G.R. No. 136827 & 136799, July 31, 2001
THE SECRETARY OF AGRARIAN REFORM, THE REGIONAL DIRECTOR FOR REGION XI, ALEJO V. DUQUE, MNSA and THE PROVINCIAL AGRARIAN REFORM OFFICER OF DAVAO CITY, JUAN C. BARROT, BOTH OF THE DEPARTMENT OF AGRARIAN REFORM, FARMERS-BENEFICIARIES REYNALDO H. BASALAN, AUREO H. BASALAN, JUSTINA FROILAN, PEDRO T. OROYAN, and THE REST OF THE PRIVATE RESPONDENTS IN DARAB CASE NO. XI-1112-DC-94 (DARAB APPEAL CASE NO. 6047/CA-G.R. SP NO. 46262) (G.R. No. 136827); and SECRETARY OF AGRARIAN REFORM, REGIONAL DIRECTOR, REGION XI and PROVINCIAL AGRARIAN REFORM OFFICER, DAVAO CITY, BOTH OF THE DEPARTMENT OF AGRARIAN REFORM, TOMASA T. ESTILLORE, et al. ( G.R. No. 136799 ), petitioners, vs. TROPICAL HOMES, INC., respondent.

FACTS

Carlos Iñigo was the former registered owner of parcels of land in Bago Iñigo, Toril, Davao City. On July 17, 1971, Iñigo and respondent Tropical Homes, Inc. (TROPICAL) entered into a Joint Venture Agreement to develop the property into a residential subdivision (“Better Living Subdivision”). Since the property was in an agricultural zone, TROPICAL applied for its reclassification. On October 2, 1972, the Davao City Council, through Resolution No. 558, declared the subdivision site a residential area, stating it was outside the city’s Zonification and Development Plan. After Carlos Iñigo’s death, his heirs partitioned the property on February 14, 1975, and the Joint Venture Agreement was inscribed on May 31, 1977, leading to the issuance of titles in TROPICAL’s name. On August 29, 1990, the Department of Agrarian Reform (DAR) notified TROPICAL that its property would be covered by the Comprehensive Agrarian Reform Program (CARP). On April 25, 1991, DAR issued Notices of Acquisition for 1,037,272 square meters of the land. The DAR Regional Director subsequently instructed the Register of Deeds to cancel TROPICAL’s titles, and a title was issued in the name of the Republic of the Philippines. DAR then distributed the land to farmer-beneficiaries via a Certificate of Land Ownership Award (CLOA). TROPICAL filed a petition with the Provincial Agrarian Reform Adjudicator (PARAD) for the cancellation of the CLOA, arguing the land was outside CARP coverage. The PARAD ruled in favor of TROPICAL. Petitioners (DAR officials and farmer-beneficiaries) appealed to the Department of Agrarian Reform Adjudication Board (DARAB), which reversed the PARAD’s decision. TROPICAL then filed a petition for review with the Court of Appeals, which granted the petition, reversed the DARAB, and reinstated the PARAD’s decision. The Court of Appeals also denied the petitioners’ motions for reconsideration and ordered one such motion expunged from the records for being filed out of time.

ISSUE

The primary issue is whether the subject landholding is covered by the Comprehensive Agrarian Reform Program (CARP), considering its prior reclassification as residential land by the Davao City Council in 1972.

RULING

The Supreme Court denied the petitions and affirmed the decision of the Court of Appeals. The Court held that the subject land is excluded from CARP coverage. The Davao City Council’s Resolution No. 558, dated October 2, 1972, which reclassified the land from agricultural to residential, was a valid exercise of the local government’s power. This reclassification occurred prior to the effectivity of the Comprehensive Agrarian Reform Law ( R.A. No. 6657 ) on June 15, 1988. The Court emphasized that lands classified as non-agricultural prior to R.A. No. 6657 are outside the ambit of CARP. The Court further ruled that the issuance of the CLOA by DAR was void for lack of jurisdiction, as the land was no longer agricultural. The Court also upheld the Court of Appeals’ action in expunging the belated motion for reconsideration, citing the rule that no extension of time to file such a motion is allowed in the Court of Appeals.