01 DAR vs. Robles

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10/16/2017 SUPREME COURT REPORTS ANNOTATED VOLUME 777

G.R. No. 190482. December 9, 2015.*



DEPARTMENT OF AGRARIAN REFORM, represented by
MS. FRITZI C. PANTOJA in her capacity as Provincial
Agrarian Reform Officer of Laguna, petitioner, vs.
IGMIDIO D. ROBLES, RANDY V. ROBLES, MARY KRIST
B. MALIMBAN, ANNE JAMAICA G. ROBLES, JOHN
CARLO S. ROBLES and CHRISTINE ANN V. ROBLES,
respondents.

Agrarian Reform; Department of Agrarian Reform


Adjudication Board; Jurisdiction; Under Section 2, Rule II of the
said Rules of Procedure, the Department of Agrarian Reform
Adjudication Board (DARAB) shall have exclusive appellate
jurisdiction to review, reverse, modify, alter, or affirm resolutions,
orders, and decisions of its Adjudicators.In the exercise of its
quasijudicial function, the DAR, through its adjudication arm,
i.e., the DARAB and its regional and provincial adjudication
boards, adopted the 2003 DARAB Rules of Procedure. Under
Section 2, Rule II of the said Rules of Procedure, the DARAB shall
have exclusive appellate jurisdiction to review, reverse, modify,
alter, or affirm resolutions, orders, and decisions of its
Adjudicators who have primary and exclusive original jurisdiction
over the following cases: Rule II Jurisdiction of the Board and its

_______________

* THIRD DIVISION.

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Department of Agrarian Reform vs. Robles

Adjudicators SECTION 1. Primary and Exclusive Original


Jurisdiction.The Adjudicator shall have primary and exclusive
original jurisdiction to determine and adjudicate the following

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cases: 1.1 The rights and obligations of persons, whether natural


or juridical, engaged in the management, cultivation, and use of
all agricultural lands covered by Republic Act (RA) No. 6657,
otherwise known as the Comprehensive Agrarian Reform Law
(CARL), and other related agrarian laws; 1.2 The preliminary
administrative determination of reasonable and just
compensation of lands acquired under Presidential Decree (PD)
No. 27 and the Comprehensive Agrarian Reform Program
(CARP); 1.3 The annulment or cancellation of lease contracts or
deeds of sale or their amendments involving lands under the
administration and disposition of the DAR or Land Bank of the
Philippines (LBP); 1.4 Those cases involving the ejectment and
dispossession of tenants and/or leaseholders; 1.5 Those cases
involving the sale, alienation, preemption, and redemption of
agricultural lands under the coverage of the CARL or other
agrarian laws; 1.6 Those involving the correction, partition,
cancellation, secondary and subsequent issuances of Certificates
of Land Ownership Award (CLOAs) and Emancipation Patents
(EPs) which are registered with the Land Registration Authority;
1.7 Those cases involving the review of leasehold rentals; 1.8
Those cases involving the collection of amortizations on payments
for lands awarded under PD No. 27, as amended, RA No. 3844, as
amended, and RA No. 6657, as amended, and other related laws,
decrees, orders, instructions, rules, and regulations, as well as
payment for residential, commercial, and industrial lots within
the settlement and resettlement areas under the administration
and disposition of the DAR; 1.9 Those cases involving the
annulment or rescission of lease contracts and deeds of sale, and
the cancellation or amendment of titles pertaining to agricultural
lands under the administration and disposition of the DAR and
LBP; as well as EPs issued under PD 266, Homestead Patents,
Free Patents, and miscellaneous sales patents to settlers in
settlement and resettlement areas under the administration and
disposition of the DAR; 1.10 Those cases involving boundary
disputes over lands under the administration and disposition of
the DAR and the LBP, which are transferred, distributed, and/or
sold to tenantbeneficiaries and are covered by deeds of sale,
patents, and certificates of title; 1.11 Those cases involving the
determination of title to agricultural lands where this issue is
raised in an agrarian dispute by any of the parties or a third
person in connection with the posses

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Department of Agrarian Reform vs. Robles

sion thereof for the purpose of preserving the tenure of the


agricultural lessee or actual tenantfarmer or farmerbeneficiaries
and effecting the ouster of the interloper or intruder in one and
the same proceeding; 1.12 Those cases previously falling under
the original and exclusive jurisdiction of the defunct Court of
Agrarian Relations under Section 12 of PD No. 946 except those
cases falling under the proper courts or other quasijudicial
bodies; and 1.13 Such other agrarian cases, disputes, matters or
concerns referred to it by the Secretary of the DAR.
Same; Special Agrarian Courts; Regional Trial Courts;
Jurisdiction; Just Compensation; As Special Agrarian Courts
(SACs), these Regional Trial Courts (RTCs) have, according to
Section 57 of Republic Act (RA) No. 6657, original and exclusive
jurisdiction over all petitions for the determination of just
compensation to landowners and the prosecution of all criminal
offenses under the Act.The Regional Trial Courts (RTCs) have
not been completely divested of jurisdiction over agrarian reform
matters. Section 56 of RA 6657 confers special jurisdiction on
Special Agrarian Courts, which are RTCs designated by the
Court at least one (1) branch within each province to act as
such. As Special Agrarian Courts (SACs), these RTCs have,
according to Section 57 of the same law, original and exclusive
jurisdiction over all petitions for the determination of just
compensation to landowners and the prosecution of all criminal
offenses under . . [the] Act.
Same; Department of Agrarian Reform Adjudication Board;
Jurisdiction; The Supreme Court (SC) cannot restrict the
Department of Agrarian Reform Adjudication Boards (DARABs)
quasijudicial jurisdiction only to those involving agrarian
disputes where tenancy relationship exists between the parties, for
it should also include other agrarian reform matters which do
not fall under the exclusive jurisdiction of the Office of the
Secretary of Department of Agrarian Reform (DAR), the
Department of Agriculture (DA) and the Department of
Environment and Natural Resources (DENR), as well as the
Special Agrarian Courts (SACs).It bears stressing that while
the rule is that DARABs jurisdiction is limited to agrarian
disputes where tenancy relationship between the parties exists,
Section 50 of R.A. No. 6657 and Section 17 of E.O. No. 229 both
plainly state that the DAR is vested with the primary jurisdiction
to determine and adjudicate agrarian reform matters. It is also
noteworthy that while

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Department of Agrarian Reform vs. Robles

Section 3(d) of R.A. No. 6657 defined the term agrarian


dispute, no specific definition was given by the same law to the
term agrarian reform matters. In view thereof, the Court cannot
restrict the DARABs quasijudicial jurisdiction only to those
involving agrarian disputes where tenancy relationship exists
between the parties, for it should also include other agrarian
reform matters which do not fall under the exclusive jurisdiction
of the Office of the Secretary of DAR, the Department of
Agriculture and the Department of Environment and Natural
Resources, as well as the Special Agrarian Courts. Although they
are not deemed as agrarian disputes falling under the DARABs
jurisdiction, [s]uch other agrarian cases, disputes, matters or
concerns referred to the Adjudicator by the Secretary of the DAR
pursuant to Section 1(1.13), Rule II of the 2003 DARAB Rules of
Procedure, are still considered as agrarian reform matters. A
case in point is the DARs petition for annulment of deeds of sale
and annulment of titles executed in violation of the provision
Section 6, par. 4 of RA 6657. Despite being an agrarian law
implementation case, the Secretary of the DAR expressly referred
jurisdiction over such petition to the Provincial Adjudicator of the
DARAB through Memorandum Circular (M.C.) No. 0201 on the
Guidelines on Annulment of Deeds of Conveyance of Lands
Covered by the Comprehensive Agrarian Reform Program (CARP)
Executed in Violation of Section 6, Paragraph 4 of Republic Act
(RA) No. 6657.
Same; Same; Same; Under Section 1(1.13), Rule II of the 2003
Department of Agrarian Reform Adjudication Board (DARAB)
Rules of Procedure, the DARAB also has jurisdiction over agrarian
reform matters referred to it by the Secretary of Department of
Agrarian Reform (DAR), such as the Provincial Agrarian Reform
Officers (PAROs) petition for annulment of deeds of sale and
annulment of titles filed pursuant to Department of Agrarian
Reform Administrative Order (DAR AO) No. 0189 and
Department of Agrarian Reform Memorandum Circular (DAR
MC) No. 0201 for violation of the legal requirement for clearances
in the sale and transfer of agricultural lands.Given that the
PAROs petition in this case likewise failed to allege any tenancy
or agrarian relations and to indicate an agrarian dispute, and its
cause of action is merely founded on the absence of a clearance to
cover the sale and registration of the subject lands, it bears
emphasis that the DARABs jurisdiction is not limited to agrarian

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disputes where tenancy relationship between the parties exists.


Under Section 1(1.13), Rule II of the 2003 DARAB Rules of

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Department of Agrarian Reform vs. Robles

Procedure, the DARAB also has jurisdiction over agrarian


reform matters referred to it by the Secretary of DAR, such as the
PAROs petition for annulment of deeds of sale and annulment of
titles filed pursuant to DAR A.O. No. 0189 and DAR M.C. No. 02
01 for violation of the legal requirement for clearances in the sale
and transfer of agricultural lands.

PETITION for review on certiorari of the decision and


resolution of the Court of Appeals.
The facts are stated in the opinion of the Court.
Rexie M. Maristela for petitioner.
Abner O. Antazo for respondents.

