THIRD DIVISION
G.R. No. 204218, May 12, 2021
FROILAN NAGAÑO, NIÑA PAULENE NAGAÑO, AND TERESITA FAJARDO, Petitioners, v. LUIS TANJANGCO, ANTONIO ANGEL TANJANGCO, TERESITA TANJANGCO-QUAZON, AND BERNARDITA LIMJUCO, Respondents.
D E C I S I O N
HERNANDO, J.:
This Petition, for Review on Certiorari1 assails the June 29, 2012 Decision2 and the October 23, 2012 Resolution3 of the Court of Appeals (CA) in CA-G.R. SP No. 120904.
The assailed Decision reinstated4 the October 1, 20095 and June 16, 20106 Resolutions of the Secretary of the Department of Agrarian Reform (DAR),7 which granted the application for retention filed by respondents Luis Tanjangco (Luis), Antonio Tanjangco, Teresita Tanjangco-Quazon, and Bernardita Limjuco, and opposed by petitioners Froilan Nagaño (Froilan), Niña Paulene Nagaño, and Teresita Fajardo.8 The assailed Resolution denied petitioners' Motion for Reconsideration for lack of merit.9
The Antecedents:
This case involves the question of whether respondents are entitled to retain five hectares each in a property covered by the land transfer program of the government under Presidential Decree No. 2710 (PD 27), otherwise known as the Tenants Emancipation Decree.
The property is a 238.7949-hectare piece of land situated in Mambangan, San Leonardo, Nueva Ecija.11
On October 21, 1972, the subject property, then covered by Transfer Certificate of Title (TCT) No. 1221012, was placed under the land transfer program of the government pursuant to PD 27.12 At that time, the subject property was registered under the names of the Spouses Jose Tanjangco and Anita Suntay (Spouses Tanjangco) with respect to 144 hectares, and under the names of respondents and their two other siblings, Federico S. Tanjangco (Federico) and Antonio S. Tanjangco (Antonio), who are not parties to this case, with respect to 95.5845 hectares.13 Pursuant to PD 27, emancipation patents were issued in favor of the tenant-beneficiaries.14
On April 7, 1983, the 144-hectare portion allocated, to the Spouses Tanjangco was transferred to respondents and their siblings, under TCT No. 177766.15
On October 5, 1999, respondents filed an application for retention of five hectares for each of them on the subject property pursuant to Republic Act No. 6657 (RA 6657), otherwise known as the Comprehensive Agrarian Reform Law of 1988, before the DAR Regional Office.16 The areas sought to be retained by respondents included Lot Nos. 72, 77, 133, 134, 137, and 153 (subject lots), which petitioners claim as the transferees thereof.17 Petitioners alleged that respondents were disqualified to retain, considering that they each already owned more than 24 hectares of land on the subject property, a disqualifying condition under PD 27 and its implementing rule DAR Administrative Order No. 04, series of 1991 (DAO 04-91), otherwise known as the Supplemental Guidelines Governing the Exercise of Retention Rights by Landowners under PD 27.18
During the pendency of the application for retention, respondents and their siblings executed a Deed of Partition dated July 4, 2000 which allocated 20 hectares to each respondent, 138.7949 hectares to Federico, and 20 hectares to Antonio.19 Thus, on July 4, 2000, each respondent owned less than 24 hectares.
Ruling of the DAR Regional Director: |
1. Landowners covered by PD 27 are entitled to retain seven hectares, except those whose entire tenanted rice and corn lands are subject of acquisition and distribution under Operation Land Transfer (OLT). An owner of tenanted rice and corn lands may not retain these lands under the following cases:The dispositive portion of the January 12, 2004 Order of the DAR Regional Director reads:chanroblesvirtualawlibrarya. If he as of 21 October 1972 owned more than 24 hectares of tenanted rice or corn lands; or
b. By virtue of LOI 474, if he as of 21 October 1976 owned less than 24 hectares of tenanted rice or corn lands but additionally owned the following:
Other agricultural lands of more than seven hectares, whether tenanted or not, whether cultivated or not, and regardless of the income derived therefrom; or
Lands used for residential, commercial, industrial, or other urban purposes, from which he derives adequate income to support himself and his family. (Emphasis supplied)
WHEREFORE, premises considered, an ORDER is hereby issued:Respondents moved for a reconsideration but it was denied by the DAR Regional Director in his February 27, 2004 Order,23 Thus, respondents appealed to the DAR Secretary.24
1. DENYING the application for retention of the herein applicants, Luis Tanjan[g]co, Antonio Angel Tanjan[g]co, Teresita Tanjan[g]co-Quazon and Bernardita Tanjan[g]co-Limjuco, over the property embraced by TCT No. T-177766, with an area of 238.7949 hectares, more or less, situated in Brgy. Mambangan, San Leonardo, Nueva Ecija, for lack of merit; and
