10/13/2018

LAND REDISTRIBUTION PASCO VS. PISON-ARCEO AGRI. DEV. CORP.

• PASCO VS. PISON-ARCEA AGRI. DEV. CORP. G.R. NO. 165501, MARCH 28, 2006
• SEC 25
“As potential CARP beneficiaries, they are included in the list of those who may be awarded land under the CARP.
Nothing in the records of the case shows that the DAR has made an award in favor of petitioners, hence, no rights
• SEC 26
over the land they occupy can be considered to have vested in their favor in accordance with Section 24 of the
• SEC 27 CARL”
FACTS
 Respondent Pison-Arceo Agri. Dev. Corp is the registered owner of a parcel of land
 Petitioners, are employees of the Respondent, who by reason of their employment were provided a place to stay
 Due to the cessation of the employment of Petitioners by the Respondent, Petitioners were asked to vacate the
said property (House)
 Petitioners refused
 Thus, Respondent instituted an action for unlawful detainer
 During the pendency of the case, MARO/ DAR sent a Notice of Coverage to Respondents, advising Respondent
that its parcel of land is now covered under CARL
BY: GERALD ARCHIE AGUSTIN  Lower Courts rendered judgment in favor of Respondent
 Thus, this case

ARGUMENTS:
 Petitioners:
 The house was initially constructed by the Respondent, but a typhoon destroyed the house, compelling petitioners to re-
build the house at their own expense, thus are entitled to reimbursement before they can be lawfully ejected
 In view of the Agrarian Dispute arising from the inclusion of the subject property under CARL, and identifying the
Petitioners as potential beneficiary, the lower court has no jurisdiction to decide on the Ejectment Case until after the
resolution of the Agrarian Dispute
RULING
 The issuance during the pendency of the case of a Notice of Coverage to respondent does not automatically
make the ejectment case an agrarian dispute over which the 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.
 Since after Notice, DAR and other concerned sectors will conduct a hearing, determining among others things:

ISSUE  Whether the land will be places under agrarian reform

 Whether or not one who has been identified by the 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 CARP of the Government
 The lands suitability to agriculture
 A Notice of Coverage does not ipso facto render the land subject to land reform area
 Thus,The owner retains its right to eject unlawful possessors of his land.

LEGAL BASIS
 Petitioners inclusion to the list as potential CARP beneficiaries does not vest any right as since, they are included
in the list of those who may be awarded land under CARP;
 There is not record of any award by DAR of the land in favor of the petitioners, hence no rights over the land
Petitioners occupy can be considered to have vested in their favor in accordance with Sec. 24 which reads:
 “Sec. 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…”
SEC. 26
 LBP shall have a lien by way of mortgage on the land awarded to the beneficiary
 This mortgage may be foreclosed by the LBP for non-payment of an aggregate of 3 annual amortizations
 LBP shall advise the DAR of such proceedings and the latter shall subsequently award the forfeited landholdings
to other qualified beneficiaries
 A beneficiary, whose land has been foreclosed shall thereafter be permanently disqualified from becoming a
beneficiary under this Act
SEC. 27 TRANSFERABILITY OF AWARDED LANDS
 Lands acquired under this Act may not be sold, transferred or conveyed for a period of 10 years
 Except through hereditary succession or to the government, or the LBP or to other qualified beneficiaries
 Right to repurchase: Children or Spouse of the transferor shall have the right to repurchase the land from the
Government or LBP within a period of 2 years
 Due notice of the availability of the land shall be given by the LBP to BARC
10/13/2018
SEC. 25 AWARD CEILINGS FOR BENEFICIARIES
 Beneficiaries’ award shall not exceed an accumulated parcel/s of land of 3 hectares
 Beneficiaries under this law are allowed to own the parcel of land collectively (Co-ownership, as Farmers
Cooperative or other form of collective organization)
 The limit then shall apply as follows:Total number of co-owners/members of coop multiplied by 3 hectares
 Title to the land shall be issued in the name of the co-owners or COOP or Collective Organization
SEC. 26 PAYMENT BY BENEFICIARIES
 Lands awarded pursuant to this Act shall be paid for by the beneficiaries to the LBP in 30 annual amortizations at
6% interest per annum
 Payment for the first 3 years after the award may be at reduced amounts as established by the PARC
 Provided, the first 5 annual payments may not be more than 5% of the value of the annual gross production
established by DAR
 Should the scheduled annual payments after the 5th year exceed 10% of annual gross production and the failure to
produce accordingly is not due to the beneficiary’s fault, the LBP may reduce the interest rate or reduce the
principal obligations to make the repayment affordable
SEC. 27
 BARC (Barangay Agrarian Reform Committee) shall in turn notify Provincial Agrarian Reform Coordinating
Committee
 If the land is not yet fully paid by the beneficiary, the rights to the land may be transferred or conveyed to any heir
of the beneficiary or to any other beneficiary, provided;
 As a condition, such beneficiary shall cultivate the land himself
There is a prior approval of the DAR

 Failure to comply to the conditions, the land shall be transferred to the LBP provided;
 LBP shall compensate the beneficiary in one lump sum for the amounts already paid, together with the value of
improvements he has made on the land