PERALTA, J.:

Before the Court is a petition for review on certiorari
under Rule 45 of the Rules of Court, seeking to reverse and
set aside the Court of Appeals (CA) Decision1 dated May
29, 2009 and its Resolution2 dated December 2, 2009 in
C.A.G.R. S.P. No. 104896.
The facts are as follows:
During his lifetime, Eduardo Reyes, married to Nenita
P. Reyes, was the registered owner of certain properties
located at Barangay Ambiling, Magdalena, Laguna,
covered by Transfer Certificate of Title (TCT) Nos. T85055
and T116506, with areas of about 195,366 and 7,431
square meters (sq. m.), respectively. He later caused the
subdivision of the land covered by TCT No. T85055 into
five (5) lots.
On April 17, 1997, Eduardo sold the said properties to
respondents, as follows:

_______________

1 Penned by Associate Justice Rosmari D. Carandang, with Associate


Justices Mariflor P. PunzalanCastillo and Marlene GonzalesSison,
concurring. CA Rollo, pp. 4859.

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2 Id., at pp. 6769.



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Department of Agrarian Reform vs. Robles

1. Igmidio D. Robles Lot No. 6B1 of TCT No.T


85055, 38,829 sq. m.;
2. Randy V. Robles Lot No. 6B2 of TCT No. T
85055, 39,896 sq. m.;
3. Mary Krist B. Malimban Lot No. 6B3 of TCT
No. T85055, 38,904 sq. m.;
4. Anne Jamaca G. Robles Lot No. 6B4 of TCT
No. T85055, 38,595 sq. m.;
5. John Carlo S. Robles Lot No. 6B5 of TCT No.
T85055, 39,142 sq. m.; and
6. Christine Anne V. Robles Lot No. 312C2G
3 of TCT No. T116506, 7,431 sq. m.

On May 3, 2005, the deeds of absolute sale covering the
properties were duly registered with the Registry of Deeds
for the Province of Laguna in the names of respondents
under the following TCT Nos.:

1. Igmidio D. Robles TCT No. T238504;
2. Randy V. Robles TCT No. T238305;
3. Mary Krist B. Malimban TCT No. T238506;
4. Anne Jamaca G. Robles TCT No. T238507;
5. John Carlo S. Robles TCT No. T238503; and
6. Christine Anne V. Robles TCT No. T238502.

On May 26, 2006, petitioner Department of Agrarian
Reform (DAR) Region IVA Laguna Provincial Office,
represented by Fritzi C. Pantoja in her capacity as
Provincial Agrarian Reform Officer (PARO) II, filed
Petition for Annulment of Deeds of Absolute Sale and
Cancellation of Transfer Certificates of Title Nos. T
238502, T238503, T238504, T238505, T238506 and T
238507. It alleged that the deeds of absolute sale were
executed by Eduardo without prior DAR clearance under
Administrative Order No. 0189, Series of

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Department of Agrarian Reform vs. Robles

1989,3 in violation of Section 6, paragraph 44 of Republic


Act (R.A.) No. 6657, otherwise known as the
Comprehensive Agrarian Reform Law of 1988, as amended
(CARL).
On September 9, 2006, respondents received a Summons
and Notice of Hearing, together with a copy of the said
petition from the Office of the Provincial Adjudicator,
Department of Agrarian Reform Adjudication Board
(DARAB), Region IV, requiring them to answer the petition
and appear for the

_______________

3 Rules of Procedure Governing Land Transactions.


4 Section 6. Retention Limits.Except as otherwise provided in this
Act, no person may own or retain, directly or indirectly, any public or
private agricultural land, the size of which shall vary according to factors
governing a viable familysize farm, such as commodity produced, terrain,
infrastructure, and soil fertility as determined by the Presidential
Agrarian Reform Council (PARC) created hereunder, but in no case shall
retention by the landowner exceed five (5) hectares. Three (3) hectares
may be awarded to each child of the landowner, subject to the following
qualifications: (1) that he is at least fifteen (15) years of age; and (2) that
he is actually tilling the land or directly managing the farm: provided,
that landowners whose lands have been covered by Presidential Decree
No. 27 shall be allowed to keep the areas originally retained by them
thereunder: provided, further, that original homestead grantees or their
direct compulsory heirs who still own the original homestead at the time
of the approval of this Act shall retain the same areas as long as they
continue to cultivate said homestead.
xxxx
Upon the effectivity of this Act, any sale, disposition, lease,
management, contract or transfer of possession of private lands
executed by the original landowner in violation of the Act shall be
null and void: provided, however, that those executed prior to this
Act shall be valid only when registered with the Register of Deeds
within a period of three (3) months after the effectivity of this Act.
Thereafter, all Registers of Deeds shall inform the Department of
Agrarian Reform (DAR) within thirty (30) days of any transaction
involving agricultural lands in excess of five (5) hectares.
(Emphasis added)



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Department of Agrarian Reform vs. Robles

initial preliminary conference set on October 10, 2006.


Thus, they filed their Answer and Supplemental Answer to
the petition.
On October 10 and 23, 2006, Julieta R. Gonzales and
Nenita Reyes, the surviving spouse and the daughter of
Eduardo, respectively, filed a motion to dismiss on the
ground that the DARAB has no jurisdiction over the nature
of the action and the subject matter of the case, and that
the DAR has no cause of action against them.
On November 2, 2006, respondents filed a Manifestation
adopting the motion to dismiss filed by Julieta and Nenita.
On November 30, 2006, the DARAB Provincial
Adjudicator issued a Resolution denying the motion to
dismiss for lack of merit.
Julieta and Nenita filed a motion for reconsideration.
At the hearing on January 24, 2008, respondents,
through counsel, manifested that they are joining the
motion for reconsideration filed by Julieta and Nenita.
On February 7, 2008, the Provincial Adjudicator issued
another Resolution dismissing the case against Julieta and
Nenita for lack of cause of action, but not against
respondents.
Respondents then filed their motion to reconsider the
Resolution dated February 7, 2008 and to defer the
preliminary conference set on March 13, 2008.
On June 26, 2008, the Provincial Adjudicator issued a
Resolution denying respondents motion for
reconsideration, and setting the preliminary conference
anew on August 28, 2008.
Aggrieved by the Provincial Adjudicators Resolutions,
respondents filed with the CA a petition for review under
Rule 43 of the Rules of Court.
On May 29, 2009, the CA rendered the assailed
Decision, the dispositive portion of which reads:


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WHEREFORE, the instant petition is GRANTED.


The three (3) questioned Resolutions of the PARAD
dated 30 November 2006, 7 February 2008 and 26
June 2008 are all REVERSED AND SET ASIDE.
The DARs petition before the PARAD is hereby
DISMISSED for lack of jurisdiction.
SO ORDERED.5

In dismissing the DARs petition for annulment of deeds
of sale and cancellation of titles before the PARAD for lack
of jurisdiction, the CA held:

In this case before us, the DARs petition before the
PARAD sought to annul the deeds of absolute sale as
well as the subsequently issued torrens titles.
Surprisingly, however, the said petition was not
brought for or on behalf of any purported tenants,
farmworkers or some other beneficiaries under RA
6657. While the said petition claimed, without any
supporting documents/evidence however, that DAR
was in the process of generating CLOAs for the said
landholding, it did subsequently admit that the same
petition does not seek to place the subject land
immediately under CARP but rather to annul the
conveyance of the original owner in favor of the
petitioners since this was allegedly in violation of RA
6657. Without any averment of some tenurial
arrangement/
relationship between the original owner and some
definite leaseholder, tenant or CARL beneficiary plus
the admission that the land has not yet been placed
under CARP, neither DARAB nor its adjudicators
would have jurisdiction over a simple case of
annulment of sale and cancellation of title.
Considering that the subject landholding were sold to
petitioners way before any notice of coverage was ever
issued and torrens titles have subsequently been
issued in their favor, it is the regular courts who
should determine if indeed there were certain
violations of the law which would justify annulment of
the sales and cancellation of the titles.

_______________

5 Rollo, p. 58. (Emphasis ours)

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Still on the said notice of coverage, a review of the


pertinent documents reveals that the same was not
issued to the present owners but to the heirs of the
late Eduardo Reyes. Thus, not only was the notice of
coverage belatedly issued to the wrong person/s for
the said heirs to whom the notice of coverage was
issued were in fact dismissed from the original
petition before the PARAD. Next, DAR argues that a
notice of coverage need not be issued to the present
owners/petitioners otherwise it would validate or
recognize the purported irregular or illegal transfer or
conveyance. We find it foolhardy for DAR to argue
this way when the very fact of issuance of the notice of
coverage was one of its main anchors in its petition for
annulment and cancellation of title before the
PARAD.
DAR also cites Section 4 of RA 6657 which refers to
the scope of CARL. While the scope under the said
provision is quite encompassing, the same will not
automatically include every agricultural land. In
Dandoy v. Tongson, the High Tribunal was explicit,
(T)he fact that Lot No. 294 is an agricultural
land does not ipso facto make it an agrarian
dispute within the jurisdiction of the DARAB.
For the present case to fall within the DARAB
jurisdiction, there must exist a tenancy
relationship between the parties. An allegation
that an agricultural tenant tilled the land in
question does not make the case an agrarian
dispute.
Again, the High Court reiterated the necessity of a
tenurial arrangement/relationship in order for a case
to be classified as an agrarian dispute within the
jurisdiction of the DARAB or its adjudicators. While
we are mindful not to preempt any subsequent
inquiry on the matter, we would just like to take note
of the fact that petitioners also offered documents to
show that the subject land/s were free of any tenants
at the time these were sold to them. Even without
ruling on the authenticity of this evidence, the same
further casts doubt on the

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existence of any tenurial arrangement or


relationship which could or may bring the present
controversy into the folds of the DARAB.
Besides, RA 6657, particularly Section 16 thereof,
lays down the very procedure for the acquisition of
private lands for coverage of the CARL. And DARs
belated issuance of the notice of coverage miserably
falls short of the above cited procedures.
It is very clear that the relief sought by the DAR,
annulment of the contracts and cancellation of titles,
would necessarily involve the
adjustment/adjudication of the private rights of the
parties to the sale, which is beyond the jurisdiction of
the DARAB to resolve.6

The DAR filed a motion for reconsideration, but the CA
denied it in a Resolution7 dated December 2, 2009.

