COMPREHENSIVE AGRARIAN REFORM LAW
(R.A. 6657) just share of the fruits thereof. To this
What is Agrarian Reform? (Sec. 3a)
- redistribution of lands, regardless of crops or
fruits produced, to farmers and regular
farmworkers who are landless, irrespective of
tenurial arrangement, to include the totality of
factors and support services designed to lift the
economic status of the beneficiaries and all
other arrangements alternative to the physical
redistribution of lands, such as production or
profit-sharing, labor administration, and the
distribution of shares of stocks, which will allow
beneficiaries to receive a just share of the fruits
of the lands they work.
Legal Basis:
1. POLICE POWER – promotion of general welfare.
2. EMINENT DOMAIN – taking of private property
(of landowner) for public use (to be distributed
to qualified AR beneficiaries) upon just
compensation. (Assoc. of Small Landowners vs
Secretary of AR)
APPLICABLE PROVISIONS UNDER THE CONSTITUTION:
1. Article II, Section 21: The State shall
promote comprehensive rural
development and agrarian reform.
2. Article XII, Section 1: x x x The State shall
promote industrialization and full
employment based on sound agricultural
development and agrarian reform, x x x
3. Article XIII, Section 3: x x x The State
shall regulate the relations between
workers and employers, recognizing the
right of labor to its just share in the fruits
of production and the right of
enterprises to reasonable returns on
investments, and to expansion and
growth.
4. Article XIII, Section 4: The State shall, by
law, undertake an agrarian reform
program founded on the rights of
farmers and regular farmworkers, who
are landless, to own directly or
collectively the lands they till or, in the
case of other farmworkers, to receive a
end, the State shall encourage and
undertake the just distribution of all
agricultural lands, subject to such
priorities and reasonable retention limits
as the Congress may prescribe, taking
into account ecological, developmental,
or equity considerations, and subject to
the payment of just compensation. In
determining retention limits, the State
shall respect the right of small
landowners. The State shall further
provide incentives for voluntary land-
sharing.
5. Article XIII, Section 5: The State shall
recognize the rights of farmers,
farmworkers, and landowners, as well as
cooperatives, and other independent
farmers' organizations to participate in
the planning, organization, and
management of the program, and shall
provide support to agriculture through
appropriate technology and research,
and adequate financial, production,
marketing, and other support services.
6. Article XIII, Section 6: The State shall
apply the principles of agrarian reform or
stewardship, whenever applicable in
accordance with law, in the disposition or
utilization of other natural resources,
including lands of the public domain
under lease or concession suitable to
agriculture, subject to prior rights,
homestead rights of small settlers, and
the rights of indigenous communities to
their ancestral lands.
The State may resettle landless
farmers and farmworkers in its own
agriculture estates which shall be
distributed to them in the manner
provided by law.
7. Article XIII, Section 8: The State shall
provide incentives to landowners to
invest the proceeds of the agrarian
reform program to promote
industrialization, employ- ment creating,
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 and privatization of public sector
enterprises. Financial instruments used
as payment for their lands shall be
honored as equity in enterprises of their
choice.
DEFINITIONS:
Agriculture, Agricultural Enterprise or
Agricultural Activity - cultivation of the soil,
planting of crops, growing of fruit trees, raising
of livestock, poultry or fish, including the
harvesting of such farm products, and other
farm activities and practices performed by a
farmer in conjunction with such farming
operations done by person whether natural or
juridical.
Agricultural Land - land devoted to agricultural
activity as defined in this Act and not classified
as mineral, forest, residential, commercial or
industrial land.
Agrarian Dispute - any controversy relating to
tenurial arrangements, whether leasehold,
tenancy, stewardship or otherwise, over lands
devoted to agriculture, including disputes
concerning farmworkers' associations or
representation of persons in negotiating, fixing,
maintaining, changing, or seeking to arrange
terms or conditions of such tenurial
arrangements.
It includes any controversy relating to
compensation of lands acquired under this Act
and other terms and conditions of transfer of
ownership from landowners to farmworkers,
tenants and other agrarian reform beneficiaries,
whether the disputants stand in the proximate
relation of farm operator and beneficiary,
landowner and tenant, or lessor and lessee.
Idle or Abandoned Land - any agricultural land
not cultivated, tilled or developed to produce
any crop nor devoted to any specific economic
purpose continuously for a period of three (3)
years immediately prior to the receipt of notice
of acquisition by the government as provided
under this Act, but does not include land that
has become permanently or regularly devoted
to non-agricultural purposes.t does not include
land which has become unproductive by reason
of force majeure or any other fortuitous event,
provided that prior to such event, such land was
previously used for agricultural or other
economic purpose.
Farmer - natural person whose primary
livelihood is cultivation of land or the
production of agricultural crops, either by
himself, or primarily with the assistance of his
immediate farm household, whether the land is
owned by him, or by another person under a
leasehold or share tenancy agreement or
arrangement with the owner thereof.
Farmworker - natural person who renders
service for value as an employee or laborer in
an agricultural enterprise or farm regardless of
whether his compensation is paid on a daily,
weekly, monthly or "pakyaw" basis. The term
includes an individual whose work has ceased
as a consequence of, or in connection with, a
pending agrarian dispute and who has not
obtained a substantially equivalent and regular
farm employment.
Regular Farmworker - natural person who is
employed on a permanent basis by an
agricultural enterprise or farm.
Seasonal Farmworker - natural person who is
employed on a recurrent, periodic or
intermittent basis by an agricultural enterprise
or farm, whether as a permanent or a non-
permanent laborer, such as "dumaan",
"sacada", and the like.
Other Farmworker - farmworker who does not
fall under paragraphs (g), (h) and (i).
Cooperatives - organizations composed
primarily of small agricultural producers,
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 farmers, farmworkers, or other agrarian reform
beneficiaries who voluntarily organize
themselves for the purpose of pooling land,
human, technological, financial or other
economic resources, and operated on the
principle of one member, one vote. A juridical
person may be a member of a cooperative, with
the same rights and duties as a natural person.
Application of CARL as to classification of land:
1. Devoted to agricultural activities
2. Lands which are arable and suitable for farming
LUZ FARMS VS. DAR
- Lands used in the poultry and livestock industry
should not be covered by the Agrarian Reform
Program because they cannot be put in the
same category as “agricultural lands”.
- Land is not the primary resource in raising of
livestock, poultry or swine.
NB: The agricultural products must be “fruits of the
soil”.