2. AFFIRMING the coverage of the property under PD 27.
SO ORDERED.22chanRoblesvirtualLawlibrary
WHEREFORE, premises considered, the instant Appeal is hereby DENIED. Thus, the Order dated January 12, 2004, issued by the Regional Director of DAR Regional Office-III is hereby AFFIRMED.chanroblesvirtualawlibraryRespondent Luis moved for reconsideration of the March 26, 2009 Order of the DAR Secretary.29 In his October 1, 2009 Resolution,30 the DAR Secretary granted the motion and reversed and set aside his March 26, 2009 Order.31
SO ORDERED.28chanRoblesvirtualLawlibrary
WHEREFORE, premises considered, the motion for reconsideration is GRANTED. The assailed Order dated 26 March 2009 is REVERSED AND SET ASIDE and a new Order is issued thus:Petitioners filed a motion for reconsideration of the October 1, 2009 Resolution,35 which was, however, denied by the DAR Secretary in his June 16, 2010 Resolution36 for being a prohibited pleading under DAR Administrative Order No. 03, series of 2003 (DAO 03-03), otherwise known as Rules for Agrarian Law Implementation Cases.37 Thus, petitioners appealed to the Office of the President.38
1. GRANTING the application of Luis Tanjangco to retain Lot Nos. 76, 77, 133 and 134, with an aggregate area of five (5) hectares, to be taken from the land covered by TCT No. NT-177766 located in Brgy. Mambangan, San Leonardo, Nueva Ecija;
2. GRANTING the application of Bernardita Tanjangco-Limjuco to retain Lot Nos. 71, 72, 76 and 153, with an aggregate area of five (5) hectares, to be taken from the land covered by TCT No. NT-177766 located in Brgy. Mambangan, San Leonardo, Nueva Ecija;
3. GRANTING the application of Teresita Tanjangco-Quason to retain Lot Nos. 67, 68, 69 and 137, with an aggregate area of five (5) hectares, to be taken from the land covered by TCT No. NT-177766 located in Brgy. Mambangan, San Leonardo, Nueva Ecija;
4. GRANTING the application of Antonio Angel Tanjangco to retain Lot Nos. 70 and 71, with art aggregate area of five (5) hectares, to be taken from the land covered by TCT No. NT-177766 located in Brgy. Mambangan, San Leonardo, Nueva Ecija.chanroblesvirtualawlibrary
SO ORDERED.34chanRoblesvirtualLawlibrary
Ruling of the Office of the President: |
WHEREBY, premises considered, the instant appeal is hereby GRANTED. The resolutions dated October 1, 2009 and June 16, 2010 of the DAR are hereby REVERSED and SET ASIDE. The Order dated January 12, 2004 of Regional Director of DAR Regional Office-III and the Order dated March 26, 2009 of the DAR Secretary are hereby REINSTATED.chanroblesvirtualawlibraryRespondents filed a motion for reconsideration,43 which was, however, denied by the Office of the President in its undated Resolution.44
SO ORDERED.42chanRoblesvirtualLawlibrary
WHEREFORE, premises considered, the instant petition is GRANTED. The assailed Decision, dated 10 March 2011, as well as the undated Resolution, rendered by the Office of the President in OP Case No. 10-G-361 are hereby REVERSED and SET ASIDE. The Resolutions, dated 1 October 2009 and 16 June 2010, issued by the DAR Secretary are hereby REINSTATED.chanroblesvirtualawlibraryPetitioners moved for reconsideration52 which was, however, denied by the appellate court in its assailed Resolution.53
SO ORDERED.51chanRoblesvirtualLawlibrary
Petitioners are not real parties in interest. |
EO 228 not inconsistent with PD 27 on prohibition of transfersThere is no incompatibility between PD 27 and EO 228 because EO 228 because EO 228 "deals with payment of amortization and not on who qualify as legal transferees of lands covered by PD 27."78 Thus, the prevailing rule is that lands covered by PD 27 can only be validly transferred by hereditary succession or to the government.