Dissatisfied with the CA Decision, the DAR filed a
petition for review on certiorari raising the sole issue, to
wit:

WHETHER OR NOT THE DAR ADJUDICATION
BOARD HAS JURISDICTION OVER ANNULMENT
OF DEEDS OF ABSOLUTE SALE AND THE
SUBSEQUENT CANCELLATION OF TITLES
INVOLVING LANDS UNDER THE
ADMINISTRATION AND DISPOSITION OF THE
DEPARTMENT OF AGRARIAN REFORM.8

_______________

6 Id., at pp. 5558.


7 Id., at pp. 6770.
8 Id., at p. 13.

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Department of Agrarian Reform vs. Robles

Citing the DAR Memorandum Circular No. 2,9 Series of


2001,10 the DAR argues that its petition for annulment of
deeds of sale and cancellation of titles falls under the
jurisdiction of the DARAB, and that such jurisdiction is not
limited to agrarian disputes, but also on other matters or
incident involving the implementation of all agrarian laws.
Invoking Section 1,11 Rule II of the 2003 DARAB Rules of
Procedure, it questions the CA ruling that disputes
cognizable by the DA

_______________

9 If there was illegal transfer, file a petition for annulment of deed of


conveyance in behalf of the PARO before the Provincial Agrarian Reform
Adjudicator (PARAD). The petition shall state the material facts
constituting the violation and pray for the issuance of an order from the
PARAD directing the ROD to cancel the deed of conveyance and the TCT
generated as a result thereof. As legal basis therefore, the petition shall
cite Section 50 of RA 6657 and Rule II, Section 1(c) and (e) of the DARAB
Rules of Procedure.
10 Guidelines on Annulment of Deeds of Conveyance of Lands covered
by the Comprehensive Agrarian Reform Program (CARP) executed in
violation of Section 6, Paragraph 4 of Republic Act No. 6657.
11 Section 1. Primary and Exclusive Original Jurisdiction.
The Adjudicator shall have the primary and exclusive original
jurisdiction to determine and adjudicate the following case:
xxxx
1.3 The annulment or cancellation of lease contracts or deeds of sale
or their amendments involving lands under the administration and
disposition of the DAR or Land Bank of the Philippines (LBP); xxx
1.5 Those involving the sale, alienation, preemption and redemption
of agricultural lands under the coverage of the CARL or other agrarian
laws;
xxxx
1.9 Those cases involving the annulment or rescission of lease
contracts and deeds of sale, and the cancellation or amendment of titles
pertaining to agricultural lands under the administration and disposition
of the DAR and LBP; as well as EPs issued under PD 266, Homestead
Patents, Free Patents, and miscellaneous sales patents to settlers in
settlements and resettlement areas under the administration and
disposition of the DAR.



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Department of Agrarian Reform vs. Robles

RAB are limited to those which involve some kind of


tenurial arrangement/relationship, and that only lands
under the administration and disposition of the DAR or the
Land Bank of the Philippines (LBP) are subject to the
DARAB jurisdiction.
The DAR also claims that the CA overlooked that the
notices of coverage issued by the Municipal Agrarian
Reform Officer (MARO) of Magdalena, Laguna, were duly
served to the heirs of Eduardo, namely, Julieta and Nenita.
It stresses that despite claiming no interest as successors
over the subject properties in their motion to dismiss filed
before the DARAB, the letter of Atty. Norberto Gonzales
dated February 21, 2005 to MARO Cuaresma showed that
Julieta and Nenita were opposing the coverage of the said
properties under the CARL. It thus concludes that the
subject properties were placed under the coverage of the
compulsory acquisition scheme of the CARL.
The DAR further takes exception to the CA ruling that
the notice of coverage was issued to the heirs of Eduardo,
instead of the present owners, respondents. It explains that
only after such notice was issued to the said heirs in 2005
and upon verification with the Register of Deeds that it
found out that the property was already transferred to
respondents. It further argues that the notice of coverage
need not be issued to the present title holders
(respondents) because if such notice will be issued to them,
then it would validate or recognize the purported irregular
or illegal transfer or conveyance.
Finally, the DAR contends that under Section 4 of RA
6657, the CARP covers, among other things, all private
lands devoted to or suitable for agriculture, regardless of
the agricultural products raised or that can be raised
thereon, and that such provision makes no qualification
that only lands issued with notice of coverage are covered.
Applying the statutory construction principle of exclusio
unius est exclusio alterius, it posits that there being no
showing that the subject agricultural lands are exempted
from the CARP, then they are cov

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ered and deemed under the administration and


disposition of the DAR. Hence, its petition for annulment of
deeds of sale and cancellation of titles is cognizable by the
DARAB.
On the other hand, respondents counter that the CA did
not err in dismissing for lack of jurisdiction DARs petition
for annulment of deeds of sale and cancellation of titles
before the DARAB because such case neither involves an
agrarian dispute nor does the case concern an agricultural
land under the administration and disposition of the DAR
or the LBP. Citing the definition of agrarian dispute
under Section 3(d)12 of R.A. No. 6657 and jurisprudence to
the effect that there must exist a tenancy relationship
between the parties for DARAB to have jurisdiction over a
case, respondents point out that the petition was not
brought for and on behalf of any purported tenants,
farmworker or some other beneficiaries and the notice of
coverage was belatedly issued to the wrong persons, the
heirs of Eduardo, and not to them who are the present
owners. Hence, there was no valid notice of coverage to
place the properties within the coverage of agrarian reform
and of DARABs jurisdiction.
Respondents also reject as inaccurate and misleading
petitioners contention that the DARAB has jurisdiction
over cases involving the sale of agricultural lands and those
cases involving the annulment or rescission of deeds of
sale, and the

_______________

12 (d) Agrarian Dispute refers to any controversy relating to tenurial


arrangements, whether leasehold, tenancy, stewardship or otherwise, over
lands devoted to agriculture, including disputes concerning farmworkers
associations or representation of persons in negotiating, fixing,
maintaining, changing, or seeking to arrange terms or conditions of such
tenurial arrangements. It includes any controversy relating to
compensation of lands acquired under this Act and other terms and
conditions of transfer of ownership from landowners to farmworkers,
tenants and other agrarian reform beneficiaries, whether the disputants
stand in the proximate relation of farm operator and beneficiary,
landowner and tenant, or lessor and lessee.

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Department of Agrarian Reform vs. Robles

cancellation of titles pertaining to such lands, pursuant


to Section 1(1.5) and (1.9), Rule II of the 2003 DARAB
Rules of Procedure.13 They insist that for the Adjudicator to
have jurisdiction over a case, the agricultural land involved
unlike the subject properties must be under the
coverage of the CARL or other agrarian laws, or under the
administration and disposition of the DAR or the LBP, i.e.,
the land involved must already be taken or acquired for
CARP purposes for distribution to qualified farmer
beneficiaries.
Respondents stress that the certificates of title of
Eduardo and the derivative TCTs issued to them were all
free from liens and encumbrances, and that there was no
annotation of any disposition of the properties or limitation
on the use thereof by virtue of, or pursuant to Presidential
Decree (P.D.) No. 27, CARL or any other law or regulations
on agrarian reform inscribed on the titles. They argue that
since no such annotations, like a notice of coverage or
acquisition by DAR, were inscribed on Eduardos titles
which will caution respondents and/or the Register of
Deeds of the Province of Laguna from registering the titles
and deeds, prior DAR clearance is unnecessary. Thus, the
properties embraced by Eduardos titles are outside the
coverage of CARP and registerable.

_______________

13 Section 1. Primary and Exclusive Original Jurisdiction.


The Adjudicator shall have the primary and exclusive original
jurisdiction to determine and adjudicate the following case:
xxxx
1.5 Those involving the sale, alienation, preemption and redemption
of agricultural lands under the coverage of the CARL or other agrarian
laws;
xxxx
1.9 Those cases involving the annulment or rescission of lease
contracts and deeds of sale, and the cancellation or amendment of titles
pertaining to agricultural lands under the administration and disposition
of the DAR and LBP; as well as Eps issued under PD 266, Homestead
Patents, Free Patents, and miscellaneous sales patents to settlers in
settlements and resettlement areas under the administration and
disposition of the DAR.

