G.R. No. L-15414 - Pajo vs. Ago

Case Digest (G.R. No. L-15414)
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Facts:

Parties and nature of respondent’s timber licenses

Respondent Pastor Ago held two ordinary timber licenses covering forest areas of three thousand hectares and one thousand hectares in Gibong and Jabonga, respectively, in the province of Agusan.
The two ordinary timber licenses were renewed from year to year.
The last renewal were O.T. License No. 760-’56 and O.T. License No. 759-’56, which expired on June 30, 1956.

Failure to apply for renewal for the 1956–1957 fiscal year

The record did not disclose any application for renewal of the licenses for the fiscal year 1956–57.
The petition filed by respondent Ago in the lower court did not allege facts regarding any such renewal application for 1956–57.
A letter dated September 6, 1956 (Annex “9” of petitioners’ answer in the lower court) referenced an application for renewal of O.T. License No. 760-’56 only.
In that letter, respondent Ago was advised to submit a certification of the Municipal Treasurer showing the amount of forest products cut under the license and his pending forestry accounts, if any.
The letter warned that if nothing was heard from respondent Ago on or before October 6, 1956, his case would be considered closed.

Administrative demands for clearance of forestry liabilities and withheld renewal action

Respondent Ago failed to answer the September 6, 1956 letter and failed to submit the required certification within the period stated.
On December 29, 1956, the Director of Forestry wrote a second letter informing respondent Ago that, according to records, he had pending accounts for forestry and reforestation charges, itemized in a list attached.
The December 29, 1956 letter advised that action on the renewal of the license would be withheld until receipt of a statement from the municipal or city treasurer showing payment of the pending accounts.
Respondent Ago ignored even the second letter.
On April 11, 1957, the Director of Forestry ordered the suspension of respondent Ago’s logging operations until his licenses were renewed for the fiscal year ending June 30, 1957.

Expired licenses and renewed application despite noncompliance

Respondent Ago did not comply with the requirements of the Director of Forestry and therefore did not obtain the renewal of his licenses that had expired on June 30, 1956.
Instead of compliance, respondent Ago filed on June 26, 1957 another application for renewal for the fiscal year 1957–1958.
On July 16, 1957, the Director of Forestry sent another letter stating that more than six months had elapsed from the December 29, 1956 letter and that nothing had been heard regarding payment of pending forestry accounts totaling P12,211.40.
The July 16, 1957 letter requested respondent Ago to look into the matter no later than August 15, 1957, otherwise his application would be rejected and the area covered by it would be declared vacant and reverted to the mass of public forest for disposition in accordance with forestry laws and regulations.
Respondent Ago continued to fail to comply with the repeated requests.
On November 22, 1957, the Director of Forestry again advised respondent Ago that no action could be taken on his renewal application unless he settled his forestry accounts.
On March 3, 1958, the Director of Forestry issued an order rejecting respondent Ago’s application for renewal.

Filing of another application and respondent’s petition for reconsideration

On March 19, 1958, petitioner Gabriel Daza, Jr. filed with the Director of Forestry an application for a timber license over the area covered by respondent Ago’s expired license.
On April 2, 1958, respondent Ago filed with the Director of Forestry a petition for reconsideration of the March 3, 1958 order rejecting his renewal application.
Before the Director of Forestry could act on the petition for reconsideration, respondent Ago filed an urgent motion on April 23, 1958 stating that on April 21, 1958 the Commissioner of Internal Revenue issued a certification in his favor that he had no more pending forest liability.

Administrative record of alleged illegal operations and refusal to pay

On April 8, 1958, the officer-in-charge of the Agusan Forest Station submitted to the Director of Forestry, through the District Forester of Agusan, a memorandum advising of respondent Ago’s illegal operations in the area covered by his expired timber license.
The memorandum also alleged respondent Ago’s refusal to pay forest charges and defiance of forestry rules and regulations.
On April 17, 1958, the District Forester of Agusan indorsed the memorandum to the Director of Forestry, reporting that respondent Ago persisted in illegal operation despite previous instructions to stop operating in the area covered by the expired timber licenses.
The District Forester recommended that appropriate steps be taken.
On April 28, 1958, the Director of Forestry wrote respondent Ago advising that he had already lost his right to the timber area and that he was no longer entitled to a renewal of his timber license.

Grant of timber license to Gabriel Daza, Jr. and subsequent motions and appeals

On May 8, 1958, petitioners Director of Forestry and Secretary of Agriculture and Natural Resources found petitioner Daza’s application and his offer to assume respondent Ago’s unpaid forest obligation to be in order.
Petitioners approved the application and issued a license allowing petitioner Daza to deposit in the Forestry office P10,000.00 to answer for respondent Ago’s obligations.
On May 14, 1958, respondent Ago filed with the Director of Forestry a notice of appeal from the rejection of his renewal application.
Respondent Ago also filed with the Secretary of Agriculture and Natural Resources an urgent motion praying for approval of his renewal application and requesting that if the area had already been applied for by any person, issuance or release of any license be stopped or withheld.
On May 19, 1958, respondent Ago filed an appeal memorandum and a supplement to the urgent motion praying that the approved timber license in favor of petitioner Daza be cancelled.

Verification of clearance and discovery of unpaid forest charges

In light of respondent Ago’s representations that he had fully paid all pending forestry liabilities, the Secretary of Agriculture and Natural Resources verified with the Commissioner of Internal Revenue whether the clearance certificate issued on April 21, 1958 was up to date and whether the records of the City Treasurer of Butuan City were consulted when the certificate was issued.
The Commissioner of Internal Revenue replied that the certification was confined to respondent Ago’s obligations as far as the records of the central office were concerned.
Verification with the Office of the District Forester of Agusan and the Office of the City Treasurer of Butuan City disclosed that respondent Ago had unpaid forest charges totaling P27,002.25 as of April 11, 1958.
The unpaid charges were reduced to P18,152.83 after crediting respondent Ago’s payment of P8,849.42 to the City Treasurer of Manila on April 18, 1958.
The balance remained outstanding as of June 10, 1958.

Secretary’s dismissal of appeal and denial of reconsideration

On June 16, 1958, the Secretary of Agriculture and Natural Resources rendered a decision dismissing respondent Ago’s appeal and affirming the March 3, 1958 order rejecting respondent Ago’s renewal application.
On July 7, 1958, respondent Ago filed a motion for reconsideration.
The Secretary of Agriculture and Natural Resources denied the motion for reconsideration on July 25, 1958.

Appeal to the Office of the President and affirmance...(Subscriber-Only)

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