Title
Heirs of Salas, Jr. vs. Cabungcal
Case
G.R. No. 191545
Decision Date
Mar 29, 2017
Agricultural land reclassified as a "farmlot subdivision" remains subject to CARP; reclassification does not exempt it from agrarian reform coverage.
A

Case Summary (G.R. No. 191545)

Background

Salas was the registered owner of a vast tract of agricultural land, encompassing approximately 148.4354 hectares, which included various lots in several barangays. The land was designated for agricultural use and had tenants who were agrarian reform beneficiaries under the government’s agrarian reform initiatives. Following the enactment of Republic Act No. 6657 in June 1988, Salas’s landholdings were included for acquisition and distribution to qualified farmers.

Land Transactions and Agrarian Reform

Before the enactment of RA 6657, significant modifications were made to the property, including subdivision by Salas in collaboration with Laperal Realty Corporation. The land was reclassified as a farmlot subdivision due to a town planning ordinance. Over the years, portions of the land were sold, leaving unsold lots that fell under the jurisdiction of the Comprehensive Agrarian Reform Program, which aimed to distribute agricultural lands to landless farmers.

Administrative Proceedings and Exemption Requests

Petitioners contested the inclusion of the remaining land parcels in CARP, seeking redress through protest letters to the Department of Agrarian Reform. The petitions were ultimately denied due to a lack of merit, and agrarian reform beneficiaries were awarded Certificates of Land Ownership Award for portions of the land. The Heirs of Salas pursued an exemption for the lots in question, arguing that they had been reclassified as non-agricultural prior to RA 6657's effectivity.

Legal Framework and Considerations

The case invokes provisions from the 1987 Philippine Constitution, Republic Act No. 6657, and several legal opinions concerning the authority of local governments to classify lands prior to the act's effectivity. An important distinction is drawn between lands reclassified by local municipalities before June 15, 1988, which do not require Department of Agrarian Reform approval, and those classified thereafter.

Court Findings on Agrarian Reform Scope

The Supreme Court analyzed whether the reclassification of Salas’s property to a farmlot subdivision exempted it from CARP. It emphasized that the Comprehensive Agrarian Reform Law includes all agricultural lands and that agricultural lands are defined as those "devoted to agricultural activity" per the law’s stipulations. The Court maintained that even with the reclassification, the intent and agricultural usability of the land remained intact.

Ruling and Decision

The Court ruled in favor of the respondents, the agrarian reform beneficiaries, concluding that the land remained agricultural despite its reclassification. The findings affirmed the Department of Agrarian Reform’s authority to regulate such land transactions and su

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