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Lastly, respondents claim to be innocent purchasers in


good faith and for value because they bought the subject
properties and paid a full and fair price without notice of
some other persons claim on or interest in them. They also
seek refuge under Section 32 of P.D. No. 1529 which
provides that after the expiration of one (1) year from and
after the date of entry of the decree of registration, not only
such decree but also the corresponding certificate of title,
becomes incontrovertible and infeasible, and cannot be
altered, modified, cancelled, or subject to any collateral
attack, except in a direct proceeding in accordance with
law.
The petition is meritorious.
In resolving the sole issue of whether or not the DARAB
has jurisdiction over the DARs petition for annulment of
deeds of sale and cancellation of titles, the Court is guided
by the following rules on jurisdiction laid down in Heirs of
Julian dela Cruz and Leonora Talaro v. Heirs of Alberto
Cruz:14

It is axiomatic that the jurisdiction of a tribunal,
including a quasijudicial officer or government
agency, over the nature and subject matter of a
petition or complaint is determined by the material
allegations therein and the character of the relief
prayed for, irrespective of whether the petitioner or
complainant is entitled to any or all such reliefs.
Jurisdiction over the nature and subject matter of an
action is conferred by the Constitution and the law,
and not by the consent or waiver of the parties where
the court otherwise would have no jurisdiction over
the nature or subject matter of the action. Nor can it
be acquired through, or waived by, any act or
omission of the parties. Moreover, estoppel does not
apply to confer jurisdiction to a tribunal that has none
over the cause of action. The failure of the parties to
challenge the jurisdiction of the DARAB does not
prevent the court from addressing the issue,
especially where the DARABs lack of

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14 512 Phil. 389, 400401; 475 SCRA 743, 755756 (2005).


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jurisdiction is apparent on the face of the


complaint or petition.
Indeed, the jurisdiction of the court or tribunal is
not affected by the defenses or theories set up by the
defendant or respondent in his answer or motion to
dismiss. Jurisdiction should be determined by
considering not only the status or the relationship of
the parties but also the nature of the issues or
questions that is the subject of the controversy. If the
issues between the parties are intertwined with the
resolution of an issue within the exclusive jurisdiction
of the DARAB, such dispute must be addressed and
resolved by the DARAB. The proceedings before a
court or tribunal without jurisdiction, including its
decision, are null and void, hence, susceptible to
direct and collateral attacks.15

In Department of Agrarian Reform v. Paramount
Holdings Equities, Inc.,16 the Court defined the limits of
the quasijudicial power of DARAB, thus:

The jurisdiction of the DARAB is limited under the
law, as it was created under Executive Order (E.O.)
No. 129A specifically to assume powers and functions
with respect to the adjudication of agrarian reform
cases under E.O. No. 229 and E.O. No. 129A.
Significantly, it was organized under the Office of the
Secretary of Agrarian Reform. The limitation on the
authority of it to mere agrarian reform matters is only
consistent with the extent of DARs quasijudicial
powers under R.A. No. 6657 and E.O. No. 229, which
read:
SECTION 50 [of R.A. No. 6657]. Quasi
Judicial Powers of the DAR.The DAR is
hereby vested with the primary jurisdiction
to determine and adjudicate agrarian
reform matters and shall have exclusive
original jurisdiction over all matters involving
the implementation of agrarian re

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15 Id.
16 G.R. No. 176838, June 13, 2013, 698 SCRA 324, 333.



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Department of Agrarian Reform vs. Robles

form except those falling under the exclusive


jurisdiction of the Department of Agriculture
(DA) and the Department of Environment and
Natural Resources (DENR).
SECTION 17 [of E.O. No. 229]. Quasi
Judicial Powers of the DAR.The DAR is
hereby vested with quasijudicial powers to
determine and adjudicate agrarian reform
matters, and shall have exclusive original
jurisdiction over all matters involving
implementation of agrarian reform, except those
falling under the exclusive original jurisdiction
of the DENR and the Department of Agriculture
(DA).17

In Sta. Rosa Realty Development Corporation v.
Amante,18 the Court pointed out that the jurisdiction of the
DAR under the aforequoted provisions is twofold. The first
is essentially executive and pertains to the enforcement
and administration of the laws, carrying them into
practical operation and enforcing their due observance,
while the second is quasijudicial and involves the
determination of rights and obligations of the parties.
At the time the petition for annulment of deeds of sale
and cancellation of titles was filed on May 26, 2006, the
administrative function of the DAR was governed by
Administrative Order No. 03, Series of 2003 which provides
for the 2003 Rules of Procedure for Agrarian Law
Implementation (ALI) Cases. Under said Rules of
Procedure, the Regional Director19 has primary jurisdiction
over all ALI cases, while the DAR

_______________

17 Emphasis added.
18 493 Phil. 570, 606; 453 SCRA 432, 472 (2005).
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19 Rule II, Section 7. General Jurisdiction.The Regional Director


shall exercise primary jurisdiction over all agrarian law implementation
cases except when a separate special rule vests primary jurisdiction in a
different DAR office.

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Department of Agrarian Reform vs. Robles

Secretary20 has appellate jurisdiction over such cases.


Section 2 of the said Rules provides:

Section 2. ALI Cases.These Rules shall govern
all cases arising from or involving:
2.1 Classification and identification of landholdings
for coverage under the agrarian reform program and
the initial issuance of Certificate of Land Ownership
Awards (CLOAs) and Emancipation Patents (EPs),
including protests or oppositions thereto and petitions
for lifting of such coverage;
2.2 Classification, identification, inclusion,
exclusion, qualification or disqualification of
potential/actual farmerbeneficiaries;
2.3 Subdivision surveys of land under
Comprehensive Agrarian Reform Program (CARP);
2.4 Recall, or cancellation of provisional release
rentals, Certificates of Land Transfers (CLTs), and
CARP Beneficiary Certificates (CBCs) in cases
outside the purview of Presidential Decree (P.D.) No.
816, including the issuance, recall or cancellation of
Emancipation Patents (EPs) or Certificates of Land
Ownership Awards (CLOAs) not yet registered with
the Register of Deeds;
2.5 Exercise of the right of retention by the
landowner;
2.6 Application for exemption from coverage under
Section 10 of RA 6657;
2.7 Application for exemption pursuant to
Department of Justice (DOJ) Opinion No. 44 (1990);
2.8 Exclusion from CARP coverage of agricultural
land used for livestock, swine, and poultry raising;
2.9 Cases of exemption/exclusion of fishpond and
prawn farms from the coverage of CARP pursuant to
RA 7881;

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20 Rule II, Section 10. Appellate Jurisdiction.The Secretary shall


exercise appellate jurisdiction over all ALI cases and may delegate the
resolution of appeals to any Undersecretary.



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2.10 Issuance of Certificate of Exemption for land


subject to Voluntary Offer to Sell (VOS) and
Compulsory Acquisition (CA) found unsuitable for
agricultural purposes;
2.11 Application for conversion of agricultural land
to residential, commercial, industrial or other non
agricultural uses and purposes including protests or
oppositions thereto;
2.12 Determination of rights of agrarian reform
beneficiaries to homelots;
2.13 Disposition of excess area of the
tenants/farmerbeneficiarys landholdings;
2.14 Increase in area of tillage of a tenant/farmer
beneficiary;
2.15 Conflict of claims in landed estates
administered by the DAR and its predecessors; and
2.16 Such other agrarian cases, disputes, matters
or concerns referred to it by the Secretary of the DAR.


On the other hand, in the exercise of its quasijudicial
function, the DAR, through its adjudication arm, i.e., the
DARAB and its regional and provincial adjudication
boards, adopted the 2003 DARAB Rules of Procedure.
Under Section 2, Rule II of the said Rules of Procedure, the
DARAB shall have exclusive appellate jurisdiction to
review, reverse, modify, alter, or affirm resolutions, orders,
and decisions of its Adjudicators who have primary and
exclusive original jurisdiction over the following cases:

Rule II
Jurisdiction of the Board and its Adjudicators
SECTION 1. Primary and Exclusive Original
Jurisdiction.The Adjudicator shall have primary

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and exclusive original jurisdiction to determine and


adjudicate the following cases:
1.1 The rights and obligations of persons, whether
natural or juridical, engaged in the management,
cultivation, and use of all agricultural lands covered
by Republic


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Department of Agrarian Reform vs. Robles

Act (RA) No. 6657, otherwise known as the


Comprehensive Agrarian Reform Law (CARL), and
other related agrarian laws;
1.2 The preliminary administrative determination
of reasonable and just compensation of lands acquired
under Presidential Decree (PD) No. 27 and the
Comprehensive Agrarian Reform Program (CARP);
1.3 The annulment or cancellation of lease
contracts or deeds of sale or their amendments
involving lands under the administration and
disposition of the DAR or Land Bank of the
Philippines (LBP);
1.4 Those cases involving the ejectment and
dispossession of tenants and/or leaseholders;
1.5 Those cases involving the sale, alienation,
preemption, and redemption of agricultural lands
under the coverage of the CARL or other agrarian
laws;
1.6 Those involving the correction, partition,
cancellation, secondary and subsequent issuances of
Certificates of Land Ownership Award (CLOAs) and
Emancipation Patents (EPs) which are registered
with the Land Registration Authority;
1.7 Those cases involving the review of leasehold
rentals;
1.8 Those cases involving the collection of
amortizations on payments for lands awarded under
PD No. 27, as amended, RA No. 3844, as amended,
and RA No. 6657, as amended, and other related
laws, decrees, orders, instructions, rules, and
regulations, as well as payment for residential,
commercial, and industrial lots within the settlement
and resettlement areas under the administration and
disposition of the DAR;
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1.9 Those cases involving the annulment or


rescission of lease contracts and deeds of sale, and the
cancellation or amendment of titles pertaining to
agricultural lands under the administration and
disposition of the DAR and LBP; as well as EPs
issued under PD 266, Homestead Patents, Free
Patents, and miscellaneous sales patents to settlers in
settlement and resettlement areas under the
administration and disposition of the DAR;