NATALIA REALTY VS. DAR (1993)
- Townsite reservation cannot be covered by
CARP because it ceased to become an
agricultural land by virtue of PD 1637.
- Agricultural land does NOT include commercial,
industrial or residential land.
What is Agricultural Tenancy?
- the physical possession by a person of land
devoted to agriculture belonging to, or legally
possessed by, another for the purpose of
production through the labor of the former and
of the members of his immediate farm
household, in consideration of which the former
agrees to share the harvest with the latter, or to
pay a price certain, either in produce or in
money, or in both.
GALOPE VS. BUGARIN (2012)
Elements of Agricultural Tenancy:
1. the parties are the landowner and
the tenant or agricultural lessee;
2. the subject matter of the
relationship is agricultural land;
3. there is consent between the
parties to the relationship;
4. the purpose of the relationship is to
bring about agricultural production;
5. there is personal cultivation on the
part of the tenant or agricultural
lessee; and
6. the harvest is shared between the
landowner and the tenant or
agricultural lessee.
STANFILCO VS. DOLE (2009)
Agricultural tenancy must exist in order for a dispute to
fall under the jurisdiction of DAR Adjudication Board
(DARAB), and for the provisions of CARL to apply.
Agrarian reform extends beyond the mere acquisition
and redistribution of land; the law acknowledges other
modes of tenurial arrangements to effect the
implementation of CARP. When the question involves
the rights and obligations of persons engaged in the
management, cultivation, and use of an agricultural
land covered by CARP, the case falls squarely within the
jurisdictional ambit of the DAR.
SCOPE OF CARP
The Comprehensive Agrarian Reform Law shall cover,
regardless of tenurial arrangement and commodity
produced, all public and private agricultural lands, as
provided in Proclamation No. 131 and Executive Order
No. 229, including other lands of the public domain
suitable for agriculture.
More specifically the following lands are covered by the
CARP:
a.) All alienable and disposable lands of the
public domain devoted to or suitable for
agriculture. No reclassification of forest or
mineral lands to agricultural lands shall be
undertaken after the approval of this Act
until Congress, taking into account ecological,
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 developmental and equity considerations,
shall have determined by law, the specific
limits of the public domain.
b.) All lands of the public domain in excess of the
specific limits as determined by Congress in
the preceding paragraph;
c.) All other lands owned by the Government
devoted to or suitable for agriculture; and
d.) All private lands devoted to or suitable for
agriculture regardless of the agricultural
products raised or that can be raised
thereon.
LANDS COVERED BY CARP
1. All public and private agricultural lands
2. Other lands of public domain suitable for
agriculture
LANDS NOT COVERED BY CARP
1. Private lands with total are of 5 hectares and
below
- landholdings of landowners with a total area of
5 hectares and below shall not be covered for
acquisition and distribution to qualified
beneficiaries
2. Lands actually, directly and exclusively used for:
- parks, wildlife, forest reserves, reforestation,
fish sanctuaries and breeding grounds,
watersheds and mangroves
- prawn farms and fishponds (private lands)
3. Lands actually, directly and exclusively used and
found to be necessary for:
National defense
School sites and campuses
Experimental farm stations operated for educational
purposes
Seeds and seedling research and pilot production center
Church sites and convents appurtenant thereto
Mosque sites and Islamic centers appurtenant thereto
Communal burial grounds and cemeteries
Penal colonies and penal farms actually worked by the
inmates
Research and quarantine centers
All lands with 18% slope and over except those already
developed.
RETENTION LIMITS (Sec. 6, RA 6657)
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: provided, however, that in case the area
selected for retention by the landowner is tenanted, the
tenant shall have the option to choose whether to
remain therein or be a beneficiary in the same or
another agricultural land with similar or comparable
features. In case the tenant chooses to remain in the
retained area, he shall be considered a leaseholder and
shall lose his right to be a beneficiary under this Act. In
case the tenant chooses to be a beneficiary in another
agricultural land, he loses his right as a leaseholder to
the land retained by the landowner. The tenant must
exercise this option within a period of one (1) year from
the time the landowner manifests his choice of the area
for retention.
In all cases, the security of tenure of the farmers or
farmworkers on the land prior to the approval of this
Act shall be respected.
Upon the effectivity of this Act, any sale, disposition,
lease, management, contract or transfer of possession
of private lands executed by the original landowner in
violation of the Act shall be null and void: provided,
however, that those executed prior to this Act shall be
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valid only when registered with the Register of Deeds
within a period of three (3) months after the effectivity
of this Act. Thereafter, all Registers of Deeds shall
inform the Department of Agrarian Reform (DAR) within
thirty (30) days of any transaction involving agricultural
lands in excess of five (5) hectares.
A landowner may only retain a maximum of five (5)
hectares of land of his choice.
- Retained area does not have to be personally
cultivated by the landowner. Cultivation can be
done indirectly through labor administration.
Additional three (3) hectares may be awarded to each
child of the landowner, subject to the following
qualifications:
1. That the child is at least fifteen (15) years of
age;
2. That the child is actually tilling the land or
directly managing the farm.
EXCEPTIONS to the retention limit of 5 hectares:
1. Landowners whose lands have been covered by
PD 27; and
2. Original homestead grantees or direct
compulsory heirs who still own the original
homestead at the time of the approval of CARL,
as long as they continue to cultivate said
homestead.
3. Provincial, city, and municipal government,
units acquiring private agricultural lands by
expropriation or other modes of acquisition to
be used for actual, direct and exclusive public
purposes, such as roads and bridges, public
markets, school sites, resettlement sites, local
government facilities, public parks and
barangay plazas or squares, consistent with the
approved local comprehensive land use plan,
shall not be subject to the five-hectare
retention limit under this Section and Sections
70 and 73(a) of Republic Act No. 6657, as
amended: Provided, That lands subject to CARP
shall first undergo the land acquisition and
distribution process of the program: Provided,
further, That when these lands have been
subjected to expropriation, the agrarian reform
beneficiaries therein shall be paid just
compensation.
RIGHT TO CHOOSE THE AREA TO BE RETAINED
The right to choose the area to be retained, which shall
be compact or contiguous, shall pertain to the
landowner.
If the land retained is tenanted, the tenant shall have
the option to choose whether to remain therein or be a
beneficiary in the same or another agricultural land. The
tenant must exercise this option within a period of one
(1) year from the time the landowner manifest his
choice of the area for retention.
In case the tenant chooses to remain in the retained
