heirs who still own the original homestead at the time of
produce or in money or both (leasehold tenancy) the approval of this Act shall retain the same areas as
long as they continue to cultivate said homestead.
NB: Mere occupation or cultivation of an agricultural
land will not ipso facto make tiller an agricultural tenant. Agrarian Reform is a remedial measure pursuant to social
justice precept of the Constitution but it was not meant
MAXIMUM OF THREE (3) HECTARES EACH AVAILABLE TO to defeat the very purpose of the enactment of CA 141
LANDOWNER’S CHILDREN (Homestead Act).

If landowner owns more than 5 hectares of agricultural Owners or direct compulsory heirs of lands acquired
land, the excess area may be awarded to the children of through homestead grants of Free Patents under CA 141
the landowner to the extent of 3 hectares for each child are entitled to retain the entire area even if it exceeds 5
under the following conditions: hectares as long as:

1. Child is at least 15 years 1. They were cultivating the same at the time of
2. Child is actually tilling the land or directly approval of CARL June 15, 1988;
managing the farm 2. Continue to cultivate the same.

Qualified child who owns less than 5 hectares is still

entitled to an award of his parent’s landholding provided
that his total area including the awarded area does not EXCEPTION TO RETENTION LIMITS
exceed the 5 hectares ownership ceiling.

6
Provincial, city and municipal government ,units corporations, associations, institutions, or entities,
acquiring private agricultural lands by expropriation or devoted to existing and operational agri-business or
other modes of acquisition to be used for actual, direct agro-industrial enterprises, operated by multinational
and exclusive public purposes, such as roads and bridges, corporations and associations, shall be programmed for
public markets, school sites, resettlement sites, local acquisition and distribution immediately upon the
government facilities, public parks and barangay plazas effectivity of this Act, with the implementation to be
or squares, consistent with the approved local completed within three (3) years.
comprehensive land use plan, shall not be subject to the
five (5)-hectare retention limit under this Section and Lands covered by the paragraph immediately preceding,
Sections 70 and 73(a) of Republic Act No. 6657, as under lease, management, grower or service contracts,
amended: and the like, shall be disposed of as follows:

Provided, That lands subject to CARP shall first undergo (a) Lease, management, grower or service contracts
the land acquisition and distribution process of the covering such lands covering an aggregate area in excess
program: of 1,000 hectares, leased or held by foreign individuals in
excess of 500 hectares are deemed amended to conform
Provided, further, That when these lands have been with the limits set forth in Section 3 of Article XII of the
subjected to expropriation, the agrarian reform Constitution.
beneficiaries therein shall be paid just compensation.
(b) Contracts covering areas not in excess of 1,000
hectares in the case of such corporations and
associations, and 500 hectares, in the case of such
EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS individuals, shall be allowed to continue under their
BY LOCAL GOVERNMENT UNITS original terms and conditions but not beyond August 29,
1992, or their valid termination, whichever comes
If LGU expropriates private agricultural land for actual, sooner, after which, such agreements shall continue only
direct and exclusive public purposes, DAR should first when confirmed by the appropriate government agency.
subject it to agrarian reform coverage. Such contracts shall likewise continue even after the
lands has been transferred to beneficiaries or awardees
1. Land should first be acquired by the national thereof, which transfer shall be immediately commenced
government through DAR. and implemented and completed within the period of
2. DAR will pay just compensation to landowner. three (3) years mentioned in the first paragraph hereof.
3. Thereafter, DAR will distribute the land to
agrarian reform beneficiaries. (c) In no case will such leases and other agreements now
4. After distribution, LGU will expropriate the land being implemented extend beyond August 29, 1992,
and pay the agrarian reform beneficiaries just when all lands subject hereof shall have been distributed
compensation. completely to qualified beneficiaries or awardees.

Such agreements can continue thereafter only under a

new contract between the government or qualified
MULTINATIONAL CORPORATIONS (Sec. 8, RA 6657) beneficiaries or awardees, on the one hand, and said
enterprises, on the other.
Multinational Corporations. — All lands of the public
domain leased, held or possessed by multinational Lands leased, held or possessed by multinational
corporations or associations, and other lands owned by corporations, owned by private individuals and private
the government or by government-owned or controlled non-governmental corporations, associations,
7
institutions and entities, citizens of the Philippines, shall after ten (10) years following the effectivity of the Act.
be subject to immediate compulsory acquisition and However during the said period of effectivity, the
distribution upon the expiration of the applicable lease, government shall take steps to acquire these lands for
management, grower or service contract in effect as of immediate distribution thereafter.
August 29, 1987, or otherwise, upon its valid termination,
whichever comes sooner, but not later than after ten (10) In general, lands shall be distributed directly to the
years following the effectivity of the Act. However during individual worker-beneficiaries.
the said period of effectivity, the government shall take
steps to acquire these lands for immediate distribution In case it is not economically feasible and sound to divide
thereafter. the land, then they shall form a workers' cooperative or
association which will deal with the corporation or
In general, lands shall be distributed directly to the business association or any other proper party for the
individual worker-beneficiaries. In case it is not purpose of entering into a lease or growers agreement
economically feasible and sound to divide the land, then and for all other legitimate purposes. Until a new
they shall form a workers' cooperative or association agreement is entered into by and between the workers’
which will deal with the corporation or business cooperative or association and the corporation or
association or any other proper party for the purpose of business association or any other proper party, any
entering into a lease or growers agreement and for all agreement existing at the time this Act takes effect
other legitimate purposes. Until a new agreement is between the former and the previous landowner shall be
entered into by and between the workers' cooperative or respected by both the workers' cooperative or
association and the corporation or business association association and the corporation, business, association or
or any other proper party, any agreement existing at the such other proper party. In no case shall the
time this Act takes effect between the former and the implementation or application of this Act justify or result
previous landowner shall be respected by both the in the reduction of status or diminution of any benefits
workers' cooperative or association and the corporation, received or enjoyed by the worker- beneficiaries, or in
business, association or such other proper party. In no which they may have a vested right, at the time this Act
case shall the implementation or application of this Act becomes effective.
justify or result in the reduction of status or diminution of
any benefits received or enjoyed by the worker-
beneficiaries, or in which they may have a vested right, at
the time this Act becomes effective.