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1.10 Those cases involving boundary disputes over


lands under the administration and disposition of the
DAR and the LBP, which are transferred, distributed,
and/or sold to tenantbeneficiaries and are covered by
deeds of sale, patents, and certificates of title;
1.11 Those cases involving the determination of
title to agricultural lands where this issue is raised in
an agrarian dispute by any of the parties or a third
person in connection with the possession thereof for
the purpose of preserving the tenure of the
agricultural lessee or actual tenantfarmer or farmer
beneficiaries and effecting the ouster of the interloper
or intruder in one and the same proceeding;
1.12 Those cases previously falling under the
original and exclusive jurisdiction of the defunct
Court of Agrarian Relations under Section 12 of PD
No. 946 except those cases falling under the proper
courts or other quasijudicial bodies; and
1.13 Such other agrarian cases, disputes, matters
or concerns referred to it by the Secretary of the DAR.

Section 3, Rule II of the 2003 DARAB Rules of Procedure
further states that the Adjudicator or the Board shall have
no jurisdiction over matters involving the administrative
implementation of R.A. No. 6657, otherwise known as the
Comprehensive Agrarian Reform Law of 1988 and other
agrarian laws as enunciated by pertinent rules and
administrative orders, which shall be under the exclusive
prerogative of and cognizable by the Office of the Secretary
of the DAR in accordance with his issuances.

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Meanwhile, the Regional Trial Courts (RTCs) have not


been completely divested of jurisdiction over agrarian
reform matters.21 Section 56 of RA 6657 confers special
jurisdiction on Special Agrarian Courts, which are RTCs
designated by the Court at least one (1) branch within
each province to

_______________

21 Vda. de Tangub v. Court of Appeals, 270 Phil. 88, 97; 191 SCRA
885, 892 (1990).

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Department of Agrarian Reform vs. Robles

act as such. As Special Agrarian Courts (SACs), these


RTCs have, according to Section 57 of the same law,
original and exclusive jurisdiction over all petitions for the
determination of just compensation to landowners and
the prosecution of all criminal offenses under . . . [the]
Act.22
In order to determine in accordance with the foregoing
provisions which among the DARAB and the Office of the
Secretary of DAR, and the SACs has jurisdiction over the
nature and subject matter of the petition for annulment of
the deeds of sale executed by Eduardo in favor of
respondents and the cancellation of the TCTs issued to
them, it is necessary to examine the following allegations
therein and the character of the relief sought, irrespective
whether the petitioner is entitled thereto:23

4.1 The late Eduardo Reyes was the original


registered owner of TCT 85055 and TCT 116506,
an agricultural land situated at Brgy. Ambling,
Magdalena, Laguna, consisting of 195,366 sq.
meters and 7,431 sq. meters, respectively.
4.2 The land described under TCT 85055 was
issued a notice of coverage under the Compulsory
Acquisition (CA) scheme pursuant to Section 7 of R.A.
6657. Subdivision plan over this property has been
approved and the DAR is now on the process of
generating the Certificate of Land Ownership Award
(CLOA) to the qualified recipient of the governments

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land reform program. However, pending processing of


the case folder, the DAR Municipal Office in
Magdalena received on September 8, 2005 a letter
coming from Atty. Homer Antazo, the alleged counsel
of Igmidio Robles and Christina Robles informing the
MAR Office of the subsequent sale of the property in
their favor attaching documents in support of their
claim. It was only then, after proper verification
with the Register of Deeds that the DAR found
out

_______________

22 Id.
23 Heirs of Candido Del Rosario v. Del Rosario, G.R. No. 181548, June
20, 2012, 674 SCRA 180, 191192.



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that indeed the properties under TCTT


85055 and TCT T116506 were all conveyed and
transferred in favor of the herein private
respondents by well intentioned deeds of
absolute sale executed in 1997. x x x
Subsequently, by virtue of such deeds of sale
the Registry of Deeds caused the cancellation of
TCT No. T85055 and TCT No. T116506 and the
issuance of new titles in private respondents
favor without securing the necessary clearance
from the DAR as mandated under
Administrative Order No. 1, Series of 1989. xxx
The said titles were issued arbitrarily and in
clear violation of Section 6 of R.A. 6657, hence
null and void. xxx
4.3 Public respondent Registry of Deeds might
[have] overlooked the transaction entered into and
misplaced knowledge on these big track of
landholdings when it proceeded with the registration
of the deeds of sale and the subsequent cancellation of
TCT No. T85055 and TCT No. T116506.
4.4 The Registry of Deeds was probably not
aware and mindful on the extent of properties of

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Eduardo Reyes, that it exceeded more than the


retention limit but, thru machinations and crafty
action exerted to by the parties to accomplish an evil
end, the immediate cancellation was brought to
completion.
4.5 Hence, because it was tainted with fraud and
bad faith, said certificate of titles cannot enjoy the
presumption of having been issued by the register of
deeds in the regular performance of its official duty.
4.6 That, as a consequence of swift and speedy
cancellation of TCT No. T85055 and TCT No. T
116506 and the instantaneous issuance of titles, the
DAR, because of this intervening development cannot
now continue with the generation of CLOA,
prompting the filing of the instant petition.

5. PRAYER

WHEREFORE, above premises considered, it is
most respectfully prayed of this Honorable
Adjudication Board that after due notice and hearing,
judgment be


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Department of Agrarian Reform vs. Robles

rendered annulling the Deeds of Absolute Sale


executed by the late Eduardo Reyes in favor of the
herein private respondents and the subsequent
cancellation of the issued transfer certificate of titles.
Petitioner likewise pray for such other relief and
remedies as this Honorable Board may deem just and
equitable under the premises.24

Although no tenancy or agrarian relationship between
the parties can be gleaned from the allegations of the
petition in order to be considered an agrarian dispute
within the DARABs jurisdiction, the Court notes that the
petition is anchored on the absence of a clearance for the
sale and registration of the subject agricultural lands in
favor of respondents, as required by DAR Administrative
Order No. 1, Series of 1989 (A.O. No. 0189)25 or the Rules
and Procedures Governing Land Transaction. Clearly, such
petition involves the matter of implementation of agrarian
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laws which is, as a general rule, within the primary


jurisdiction of the DAR Regional Director.
It bears stressing that while the rule is that DARABs
jurisdiction is limited to agrarian disputes where tenancy
relationship between the parties exists, Section 50 of R.A.
No. 6657 and Section 17 of E.O. No. 229 both plainly state
that the DAR is vested with the primary jurisdiction to
determine and adjudicate agrarian reform matters. It is
also noteworthy that while Section 3(d)26 of R.A. No. 6657
defined the term

_______________

24 CA Rollo, pp. 3941. (Emphasis added)


25 Adopted: January 3, 1989; Effective: January 26, 1989.
26 (d) Agrarian Dispute refers to any controversy relating to tenurial
arrangements, whether leasehold, tenancy, stewardship or otherwise, over
lands devoted to agriculture, including disputes concerning farmworkers
associations or representation of persons in negotiating, fixing,
maintaining, changing, or seeking to arrange terms or conditions of such
tenurial arrangements.
It includes any controversy relating to compensation of lands acquired
under this Act and other terms and conditions of transfer of

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agrarian dispute, no specific definition was given by


the same law to the term agrarian reform matters. In
view thereof, the Court cannot restrict the DARABs quasi
judicial jurisdiction only to those involving agrarian
disputes where tenancy relationship exists between the
parties, for it should also include other agrarian reform
matters which do not fall under the exclusive jurisdiction
of the Office of the Secretary of DAR, the Department of
Agriculture and the Department of Environment and
Natural Resources, as well as the Special Agrarian Courts.
Although they are not deemed as agrarian disputes
falling under the DARABs jurisdiction, [s]uch other
agrarian cases, disputes, matters or concerns referred to
the Adjudicator by the Secretary of the DAR pursuant to
Section 1(1.13), Rule II of the 2003 DARAB Rules of
Procedure, are still considered as agrarian reform

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matters. A case in point is the DARs petition for


annulment of deeds of sale and annulment of titles
executed in violation of the provision Section 6, par. 4 of RA
6657. Despite being an agrarian law implementation case,
the Secretary of the DAR expressly referred jurisdiction
over such petition to the Provincial Adjudicator of the
DARAB through Memorandum Circular (M.C.) No. 020127
on the Guidelines on Annulment of Deeds of Conveyance of
Lands Covered by the Comprehensive Agrarian Reform
Program (CARP) Executed in Violation of Section 6,
Paragraph 4 of Republic Act (RA) No. 6657. Section 4 of
DAR M.C. No. 0201 pertinently provides:

b) The Chief, Legal Division, of the Provincial


Agrarian Reform Office, shall have the following
responsibilities:

_______________

ownership from landowners to farmworkers, tenants and other


agrarian reform beneficiaries, whether the disputants stand in the
proximate relation of farm operator and beneficiary, landowner and
tenant, or lessor and lessee.
27 Adopted: January 9, 2001; Effective: January 23, 2001.