area, he shall be considered a leaseholder and shall lose
his right to be a beneficiary under this Act.
In case the tenant chooses to be a beneficiary in
another agricultural land, he loses his right as a
leaseholder to the land retained by the landowner.
IN CASE OF SPOUSES:
 Conjugal or Absolute Community – spouses can
only retain 5 hectares.
 Separation of property – spouses can retain 5
hectares each or a total of 10 hectares.
RETENTION RIGHT VIS A VIS LANDS COVERED BY
EMANCIPATION PATENT (EP) OR CERTIFICATE OF LAND
OWNERSHIP AWARD (CLOA):
 Emancipation Patent or Certificate of Land
Ownership Award to beneficiaries does not
absolutely bar landowner from retaining area
covered.
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  If landowner is deprived of right to retention,
he may file a petition for cancellation of EP or
CLOA issued to the tenants.
EP or CLOA may be cancelled if land covered is
found to be part of landowner’s retained area.
IF RETAINED AREA IS TENANTED:
Choice of tenant:
1. Remain in the area chosen as retention area by
landowner (becomes an Agricultural Lessee and
will no longer qualify as an agrarian reform
beneficiary)
2. Choose to become a beneficiary in the same or
another agricultural land with similar or
comparable features (loses his right to become
an agricultural lessee and may qualify as an
agrarian reform beneficiary).
To be applicable, there must be a sufficient evidence of
landlord-tenant relationship:
1. Landowner has engaged a person to personally
cultivate an agricultural land.
2. Landowner is compensated:
- in terms of share in produce (share tenancy); or
- in terms of price certain or ascertainable in
produce or in money or both (leasehold
tenancy)
NB: Mere occupation or cultivation of an agricultural
land will not ipso facto make tiller an agricultural
tenant.
MAXIMUM OF THREE (3) HECTARES EACH AVAILABLE
TO LANDOWNER’S CHILDREN
If landowner owns more than 5 hectares of agricultural
land, the excess area may be awarded to the children of
the landowner to the extent of 3 hectares for each child
under the following conditions:
1. Child is at least 15 years
2. Child is actually tilling the land or directly
managing the farm
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 exceed the 5 hectares ownership ceiling.
Example: Child already owns 3 hectares of agricultural
land, he can still be awarded 2 hectares from his
parent’s landholding.
Land awarded to qualified children of landowners
cannot be sold, transferred, conveyed within a period of
10 years except:
1. Hereditary succession
2. To the government
3. Land Bank of the Philippines
4. Other qualified beneficiaries
Children or spouse can repurchase land from
government or land bank within 2 years from date of
transfer.
HOMESTEADERS VS. TENANTS
The Constitution and CARL respect the superiority of
rights of homesteaders over rights of tenants.
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.
Agrarian Reform is a remedial measure pursuant to
social justice precept of the Constitution but it was not
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meant to defeat the very purpose of the enactment of
CA 141 (Homestead Act).
Owners or direct compulsory heirs of lands acquired
through homestead grants of Free Patents under CA
141 are entitled to retain the entire area even if it
exceeds 5 hectares as long as:
1. They were cultivating the same at the time of
approval of CARL June 15, 1988;
2. Continue to cultivate the same.
EXCEPTION TO RETENTION LIMITS
Provincial, city and municipal government ,units
acquiring private agricultural lands by expropriation or
other modes of acquisition to be used for actual, direct
and exclusive public purposes, such as roads and
bridges, public markets, school sites, resettlement sites,
local government facilities, public parks and barangay
plazas or squares, consistent with the approved local
comprehensive land use plan, shall not be subject to the
five (5)-hectare retention limit under this Section and
Sections 70 and 73(a) of Republic Act No. 6657, as
amended:
Provided, That lands subject to CARP shall first undergo
the land acquisition and distribution process of the
program:
Provided, further, That when these lands have been
subjected to expropriation, the agrarian reform
beneficiaries therein shall be paid just compensation.
EXPROPRIATION OF PRIVATE AGRICULTURAL LANDS
BY LOCAL GOVERNMENT UNITS
If LGU expropriates private agricultural land for actual,
direct and exclusive public purposes, DAR should first
subject it to agrarian reform coverage.
1. Land should first be acquired by the national
government through DAR.
2. DAR will pay just compensation to landowner.
3. Thereafter, DAR will distribute the land to
agrarian reform beneficiaries.
4. After distribution, LGU will expropriate the land
and pay the agrarian reform beneficiaries just
compensation.
MULTINATIONAL CORPORATIONS (Sec. 8, RA 6657)
Multinational Corporations.  — All lands of the public
domain leased, held or possessed by multinational
corporations or associations, and other lands owned by
the government or by government-owned or controlled
corporations, associations, institutions, or entities,
devoted to existing and operational agri-business or
agro-industrial enterprises, operated by multinational
corporations and associations, shall be programmed for
acquisition and distribution immediately upon the
effectivity of this Act, with the implementation to be
completed within three (3) years.
Lands covered by the paragraph immediately preceding,
under lease, management, grower or service contracts,
and the like, shall be disposed of as follows:
(a) Lease, management, grower or service contracts
covering such lands covering an aggregate area in
excess of 1,000 hectares, leased or held by foreign
individuals in excess of 500 hectares are deemed
amended to conform with the limits set forth in Section
3 of Article XII of the Constitution.
(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
individuals, shall be allowed to continue under their
original terms and conditions but not beyond August 29,
1992, or their valid termination, whichever comes
sooner, after which, such agreements shall continue
only when confirmed by the appropriate government
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agency. Such contracts shall likewise continue even
after the lands has been transferred to beneficiaries or
awardees thereof, which transfer shall be immediately
commenced and implemented and completed within
the period of three (3) years mentioned in the first
paragraph hereof.
(c) In no case will such leases and other agreements
now being implemented extend beyond August 29,
1992, when all lands subject hereof shall have been
distributed completely to qualified beneficiaries or
awardees.
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 after ten (10) years following the effectivity of the
Act. However during the said period of effectivity, the
government shall take steps to acquire these lands for
immediate distribution thereafter.
In general, lands shall be distributed directly to the
individual worker-beneficiaries. In case it is not
economically feasible and sound to divide the land, then
they shall form a workers' cooperative or association
which will deal with the corporation or business
association or any other proper party for the purpose of
entering into a lease or growers agreement and for all
other legitimate purposes. Until a new agreement is
entered into by and between the workers' cooperative
or association and the corporation or business
association or any other proper party, any agreement
existing at the time this Act takes effect between the