Such agreements can continue thereafter only under a

new contract between the government or qualified
beneficiaries or awardees, on the one hand, and said
enterprises, on the other.

Lands leased, held or possessed by multinational

corporations, owned by private individuals and private
non-governmental corporations, associations,
institutions and entities, citizens of the Philippines, shall
be subject to immediate compulsory acquisition and
distribution upon the expiration of the applicable lease,
management, grower or service contract in effect as of
August 29, 1987, or otherwise, upon its valid
termination, whichever comes sooner, but not later than
8
 EXEMPTIONS AND EXCLUSIONS (Sec. 10, RA 6657) must be submitted when applying for exemption
from CARP.
What is not covered by CARP? - In this case, the Court of Appeals was
constrained to resort to an ocular inspection of
Lands actually, directly and exclusively used and found to said properties through the commission it
be necessary for parks, wildlife, forest reserves, created considering that the opinion of
reforestation, fish sanctuaries and breeding grounds, petitioner DAR conflicted with the land use map
watersheds, and mangroves, national defense, school submitted in evidence by private respondent.
sites and campuses including experimental farm stations Respondent court also noted that even from the
operated by public or private schools for educational beginning the properties of private respondent
purposes, seeds and seedlings research and pilot had no definite delineation and classification.
production centers, church sites and convents Hence, the survey of the properties through the
appurtenant thereto, mosque sites and Islamic centers court appointed commissioners was the
appurtenant thereto, communal burial grounds and judicious and equitable solution to finally resolve
cemeteries, penal colonies and penal farms actually the issue of land classification and delineation.
worked by the inmates, government and private - The commissioner’s report on the actual
research and quarantine centers and all lands with condition of the properties confirms the fact that
eighteen percent (18%) slope and over, except those the properties are not wholly agricultural.
already developed shall be exempt from the coverage of
the Act.

DISCREPANCY IN LAND CLASSIFICATION SCHOOL SITES AND CAMPUSES

Republic of the Philippines rep. by DAR vs. CA, Green Exempt from coverage if:
City Estate and Development Corp. (Oct. 5, 2000)
1. actually, directly and exclusively used for
- Involves a 112-hectares of land in Jala-jala, Rizal educational purposes; and
classified as “agricultural” per tax declaration. 2. found necessary by the school for school sites
- The DAR put it under the coverage of CARP. and campuses.
- Green City filed an application for exemption of
the land from agrarian reform arguing that it is DAR has no right to substitute judgment of discretion
within the municipality’s residential zone as well for the determination of the necessity of the school.
as forest conservation zone per ordinance.
- Application for exemption was denied by DAR. Central Mindanao University vs. DARAB (1992)
- ISSUE: WON the land is exempted from CARP
considering that the tax declaration shows that FACTS: On 16 January 1958, President Carlos Garcia
it is classified as agricultural. issued Proclamation No. 467 reserving for the Mindanao
- RULING: Yes, it is exempt. Agricultural College, now the CMU, a piece of land to be
- There is no law or jurisprudence that holds that used as its future campus. In 1984, CMU embarked on a
the land classification embodied in the tax project titled "Kilusang Sariling Sikap" wherein parcels of
declarations is conclusive and final nor would land were leased to its faculty members and employees.
proscribe any further inquiry. Furthermore, the Under the terms of the program, CMU will assist faculty
tax declarations are clearly not the sole basis of members and employee groups through the extension of
the classification of a land. In fact, DAR technical know-how, training and other kinds of
Administrative Order No. 6 lists other assistance. In turn, they paid the CMU a service fee for
documents, aside from tax declarations, that use of the land. The agreement explicitly provided that
9
there will be no tenancy relationship between the Any provision of law to the contrary notwithstanding, the
lessees and the CMU. PARC may suspend the implementation of this Act with
respect to ancestral lands for the purpose of identifying
When the program was terminated, a case was filed by and delineating such lands: provided, that in the
the participants of the "Kilusang Sariling Sikap" for autonomous regions, the respective legislatures may
declaration of status as tenants under the CARP. In its enact their own laws on ancestral domain subject to the
resolution, DARAB, ordered, among others, the provisions of the Constitution and the principles
segregation of 400 hectares of the land for distribution enunciated in this Act and other national laws.
under CARP. The land was subjected to coverage on the
basis of DAR's determination that the lands do not meet
the condition for exemption, that is, it is not "actually,
directly, and exclusively used" for educational purposes. LAND ACQUISITION (Sec. 16, RA 6657)

