G.R. No. L-15414; June 30, 1960
JUAN C. PAJO, Executive Secretary, JUAN DE G. RODRIGUEZ, Secretary of Agriculture and Natural Resources, FELIPE R. AMOS, Director of Forestry, VICENTE MARABABOL, and GABRIEL DAZA, Jr., petitioners, vs. PASTOR AGO, and MONTANO ORTIZ, Judge, Court of First Instance of Agusan, respondents.

FACTS

Respondent Pastor Ago was the holder of two ordinary timber licenses covering forest areas in Agusan, last renewed as O.T. License Nos. 760-’56 and 759-’56, both expiring on June 30, 1956. The record does not show an application for renewal for 1956-57. In a letter dated September 6, 1956, the Director of Forestry advised Ago regarding his application for renewal of O.T. License No. 760-’56, requiring him to submit a certification from the Municipal Treasurer about cut forest products and pending forestry accounts by October 6, 1956, failing which his case would be considered closed. Ago failed to comply. On December 29, 1956, the Director of Forestry informed Ago of his pending forestry and reforestation charges and withheld action on renewal until payment was certified. Ago ignored this. On April 11, 1957, the Director ordered the suspension of Ago’s logging operations until his licenses were renewed. Despite this, on June 26, 1957, Ago filed another application for renewal for 1957-1958. The Director sent further letters on July 16, 1957, and November 22, 1957, reiterating the need to settle accounts, with warnings of rejection. Due to continued non-compliance, the Director, on March 3, 1958, issued an order rejecting Ago’s application for renewal. On March 19, 1958, petitioner Gabriel Daza, Jr. applied for a timber license over the same area. On April 2, 1958, Ago filed a petition for reconsideration of the rejection order. On April 23, 1958, Ago filed an urgent motion, stating the Commissioner on Internal Revenue had issued a certification on April 21, 1958, that he had no more pending forest liability. However, a memorandum from the Agusan Forest Station dated April 8, 1958, reported Ago’s illegal operations and refusal to pay charges. On April 28, 1958, the Director advised Ago he had lost his right to the area. On May 8, 1958, the Director and the Secretary of Agriculture and Natural Resources approved Daza’s application and issued him a license, allowing him to deposit P10,000 to answer for Ago’s obligations. Ago filed an appeal and motions with the Secretary, who, after verification, found Ago still had unpaid forest charges (P18,152.83 as of June 10, 1958). On June 16, 1958, the Secretary dismissed Ago’s appeal and affirmed the rejection. Ago’s motion for reconsideration was denied on July 25, 1958. He appealed to the Office of the President. On March 5, 1959, the Executive Secretary affirmed the rejection orders. The Director then released the approved timber license (No. 1714-’58) to Daza on March 25, 1959. On March 30, 1959, Ago filed a petition for certiorari, prohibition, and damages with the Court of First Instance of Agusan, alleging abuse of discretion. The court, after a preliminary hearing, issued an order on April 30, 1959, granting a preliminary injunction restraining the petitioners from implementing the rejection orders and Daza from entering the area.

ISSUE

Whether the Court of First Instance acted without or in excess of jurisdiction or with grave abuse of discretion in issuing the writ of preliminary injunction.

RULING

The Supreme Court reversed the lower court’s order insofar as it restrained the enforcement of the orders of the Director of Forestry, Secretary of Agriculture and Natural Resources, and Executive Secretary rejecting Ago’s renewal applications. The Court held that the issuance of the preliminary injunction was improper because there was no showing that the petitioners acted without or in excess of jurisdiction or with grave abuse of discretion. The officials acted within their statutory authority in denying the renewal due to Ago’s failure to settle his forestry accounts and comply with requirements. The Court affirmed the injunction only insofar as it restrained petitioner Daza from entering the forest area pending the determination of the case on the merits by the lower court. The injunction issued by the Supreme Court was made permanent as modified. No costs.