former and the previous landowner shall be respected
by both the workers' cooperative or association and the
corporation, business, association or such other proper
party. In no case shall the implementation or
application of this Act 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 after ten (10) years following the effectivity of the
Act. However during the said period of effectivity, the
government shall take steps to acquire these lands for
immediate distribution thereafter.
In general, lands shall be distributed directly to the
individual worker-beneficiaries.
In case it is not economically feasible and sound to
divide the land, then they shall form a workers'
cooperative or association which will deal with the
corporation or business association or any other proper
party for the purpose of entering into a lease or growers
agreement and for all other legitimate purposes. Until a
new agreement is entered into by and between the
workers’ cooperative or association and the corporation
or business association or any other proper party, any
agreement existing at the time this Act takes effect
between the former and the previous landowner shall
be respected by both the workers' cooperative or
association and the corporation, business, association
or such other proper party. In no case shall the
implementation or application of this Act 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.
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9
 EXEMPTIONS AND EXCLUSIONS (Sec. 10, RA 6657)
What is not covered by CARP?
Lands actually, directly and exclusively used and found
to be necessary for parks, wildlife, forest reserves,
reforestation, fish sanctuaries and breeding grounds,
watersheds, and mangroves, national defense, school
sites and campuses including experimental farm
stations operated by public or private schools for
educational purposes, seeds and seedlings research and
pilot production centers, church sites and convents
appurtenant thereto, mosque sites and Islamic centers
appurtenant thereto, communal burial grounds and
cemeteries, penal colonies and penal farms actually
worked by the inmates, government and private
research and quarantine centers and all lands with
eighteen percent (18%) slope and over, except those
already developed shall be exempt from the coverage
of the Act.
DISCREPANCY IN LAND CLASSIFICATION
Republic of the Philippines rep. by DAR vs. CA, Green
City Estate and Development Corp. (Oct. 5, 2000)
- Involves a 112-hectares of land in Jala-jala, Rizal
classified as “agricultural” per tax declaration.
- The DAR put it under the coverage of CARP.
- Green City filed an application for exemption of
the land from agrarian reform arguing that it is
within the municipality’s residential zone as
well as forest conservation zone per ordinance.
- Application for exemption was denied by DAR.
- ISSUE: WON the land is exempted from CARP
considering that the tax declaration shows that
it is classified as agricultural.
- RULING: Yes, it is exempt.
- There is no law or jurisprudence that holds that
the land classification embodied in the tax
declarations is conclusive and final nor would
proscribe any further inquiry. Furthermore, the
tax declarations are clearly not the sole basis of
the classification of a land. In fact, DAR
Administrative Order No. 6 lists other
documents, aside from tax declarations, that
must be submitted when applying for
exemption from CARP.
- In this case, the Court of Appeals was
constrained to resort to an ocular inspection of
said properties through the commission it
created considering that the opinion of
petitioner DAR conflicted with the land use map
submitted in evidence by private respondent.
Respondent court also noted that even from
the beginning the properties of private
respondent had no definite delineation and
classification. Hence, the survey of the
properties through the court appointed
commissioners was the judicious and equitable
solution to finally resolve the issue of land
classification and delineation.
- The commissioner’s report on the actual
condition of the properties confirms the fact
that the properties are not wholly agricultural.
SCHOOL SITES AND CAMPUSES
Exempt from coverage if:
1. actually, directly and exclusively used for
educational purposes; and
2. found necessary by the school for school sites
and campuses.
DAR has no right to substitute judgment of discretion
for the determination of the necessity of the school.
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Central Mindanao University vs. DARAB (1992)
FACTS: On 16 January 1958, President Carlos Garcia
issued Proclamation No. 467 reserving for the
Mindanao Agricultural College, now the CMU, a piece of
land to be used as its future campus. In 1984, CMU
embarked on a project titled "Kilusang Sariling Sikap"
wherein parcels of land were leased to its faculty
members and employees. Under the terms of the
program, CMU will assist faculty members and
employee groups through the extension of technical
know-how, training and other kinds of assistance. In
turn, they paid the CMU a service fee for use of the
land. The agreement explicitly provided that there will
be no tenancy relationship between the lessees and the
CMU.
When the program was terminated, a case was filed by
the participants of the "Kilusang Sariling Sikap" for
declaration of status as tenants under the CARP. In its
resolution, DARAB, ordered, among others, the
segregation of 400 hectares of the land for distribution
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.
ISSUE: WON the CMU land is covered by CARP? Who
determines whether lands reserved for public use by
presidential proclamation is no longer actually, directly
and exclusively used and necessary for the purpose for
which they are reserved?
RULING: The land is exempted from CARP. CMU is in the
best position to resolve and answer the question of
when and what lands are found necessary for its use.
The Court also chided the DARAB for resolving this issue
of exemption on the basis of "CMU's present needs."
The Court stated that the DARAB decision stating that
for the land to be exempt it must be "presently, actively
exploited and utilized by the university in carrying out
its present educational program with its present
student population and academic faculty" overlooked
the very significant factor of growth of the university in
the years to come.
Rights of Indigenous Peoples over ANCESTRAL LANDS
vis-à-vis CARP
The right of these communities to their ancestral lands
shall be protected to ensure their economic, social and
cultural well-being. In line with the principles of self-
determination and autonomy, the systems of land
ownership, land use, and the modes of settling land
disputes of all these communities must be recognized
and respected.
Any provision of law to the contrary notwithstanding,
the PARC may suspend the implementation of this Act
with respect to ancestral lands for the purpose of
identifying and delineating such lands: provided, that in
the autonomous regions, the respective legislatures
may enact their own laws on ancestral domain subject
to the provisions of the Constitution and the principles
enunciated in this Act and other national laws.
LAND ACQUISITION (Sec. 16, RA 6657)
Procedure for Acquisition of Private Lands. — For
purposes of acquisition of private lands, the following
procedures shall be followed:
(a) After having identified the land, the
landowners and the beneficiaries, the DAR shall
send its notice to acquire the land to the
owners thereof, by personal delivery or
registered mail, and post the same in a
conspicuous place in the municipal building and
