Title
Sigre vs. Court of Appeals
Case
G.R. No. 109568
Decision Date
Aug 8, 2002
The Supreme Court affirms the constitutionality of Presidential Decree No. 27 and Memorandum Circular No. 6, enabling tenant-farmers to pay lease rentals to the Land Bank for their tilled land's purchase price.
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Case Digest (G.R. No. 109568)

Facts:

  • Rolando Sigre is the petitioner against the Court of Appeals and Lilia Y. Gonzales, co-administratrix of Matias Yusay's estate.
  • Lilia Y. Gonzales filed a petition for prohibition and mandamus with the Court of Appeals on September 15, 1992 (CA-G.R. SP No. 28906).
  • Gonzales aimed to prevent the Land Bank of the Philippines (LBP) from accepting leasehold rentals from Ernesto Sigre, Rolando's predecessor, and sought the return of previously remitted rentals.
  • Ernesto Sigre was a tenant on irrigated rice land in Barangay Naga, Pototan, Iloilo, initially paying Gonzales 16 cavans per crop or 32 cavans per agricultural year.
  • In the 1991-1992 agricultural year, Sigre stopped payments to Gonzales and began remitting them to the LBP, following DAR Memorandum Circular No. 6, Series of 1978.
  • This circular stated that once the land's value was established, lease rental payments to landowners would cease, and tenants would pay the LBP.
  • Gonzales claimed she was unaware that the DAR had fixed the land's production value at P13,405.67 prior to October 1972.
  • On March 22, 1993, the Court of Appeals declared Memorandum Circular No. 6 null and void, ordered the LBP to return the lease rentals to Gonzales, and directed Sigre to pay rentals directly to her.
  • Rolando Sigre and the LBP contested this ruling, leading to the consolidation of their petitions for review (G.R. No. 109568 and G.R. No. 113454).

Issue:

  • (Unlock)

Ruling:

  • The Supreme Court granted the consolidated petitions of Rolando Sigre and the Land Bank of the Philippines.
  • The decision of the Court of Appeals was nullified and set aside....(Unlock)

Ratio:

  • The Supreme Court found that the Court of Appeals misinterpreted the relationship between DAR Memorandum Circular No. 6 and Presidential Decree No. 816.
  • The Court emphasized that subordinate legislation, like the Memorandum Circular, is valid if it aligns with the law's objectives and do...continue reading

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