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1. Upon receipt of the MARO report,


determine whether or not there was illegal
transfer of agricultural lands pursuant to Sec. 6,
par. 4 of RA 6657;
2. If there was illegal transfer, file a
petition for annulment of the deed of
conveyance in behalf of the PARO before
the Provincial Agrarian Reform
Adjudicator (PARAD). The petition shall state
the material facts constituting the violation and
pray for the issuance of an order from the
PARAD directing the ROD to cancel the deed of
conveyance and the TCT generated as a result
thereof. As legal basis therefor, the petition shall
cite Section 50 of RA 6657 and Rule II, Section

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1(c) and (e) of the [1994] DARAB New Rules of


Procedure.28

Concededly, the properties subject of the petition for
annulment of deeds of sale and cancellation of titles cannot
be considered as lands under the administration of the
DAR or LBP, i.e., those already acquired for CARP
purposes and distributed to qualified farmer
29
beneficiaries. Hence, such petition is outside the DARAB
jurisdiction under Section 1(1.9),30 Rule II of the 2003
DARAB Rules of Procedure.
Nevertheless, it can be gathered from the allegations in
the petition that the subject properties Eduardo conveyed
and transferred to respondents are agricultural lands in
excess of

_______________

28 Emphasis added.
29 Dandoy v. Tongson, 514 Phil. 384, 391; 478 SCRA 195, 201 (2005).
30 1.9 Those cases involving the annulment or rescission of lease
contracts and deeds of sale, and the cancellation or amendment of titles
pertaining to agricultural lands under the administration and disposition
of the DAR and LBP; as well as Eps issued under PD 266, Homestead
Patents, Free Patents, and miscellaneous sales patents to settlers in
settlements and resettlement areas under the administration and
disposition of the DAR.



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the 5hectare (50,000 sq. m.) retention limit of the


CARL, and that the corresponding TCTs were later issued
and registered in their names without the necessary
clearance under DAR A.O. No. 1, Series of 1989.
In Sarne v. Hon. Maquiling,31 the Court construed the
phrase agricultural lands under the coverage of the
CARP under Section 1(e),32 in relation to Section 1(c),33
Rule II of the 1994 DARAB Rules of Procedure, which are
similarlyworded as Sections 1(1.3) and (1.5), Rule II of the
2003 DARAB Rules of Procedure, thus:34

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It is clear that the jurisdiction of the DARAB in


this case is anchored on Section 1, paragraph (e), Rule
II of the [1994] DARAB New Rules of Procedure
covering agrarian disputes involving the sale,
alienation, mortgage, foreclosure, preemption and
redemption of agricultural lands under the coverage
of the CARP or other agrarian laws. There is nothing
in the provision from which it can be inferred that the
jurisdiction of the DARAB is limited only to
agricultural lands under the administration and
disposition of DAR and LBP. We should not
distinguish where the law does not distinguish. The
phrase agricultural lands under the coverage
of the CARP includes all private lands devoted
to or suitable for agriculture, as defined under
Section 4 of R.A. No. 6657. It is worthy to note that
in the enumeration defining the DARABs
jurisdiction, it is only in paragraph (c), that is, cases
involving the annulment or cancellation of lease
contracts or deeds of sale or their amendments
involving

_______________

31 Sarne v. Maquiling, 431 Phil. 675; 382 SCRA 85 (2002).


32 e) Those involving the sale, alienation, mortgage, foreclosure,
preemption and redemption of agricultural lands under the coverage of
the CARP or other agrarian laws.
33 c) The annulment or cancellation of lease contracts or deeds of sale
or their amendments involving lands under the administration and
disposition of the DAR or LBP.
34 Sarne v. Maquiling, supra.



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lands, that the phrase involving lands under the


administration and disposition of the DAR or LBP is
used. That the same proviso does not appear in
paragraph (e), which is the basis of respondents
cause of action, could only mean that it was never
intended to be so limited. xxx35

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Contrary to the view of the CA and the respondents,


therefore, a notice of coverage is not necessary in order for
the DARAB to have jurisdiction over a case that involves
the sale or alienation of agricultural lands under the
coverage of the CARP pursuant to Section 1(1.5),36 Rule II
of the 2003 DARAB Rules of Procedure, as such phrase
includes all private lands devoted to or suitable for
agriculture, as defined under Section 4 of R.A. No. 6657:

CHAPTER II
Coverage
Section 4. Scope.The Comprehensive Agrarian
Reform Law of 1989 shall cover, regardless of tenurial
arrangement and commodity produced, all public and
private agricultural lands, as provided in
Proclamation No. 131 and Executive Order No. 229,
including other lands of the public domain suitable for
agriculture.
More specifically the following lands are covered by
the Comprehensive Agrarian Reform Program:
(a) All alienable and disposable lands of the
public domain devoted to or suitable for
agriculture. No reclassification of forest or
mineral lands to agricultural lands shall be
undertaken after the approval of this Act until
Congress, taking into account ecological,
developmental and equity considerations, shall
have determined by law, the specific limits of
the public domain.

_______________

35 Id., at p. 689; p. 96. (Emphasis added)


36 1.5 Those involving the sale, alienation, preemption and
redemption of agricultural lands under the coverage of the CARL or other
agrarian laws.



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(b) All lands of the public domain in excess


of the specific limits as determined by Congress
in the preceding paragraph;

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(c) All other lands owned by the


Government devoted to or suitable for
agriculture; and
(d) All private lands devoted to or suitable
for agriculture regardless of the agricultural
products raised or that can be raised thereon.

In light of the principle that jurisdiction over the subject
matter and nature of the petition is conferred by law and
determined by the material allegations therein, and is not
affected by the defenses or theories set up in the
respondents answer or motion to dismiss, the Court finds
that the DARs petition for annulment of deeds of sale and
cancellation of titles falls under the jurisdiction of the
PARAD under Section 1(1.5), Rule II of the 2003 DARAB
Rules of Procedure, as it contains sufficient allegations to
the effect it involves sales of agricultural lands under the
coverage of the CARL.
To be sure, the Court does not undermine the
significance of the notice of coverage for purposes of
acquisition of lands under the CARP. A letter informing a
landowner that his/her land is covered by CARP, and is
subject to acquisition and distribution to beneficiaries, and
that he/she has rights under the law, including the right to
retain 5 hectares, the notice of coverage first sprung from
DAR A.O. No. 12, Series of 1989,37 to fill in the gap under
Section 16 of the CARL on the identification process of
lands subject to compulsory acquisition. In Roxas & Co.,
Inc. v. Court of Appeals,38 the Court stressed the
importance of such notice as a step designed to comply with
the requirements of administrative due process:

_______________

37 Revised Rules and Regulations on the Compulsory Acquisition of


Agricultural Lands under R.A. No. 6657.
38 378 Phil. 727, 762; 321 SCRA 106, 134 (1999).



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The importance of the first notice, i.e., the Notice of


Coverage and the letter of invitation to the

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conference, and its actual conduct cannot be


understated. They are steps designed to comply with
the requirements of administrative due process. The
implementation of the CARL is an exercise of the
States police power and the power of eminent
domain. To the extent that the CARL prescribes
retention limits to the landowners, there is an
exercise of police power for the regulation of private
property in accordance with the Constitution. But
where, to carry out such regulation, the owners are
deprived of lands they own in excess of the maximum
area allowed, there is also a taking under the power
of eminent domain. The taking contemplated is not a
mere limitation of the use of the land. What is
required is the surrender of the title to and physical
possession of the said excess and all beneficial rights
accruing to the owner in favor of the farmer
beneficiary. The Bill of Rights provides that [n]o
person shall be deprived of life, liberty or property
without due process of law. The CARL was not
intended to take away property without due process of
law. The exercise of the power of eminent domain
requires that due process be observed in the taking of
private property.39

Given that the notices of coverage were issued to the
wrong persons, the heirs of the former owner, Eduardo,
instead of respondents who are the present owners of the
subject properties, the DAR can hardly be faulted for such
mistake. It bears emphasis that while Eduardo executed
the corresponding deeds of absolute sale in favor of
respondents as early as April 17, 1997, it was only on May
3, 2005 that said deeds were registered in the names of
respondents. Meantime, in view of the death of Eduardo on
October 28, 2000, the DAR had no choice but to send the
Notices of Coverage dated September 8, 2004 and
November 23, 2004 to his heirs, Julieta and Nenita,
respectively. While said deeds of sale are binding between
the said heirs of Eduardo and respondents, the DAR

_______________

39 Id., at pp. 762763; p. 134.



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could not have been aware thereof for lack of


registration which is the operative act that binds or affects
the land insofar as third persons are concerned. Thus, the
DAR cannot be blamed for erroneously issuing such notices
to the said heirs because it merely relied on available
public records at the Register of Deeds, showing that the
original landowner of the said properties is the late
Eduardo.
For its part, despite the DARs allegation that it only
found out that the subject properties were already
conveyed and transferred in favor of respondents when its
Municipal Office in Magdalena, Laguna, received on
September 8, 2005 a letter from the counsel of respondent
Igmedio Robles and Christina Robles, it should be deemed
to have constructive notice of said deeds only from the time
of their registration on May 3, 2005. From the date of such
registration, the DAR should have also issued respondents
notices of coverage pursuant to DAR M.C. No. 1804
(Clarificatory Guidelines on the Coverage, Acquisition and
Distribution of Agricultural Lands Subject of Conveyance
Executed in Violation of Sec. 6, Par. 4 of R.A. No. 6657)
which modified DAR M.C. No. 0201:

3. Notwithstanding the pendency of the
investigation and/or the petition for annulment of
deed of conveyance, the DAR shall issue a notice of
coverage to both old and new landowner/s in order for
the LBP to proceed with the valuation of the property.
For this purpose, the DAR Provincial or Regional
Office and the Land Bank of the Philippines may
execute an agreement for purposes of issuing
memorandum of valuation and certificate of deposit to
be held in trust for the rightful owner/s.

