#62 - Sps Pasco Vs Pison-Arceo - NG

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AGRARIAN LAW Topic: When the Rights and Obligations of Beneficiary Commence

AND SOCIAL
LEGISLATION

Title: SPOUSES JESUS AND EVANGELINE PASCO, GR No. 165501


PETITIONERS, VS. PISON-ARCEO AGRICULTURAL
AND DEVELOPMENT CORPORATION, RESPONDENT. Date: March 28, 2006

Ponente: CARPIO MORALES, J

Division: THIRD DIVISION

Doctrine: The rights and responsibilities of the beneficiaries begin from their receipt of a duly registered Certificate
of Land Ownership Award and the actual physical possession of the awarded land

FACTS

Respondent, Pison-Arceo Agricultural and Development Corporation (Pison), is the registered owner of a
100 hectare land. Constructed on respondent's parcel of land are houses which are occupied by its
workers. Petitioners, among other workers, used to work for respondent until 1987. They having ceased
to be employed by respondent, petitioners were asked to vacate the house they were occupying but
they refused, hence, respondent filed a complaint for unlawful detainer against them before the MTCC in
Talisay City. The MTCC of Talisay rendered judgment in favor of respondent.

After the promulgation on June 30, 2000 of the MTCC decision or on August 23, 2000, the Municipal
Agrarian Reform Office (MARO) of Talisay City sent a Notice of Coverage and Field Investigation
(Notice of Coverage).

In their Memorandum, petitioners argued that respondent's hacienda is covered by the CARL and they
are qualified beneficiaries thereunder. The RTC of Bacolod City affirmed the decision of the MTCC.
Petitioners moved to reconsider the RTC decision, contending that the MTCC had no jurisdiction over
the complaint for unlawful detainer in view of the agrarian dispute between them and respondent;
Petitioners' motion for reconsideration was denied. On appeal, the CA denied the petitioner’s petion.

ISSUE/S

1. Whether or not one who has been identified by the Department of Agrarian Reform (DAR) as potential
agrarian reform beneficiary may be ejected from the land where he is identified as such, by the landowner, who
has already been notified by the DAR of the coverage of his land by the Comprehensive Agrarian Reform
Program of the government.

HELD

1. Yes. The issuance during the pendency of the case of a Notice of Coverage to respondent does not, however,
automatically make the ejectment case an agrarian dispute over which the Department of Agrarian Reform
Adjudication Board (DARAB) has jurisdiction. The issuance of a Notice of Coverage is merely a preliminary
step for the State's acquisition of the land for agrarian reform purposes and it does not automatically vest title
or transfer the ownership of the land to the government

. Notice of Coverage does not ipso facto render the land subject thereof a land reform area. The owner retains
its right to eject unlawful possessors of his land, as what respondent did in the present case. As for the
registration of petitioners as potential CARP beneficiaries, the same does not help their cause. Nothing in the
records of the case shows that the DAR has made an award in favor of petitioners, hence, no rights over the
land they occupy can be considered to have vested in their favor in accordance with Section 24 of the CARL
which reads:

Section 24. Award to Beneficiaries. — The rights and responsibilities of the beneficiary shall
commence from the time the DAR makes an award of the land to him, which award shall be
completed within one hundred eighty (180) days from the time the DAR takes actual possession of the
land. Ownership of the beneficiary shall be evidenced by a Certificate of Land Ownership Award,
which shall contain the restrictions and conditions provided for in this Act, and shall be recorded in
the Register of Deeds concerned and annotated on the Certificate of Title.

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