ISSUE: WON the CMU land is covered by CARP? Who Procedure for Acquisition of Private Lands. — For
determines whether lands reserved for public use by purposes of acquisition of private lands, the following
presidential proclamation is no longer actually, directly procedures shall be followed:
and exclusively used and necessary for the purpose for
which they are reserved? (a) After having identified the land, the
landowners and the beneficiaries, the DAR shall
RULING: The land is exempted from CARP. CMU is in the send its notice to acquire the land to the owners
best position to resolve and answer the question of when thereof, by personal delivery or registered mail,
and what lands are found necessary for its use. The Court and post the same in a conspicuous place in the
also chided the DARAB for resolving this issue of municipal building and barangay hall of the place
exemption on the basis of "CMU's present needs." The where the property is located. Said notice shall
Court stated that the DARAB decision stating that for the contain the offer of the DAR to pay a
land to be exempt it must be "presently, actively corresponding value in accordance with the
exploited and utilized by the university in carrying out its valuation set forth in Sections 17, 18, and other
present educational program with its present student pertinent provisions hereof.
population and academic faculty" overlooked the very
significant factor of growth of the university in the years (b) Within thirty (30) days from the date of
to come. receipt of written notice by personal delivery or
registered mail, the landowner, his
administrator or representative shall inform the
DAR of his acceptance or rejection of the offer.
Rights of Indigenous Peoples over ANCESTRAL LANDS
vis-à-vis CARP (c) If the landowner accepts the offer of the DAR,
the Land Bank of the Philippines (LBP) shall pay
The right of these communities to their ancestral lands the landowner the purchase price of the land
shall be protected to ensure their economic, social and within thirty (30) days after he executes and
cultural well-being. In line with the principles of self- delivers a deed of transfer in favor of the
determination and autonomy, the systems of land government and surrenders the Certificate of
ownership, land use, and the modes of settling land Title and other muniments (any other record or
disputes of all these communities must be recognized deed) of title.
and respected.
(d) In case of rejection or failure to reply, the DAR
shall conduct summary administrative
10
 proceedings to determine the compensation for determine just compensation thru summary
the land requiring the landowner, the LBP and proceedings
other interested parties to submit evidence as to - if landowner disagrees with DAR decision –
the just compensation for the land, within fifteen regular courts of justice for final determination
(15) days from the receipt of the notice. After the of just compensation
expiration of the above period, the matter is 4. Taking of immediate possession of land by DAR
deemed submitted for decision. The DAR shall - if landowner receives corresponding payment or
- landowner does not respond to notice of
decide the case within thirty (30) days after it is
acquisition
submitted for decision.
5. Request by DAR to Register of Deeds to issue
Transfer Certificate of Title to Republic of
(e) Upon receipt by the landowner of the Philippines.
corresponding payment or, in case of rejection 6. Distribution of land to qualified beneficiaries
or no response from the landowner, upon the through Certificate of Land Ownership Awards
deposit with an accessible bank designated by (CLOA).
the DAR of the compensation in cash or in LBP
bonds in accordance with this Act, the DAR shall
TWO NOTICE RULE TO LANDOWNER FOR VALIDITY OF
take immediate possession of the land and shall
COVERAGE
request the proper Register of Deeds to issue a
Transfer Certificate of Title (TCT) in the name of
1. Notice of Coverage
the Republic of the Philippines. The DAR shall
2. Notice of Acquisition
thereafter proceed with the redistribution of the
land to the qualified beneficiaries.
LAND ACQUISITION PROCEDURE SHOULD BE STRICTLY
CONSTRUED
(f) Any party who disagrees with the decision
may bring the matter to the court of proper
Land acquisition under agrarian reform law is an
jurisdiction for final determination of just
extraordinary method of expropriation.
compensation.
Failure of DAR or any of its agencies to comply with
proper procedure for expropriation is a violation of
constitutional due process and in effect arbitrary,
COMPULSORY ACQUISITION OF
capricious, whimsical and tainted with grave abuse of
AGRICULTURAL LANDS
discretion.
1. Identification by DAR of land, landowner and
beneficiary WHEN TITLE OR OWNERSHIP OF THE LAND IS
2. Notice by DAR to landowner about compulsory TRANSFERRED TO THE STATE
acquisition and price offer by
- personal notice or by registered mail and Only upon full payment of just compensation.
- posting of notice in a conspicuous place in
barangay hall and municipal hall where land is Title and ownership remains with landowner until final
located determination of just compensation and fully payment
3. Reply by landowner about his acceptance or
rejection of offered price Mere fact that DAR deposited offered price with Land
- if landowner accepts – Land Bank will pay the Bank does not warrant cancellation of owner’s title.
landowner within 30 days from execution and
delivery of Deed of Transfer
- if landowner rejects offer – DAR will
11
 JUST COMPENSATION (Sec. 17, RA 6657) Without prompt payment, compensation is not “just”
because the landowner is made to suffer the
Determination of Just Compensation. — In determining consequence of being immediately deprived of his land
just compensation, the cost of acquisition of the land, the while being made to wait before receiving the amount
current value of the like properties, its nature, actual use
necessary to cope up with his loss.
and income, the sworn valuation by the owner, the tax
declarations, and the assessment made by government
assessors shall be considered. The social and economic Case in point: Lubrica vs. Landbank
benefits contributed by the farmers and the farmworkers
and by the Government to the property as well as the Josefina Lubrica vs. Land Bank of the Philipines
non-payment of taxes or loans secured from any (G.R. NO. 170220, November 20, 2006)
government financing institution on the said land shall be
considered as additional factors to determine its In the instant case, petitioners were deprived of their
valuation. properties in 1972 but have yet to receive the just
compensation therefor. The parcels of land were already
Section 18. Valuation and Mode of Compensation. —
subdivided and distributed to the farmer-beneficiaries
The LBP shall compensate the landowner in such
amounts as may be agreed upon by the landowner and thereby immediately depriving petitioners of their use.
the DAR and the LBP, in accordance with the criteria Under the circumstances, it would be highly inequitable
provided for in Sections 16 and 17, and other pertinent on the part of the petitioners to compute the just
provisions hereof, or as may be finally determined by the compensation using the values at the time of the taking
court, as the just compensation for the land. in 1972, and not at the time of the payment, considering
that the government and the farmer-beneficiaries have
What is just compensation? already benefited from the land although ownership
thereof have not yet been transferred in their names.
It is the full and fair equivalent of the property taken Petitioners were deprived of their properties without
from its owner by the expropriator. The measure is not payment of just compensation which, under the law, is a
the taker's gain, but the owner's loss. The payment must prerequisite before the property can be taken away from
be: its owners. The transfer of possession and ownership of
1. Prompt – The immediate deposit and release of the land to the government are conditioned upon the
payment is included in the concept of “just” receipt by the landowner of the corresponding payment
compensation. This means the payment should be or deposit by the DAR of the compensation with an
done within a reasonable time from the taking. accessible bank. Until then, title remains with the
2. Full – There can be no prompt payment if it is only landowner.
partial.
The CARP Law, for its part, conditions the transfer of
Payment within a reasonable time from taking. possession and ownership of the land to the government
on receipt by the landowner of the corresponding
Immediate deposit and release of provisional payment or the deposit by the DAR of the compensation
compensation. in cash or LBP bonds with an accessible bank. Until then,
title also remains with the landowner. No outright
Full payment of finally adjudged just compensation. change of ownership is contemplated either.