The Court, however, holds that the DAR cannot be taken
to task for failing to issue notices of coverage to
respondents because the land areas of the subject
properties sold to them, respectively, are all within the 5
hectare (50,000 sq. m.) retention limit. Respondents
cannot, therefore, contend that a notice of coverage is
necessary in order for a land to be considered under the
coverage of the CARP for purposes of filing

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a petition under DAR M.C. No. 0201 in relation to


violation of Section 6, paragraph 4 of RA 6657. To sustain
respondents contention would subvert the objectives of the
said provision to prevent circumvention of the retention
limits set by law on ownership of agricultural lands after
the effectivity of CARL on June 15, 1988, and to prevent
the landowner from evading CARP coverage. Hence, the
Court cannot uphold such contention, as it would
ultimately defeat the purpose of the agrarian reform
program of achieving social justice through equitable
distribution of large landholdings to tenants or farmers
tilling the same.
Furthermore, at the time of the sale of the subject
properties on April 17, 1997, there were existing tenants
thereon as shown by the Deeds of Surrender of Tenancy
Rights40 dated July 10, 1997 later executed in favor of the
buyers, respondents Igmidio and Cristina Robles. Then, in
identicallyworded certifications dated August 29, 1997, the
BARC Chairman and the Barangay Chairman of Ambiling,
Magdalena, Laguna, both stated that the property covered
by TCT No. T85055 with an area of 195,366 sq. m. is a
coconut land without any tenant and may be converted into
an industrial, resort, lowcost housing or residential
subdivision.41 Without ruling on the validity of the deeds of
surrender of tenancy rights, the Court finds that the
execution thereof subsequent to that of the deeds of sale,
alongside the certifications of the BARC Chairman and
Barangay Chairman, casts doubt on the validity of the
transfer and conveyance of the subject properties as a ploy
to circumvent the retention limits and coverage under the
CARP.
It is noteworthy that in Department of Agrarian Reform
v. Paramount Holdings Equities, Inc.,42 the Court had
resolved in the negative the issue of whether or not the
DARAB has jurisdiction over a dispute that seeks the
nullification of the

_______________

40 CA Rollo, pp. 8495.


41 Id., at pp. 8283.
42 Department of Agrarian Reform v. Paramount Holdings Equities,
Inc., supra note 16.
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sale of agricultural lands because (1) the PAROs


petition failed to sufficiently allege any tenurial or agrarian
relations and to indicate an agrarian dispute, and (2) the
said lands had not been the subject of any notice of
coverage under the CARP.
Despite the fact that the same jurisdictional issue is
involved in this case, the Courts ruling in Paramount is
inapplicable because of the difference between the material
allegations in the PAROs petitions in both cases.
Given that the PAROs petition in this case likewise
failed to allege any tenancy or agrarian relations and to
indicate an agrarian dispute, and its cause of action is
merely founded on the absence of a clearance to cover the
sale and registration of the subject lands, it bears emphasis
that the DARABs jurisdiction is not limited to agrarian
disputes where tenancy relationship between the parties
exists. Under Section 1(1.13),43 Rule II of the 2003 DARAB
Rules of Procedure, the DARAB also has jurisdiction over
agrarian reform matters referred to it by the Secretary of
DAR, such as the PAROs petition for annulment of deeds
of sale and annulment of titles filed pursuant to DAR A.O.
No. 018944 and DAR M.C. No. 020145 for

_______________

43 Section 1. Primary and Exclusive Original Jurisdiction.The


Adjudicator shall have primary and exclusive original jurisdiction to
determine and adjudicate the following cases:
xxx
1.13 Such other agrarian cases, disputes, matters or concerns referred
to it by the Secretary of DAR.
xxxx
44 The Rules and Procedures Governing Land Transaction.
45 Guidelines on Annulment of Deeds of Conveyance of Lands Covered
by the Comprehensive Agrarian Reform Program (CARP) Executed in
Violation of Section 6, Paragraph 4 of Republic Act (RA) No. 6657. Section
4(b) of DAR M.C. No. 0201 pertinently provides:
SEC. 4. Operating Procedures.The procedures for annulment of
deeds of conveyance executed in violation of RA 6657 are as follows:
xxx

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b) The Chief, Legal Division, of the Provincial Agrarian Reform Office,


shall have the following responsibilities:



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violation of the legal requirement for clearances in the


sale and transfer of agricultural lands.
In contrast to Paramount where it is undisputed that
the subject lands had not been subject of any notice of
coverage under the CARP, the PAROs petition in this case
alleged that one of the subject lands was issued a notice of
coverage.46 At any rate, the Court holds that such notice is
unnecessary in order for the DARAB to have jurisdiction
over a case that involves the sale of agricultural lands
under the coverage of the CARP, pursuant to Section
1(1.5),47 Rule II of the 2003

_______________

1. Upon receipt of the MARO report, determine whether or not there


was illegal transfer of agricultural lands pursuant to Sec. 6, par. 4 of RA
6657;
2. If there was illegal transfer, file a petition for annulment of
the deed of conveyance in behalf of the PARO before the
Provincial Agrarian Reform Adjudicator (PARAD). The petition
shall state the material facts constituting the violation and pray for the
issuance of an order from the PARAD directing the ROD to cancel the
deed of conveyance and the TCT generated as a result thereof. As legal
basis therefor, the petition shall cite Section 50 of RA 6657 and Rule II,
Section 1(c) and (e) of the [1994] DARAB New Rules of Procedure. xxx
46 4.1 The late Eduardo Reyes was the original registered
owner of TCT No. T85055 and TCT No. T116506, an agricultural
land situated at Brgy. Ambiling, Magdalena, Laguna, consisting of
195,366 sq. m. and 7,431 sq. meters, respectively.
4.2 The land described under TCT No. T85055 was issued a
notice of coverage under the Compulsory Acquisition (CA) scheme
pursuant to Section 7 of R.A. 6657. x x x. Emphasis added. See CA
Rollo, pp. 3940.
47 SECTION 1. Primary and Exclusive Original Jurisdiction.The
Adjudicator shall have primary and exclusive original jurisdiction to
determine and adjudicate the following cases:
xxxx

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1.5. Those cases involving the sale, alienation, preemption, and


redemption of agricultural lands under the coverage of the CARL or other
agrarian laws;
xxx



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DARAB Rules of Procedure. As held in Sarne v.


Maquiling,48 the said phrase includes all private lands
devoted to or suitable for agriculture, as defined under
Section 449 of RA No. 6657. In view of the rule that
jurisdiction over the subject matter and nature of the
petition is determined by the allegations therein and the
character of the relief prayed for, irrespective of whether
the petitioner is entitled to any or all such reliefs,50 the
Court finds that the PAROs petition for annulment of sale
and cancellation of titles falls under the jurisdiction of the
DARAB, as it contains allegations to the effect that it
involves sales of agricultural lands under the coverage of
the CARL.
Significantly, unlike in this case where the transfer of
the subject properties appears to have been done to evade
the retention limits and coverage under CARP, the Court
found the original petition in Paramount dismissible on the
merits as the

_______________

48 Supra note 31 at p. 689; p. 96.


49 Section 4. Scope.The Comprehensive Agrarian Reform Law of
1989 shall cover, regardless of tenurial arrangement and commodity
produced, all public and private agricultural lands, as provided in
Proclamation No. 131 and Executive Order No. 229, including other lands
of the public domain suitable for agriculture.
More specifically the following lands are covered by the Comprehensive
Agrarian Reform Program:
(a) All alienable and disposable lands of the public domain devoted to
or suitable for agriculture. No reclassification of forest or mineral lands to
agricultural lands shall be undertaken after the approval of this Act until
Congress, taking into account ecological, developmental and equity
considerations, shall have determined by law, the specific limits of the
public domain.

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(b) All lands of the public domain in excess of the specific limits as
determined by Congress in the preceding paragraph;
(c) All other lands owned by the Government devoted to or suitable for
agriculture; and
(d) All private lands devoted to or suitable for agriculture regardless
of the agricultural products raised or that can be raised thereon.
50 Department of Agrarian Reform v. Paramount Holdings Equities,
Inc., supra note 16 at pp. 336337.