x x x
First of all, the provision in question is silent as to who can be the transferees of the land acquired through the CARP. The rule in statutory construction is that statutes in pari materia should be construed together and harmonized. Since there appears to be no irreconcilable conflict between PD 27 and Sec. 6 of EO 228, then the two (2) provisions can be made compatible by maintaining the rule in PD 27 that lands acquired under said decree can only be transferred to the heirs of the original beneficiary or to the Government. Second, PD 27 is the specific law on agrarian reform while EO 228 was issued principally to implement PD 27. This can easily be inferred from EO 228 which provided for the mode of valuation of lands subject of PD 27 and the manner of payment by the farmer-beneficiary and mode of compensation to the land owner. Third, implied repeals are not favored. A perusal of the aforequoted Sec. 6 of EO 228 readily reveals that it confers upon the beneficiary the privilege of paying the value of the land on a twenty (20)-year annual amortization plan at six percent (6%) interest per annum. He may elect to pay in full the installments or have the payment plan restructured. Said provision concludes by saying that after full payment, ownership of the land may already be transferred. Thus, it is plain to see that Sec. 6 principally deals with payment of amortization and not on who qualify as legal transferees of lands acquired under PD 27. Since there is no incompatibility between PD 27 and EO 228 on the qualified transferees of land acquired under PD 27, ergo, the lands acquired under said law can only be transferred to the heirs of the beneficiary or to the Government for eventual transfer to qualified beneficiaries by the DAR pursuant to the explicit proscription in PD 27.77 (Emphasis supplied)
Under PD 27 and the pronouncements of this Court, transfer of lands under PD 27 other than to successors by hereditary succession and the Government is void. A void or inexistent contract is one which has no force and effect from the beginning, as if it has never been entered into, and which cannot be validated either by time or ratification. No form of validation can make the void Agreement legal.86chanRoblesvirtualLawlibraryThe transfers of Lot Nos. 77, 133 and 134 being null and void, title to these lots never left the hands of the original beneficiaries or their heirs. They are the ones entitled to oppose the application for retention pursuant to Section 13.2, Rule III of DAO 03-03,87 which expressly provides that only real parties in interest may file an opposition to any action. Accordingly, the DAR Regional Director and DAR Secretary correctly based their decisions only on the merits of the application for retention, and without any reference to petitioners' opposition or pleadings. Petitioners, who are strangers to this case, have no right to oppose respondents' application for retention.
The October 1, 2009 Resolution of the DAR Secretary which granted respondents' application for retention has become final and executory, and therefore immutable. |
SECTION 32. Motion for Reconsideration. A party may file only one (1) motion for reconsideration of the decision of the Secretary or deciding authority, and may do so only within a non-extendible period of fifteen (15) calendar days from receipt of the Secretary's decision, furnishing a copy of the motion to all other parties. The filing of the motion interrupts the running of the reglementary period within which to appeal. Upon, receipt of the resolution on the motion for reconsideration, the losing party may elevate the matter to the Office of the President (OP). (Emphasis supplied)Sec. 32 is clear in that the remedy to the DAR Secretary's resolution of a motion for reconsideration filed by any party is to elevate the matter to the Office of the President, "[W]here the words of a statute are clear, plain, and free from ambiguity, it must be given its literal meaning and applied without attempted interpretation."94
1. Landowners covered by PD 27 are entitled to retain seven hectares, except those whose entire tenanted rice and corn lands are subject of acquisition and distribution under Operation Land Transfer (OLT). An owner of tenanted rice and corn lands may not retain these lands under the following cases:The appellate court held that while DAO 04-91 prohibited retention by a landowner who owned more than 24 hectares of tenanted rice or corn lands as of October 21, 1972, such prohibition did not apply to respondents since on that date, respondents and their siblings were co-owners of 95.5845 hectares only under TCT No. 1221012, each owning less than 24 hectares of land on the subject property.102 It was only on April 7, 1983 that the portion allocated to Spouses Tanjangco was transferred to respondents and their siblings under TCT No. 177766. In any case, the subject property was already partitioned on July 4, 2000, with less than 20 hectares allocated to each of respondents.103a. If he as of 21 October 1972 owned more than 24 hectares of tenanted rice or corn lands; or
b. By virtue of LOI 474, if he as of 21 October 1976 owned less than 24 hectares of tenanted rice or corn lands but additionally owned the following:
Other agricultural lands of more than seven hectares, whether tenanted or not, whether cultivated or not, and regardless of the income derived therefrom; or
Lands used for residential, commercial, industrial, or other urban purposes, from which he derives adequate income to support himself and his family. (Emphasis supplied)
Endnotes:
1Rollo, pp. 3-20.