12
FACTORS IN THE VALUATION OF LANDS PARAD – when land value is less than 10 Million
RARAD – when land value is 10 Million to 50 Million
1. Capitalized Net Income – based on land use and DARAB – when land value is greater than 50 Million
productivity
2. Comparable Sales – 70% of the BIR zonal value But the order above may be dispensed with in the event
3. Market Value – based on the tax declaration. of the lower adjudicatory board's non-availability,
inhibition, or disqualification (i.e., if the PARAD is
PROCESS IN DETERMINING JUST COMPENSATION unavailable, even if the land value is more than 10
1. Initial Computation - The LBP will determine the Million, the RARAD may conduct the preliminary
value of the land. proceedings).
2. Offer – Based on the LBP's computation, the DAR
will make the offer to the landowner (LO). VALUATION SET BY DAR NOT CONCLUSIVE
3. If the LO rejects, the DAR will conduct a summary
administrative proceeding, where the LO, LBP and Valuation set by Land Bank is not conclusive. Landowner
other interested parties will submit evidence as to can contest it before the proper court, the RTC
the amount of just compensation to be resolved
designated as Special Agrarian Court.
within 30 days. Notices will be sent to the parties.
4. If the LO or any party disagrees with the DAR's
Sec. 6, Rule 19 of 2006 DARAB Rules of Procedure. Filing
resolution, the adjudicator has 15 days to bring the
of Original Action with the Special Agrarian Court for
matter to the RTC as a Special Agrarian Court for
final determination. Final Determination.

When is the reckoning point of valuation? The party who disagrees with the decision of the
Board/Adjudicator may contest the same by filing an
1. Time of taking of the property from the owner and original action with the Special Agrarian Court (SAC)
appropriated by the government. having jurisdiction over the subject property within
2. But if there is undue delay in the payment, the fifteen (15) days from his receipt of the
value should be determined not at the time of
Board/Adjudicator’s decision.
taking, but at the time of full payment of just
compensation.
Immediately upon filing with the SAC, the party shall file
AUTHORITY OF DAR ON LAND VALUATION a Notice of Filing of Original Action with the
Board/Adjudicator, together with a certified true copy of
The DARAB (Department of Agrarian Reform the petition filed with the SAC.
Adjudication Board), RARAD (Regional Agrarian Reform
Adjudicator), or the PARAD (Provincial Agrarian Reform Failure to file a Notice of Filing of Original Action or to
Adjudicator) can conduct a summary administrative submit a certified true copy of the petition shall render
proceeding for the preliminary determination of just the decision of the Board/Adjudicator final and
compensation. It will determine whether the land executory.
valuation of the LBP is in accordance with the rules and
administrative orders. Upon receipt of the Notice of Filing of Original Action or
certified true copy of the petition filed with the SAC, no
Jurisdiction would depend on the initial valuation by the writ of execution shall be issued by the
LBP: Board/Adjudicator.
13
 (b) regular farmworkers;
FACTORS TO CONSIDER IN COMPUTING JUST
COMPENSATION (c) seasonal farmworkers;

(d) other farmworkers;

1. cost of acquisition of the land
2. current value of similar properties
(e) actual tillers or occupants of public lands;
3. official assessment by the government
4. nature of the property (f) collectives or cooperatives of the above
5. non-payment of taxes or loans beneficiaries; and
6. sworn valuation of the owner
7. actual income and use (g) others directly working on the land.
8. tax declarations
9. economic and social benefits Provided, however, that the children of landowners who
are qualified under Section 6 of this Act shall be given
NB: Factors for determination of just compensation, preference in the distribution of the land of their parents:
which the DAR converted into a formula are mandatory and provided, further, that actual tenant-tillers in the
landholdings shall not be ejected or removed therefrom.
and not mere guidelines which the RTC may disregard.
Beneficiaries under Presidential Decree No. 27 who have
Is the consent of the farmer-beneficiary necessary in culpably sold, disposed of, or abandoned their land are
determining just compensation? disqualified to become beneficiaries under this Program.