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records clearly showed that the subject lands were


already classified as industrial long before the effectivity
of the CARL.
The Court also overrules respondents argument that
the subject properties are outside the coverage of CARP
and registerable, since no annotation of any disposition of
the properties or limitation on the use thereof by virtue of,
or pursuant to P.D. No. 27, CARL or any other law or
regulations on agrarian reform was inscribed on Eduardos
titles and their derivative titles. Quite the contrary, TCT
Nos. T85055 and T116506 under the name of Eduardo
contain provisions stating that he is the owner thereof in
fee simple, subject to the encumbrances mentioned in
Section 39 of Act No. 496, or the Land Registration Act,51
and Section 44 of P.D. 1529, or the Property Registration
Decree, respectively.
Section 39 of Act No. 496 and Section 44 of P.D. No.
1529 similarly provide for statutory liens which subsist and
bind the whole world, even without the benefit of
registration under the Torrens System:

Section 39. Every applicant receiving a
certificate of title in pursuance of a decree of
registration, and every subsequent purchaser of
registered land who takes a certificate of title for
value in good faith, shall hold the same free of all
encumbrance except those noted on said certificate,
and any of the following encumbrances which may be
subsisting, namely:
First. Liens, claims, or rights arising or
existing under the laws or Constitution of the

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United States or of the Philippine Islands which


the statutes of the Philippine Islands cannot
require to appear of record in the registry.
xxx 52
SEC. 44. Statutory liens affecting title.Every
registered owner receiving a certificate of title in
pursu

_______________

51 CA Rollo, p. 53.
52 Emphasis added.



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Department of Agrarian Reform vs. Robles

ance of a decree of registration, and every


subsequent purchaser of registered land taking a
certificate of title for value and in good faith, shall
hold the same free from all encumbrances except
those noted in said certificate and any of the following
encumbrances which may be subsisting, namely:
xxx
Fourth. Any disposition of the property or
limitation on the use thereof by virtue of, or
pursuant to, Presidential Decree No. 27 or any
other law or regulations on agrarian reform.53

The Court is of the view that the provision on retention
limits under Section 6 of RA 6657 constitutes as statutory
liens on Eduardos titles, which were carried over to
respondents derivative titles, even if no such annotations
were inscribed on all of the said titles. In particular, such
statutory liens pertain to paragraph 4 of Section 6 of RA
6657 in relation to Section 73 of the same law, which read:

Section 6. Retention Limits.Except as
otherwise provided in this Act, no person may own or
retain, directly or indirectly, any public or private
agricultural land, the size of which shall vary
according to factors governing a viable familysize
farm, such as commodity produced, terrain,
infrastructure, and soil fertility as determined by the

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Presidential Agrarian Reform Council (PARC) created


hereunder, but in no case shall retention by the
landowner exceed five (5) hectares. Three (3) hectares
may be awarded to each child of the landowner,
subject to the following qualifications: (1) that he is at
least fifteen (15) years of age; and (2) that he is
actually tilling the land or directly managing the
farm: provided, that landowners whose lands have
been covered by Presidential Decree No. 27 shall be
allowed to keep the areas originally retained by them
thereunder: provided, further, that original
homestead grantees or their direct compulsory heirs

_______________

53 Id.



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who still own the original homestead at the time of


the approval of this Act shall retain the same areas as
long as they continue to cultivate said homestead.
xxxx
Upon the effectivity of this Act, any sale,
disposition, lease, management, contract or
transfer of possession of private lands executed
by the original landowner in violation of the Act
shall be null and void: provided, however, that
those executed prior to this Act shall be valid only
when registered with the Register of Deeds within a
period of three (3) months after the effectivity of this
Act. Thereafter, all Registers of Deeds shall inform
the Department of Agrarian Reform (DAR) within
thirty (30) days of any transaction involving
agricultural lands in excess of five (5) hectares.
Section 73. Prohibited Acts and Omissions.
The following are prohibited: (a) The ownership
or possession, for the purpose of circumventing
the provisions of this Act, of agricultural lands
in excess of the total retention limits or award
ceilings by any person, natural or juridical,

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except those under collective ownership by farmer


beneficiaries.
xxxx
(e) The sale, transfer, conveyance or change of
the nature of lands outside of urban centers and
city limits either in whole or in part after the
effectivity of this Act. The date of the registration
of the deed of conveyance in the Register of Deeds
with respect to titled lands and the date of the
issuance of the tax declaration to the transferee of the
property with respect to unregistered lands, as the
case may be, shall be conclusive for the purpose of
this Act.54

As Eduardos titles contain such statutory liens,
respondents have imputed knowledge that the transfer of
the subject properties in excess of the landowners 5
hectare (50,000 sq. m.)

_______________

54 Id.

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Department of Agrarian Reform vs. Robles

retention limit under the CARL could have been illegal


as it appears to circumvent the coverage of CARP. Thus,
until the PARAD has decided with finality the DARs
petition for annulment of deeds of sale and cancellation of
titles for alleged violation of Section 6, paragraph 4 of RA
6657, respondents cannot claim that they are innocent
purchasers for value and in good faith.
There is also no merit in respondents contention that
the TCTs issued in their favor have become
incontrovertible and indefeasible, and can no longer be
altered, canceled or modified or subject to any collateral
attack after the expiration of one (1) year from the date of
entry of the decree of registration, pursuant to Section 32 of
P.D. No. 1529. In Heirs of Clemente Ermac v. Heirs of
Vicente Ermac,55 the Court clarified the foregoing principle
in this wise:

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While it is true that Section 32 of PD 1529 provides that


the decree of registration becomes incontrovertible after a
year, it does not altogether deprive an aggrieved party of a
remedy in law. The acceptability of the Torrens System
would be impaired, if it is utilized to perpetuate fraud
against the real owners.
Furthermore, ownership is not the same as a certificate
of title. Registering a piece of land under the Torrens
System does not create or vest title, because registration is
not a mode of acquiring ownership. A certificate of title is
merely an evidence of ownership or title over the particular
property described therein. Its issuance in favor of a
particular person does not foreclose the possibility that the
real property may be coowned with persons not named in
the certificate, or that it may be held in trust for another
person by the registered owner.56

_______________

55 451 Phil. 368; 403 SCRA 291 (2003). (Citations omitted)


56 Id., at p. 376; pp. 297298.



181

VOL. 777, DECEMBER 9, 2015 181


Department of Agrarian Reform vs. Robles

In Lacbayan v. Samoy, Jr.,57 the Court noted that what


cannot be collaterally attacked is the certificate of title, and
not the title itself:

x x x The certificate referred to is that document
issued by the Register of Deeds known as the TCT. In
contrast, the title referred to by law means ownership
which is, more often than not, represented by that
document. x x x Title as a concept of ownership
should not be confused with the certificate of title as
evidence of such ownership although both are
interchangeably used.

In this case, what is being assailed in the DARs petition
for annulment of deeds of sale and cancellation of titles is
the legality of the transfer of title over the subject
properties in favor of respondents, and not their
corresponding TCTs, due to the absence of DAR clearance

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10/16/2017 SUPREME COURT REPORTS ANNOTATED VOLUME 777

and for possible violation of Section 6, paragraph 4 of R.A.


No. 6657.
All told, the CA erred in dismissing for lack of
jurisdiction the DARs petition for annulment of deeds of
sale and cancellation of titles before the PARAD, and in
holding that it is the regular courts that should determine
if indeed there were violations of the agrarian laws which
would justify the grant of such petition. As can be
determined from the allegations of the petition, the DARAB
has jurisdiction over such case which involves agrarian
reform matters under Section 1(1.5)58 and (1.13),59 Rule II
of the 2003 DARAB Rules of Procedure.
WHEREFORE, the petition is GRANTED, and the
Court of Appeals Decision dated May 29, 2009 and its
Resolution dated December 2, 2009 in C.A.G.R. S.P. No.
104896, are REVERSED and SET ASIDE. The
Resolutions dated Feb

_______________

57 661 Phil. 307, 317; 645 SCRA 677, 689 (2011).


58 1.5 Those cases involving the sale, alienation, preemption, and
redemption of agricultural lands under the coverage of the CARL or other
agrarian laws.
59 1.13 Such other agrarian cases, disputes, matters or concerns
referred to it by the Secretary of the DAR.



182

182 SUPREME COURT REPORTS ANNOTATED


Department of Agrarian Reform vs. Robles

ruary 7, 2008 and June 26, 2008 of the Provincial


Adjudicator of the Department of Agrarian Reform
Adjudication Board, Region IVA, are REINSTATED. The
said Adjudicator is ORDERED to proceed with dispatch in
the resolution of the Petition for Annulment of Deeds of
Sale and Cancellation of TCT Nos. T238504, T238505, T
238506, T238507, T238503, and T238502, docketed as
DARAB Case No. R04030032003706.
SO ORDERED.

Velasco, Jr. (Chairperson), Villarama, Jr., Reyes and


Jardeleza, JJ., concur.

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Petition granted, judgment and resolution reversed and


set aside.

Notes.The Regional Trial Courts (RTCs), organized as


special agrarian courts, are the final adjudicators on the
issue of just compensation. (Land Bank of the Philippines
vs. Livioco, 631 SCRA 86 [2010])
A petition for review is indeed the correct mode of
appeal from decisions of Special Agrarian Courts (SARs);
Land Bank of the Philippines v. De Leon, 388 SCRA 537
(2002), which ruled on the correct mode of appeal from
decisions of SARs applies only to cases appealed from the
finality of the Courts Resolution dated 20 March 2003.
(Tiangco vs. Land Bank of the Philippines, 632 SCRA 256
[2010])


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