barangay hall of the place where the property is
located. Said notice shall contain the offer of
the DAR to pay a corresponding value in
accordance with the valuation set forth in
Sections 17, 18, and other pertinent provisions
hereof.
(b) Within thirty (30) days from the date of
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.
11
 (c) If the landowner accepts the offer of the
DAR, the Land Bank of the Philippines (LBP)
shall pay the landowner the purchase price of
the land within thirty (30) days after he
executes and delivers a deed of transfer in favor
of the government and surrenders the
Certificate of Title and other muniments of title.
(d) In case of rejection or failure to reply, the
DAR shall conduct summary administrative
proceedings to determine the compensation for
the land requiring the landowner, the LBP and
other interested parties to submit evidence as
to the just compensation for the land, within
fifteen (15) days from the receipt of the notice.
After the expiration of the above period, the
matter is deemed submitted for decision. The
DAR shall decide the case within thirty (30) days
after it is submitted for decision.
(e) Upon receipt by the landowner of the
corresponding payment or, in case of rejection
or no response from the landowner, upon the
deposit with an accessible bank designated by
the DAR of the compensation in cash or in LBP
bonds in accordance with this Act, the DAR shall
take immediate possession of the land and shall
request the proper Register of Deeds to issue a
Transfer Certificate of Title (TCT) in the name of
the Republic of the Philippines. The DAR shall
thereafter proceed with the redistribution of
the land to the qualified beneficiaries.
(f) Any party who disagrees with the decision
may bring the matter to the court of proper
jurisdiction for final determination of just
compensation.
COMPULSORY ACQUISITION OF
AGRICULTURAL LANDS
1. Identification by DAR of land, landowner and
beneficiary
2. Notice by DAR to landowner about compulsory
acquisition and price offer by
- personal notice or by registered mail and
- posting of notice in a conspicuous place in
barangay hall and municipal hall where land
is located
3. Reply by landowner about his acceptance or
rejection of offered price
- if landowner accepts – Land Bank will pay the
landowner within 30 days from execution
and delivery of Deed of Transfer
- if landowner rejects offer – DAR will
determine just compensation thru summary
proceedings
- if landowner disagrees with DAR decision –
regular courts of justice for final
determination of just compensation
4. Taking of immediate possession of land by DAR
- if landowner receives corresponding payment
or
- landowner does not respond to notice of
acquisition
5. Request by DAR to Register of Deeds to issue
Transfer Certificate of Title to Republic of
Philippines.
6. Distribution of land to qualified beneficiaries
through Certificate of Land Ownership Awards
(CLOA).
TWO NOTICE RULE TO LANDOWNER FOR VALIDITY OF
COVERAGE
1. Notice of Coverage
2. Notice of Acquisition
LAND ACQUISITION PROCEDURE SHOULD BE STRICTLY
CONSTRUED
Land acquisition under agrarian reform law is an
extraordinary method of expropriation.
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,
capricious, whimsical and tainted with grave abuse of
discretion.
WHEN TITLE OR OWNERSHIP OF THE LAND IS
TRANSFERRED TO THE STATE
12
Only upon full payment of just compensation.
Title and ownership remains with landowner until final
determination of just compensation and fully payment
Mere fact that DAR deposited offered price with Land
Bank does not warrant cancellation of owner’s title.
JUST COMPENSATION (Sec. 17, RA 6657)
Determination of Just Compensation. — In determining
just compensation, the cost of acquisition of the land,
the current value of the like properties, its nature,
actual use 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 benefits contributed by the farmers and
the farmworkers and by the Government to the
property as well as the non-payment of taxes or loans
secured from any government financing institution on
the said land shall be considered as additional factors to
determine its valuation.
Section 18. Valuation and Mode of Compensation. —
The LBP shall compensate the landowner in such
amounts as may be agreed upon by the landowner and
the DAR and the LBP, in accordance with the criteria
provided for in Sections 16 and 17, and other pertinent
provisions hereof, or as may be finally determined by
the court, as the just compensation for the land.
What is just compensation?
It is the full and fair equivalent of the property taken
from its owner by the expropriator. The measure is not
the taker's gain, but the owner's loss. The payment
must be:
1. Prompt – The immediate deposit and release of
payment is included in the concept of “just”
compensation. This means the payment should be
done within a reasonable time from the taking.
2. Full – There can be no prompt payment if it is only
partial.
Payment within a reasonable time from taking.
Immediate deposit and release of provisional
compensation.
Full payment of finally adjudged just compensation.
Without prompt payment, compensation is not “just”
because the landowner is made to suffer the
consequence of being immediately deprived of his land
while being made to wait before receiving the amount
necessary to cope up with his loss.
Case in point: Lubrica vs. Landbank
FACTORS IN THE VALUATION OF LANDS
1. Capitalized Net Income – based on land use and
productivity
2. Comparable Sales – 70% of the BIR zonal value
3. Market Value – based on the tax declaration.
PROCESS IN DETERMINING JUST COMPENSATION
1. Initial Computation - The LBP will determine the
value of the land.
2. Offer – Based on the LBP's computation, the DAR
will make the offer to the landowner (LO).
3. If the LO rejects, the DAR will conduct a summary
administrative proceeding, where the LO, LBP and
other interested parties will submit evidence as to
the amount of just compensation to be resolved
within 30 days. Notices will be sent to the parties.
4. If the LO or any party disagrees with the DAR's
resolution, the adjudicator has 15 days to bring the
matter to the RTC as a Special Agrarian Court for
final determination.
When is the reckoning point of valuation?
1. Time of taking of the property from the owner and
appropriated by the government.
2. But if there is undue delay in the payment, the
13
 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
a Notice of Filing of Original Action with the
AUTHORITY OF DAR ON LAND VALUATION
Board/Adjudicator, together with a certified true copy
of the petition filed with the SAC.
The DARAB (Department of Agrarian Reform
Adjudication Board), RARAD (Regional Agrarian Reform
Failure to file a Notice of Filing of Original Action or to
Adjudicator), or the PARAD (Provincial Agrarian Reform
submit a certified true copy of the petition shall render
Adjudicator) can conduct a summary administrative
the decision of the Board/Adjudicator final and
proceeding for the preliminary determination of just
executory.
compensation. It will determine whether the land
valuation of the LBP is in accordance with the rules and
Upon receipt of the Notice of Filing of Original Action or
administrative orders.
certified true copy of the petition filed with the SAC, no
writ of execution shall be issued by the
Jurisdiction would depend on the initial valuation by the
Board/Adjudicator.
LBP:
PARAD – when land value is less than 10 Million
FACTORS TO CONSIDER IN COMPUTING JUST
RARAD – when land value is 10 Million to 50 Million
COMPENSATION
DARAB – when land value is greater than 50 Million

