Title
Tet-Farmers' Rental Payment and Penalties
Law
Presidential Decree No. 816
Decision Date
Oct 21, 1975
Presidential Decree No. 816 addresses the issue of non-payment of leasehold rentals by tenant-farmers in the Philippines, emphasizing the need to maintain the status quo until land is covered by a Certificate of Land Transfer, and imposing penalties for deliberate non-payment.

Questions (Republic Act No. 9955)

PD 816 requires tenant-farmers/agricultural lessees of rice or corn lands under PD 27 to continue paying leasehold rentals or amortization payments when due, and it provides penalties—loss or forfeiture of rights—when nonpayment persists for two years.

Agricultural lessees of a rice or corn land under Presidential Decree No. 27.

The continuing and deliberate refusal to pay leasehold rentals/amortization payments when they fall due, despite earlier presidential policy and land reform implementation.

It is the duration of continued refusal to pay rentals/amortization payments when due. If the deliberate nonpayment continues for two (2) years, penalties apply after proper hearing and final judgment.

Upon hearing and final judgment, the agricultural lessee shall forfeit the CLT issued in his favor and shall forfeit his farmholding.

Upon proper hearing and judgment, he loses his right to be issued a CLT under PD 27 and loses his farmholding.

The Court of Agrarian Relations has original and exclusive jurisdiction to try and decide actions for violation of the provisions in Sections 2 and 3.

It requires hearing and final judgment (or proper hearing and judgment, depending on the section). The penalty is not purely automatic without due process.

They shall be turned over to the Samahang Nayon with which the agricultural lessee is affiliated for assignment to qualified members whose landholdings are of uneconomic size, consistent with DAR policies.

The assumption that once CLTs are issued in their favor, they are no longer obliged to pay leasehold rentals/amortization.

It provides that rental payment continues until and after valuation is determined or agreed upon with the Department of Agrarian Reform, which becomes the basis for computing amortization payments in 15 years with 6% interest per annum under PD 27.

It repeals or modifies any provisions of existing laws, orders, decrees, and rules and regulations that are inconsistent with PD 816.

It takes effect immediately upon its approval (October 21, 1975).

It indicates that the forfeiture or loss of CLT/farmholding requires a court process—hearing and final judgment—ensuring that penalties are imposed only after procedural and substantive adjudication.


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