2Id. at 23-39; penned by Associate justice Samuel H. Gaerlan (now a Member of this Court) and Concurred in by Associate Justices Amelita G. Tolentino and Ramon R. Garcia.
3 CA rollo, p. 285.
4rollo, p. 38.
5Id. at 54-60.
6Id. at 114-117.
7Id. at 38.
8Id. at 59-60; 116.
9Id. at 4.
10 Decreeing the Emancipation of Tenants from the Bondage of the Soil Transferring to them the Ownership of the Land they Till and Providing the Instruments and Mechanism therefor (1972).
11Rollo, p. 6.
12Id. at 24.
13Id.
14Id.
15Id.
16Id.
17Id. at 124-126. Petitioner Niña Paulene Nagaño's interest covers Lot No. 153; petitioner Teresita Fajardo, Lot No. 137; and petitioner Froilan Nagaño, Lot Nos. 72, 77, 133, and 134.
18Id. at 8-12.
19Id. at 24.
20Id. at 40-41; penned by Regional Director Narciso B. Nieto.
21Id. at 41.
22Id.
23Id. at 45-46; penned by Regional Director Narciso B. Nieto.
24Id. at 26.
25Id. at 48-51; penned by Secretary Nasser C. P. Pangandaman.
26 The second ground provides:
An owner of tenanted rice and corn lands may not retain these lands under the following cases:
x x x
b. By virtue of LOI 474, if he as of 21 October 1976 owned less than 24 hectares of tenanted rice or corn lands but additionally owned the following:
Other agricultural lands of more than seven hectares, whether tenanted or not, whether cultivated or not, and regardless of the income derived therefrom; or
Lands used for residential, commercial, industrial, or other urban purposes, from which he derives adequate income to support himself and his family.
27Rollo, pp. 50-51.
28Id. at 51.
29Id. at 62-64.
30Id. at 54-60; penned by Secretary Nasser C. Pangandaman.
31Id. at 59.
32Id. at 57.
33Id. at 58.
34Id. at 59-60.
35Id. at 28.
36Id. at 114-117.
37Id.
38Id. at 29.
39Id. at 140-143.
40Id. at 143.
41Id. at 142-143.
42Id. at 143.
43Id. at 30.
44Id. at 145; signed by Executive Secretary Paquito N. Ochoa, Jr., by authority of the President.
45Id. at 38.
46Id. at 31-32.
47Id.
48Id. at 32-35.
49Id. at 35.
50Id.
51Id. at 38.
52Id. at 5.
53Id. at 44.
54Id. at 32-35.
55Id. at 13.
56Id. at 6. Paragraph 4.2 of the Petition provides:
4.2. Lots 153, 72, 77, and 137 were all converted to residential lands particularly subdivision units under the name St. Leonard Properties at the expense of petitioners; [w]hile Lots 133 and 134 were converted to a fishpond at the expense of petitioner Froilan Nagaño. (Emphasis supplied)
57Id. at 6.
58Id. at 6, 33-34.
59Id. at 6, 214-231.
60Id. at 6, 191-201.