1. cost of acquisition of the land

But the order above may be dispensed with in the event
2. current value of similar properties
of the lower adjudicatory board's non-availability,
3. official assessment by the government
inhibition, or disqualification (i.e., if the PARAD is
4. nature of the property
unavailable, even if the land value is more than 10
5. non-payment of taxes or loans
Million, the RARAD may conduct the preliminary
6. sworn valuation of the owner
proceedings).
7. actual income and use
8. tax declarations
VALUATION SET BY DAR NOT CONCLUSIVE
9. economic and social benefits

Valuation set by Land Bank is not conclusive. Landowner

can contest it before the proper court, the RTC
designated as Special Agrarian Court.
Sec. 6, Rule 19 of 2006 DARAB Rules of Procedure. Filing
of Original Action with the Special Agrarian Court for
Final Determination.
NB: Factors for determination of just compensation,
which the DAR converted into a formula are mandatory
and not mere guidelines which the RTC may disregard.
Is the consent of the farmer-beneficiary necessary in
determining just compensation?

The party who disagrees with the decision of the
Board/Adjudicator may contest the same by filing
an original action with the Special Agrarian Court (SAC)
having jurisdiction over the subject property within
fifteen (15) days from his receipt of the
No. The CARL, under Section 18, states that the
compensation may be agreed upon by the landowner,
DAR, and LBP.
Land Bank cannot refuse to pay valuation set by PARAD

14
simply because consent of farmer beneficiary was not
obtained in fixing just compensation.
LAND REDISTRIBUTION
Who may qualify as agrarian reform beneficiaries under
RA 6657? (Sec. 22)
Sec. 22, RA 6657.  Qualified Beneficiaries.  — The lands
covered by the CARP shall be distributed as much as
possible to landless residents of the same barangay, or
in the absence thereof, landless residents of the same
municipality in the following order of priority:
(a) agricultural lessees and share tenants;
(b) regular farmworkers;
(c) seasonal farmworkers;
(d) other farmworkers;
(e) actual tillers or occupants of public lands;
(f) collectives or cooperatives of the above
beneficiaries; and
(g) others directly working on the land.
Provided, however, that the children of landowners who
are qualified under Section 6 of this Act shall be given
preference in the distribution of the land of their
parents: and provided, further, that actual tenant-tillers
in the landholdings shall not be ejected or removed
therefrom.
Beneficiaries under Presidential Decree No. 27 who have
culpably sold, disposed of, or abandoned their land are
disqualified to become beneficiaries under this Program.
A basic qualification of a beneficiary shall be his
willingness, aptitude, and ability to cultivate and make
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 or misuse of the land or any support
extended to him shall forfeit his right to continue as
such beneficiary. The DAR shall submit periodic reports
on the performance of the beneficiaries to the PARC.
If, due to the landowner's retention rights or to the
number of tenants, lessees, or workers on the land,
there is not enough land to accommodate any or some
of them, they may be granted ownership of other lands
available for distribution under this Act, at the option of
the beneficiaries.
Farmers already in place and those not accommodated
in the distribution of privately-owned lands will be given
preferential rights in the distribution of lands from the
public domain.
WHO ARE CONSIDERED “LANDLESS”?
- If the farmer/tiller owns an area of less than
three (3) hectares of land.
- Not literally without land owned.
REQUIREMENTS to become a CARP beneficiary under
DAR A.O. No. 2, Series of 2009:
(a) Age – must be at least 15 years old at the
time of identification, screening, and selection.
(b) Residency – He must reside in the
barangay/municipality where the land is
located.
(c) Citizenship – He must be a Filipino citizen.
(d) Capability – He must be willing, able and
equipped with aptitude to cultivate and make the
land productive.
MANAGERIAL FARM WORKERS NOT QUALIFIED TO
BECOME BENEFICIARIES
Farmworkers holding managerial or supervisory
positions as of June 15, 1988 are not qualified to
become agrarian reform beneficiaries. However,
farmworkers promoted to managerial or supervisory
position after they were identified, screened and
selected will remain to be qualified beneficiaries.
15

WHO ARE DISQUALIFIED FROM BECOMING AGRARIAN
REFORM BENEFICIARIES
The following tenants, lessees or farm workers:
1. Those who do not meet the basic qualifications;
2. Those who have waived their right to become
an agrarian reform beneficiary in exchange for
compensation, provided that waiver has not
been questioned in proper government entity;
3. Those who have not paid an aggregate of three (3)
annual amortizations;
4. Those who have failed to exercise right of
redemption/repurchase within 2 years
resulting in foreclosure of mortgage by Land
Bank of the Philippines of a previously
awarded land;
5. Those who refused to pay 3 annual
amortizations for land acquired through
voluntary land transfer or direct payment
scheme, resulting in repossession by
landowner;
6. Those who have been dismissed for cause;
7. Those who have obtained substantially
equivalent employment;
- any employment or profession form which
applicant farmer derives income equivalent
to income of a regular farm worker at time of
identification, screening, and selection of
beneficiary
8. those who have retired or voluntarily resigned
from employment;
9. those who have misused the land or diverted
the financial support services extended by the
government;
10. those who have misrepresented
materialfacts in basic qualifications;
11. those who have sold, disposed, or abandoned
the lands awarded to them by the
government;
12. those who have converted agricultural lands to
non-agricultural use without prior approval
from DAR;
13. those who have been finally adjudged guilty of
forcible entry or unlawful detainer over the
property; and
14. those who have violated agrarian reform laws
and regulations.
ORDER OF PREFERENCE RE: LAND DISTRIBUTION
(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 land, up to 3 hectares each.
(2) After the children, up to 3 hectares for each:
(a) agricultural lessees and share tenants
(b) regular farmworkers
(3) Once the lessees, tenants, and regular
farmworkers have received their share, the
remaining portion, if any, will be given to:
(a) seasonal farmworkers
(b) other farmworkers
(c) actual tillers or occupants of public lands
(d) collectives or cooperatives of the above
beneficiaries
(e) other persons directly working on the land
DISTRIBUTION LIMIT (Sec. 23, RA 6657)
Distribution Limit. — No qualified beneficiary may own
more than three (3) hectares of agricultural land.
NB: The three (3) hectares that may be awarded to a
qualified beneficiary is just the maximum land area or
award limit/ceiling. It is not the mandatory area that
should be given to a qualified ARB.
FACTORS TO CONSIDER IN DETERMINING THE SIZE TO
BE AWARDED
(a) type of crop;
(b) type of soil;
(c) weather patterns; and
(d) other pertinent factors critical for the
success of the beneficiaries.
AWARD TO BENEFICIARIES (Sec. 24, RA 6657)
16