No. The CARL, under Section 18, states that the A basic qualification of a beneficiary shall be his
compensation may be agreed upon by the landowner, willingness, aptitude, and ability to cultivate and make
DAR, and LBP. the land as productive as possible. The DAR shall adopt a
system of monitoring the record or performance of each
beneficiary, so that any beneficiary guilty of negligence
Land Bank cannot refuse to pay valuation set by PARAD
or misuse of the land or any support extended to him shall
simply because consent of farmer beneficiary was not
forfeit his right to continue as such beneficiary. The DAR
obtained in fixing just compensation. shall submit periodic reports on the performance of the
beneficiaries to the PARC.

LAND REDISTRIBUTION If, due to the landowner's retention rights or to the

number of tenants, lessees, or workers on the land, there
Who may qualify as agrarian reform beneficiaries under is not enough land to accommodate any or some of them,
RA 6657? (Sec. 22) they may be granted ownership of other lands available
for distribution under this Act, at the option of the
Sec. 22, RA 6657. Qualified Beneficiaries. — The lands beneficiaries.
covered by the CARP shall be distributed as much as
possible to landless residents of the same barangay, or in Farmers already in place and those not accommodated in
the absence thereof, landless residents of the same the distribution of privately-owned lands will be given
municipality in the following order of priority: preferential rights in the distribution of lands from the
public domain.
(a) agricultural lessees and share tenants;

14
WHO ARE CONSIDERED “LANDLESS”? in foreclosure of mortgage by Land Bank of the
- If the farmer/tiller owns an area of less than Philippines of a previously awarded land;
three (3) hectares of land. 5. Those who refused to pay 3 annual amortizations
for land acquired through voluntary land
- Not literally without land owned.
transfer or direct payment scheme, resulting in
repossession by landowner;
AGRARIAN REFORM BENEFICIARIES 6. Those who have been dismissed for cause;
7. Those who have obtained substantially equivalent
QUALIFICATIONS employment;
Land ownership - farmers, tillers or farmworkers who - any employment or profession form which
are landless or who own less than three (3) hectares of applicant farmer derives income equivalent to
agricultural lands. income of a regular farm worker at time of
identification, screening, and selection of
Age – must be at least 15 years old at the time of beneficiary
identification, screening, and selection. 8. those who have retired or voluntarily resigned from
Residency – He must reside in the barangay/municipality employment;
9. those who have misused the land or diverted the
where the land is located.
financial support services extended by the
Citizenship – He must be a Filipino citizen. government;
Capability – He must be willing, able and equipped with 10. those who have misrepresented
aptitude to cultivate and make the land productive. material facts in basic qualifications;
11. those who have sold, disposed, or abandoned
the lands awarded to them by the government;
MANAGERIAL FARM WORKERS NOT QUALIFIED TO
12. those who have converted agricultural lands to
BECOME BENEFICIARIES non-agricultural use without prior approval
from DAR;
Farmworkers holding managerial or supervisory 13. those who have been finally adjudged guilty of
positions as of June 15, 1988 are not qualified to become forcible entry or unlawful detainer over the
agrarian reform beneficiaries. However, farmworkers property; and
promoted to managerial or supervisory position after 14. those who have violated agrarian reform laws and
they were identified, screened and selected will remain regulations.
to be qualified beneficiaries.
ORDER OF PREFERENCE RE: LAND DISTRIBUTION
WHO ARE DISQUALIFIED FROM BECOMING AGRARIAN
REFORM BENEFICIARIES (1) Each child of the landowner, who is at least 15
years old and actually tilling or directly managing the
farm, enjoys first preference in the distribution of
The following tenants, lessees or farm workers:
the land, up to 3 hectares each.
1. Those who do not meet the basic qualifications;
2. Those who have waived their right to become an (2) After the children, up to 3 hectares for each:
agrarian reform beneficiary in exchange for
(a) agricultural lessees and share tenants
compensation, provided that waiver has not
(b) regular farmworkers
been questioned in proper government entity;
3. Those who have not paid an aggregate of three (3) (3) Once the lessees, tenants, and regular
annual amortizations; farmworkers have received their share, the
4. Those who have failed to exercise right of remaining portion, if any, will be given to:
redemption/repurchase within 2 years resulting
15
 (a) seasonal farmworkers
Compulsory acquisition does not mean automatic
(b) other farmworkers
transfer of ownership of the land to the tenant, lessee,
(c) actual tillers or occupants of public lands or farm worker. Title and ownership over the land can be
(d) collectives or cooperatives of the above transferred to the beneficiaries only upon full payment
beneficiaries of just compensation to the landowner.

(e) other persons directly working on the land

CERTIFICATE OF LAND OWNERSHIP AWARD (CLOA)

DISTRIBUTION LIMIT (Sec. 23, RA 6657) - a document evidencing ownership of the land granted
or awarded to the beneficiary by the DAR, and contains
Distribution Limit. — No qualified beneficiary may own the restrictions and conditions provided for in the CARL
more than three (3) hectares of agricultural land. and other applicable laws.