61Id. at 6, 220-222. According to petitioner Froilan Nagaño's Reply, he bought the following lots: Lot No. 134 from Maricar A. Domingo, who purchased the same from the original tenant-beneficiary Arsenio Garcia; Lot No. 77 from Maricar A. Domingo (but there is no reference to the original tenant-beneficiary of Lot No. 77); and Lot No. 133 from Ruthgardo T. Aguilar, who in turn bought the same from the original tenant-beneficiary Edgardo F. Yacat. There was no mention of petitioner Froilan Nagaño's source of interest in Lot No. 72.
62 Declaring Full Land Ownership to Qualified Farmer Beneficiaries Covered by Presidential Decree No. 27: Determining the Value of Remaining Unvalued Rice and Corn Lands subject to P.D. No. 27; And Providing for the Manner of Payment by the Farmer Beneficiary and Mode of Compensation to the Landowner (1987).
63 642 Phil. 408 (2010).
64Rollo, pp. 222-223
65Gipa v. Southern Luzon Institute, 736 Phil. 515, 530-531 (2014).
66Id. at 530, citing Magnolia Corporation v. National Labor Relations Commission, 320 Phil. 408 (1995).
67Id. at 530-531.
68Estate of Vda. de Panlilio v. Oton, 562 Phil. 518, 550-552 (2007).
69 Under Article 5 of the Civil Code, acts executed against the provisions of mandatory or prohibiting laws shall be void. See Estate of Vda. de Panlilio v. Dizon, supra at 552.
70Heirs of Asuncion v. Raymundo, 693 Phil. 92, 103 (2012), citing Toralba v. Mercado, 478 Phil. 563, 571 (2004).
71Saguinsin v. Liban, 789 Phil. 374 (2016); Torres v. Ventura, 265 Phil. 99 (1990); see Heirs of Asuncion v. Raymundo, supra.
72Digan v. Malines, 822 Phil. 220, 236 (2017), citing Saguinsin v. Liban, supra.
73Rollo, pp. 222-223.
74 Emphasis supplied. EO 228 (1987), Sec. 6. It reads in full:
Sec. 6. The total costs of the land including interest at the rate of six percent (6%) per annum with a two percent: (2%) interest rebate for amortizations paid on time, shall be paid by the farmer-beneficiary or his heirs to the Land Bank over a period up to twenty (20) years in twenty (20) equal annual amortizations. Lands already valued and financed by the Land Bank are likewise extended a 20-year period of payment of twenty (20) equal annual amortizations. However, the farmer-beneficiary if he so elects, may pay in full before the twentieth year or may request the Land Bank to structure a repayment period of less than twenty (20) years if the amount to be financed and the corresponding annual obligations are well within the farmer's capacity to meet. Ownership of lands acquired by the farmer-beneficiary may be transferred after full payment of amortizations.
75Rollo, pp. 222-223.
76 Supra note 66.
77Id. at 550-552.
78Id. at 552. See Digan v. Malines, supra note 70 where We held that a transfer made in favor of the actual tenant-tiller is also considered valid.
79 Supra note 61.
80Id. at 415.
81Heirs of Atienza v. Espidol, supra note 61 at 412, 416.
82 Id at 416.
83 Id.
84Saguinsin v. Liban, supra note 69; Abella v. Heirs of San Juan, 781 Phil. 533 (2016); see Heirs of Asuncion v. Raymundo, supra note 68.
85 Supra at 533-550.
86Id. at 546-547, citing Torres v. Ventura, supra note 69, Estate of Vda. de Panlilio v. Dizon, supra note 66, and Francisco v. Herrera, 440 Phil. 841 (2002).
87 DAO 03-03, Rule III, Sec. 13.2. It reads:
SECTION 13. Commencement of an action.x x x
13.2. After issuance of notice of coverage — Commencement shall be at the DAR Municipal Office (DARMO). When the applicant/petitioner commences the case at any other DAR office, the receiving office shall transmit the case folder to the DARMO or proper DAR office in accordance with the pertinent order and/or circular governing the subject matter. Only the real-party-in-interest may file a protest/opposition or petition to lift CARP coverage and may only do so within sixty (60) calendar days from receipt of the notice of coverage; a protesting party who receives the notice of coverage by newspaper publication shall file his protest / opposition / petition within sixty (60) calendar days from publication date; failure to file the same within the period shall merit outright dismissal of the case. (Emphasis supplied)
88Rollo, pp. 214-219.
89Id. at 62-64.