Award to Beneficiaries. — The rights and
responsibilities of the beneficiary shall
commence from the time the DAR makes an
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 of the land. Ownership of the
beneficiary shall be evidenced by a Certificate
of Land Ownership Award, which shall contain
the restrictions and conditions provided for in
this Act, and shall be recorded in the Register of
Deeds concerned and annotated on the
Certificate of Title.
TRANSFER OF OWNERSHIP TO THE BENEFICIARIES IS
NOT AUTOMATIC
Compulsory acquisition does not mean automatic
transfer of ownership of the land to the tenant, lessee,
or farm worker. Title and ownership over the land can
be transferred to the beneficiaries only upon full
payment of just compensation to the landowner.
WHEN DOES THE DAR ISSUE A CERTIFICATE OF LAND
OWNERSHIP AWARD (CLOA)?
The DAR will issue the CLOA only upon full payment of
amortization by the farmer-beneficiary. The CLOA in
turn, becomes the basis for the issuance in his name of
an original or transfer certificate of title.
NB: CLOA is indefeasible.
CLOAs are titles brought under the operation of the
Torrens system. They are conferred the same
indefeasibility of titles granted under P.D. 1529, after
one year from its registration with the Registry of
Deeds.
ESTRIBILLO VS. DAR, HACIENDA MARIA INC. (2006)
FACTS: Private respondent Hacienda Maria Inc.
requested that 527.8308 hectares of its landholdings
be placed under the coverage of Operation Land
Transfer. Receiving compensation therefor, HMI
allowed petitioners and other occupants to cultivate the
landholdings so that the same may be covered under
Agrarian Reform Program. In 1982, a final survey over
the entire area was conducted and approved. From
1984 to 1988, the corresponding TCTs and EPs covering
the entire 527.8308 hectares were issued to
petitioners, among other persons. In December 1997,
HMI filed with RARAD petitions seeking the declaration
of erroneous coverage under Presidential Decree No. 27
of 277.5008 hectares of its former landholdings. HMI
claimed that said area was not devoted to either rice or
corn, that the area was untenanted, and that no
compensation was paid therefor. RARAD rendered a
decision declaring as void the TCTs and Eps awarded to
petitioners because the land covered was not devoted
to rice and corn, and neither was there any
established tenancy relations between HMI and
petitioners.
Petitioners appealed to the DARAB which affirmed the
RARAD Decision. On appeal to the CA, the same was
dismissed. Petitioners contended that the EPs became
indefeasible after the expiration of one year from their
registration.
ISSUE: WON EPs have become indefeasible one year
after their issuance
RULING:
After complying with the procedure in Section 105 of
Presidential Decree No. 1529, otherwise known as the
Property Registration Decree where the DAR is required
to issue the corresponding certificate of title after
granting an EP to tenant-farmers who have complied
with Presidential Decree No. 27, the TCTs issued to
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 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 person.
CANCELLATION OF CLOA
17