NB: The three (3) hectares that may be awarded to a - becomes indefeasible and imprescriptible after one
qualified beneficiary is just the maximum land area or year from its registration with the Office of the Registry
award limit/ceiling. It is not the mandatory area that of Deeds.
should be given to a qualified ARB.
DAR VS. CARRIEDO
(G.R. No. 176549, October 10, 2018)
FACTORS TO CONSIDER IN DETERMINING THE SIZE TO BE Reversal of previous ruling
AWARDED
(a) type of crop; - CLOAs are SUFFICIENT PROOF of land ownership and
(b) type of soil; are equivalent to a Torrens title.
(c) weather patterns; and
(d) other pertinent factors critical for the success NB: The October 10, 2018 decision is the SC resolution
of the beneficiaries. on the Motion for Reconsideration filed by DAR which
reversed its previous ruling in DAR, Quezon City, and
AWARD TO BENEFICIARIES (Sec. 24, RA 6657) Pablo Mendoza vs. Romeo Carriedo (January 20, 2016)
saying that CLOAs are not equivalent to a Torrens title.
Award to Beneficiaries. — The rights and
responsibilities of the beneficiary shall
WHEN DOES THE DAR ISSUE A CERTIFICATE OF LAND
commence from the time the DAR makes an
OWNERSHIP AWARD (CLOA)?
award of the land to him, which award shall be
completed within one hundred eighty (180) days
from the time the DAR takes actual possession The DAR will issue the CLOA only upon full payment of
of the land. Ownership of the beneficiary shall be amortization by the farmer-beneficiary. The CLOA in
evidenced by a Certificate of Land Ownership turn, becomes the basis for the issuance in his name of
Award, which shall contain the restrictions and an original or transfer certificate of title.
conditions provided for in this Act, and shall be
recorded in the Register of Deeds concerned and NB: CLOA is indefeasible.
annotated on the Certificate of Title.
CLOAs are titles brought under the operation of the
TRANSFER OF OWNERSHIP TO THE BENEFICIARIES IS NOT Torrens system. They are conferred the same
AUTOMATIC indefeasibility of titles granted under P.D. 1529, after
16
one year from its registration with the Registry of Deeds. the order for the issuance of the patent. Lands covered
by such title may no longer be the subject matter of a
cadastral proceeding, nor can it be decreed to another
ESTRIBILLO VS. DAR, HACIENDA MARIA INC. (2006) person.

FACTS: Private respondent Hacienda Maria Inc.

requested that 527.8308 hectares of its landholdings be CANCELLATION OF CLOA
placed under the coverage of Operation Land
Transfer. Receiving compensation therefor, HMI Exclusive and original jurisdiction of DAR Secretary:
allowed petitioners and other occupants to cultivate the All cases for cancellation of CLOAs and other titles issued
landholdings so that the same may be covered under under agrarian reform program.
Agrarian Reform Program. In 1982, a final survey over the
entire area was conducted and approved. From 1984 to GROUNDS FOR CANCELLATION OF CLOA
1988, the corresponding TCTs and EPs covering the
entire 527.8308 hectares were issued to petitioners, (a) Failure to pay 3 annual amortizations
among other persons. In December 1997, HMI filed with (b) Abandonment of the land
RARAD petitions seeking the declaration of erroneous (c) Neglect or misuse of the land
coverage under Presidential Decree No. 27 of 277.5008 (d) Misuse or diversion of financial and support
hectares of its former landholdings. HMI claimed that services
said area was not devoted to either rice or corn, that the (e) Illegal conversion of the land
area was untenanted, and that no compensation was (f) Sale, transfer, or conveyance of the right to use
paid therefor. RARAD rendered a decision declaring as the land
void the TCTs and Eps awarded to petitioners because
the land covered was not devoted to rice and corn, and Pending CLOA issuance, the identified and qualified
neither was there any established tenancy relations agrarian reform beneficiaries have usufructuary rights
between HMI and petitioners. over awarded land which DAR has taken possession.
Petitioners appealed to the DARAB which affirmed the
RARAD Decision. On appeal to the CA, the same was OBLIGATIONS OF ARBs:
dismissed. Petitioners contended that the EPs became (a) exercise due diligence in the use, cultivation and
indefeasible after the expiration of one year from their maintenance of the land; and
registration.
(b) pay the LBP thirty annual amortizations with 6%
ISSUE: WON EPs have become indefeasible one year interest per annum
after their issuance These will begin from the receipt of a duly registered
CLOA and their actual physical possession of the
RULING: awarded land.
After complying with the procedure in Section 105 of
Presidential Decree No. 1529, otherwise known as the The payment of amortization starts one year from the
Property Registration Decree where the DAR is required date of registration of the CLOA. But id the actual
to issue the corresponding certificate of title after occupancy of the land takes place after registration,
granting an EP to tenant-farmers who have complied the reckoning period will be from constructive
with Presidential Decree No. 27, the TCTs issued to occupation of the land.
petitioners pursuant to their EPs acquire the same
protection accorded to other TCTs. The certificate of title
becomes indefeasible and incontrovertible upon the
expiration of one year from the date of the issuance of

17
 RESOLUTION OF AGRARIAN DISPUTES agrarian dispute or on any matter pertaining to the
application, implementation, enforcement or
Administrative: DAR (thru DARAB, RARAD and/or
interpretation of the CARL and other pertinent laws on
PARAD)
agrarian reform may be brought to the Court of Appeals
Judicial: Special Agrarian Court (RTC as designated) by certiorari within fifteen (15) days from receipt of a
copy thereof. (Sec. 54, RA 6657)