90Id. at 54-60.
91Id. at 28. We agree with both the Court of Appeals and petitioners that the relevant provision in this case is Section 32, Rule V of DAO 03-03, and not Section 24.2, Rule III thereof, which was cited by the DAR Secretary when it denied petitioners' motion for reconsideration in its June 16, 2010 Resolution. Sec. 32 covers cases where the DAR Secretary exercises exclusive original jurisdiction, while Sec. 24.2 covers cases where the DAR Secretary exercises appellate jurisdiction. Since this case originated from an application for retention filed before the DAR Regional Office III, and appealed to the DAR Secretary, Sec. 32 applies.
92Id. at 32.
93Id.
94Republic v. Camacho, 711 Phil. 80, 97 (2013), citing National Food Authority v. Masada Security Agency, Inc.. 493 Phil. 241, 250 (2005) and PNB v. Garcia, Jr., 437 Phil. 289, 291 & 295 (2002).
95Rollo, pp. 214-219.
96 Id.
97 Understandably, it was only respondent Luis Tanjangco who moved for reconsideration because the March 26, 2009 Order was prejudicial to him. However, this did not preclude petitioners to move for partial reconsideration in case they were not completely satisfied with the March 26, 2009 Order.
98Torres v. Aruego, 818 Phil. 524, 544 (2017).
99 PD 27 (1972). It provides:
x x x
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, by virtue of the powers vested in me by the Constitution as Commander-in-Chief of all the Armed Forces of the Philippines, and pursuant to Proclamation No. 1081, dated September 21, 1972, and General Order No. 1 dated September 22, 1972, as amended do hereby decree and order the emancipation of all tenant farmers as of this day, October 21, 1972:
This shall apply to tenant farmers of private agricultural lands primarily devoted to rice and corn under a system of sharecrop or lease-tenancy, whether classified as landed estate or not;
The tenant farmer, whether in land classified as landed estate or not, shall be deemed owner of a portion constituting a family-size farm of five (5) hectares if not irrigated and three (2) hectares if irrigated.
In all cases, the landowner may retain an area of not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate it;
x x x x (Emphasis supplied)
100 LOI 474 (1976). It provides:
x x x
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines, do hereby order the following:
1. You shall undertake to place under the Land Transfer program of the government pursuant to Presidential Decree No. 27, all tenanted rice/corn lands with areas of seven hectares or less belonging to landowners who own other agricultural lands of more than seven hectares in aggregate areas or lands used for residential, commercial, industrial or other urban purposes from which they derive adequate income to support themselves and their families.
x x x
101 RA 6657 (1988), Sec. 6. It reads:
SECTION 6. Retention Limits. — Except as otherwise provided in this Act, no person may own or retain, directly or indirectly, any public or private agricultural land, the size of which shall vary according to factors governing a viable family-size farm, such as commodity produced, terrain, infrastructure, and soil fertility as determined by the Presidential Agrarian Reform Council (PARC) created hereunder, but in no case shall retention by the landowner exceed five (5) hectares. Three (3) hectares may be awarded to each child of the landowner, subject to the following qualifications: (1) that he is at least fifteen (15) years of age; and (2) that he is actually tilling the land or directly managing the farm: Provided, That landowners whose lands have been covered by Presidential Decree No. 27 shall be allowed to keep the areas originally retained by them thereunder: Provided, further, That original homestead grantees or their direct compulsory heirs who still own the original homestead at the time of the approval of this Act shall retain the same areas as long as they continue to cultivate said homestead.
The right to choose the area to be retained, which shall be compact or contiguous, shall pertain to the landowner x x x. (Emphasis supplied)
102Rollo, p. 35.
103Id.
104Heirs of Reyes v. Garilao, 620 Phil. 303 (2009); Pangilinan v. Balatbat, 694 Phil. 605 (2012).
105Gadrinab v. Salamanca, 736 Phil. 279, 292-293 (2014), citing FGU Insurance Corp. v. Regional Trial Court of Makati City, Branch 66, 659 Phil. 117 (2011).
106Ang v. Pacunio, 763 Phil. 542, 549 (2015), citing Liga v. Allegro Resources Corp., 595 Phil. 903, 911 (2008).cralawredlibrary