Exclusive and original jurisdiction of DAR Secretary:
All cases for cancellation of CLOAs and other titles
issued under agrarian reform program.
GROUNDS FOR CANCELLATION OF CLOA
(a) Failure to pay 3 annual amortizations
(b) Abandonment of the land
(c) Neglect or misuse of the land
(d) Misuse or diversion of financial and support
services
(e) Illegal conversion of the land
(f) Sale, transfer, or conveyance of the right to use
the land
Pending CLOA issuance, the identified and qualified
agrarian reform beneficiaries have usufructuary rights
over awarded land which DAR has taken possession.
OBLIGATIONS OF ARBs:
(a) exercise due diligence in the use, cultivation and
maintenance of the land; and
(b) pay the LBP thirty annual amortizations with 6%
interest per annum
These will begin from the receipt of a duly registered
CLOA and their actual physical possession of the
awarded land.
The payment of amortization starts one year from
the date of registration of the CLOA. But id the actual
occupancy of the land takes place after registration,
the reckoning period will be from constructive
occupation of the land.
RESOLUTION OF AGRARIAN DISPUTES
Administrative: DAR (thru DARAB, RARAD and/or
PARAD)
Judicial: Special Agrarian Court (RTC as designated)
A. ADMINISTRATIVE
The DAR is vested with primary jurisdiction to
determine and adjudicate agrarian reform matters
and shall have exclusive original jurisdiction over all
matter involving the implementation of agrarian
reform, except those falling under the exclusive
jurisdiction of the Department of Agriculture and the
Department of Environment and Natural Resources.
1. Department of Agrarian Reform Adjudication
Board (DARAB)
a. Exercises both original and appellate
jurisdiction
b. Exercises functional supervision over
the RARAD and PARAD
2. Regional Agrarian Reform Adjudicator (RARAD)
a. Executive Adjudicator in his region
b. Receives, hears and adjudicates cases
which the PARAD cannot handle
because the latter is disqualified or
inhibits himself or because the case is
complex or sensitive.
3. Provincial Agrarian Reform Adjudicator (PARAD)
RULES OF PROCEDURE IN ADMINISTRATIVE
ADJUDICATION
DAR shall not be bound by technical rules of procedure
and evidence but shall proceed to hear and decide all
cases, disputes or controversies in a most expeditious
manner, employing all reasonable means to ascertain
the facts of every case in accordance with justice and
equity and the merits of the case.
JUDICIAL REVIEW
Any decision, order, award or ruling of the DAR on any
agrarian dispute or on any matter pertaining to the
application, implementation, enforcement or
interpretation of the CARL and other pertinent laws on
agrarian reform may be brought to the Court of
Appeals by certiorari within fifteen (15) days from
receipt of a copy thereof. (Sec. 54, RA 6657)
The findings of fact of the DAR shall be final and
conclusive if based on substantial evidence.
Notwithstanding an appeal to the Court of Appeals,
18
the decision of the DAR shall be immediately
executory.
B. JUDICIAL (Sec. 56, RA 6657)
The Special Agrarian Courts (Regional Trial Courts) shall
have original and exclusive jurisdiction over:
a. All petitions for the determination of
just compensation to landowners; and
b. The prosecution of all criminal offenses
under the CARL.
APPOINTMENT OF COMMISSIONERS
The Special Agrarian Courts, upon their own initiative or
at the instance of any of the parties, may appoint one or
more commissioners to examine, investigate and
ascertain facts relevant to the dispute, including the
valuation of properties and to file a written report
thereof with the court.
APPEALS
Appeal from the Decision of the Special Agrarian Court
- Within fifteen (15) days from the receipt of the
decision of the Special Agrarian Court, an
appeal may be taken by filing a petition for
review with the Court of Appeals.
Appeal from the Decision of the Court of Appeals
- Within a non-extendible period of fifteen (15)
days from the receipt of the decision of the
Court of Appeals, an appeal may be taken by
filing a petition for review with the Supreme
Court.
RUFINA VDA. DE TANGUB v. CA (1990)
FACTS: Rufina Tangub and her husband, Andres, now
deceased, filed with the Regional Trial Court of Lanao
del Norte "an agrarian case for damages by reason of
unlawful dispossession . . .as tenants from the
landholding" owned by the Spouses Domingo and
Eugenia Martil. Several persons were also impleaded
as defendants, including the Philippine National Bank,
it being alleged by the plaintiff spouses that said bank,
holder of a mortgage on the land involved, had caused
foreclosure thereof, resulting in the acquisition of the
property by the bank as the highest bidder at the
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 National Steel Corporation), and it being prayed
that mortgage and the transactions thereafter made in
relation thereto be annulled and voided. 
Respondent Judge Felipe G. Javier, Jr. dismissed the
complaint. He opined that by virtue of Executive Order
No. 229 and Executive No. 129-A, approved on July 26,
1987, as well as the Rules of the Adjudication Board of
the Department of Agrarian Reform, jurisdiction of the
Regional Trial Court over agrarian cases had been
transferred to the Department of Agrarian Reform
The Court of Appeals dismissed the petition, finding
that the jurisdictional question had been correctly
resolved by the Trial Court. The Court
of Appeals, adverted to a case earlier decided by
it, Estanislao Casinillo v. Hon. Felipe G. Javier, Jr., et
al., in which it was "emphatically ruled that agrarian
cases no longer fall under the jurisdiction of Regional
Trial Courts but rather under the jurisdiction of the
DAR Adjudication Board."
The petitioner Rufina Vda. de Tangub, now widowed,
is once again before the Supreme Court, contending
that the Trial Court's "order of dismissal, and the
decision of the Honorable Court of Appeals affirming
it, are patently illegal and unconstitutional" because
they deprive "a poor tenant access to courts and
directly violate R.A. 6657, PD 946, and Batas Bilang
129."
ISSUE: WON the RTC and the CA erred in dismissing
the case filed by the petitioners Tangub
RULING: NO. The Regional Trial Court of Iligan City was
therefore correct in dismissing Agrarian Case No.
1094. It being a case concerning the rights of the
19
plaintiffs as tenants on agricultural land, not involving
the "special jurisdiction" of said Trial Court acting as a
Special Agrarian Court, it clearly came within the
exclusive original jurisdiction of the Department of
Agrarian Reform, or more particularly, the Agrarian
Reform Adjudication Board, established precisely to
wield the adjudicatory powers of the Department.
MENDOZA VS. GERMINO (2010)
An action of forcible entry cannot be resolved by
DARAB. This is within the jurisdiction of the trial
courts. The subsequent amendment of the
complaint, alleging tenancy relationship between
the parties, will not divest the trial court of
jurisdiction.
Facts: Mendoza, owner of a 5-hectare land in Nueva
Ecija, filed with the MTC a complaint against Narciso
Germino, charging him of forcible entry.
Mendoza alleged that Narciso unlawfully entered the
subject property by means of strategy and stealth,
and without their knowledge or consent. Despite
Mendoza's repeated demands, Narciso refused to
vacate the subject property.
Narciso claimed that his brother, Benigno Germino,
was the Mendoza's agricultural lessee and he merely
helped the latter in the cultivation as a member of
the immediate farm household.
Mendoza filed a motion to remand the case to the
DARA), in view of the tenancy issue raised by Narciso.
Without conducting a hearing, and despite Narciso’s
objection, the MTC issued an order remanding the
case to the DARAB, Cabanatuan City for further
proceedings. Medoza filed an amended complaint
with the Provincial Agrarian Reform Adjudicator
(PARAD), adding Benigno as a defendant.
Issue: Whether the MTC or the DARAB has jurisdiction
over the case.
Ruling: MTC.
“Jurisdiction is determined by the allegations in the
complaint. It is determined exclusively by the
Constitution and the law. It cannot be conferred by
the voluntary act or agreement of the parties, or
acquired through or waived, enlarged or diminished
by their act or omission, nor conferred by the
acquiescence of the court. Under Batas Pambansa
Blg. 129, as amended by R.A. No. 7691, the MTC shall
have exclusive original jurisdiction over cases of
forcible entry and unlawful detainer.”
“Under Section 5028 of R.A. No. 6657, as well as
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 to hear the case precisely to determine
whether it had jurisdiction to dispose of the
ejectment suit on its merits. After all, jurisdiction is
not affected by the pleas or the theories set up by
the defendant in an answer or a motion to dismiss.
Otherwise, jurisdiction would become dependent
almost entirely upon the whims of the defendant.”
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 “Instead of conducting a preliminary conference, the
MTC immediately referred the case to the DARAB.
This was contrary to the rules. Besides, Section 240
of P.D. No. 316, which required the referral of a land
dispute case to the Department of Agrarian Reform
for the preliminary determination of the existence of
an agricultural tenancy relationship, has indeed been
repealed by Section 7641 of R.A. No. 6657 in 1988.”
“In the absence of any allegation of a tenancy
relationship between the parties, the action was for
recovery of possession of real property that was
within the jurisdiction of the regular courts.”
OTHER IMPORTANT PROVISIONS:
Barangay Agrarian Reform Committee (BARC) Sec. 46,
RA 6657
Section 47. Functions of the BARC. — In addition to
those provided in Executive Order No. 229, the BARC
shall have the following functions:
(a) Mediate and conciliate between parties
involved in an agrarian dispute including
matters related to tenurial and financial
arrangements;
(b) Assist in the identification of qualified
beneficiaries and landowners within the
barangay;
(c) Attest to the accuracy of the initial parcellary
mapping of the beneficiary's tillage;
(d) Assist qualified beneficiaries in obtaining
credit from lending institutions;
(e) Assist in the initial determination of the
value of the land;
(f) Assist the DAR representatives in the
preparation of periodic reports on the CARP
implementation for submission to the DAR;
(g) Coordinate the delivery of support services
to beneficiaries; and
(h) Perform such other functions as may be
assigned by the DAR.
(2) The BARC shall endeavor to mediate, conciliate and
settle agrarian disputes lodged before it within thirty
(30) days from its taking cognizance thereof. If after the
lapse of the thirty day period, it is unable to settle the
dispute, it shall issue a certificate of its proceedings and
shall furnish a copy thereof upon the parties within
seven (7) days after the expiration of the thirty-day
period.
TAX EXEMPTION ON TRANSACTIONS UNDER R.A. 6657
Section 66. Exemptions from Taxes and Fees of Land
Transfers. — Transactions under this Act involving a
transfer of ownership, whether from natural or juridical
persons, shall be exempted from taxes arising from
capital gains. These transactions shall also be exempted
from the payment of registration fees, and all other
taxes and fees for the conveyance or transfer thereof;
provided, that all arrearages in real property taxes,
without penalty or interest, shall be deductible from the
compensation to which the owner may be entitled.
Section 67. Free Registration of Patents and Titles. —
All Registers of Deeds are hereby directed to register,
free from payment of all fees and other charges,
patents, titles and documents required for the
implementation of the CARP.
What are the prohibited acts/omissions under R.A.
6657?
Section 73. Prohibited Acts and Omissions. — The
following are prohibited:
(a) The ownership or possession, for the
purpose of circumventing the provisions of this
Act, of agricultural lands in excess of the total
retention limits or award ceilings by any person,
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natural or juridical, except those under
collective ownership by farmer-beneficiaries.

(b) The forcible entry or illegal detainer by

persons who are not qualified beneficiaries
under this Act to avail themselves of the rights
and benefits of the Agrarian Reform Program.

(c) The conversion by any landowner of his

agricultural land into any non-agricultural use
with intent to avoid the application of this Act
to his landholdings and to dispossess his tenant
farmers of the land tilled by them.

(d) The willful prevention or obstruction by any

person, association or entity of the
implementation of the CARP.

(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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