Title
Natalia Realty, Inc. vs. Department of Agrarian Reform
Case
G.R. No. 103302
Decision Date
Aug 12, 1993
NATALIA's lands, converted to residential use pre-CARL, excluded from agrarian reform; DAR's Notice of Coverage invalidated by SC.

Case Summary (G.R. No. 103302)

Applicable Law

The applicable law in this decision is the Comprehensive Agrarian Reform Law (R.A. 6657), the implementing rules surrounding agricultural land classification, and pertinent regulations concerning land development and residential purposes.

Factual Background

Petitioner Natalia Realty owns three contiguous parcels totaling approximately 125 hectares located in a townsite area proclaimed under Presidential Proclamation No. 1637 on April 18, 1979, aimed at developing housing for the population of Metro Manila. EDIC, as the developer, obtained various approvals and permits from governmental bodies, including the Human Settlements Regulatory Commission, authorizing the development of the Antipolo Hills Subdivision. This process included securing preliminary approvals and obtaining development permits, which were completed by the mid-1980s.

Notice of Coverage

On November 22, 1990, the DAR issued a Notice of Coverage encompassing undeveloped portions of the Antipolo Hills Subdivision, asserting that these lands fell under the CARL's coverage. Following this notice, both Natalia Realty and EDIC filed multiple objections and requests for cancellation of the DAR’s coverage, citing that their properties had ceased to be agricultural lands due to their designation for residential development.

Administrative Remedy Exhaustion

The respondents contended that the petitioners failed to exhaust administrative remedies, arguing that the complaint against them by members of the Samahan ng Magsasaka sa Bundok Antipolo, Inc. (SAMBA) was still pending at the DAR Regional Adjudicator. The argument was made that this situation warranted a halt in further legal action by the petitioners until the ongoing proceedings concluded.

Compliance with Legal Requirements

The petitioners rebutted the DAR's assertions, claiming compliance with all necessary legal requirements for the development of their properties into a residential subdivision. They highlighted that the permits they obtained specifically noted conformity with applicable regulations, reinforcing their argument that no further clearance from DAR was necessary for lands already designated for urban development.

Classification of Lands

The core legal inquiry pertains to whether the undeveloped portions of the Antipolo Hills Subdivision can still be classified as agricultural lands under R.A. 6657. The law explicitly defines agricultural lands as those not classified for residential, commercial, or industrial use. Since the properties were initially set aside for townsite development well before the CARL's enactment, the argument persists that these lands cannot be subsumed under the CARL’s jurisdiction.

Conclusion on Land Classification

The Supreme Court held that the undeveloped portions of the Antipolo Hills Subdivision were not classifiable as agricultural lands, given their history of designation for residential us

...continue reading

Analyze Cases Smarter, Faster
Jur helps you analyze cases smarter to comprehend faster—building context before diving into full texts.