A. ADMINISTRATIVE The findings of fact of the DAR shall be final and

The DAR is vested with primary jurisdiction to conclusive if based on substantial evidence.
determine and adjudicate agrarian reform matters Notwithstanding an appeal to the Court of Appeals, the
and shall have exclusive original jurisdiction over all decision of the DAR shall be immediately executory.
matter involving the implementation of agrarian
reform, except those falling under the exclusive B. JUDICIAL (Sec. 56, RA 6657)
jurisdiction of the Department of Agriculture and the
Department of Environment and Natural Resources. The Special Agrarian Courts (Regional Trial Courts) shall
have original and exclusive jurisdiction over:
1. Department of Agrarian Reform Adjudication
Board (DARAB) a. All petitions for the determination of
a. Exercises both original and appellate just compensation to landowners; and
jurisdiction b. The prosecution of all criminal offenses
b. Exercises functional supervision over the
under the CARL.
RARAD and PARAD
2. Regional Agrarian Reform Adjudicator (RARAD)
APPOINTMENT OF COMMISSIONERS
a. Executive Adjudicator in his region
b. Receives, hears and adjudicates cases
The Special Agrarian Courts, upon their own initiative or
which the PARAD cannot handle
at the instance of any of the parties, may appoint one or
because the latter is disqualified or
more commissioners to examine, investigate and
inhibits himself or because the case is
ascertain facts relevant to the dispute, including the
complex or sensitive.
valuation of properties and to file a written report
3. Provincial Agrarian Reform Adjudicator (PARAD)
thereof with the court.
RULES OF PROCEDURE IN ADMINISTRATIVE
APPEALS
ADJUDICATION

Appeal from the Decision of the Special Agrarian Court

DAR shall not be bound by technical rules of procedure
- Within fifteen (15) days from the receipt of the
and evidence but shall proceed to hear and decide all
decision of the Special Agrarian Court, an appeal
cases, disputes or controversies in a most expeditious
may be taken by filing a petition for review with
manner, employing all reasonable means to ascertain the
the Court of Appeals.
facts of every case in accordance with justice and equity
and the merits of the case.
Appeal from the Decision of the Court of Appeals
- Within a non-extendible period of fifteen (15)
JUDICIAL REVIEW
days from the receipt of the decision of the Court
Any decision, order, award or ruling of the DAR on any of Appeals, an appeal may be taken by filing a
18
 petition for review with the Supreme Court. violate R.A. 6657, PD 946, and Batas Bilang 129."

RUFINA VDA. DE TANGUB v. CA (1990) ISSUE: WON the RTC and the CA erred in dismissing the
case filed by the petitioners Tangub
FACTS: Rufina Tangub and her husband, Andres, now
deceased, filed with the Regional Trial Court of Lanao RULING: NO. The Regional Trial Court of Iligan City was
del Norte "an agrarian case for damages by reason of therefore correct in dismissing Agrarian Case No. 1094.
unlawful dispossession . . .as tenants from the It being a case concerning the rights of the plaintiffs as
landholding" owned by the Spouses Domingo and tenants on agricultural land, not involving the "special
Eugenia Martil. Several persons were also impleaded as jurisdiction" of said Trial Court acting as a Special
defendants, including the Philippine National Bank, it Agrarian Court, it clearly came within the exclusive
being alleged by the plaintiff spouses that said bank, original jurisdiction of the Department of Agrarian
holder of a mortgage on the land involved, had caused Reform, or more particularly, the Agrarian Reform
foreclosure thereof, resulting in the acquisition of the Adjudication Board, established precisely to wield the
property by the bank as the highest bidder at the adjudicatory powers of the Department.
foreclosure sale, and in the sale by the latter, sometime
later, of portions of the land to the other persons
named as its co-defendants (all employees of the MENDOZA VS. GERMINO (2010)
National Steel Corporation), and it being prayed that
mortgage and the transactions thereafter made in An action of FORCIBLE ENTRY cannot be resolved by
relation thereto be annulled and voided. DARAB. This is within the jurisdiction of the trial
courts. The subsequent amendment of the
Respondent Judge Felipe G. Javier, Jr. dismissed the complaint, alleging tenancy relationship between
complaint. He opined that by virtue of Executive Order the parties, will not divest the trial court of
No. 229 and Executive No. 129-A, approved on July 26, jurisdiction.
1987, as well as the Rules of the Adjudication Board of
the Department of Agrarian Reform, jurisdiction of the Facts: Mendoza, owner of a 5-hectare land in Nueva
Regional Trial Court over agrarian cases had been Ecija, filed with the MTC a complaint against Narciso
transferred to the Department of Agrarian Reform Germino, charging him of forcible entry.

The Court of Appeals dismissed the petition, finding Mendoza alleged that Narciso unlawfully entered the
that the jurisdictional question had been correctly subject property by means of strategy and stealth,
resolved by the Trial Court. The Court and without their knowledge or consent. Despite
of Appeals, adverted to a case earlier decided by Mendoza's repeated demands, Narciso refused to
it, Estanislao Casinillo v. Hon. Felipe G. Javier, Jr., et vacate the subject property.
al., in which it was "emphatically ruled that agrarian
cases no longer fall under the jurisdiction of Regional Narciso claimed that his brother, Benigno Germino,
Trial Courts but rather under the jurisdiction of the DAR was the Mendoza's agricultural lessee and he merely
Adjudication Board." helped the latter in the cultivation as a member of the
immediate farm household.
The petitioner Rufina Vda. de Tangub, now widowed, is
once again before the Supreme Court, contending that Mendoza filed a motion to remand the case to the
the Trial Court's "order of dismissal, and the decision of DARA), in view of the tenancy issue raised by Narciso.
the Honorable Court of Appeals affirming it, are Without conducting a hearing, and despite Narciso’s
patently illegal and unconstitutional" because they objection, the MTC issued an order remanding the
deprive "a poor tenant access to courts and directly case to the DARAB, Cabanatuan City for further
19
proceedings. Medoza filed an amended complaint to hear the case precisely to determine whether it had
with the Provincial Agrarian Reform Adjudicator jurisdiction to dispose of the ejectment suit on its
(PARAD), adding Benigno as a defendant. merits. After all, jurisdiction is not affected by the
pleas or the theories set up by the defendant in an
Issue: Whether the MTC or the DARAB has jurisdiction
answer or a motion to dismiss. Otherwise, jurisdiction
over the case.
would become dependent almost entirely upon the
Ruling: MTC. whims of the defendant.”

