G.R. No. L-28034 - Board of Assessment Appeals of Zamboanga del Sur vs. Samar Mining Co., Inc.

Shenzhou Mining Group Corp. (petitioner) filed G.R. No. 206685 against the Mamanwa Tribes of Barangays Taganito and Urbiztondo, Claver, Surigao del Norte (represented by Datu Reynante Buklas and Datu Alicia Patac) and the National Commission on Indigenous Peoples (NCIP).
The Mamanwa Tribes’ ancestral domain was recognized by NCIP under Certificate of Ancestral Domain Title No. R13-CLA-0906-048, covering portions of Alegria, Bacuag, Claver, Gigaquit, and Tubod, Surigao del Norte.

On February 21, 2010, the Mamanwa Tribes, Shenzhou, and NCIP (via Chairperson Eugenio A. Insigne) executed a Memorandum of Agreement for exploration, exploitation, use, and development of mineral resources in Barangay Cagdianao, Claver. Tribes were led to believe Shenzhou held Mineral Production Sharing Agreement No. 102-98-XIII.
Commissioner Felecito L. Masagnay, designated officer-in-charge by Memorandum Circular No. 039, s.2010, signed Compliance Certificate Control No. CCRXIII-19-02-13, certifying Shenzhou’s compliance with FPIC and precondition requirements.

The Tribes later learned that Claver Mineral Development Corp. was the true contractor under MPSA No. 102-98-XIII, and that P10 million in royalties (Q3–Q4 2010 and Q1–Q2 2011) remained unpaid.
On January 12, 2012, NCIP En Banc issued a Resolution declaring Compliance Certificate CCRXIII-19-02-13 void ab initio; enjoining Shenzhou to cease operations; directing return of possession to rightful owners; ordering payment of accrued royalties; and releasing ₱4,658,950 escrow to the Tribes.

Shenzhou appealed; the CA (15th Division) denied the petition and affirmed NCIP’s voiding of the certificate, holding Masagnay lacked authority under the nondelegation principle (potestas delegata non delegari).
The CA upheld the cease-and-desist order, return of possession, and the Tribes’ entitlement to royalty payments with interest, rejecting Shenzhou’s procedural objections in the interest of substantial justice.

Shenzhou filed a Petition for Review on Certiorari (Rule 45) and a Petition for Certiorari (Rule 65), challenging the voiding of the certificate and invoking the de facto officer doctrine.
NCIP and the Mamanwa Tribes opposed, arguing that Chairperson Insigne’s delegation of signature authority to Masagnay was nonredelegable and that Masagnay was never a de facto officer.

Whether NCIP correctly declared Compliance Certificate Control No. CCRXIII-19-02-13 void ab initio due to Masagnay’s lack of authority under the principle of nondelegation.

Whether Commissioner Masagnay may be deemed a de facto officer whose acts vest the certificate with color of legality despite void appointment.

Whether Shenzhou must cease mining operations, return possession of the ancestral domain, and pay agreed royalties with interest.
Whether the escrowed amount of ₱4,658,950 should be released in favor of the Mamanwa Tribes.