“Jurisdiction is determined by the allegations in the “Instead of conducting a preliminary conference, the
complaint. It is determined exclusively by the MTC immediately referred the case to the DARAB. This
Constitution and the law. It cannot be conferred by the was contrary to the rules. Besides, Section 240 of P.D.
voluntary act or agreement of the parties, or acquired No. 316, which required the referral of a land dispute
through or waived, enlarged or diminished by their act case to the Department of Agrarian Reform for the
or omission, nor conferred by the acquiescence of the preliminary determination of the existence of an
court. Under Batas Pambansa Blg. 129, as amended by agricultural tenancy relationship, has indeed been
R.A. No. 7691, the MTC shall have exclusive original repealed by Section 7641 of R.A. No. 6657 in 1988.”
jurisdiction over cases of forcible entry and unlawful
“In the absence of any allegation of a tenancy
detainer.”
relationship between the parties, the action was for
recovery of possession of real property that was
“Under Section 5028 of R.A. No. 6657, as well as within the jurisdiction of the regular courts.”
Section 34 of Executive Order No. 129-A, the DARAB
has primary and exclusive jurisdiction, both original
and appellate, to determine and adjudicate all
agrarian disputes involving the implementation of the
Comprehensive Agrarian Reform Program, and other
agrarian laws and their implementing rules and
regulations.”

“An agrarian dispute refers to any controversy

relating to, among others, tenancy over lands devoted
to agriculture. For a case to involve an agrarian
dispute, the following essential requisites of an
agricultural tenancy relationship must be present: (1)
the parties are the landowner and the tenant; (2) the
subject is agricultural land;(3) there is consent; (4) the
purpose is agricultural production; (5) there is
personal cultivation; and (6) there is sharing of
harvest or payment of rental.”

“Although respondent Narciso averred tenancy as an

affirmative and/or special defense in his answer, this
did not automatically divest the MTC of jurisdiction
over the complaint. It continued to have the authority
20
OTHER IMPORTANT PROVISIONS: TAX EXEMPTION ON TRANSACTIONS UNDER R.A. 6657

Section 66. Exemptions from Taxes and Fees of Land

Barangay Agrarian Reform Committee (BARC) Sec. 46, Transfers. — Transactions under this Act involving a
RA 6657 transfer of ownership, whether from natural or juridical
persons, shall be exempted from taxes arising from
Section 47. Functions of the BARC. — In addition to capital gains. These transactions shall also be exempted
those provided in Executive Order No. 229, the BARC from the payment of registration fees, and all other taxes
shall have the following functions: and fees for the conveyance or transfer thereof;
provided, that all arrearages in real property taxes,
(a) Mediate and conciliate between parties without penalty or interest, shall be deductible from the
involved in an agrarian dispute including matters compensation to which the owner may be entitled.
related to tenurial and financial arrangements;
Section 67. Free Registration of Patents and Titles. — All
(b) Assist in the identification of qualified Registers of Deeds are hereby directed to register, free
beneficiaries and landowners within the from payment of all fees and other charges, patents,
barangay; titles and documents required for the implementation of
the CARP.
(c) Attest to the accuracy of the initial parcellary
mapping of the beneficiary's tillage; What are the prohibited acts/omissions under R.A.
6657?
(d) Assist qualified beneficiaries in obtaining
credit from lending institutions; Section 73. Prohibited Acts and Omissions. — The
following are prohibited:
(e) Assist in the initial determination of the value
of the land; (a) The ownership or possession, for the purpose
of circumventing the provisions of this Act, of
(f) Assist the DAR representatives in the agricultural lands in excess of the total retention
preparation of periodic reports on the CARP limits or award ceilings by any person, natural or
implementation for submission to the DAR; juridical, except those under collective
ownership by farmer-beneficiaries.
(g) Coordinate the delivery of support services to
beneficiaries; and (b) The forcible entry or illegal detainer by
persons who are not qualified beneficiaries
(h) Perform such other functions as may be under this Act to avail themselves of the rights
assigned by the DAR. and benefits of the Agrarian Reform Program.

(2) The BARC shall endeavor to mediate, conciliate and (c) The conversion by any landowner of his
settle agrarian disputes lodged before it within thirty (30) agricultural land into any non-agricultural use
days from its taking cognizance thereof. If after the lapse with intent to avoid the application of this Act to
of the thirty day period, it is unable to settle the dispute, his landholdings and to dispossess his tenant
it shall issue a certificate of its proceedings and shall farmers of the land tilled by them.
furnish a copy thereof upon the parties within seven (7)
days after the expiration of the thirty-day period. (d) The willful prevention or obstruction by any
person, association or entity of the
implementation of the CARP.
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(e) The sale, transfer, conveyance or change of
the nature of lands outside of urban centers and
city limits either in whole or in part after the
effectivity of this Act. The date of the registration
of the deed of conveyance in the Register of
Deeds with respect to titled lands and the date
of the issuance of the tax declaration to the
transferee of the property with respect to
unregistered lands, as the case may be, shall be
conclusive for the purpose of this Act.

(f) The sale, transfer or conveyance by a

beneficiary of the right to use or any other
usufructuary right over the land he acquired by
virtue of being a beneficiary, in order to
circumvent the provisions of this Act.

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